Villains, Victims and Bystanders in Financial Crime

Arnold, Bruce; Bonython, Wendy

doi:10.1007/978-3-319-32419-7_8

Cited by 4 publications

(14 citation statements)

References 98 publications

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“…Our data also emphasise the influence of bad associations, leading to being coerced and threatened to participate in fraudulent activities. The psychological states of the offenders were often highlighted rather than well-planned executions, even in cases that went on for many years before being discovered (see Arnold and Bonython, 2016; Lampe, 1991; Levi, 2006). Some cases reaffirmed Levi’s (2008) findings that financial offenders did suffer from lack of control and were irrational, but their continued fraudulent activities did not necessarily indicate premeditation.…”

Section: Discussionmentioning

confidence: 99%

“…Not all problems could be endured; some people succumbed to their circumstances and committed fraud (Napier, 2001; White, 1973). Arnold and Bonython (2016: 11) provided examples of three taxonomies of motivations for fraud: keeping things together, keeping up appearances and keeping the party going. They stated that some offenders engage in theft to ‘keep things together’ (crime proceeds are used for living expenses, such as putting food on the table).…”

Section: The Pressuresmentioning

confidence: 99%

“…The Keep on going motive is a psychological, rather than financially motivated, incentive. The offenders could not stop doing things, felt good of doing things, were irrational mainly due to mental issues, and suffered impulse control (Arnold and Bonython, 2016: 177; Crichton, 1959; Levi, 2008). Examples are the cases of Martha Tainui, Edward Kahi and Wiremu Tareha.…”

Section: The Pressuresmentioning

confidence: 99%

“…The proceeds of fraudulent activities were typically spent on luxuries, never putting food on the table (Gubbins, personal communication, 6 November 2018). The perpetrators were not a ‘binary proletariat’ (Arnold and Bonython, 2016: 177). Our findings show that this motive of keeping up appearances was the least reported motive.…”

Section: The Pressuresmentioning

confidence: 99%

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Fraud in New Zealand, 1840–1939

2020

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This study analyses fraudsters and their motives in New Zealand’s post-colonial times, using Papers Past, from 1840 to 1939. The aim is to understand the past societal context concerning fraud crimes. The historical analysis reveals that fraud was reported as early as 1840, and since then, reports of fraud have grown rapidly. False pretences and representation were the most common types of fraud, and there was a greater proportion of male than female perpetrators. Female criminality was the main subject of discussion during the period studied, and often biased perceptions regarding how typical women should behave were expressed. The motives of perpetrators of fraud were mainly to maintain cohesion for the family. Overall, the motivations for committing fraud indicated social struggles rather than greed. There is also some evidence for how fraudsters from privileged social classes received lighter sentencing regardless of the grave nature of the offence.

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Section: Discussionmentioning

confidence: 99%

Section: The Pressuresmentioning

confidence: 99%

Section: The Pressuresmentioning

confidence: 99%

Section: The Pressuresmentioning

confidence: 99%

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Fraud in New Zealand, 1840–1939

2020

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“…Financial crime is not as black and white, as fraud victims may not even be aware that a crime has been committed (Bradshaw, 2006). Financial crime is often characterised as exploitation of trust and misuse of authority (Arnold and Bonython, 2016). Trust brings with it, opportunities.…”

Section: Introductionmentioning

confidence: 99%

Financial C.R.I.M.Es in small businesses: causes and consequences

Othman

Laswad

Berkahn

2020

JFC

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Purpose The purpose of this paper is to examine the causes and consequences of financial crimes perpetrated against New Zealand small businesses. Design/methodology/approach A random sample of 200 court cases was selected from 2010 to 2017. A total of 12 cases involving 14 small businesses were analysed. Findings The results reveal that financial crime is a systemic problem and involves people with diverse demographics, and the victims are not restricted to any specific type of small business. The offenders are mostly middle-level managers. The length of offence varied from 1 year to 12.5 years. Most of them funnelled the stolen money into their personal accounts. The common motive is “keeping up appearance”. The management placed immense trust in their employees and did not vet candidates before employment. The losses suffered by small entities ranged from $6,000 to $590,000 and liquidated one business. The severity of the actual court cases indicates the necessity of an employee screening as the first line of defence in these businesses. Research limitations/implications The small sample of court cases is a limitation, but the study contributes to the fraud auditing literature by examining actual court cases involving small businesses. Small businesses as victims of employee fraud and their lack of internal controls are known but under-researched to promote thought about fraud risk severity in these businesses. Originality/value The C.R.I.M.E model has yet been tested on fraud cases involving small businesses.

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In employees we Trust: Employee fraud in small businesses

Othman

Ameer

2022

J Manag Control

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This paper examines how and why employees used online computer access to commit fraud in New Zealand small businesses. Drawing on data from 18 court documents between 2006 and 2020, we use document analysis to examine the pressure, opportunity, rationalization, and capability elements using the fraud diamond framework. We provide three major findings. First, the employee frauds were motivated by vice and family circumstances. The combination of opportunity and capability had a devastating effect on the length of the fraud and the amount of financial loss. Second, the frauds were mostly perpetrated by middle-aged women in both managerial and nonmanagerial positions who displayed unusual behaviour but had no prior convictions. Third, small businesses are vulnerable to fraud in their billing, accounts payable, and payroll systems; thus, relevant prevention strategies are recommended. Overall, we conclude that the tendency for fraud is heightened in small businesses where trusted employees: have multiple responsibilities; have an occupational position that provides them with opportunity; are capable of manipulating online access; and have external pressures of addictions or adverse family circumstances. Our multiple cases approach facilitates a better understanding of the employee fraud contexts, including the motivation and the methods employed to commit such fraud in New Zealand.

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Villains, Victims and Bystanders in Financial Crime

Cited by 4 publications

References 98 publications

Fraud in New Zealand, 1840–1939

Fraud in New Zealand, 1840–1939

Financial C.R.I.M.Es in small businesses: causes and consequences

In employees we Trust: Employee fraud in small businesses

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