Literature Review on Fraud/White Collar Crime, Organizations, and Individuals

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Fraud and white-collar crime are common forms of crimes that people commit in various aspects and positions in the corporate world. Fraud and white-collar crimes have similar meaning as they refer to the non-violent crimes that people commit with the basic objective of gaining money using illegal means. The cases of white-collar crimes have been increasing exponentially in the 21st century due to the advent of technology because fraudsters apply technological tools in cheating, swindling, embezzling, and defrauding people or organizations. White-collar crime is a complex issue in society because its occurrence is dependent on many factors such as organizational structure, organization culture, and personality traits. Thus, the literature …show more content…
According to Makansi (2010), fraudsters exploit loopholes that are in the organizational structure and perpetuate white-collar crimes. Thus, stringent regulations and standard procedures of operations are necessary to curb white-collar crimes in organizations.
Following the revelation that the global financial crisis that emerged in 2008 was due to white-collar crimes in securities markets, insurance companies, and mortgage firms, scholars have attributed white-collar crimes to organizational structure. Simpson (2011) argues that white-collar crime is a complex issue in modern organizations and that the statistics do not capture the reality of white-collar crimes. In metaanalysis approach, the study highlights various forms of white-collar crimes and asserts their complexity in terms of their occurrence, effects, and deterrence (Simpson 2011). Since other organizations are more criminogenic when compared with others, it implies that the differences in their structures are significant factors that determine the occurrence of white-collar crimes among organizations. In this view, meta-analysis conducted by Simpson (2011) concludes that criminogenic organizations have an amorphous structure of markets and economic environment under which organizations operate, and thus create a favorable environment for fraudsters. In this view, the study recommends the establishment of institutions and regulations to strengthen organizational structures and…

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