NCJ Number
178688
Date Published
1999
Length
6 pages
Annotation
This paper examines the nature and extent to which organizations in Australia are victimized through fraud and deception, as well as how the problem may best be addressed.
Abstract
A number of recent organizational victimization surveys indicate that fraud is a serious problem for businesses, with its effects being felt throughout the community. Computer-related fraud is of particular concern among organizations, although its precise extent cannot as yet be measured. Risk management and fraud prevention activities are preferable to the use of criminal prosecution and punishment in dealing with illegal conduct that has already occurred. A large proportion of organizations now have extensive fraud control policies in place. These should be widely publicized and regularly updated to deal with new forms of risk as they arise. Although effective fraud prevention should be the primary objective of all managers, the use of the criminal justice system is still necessary in order to achieve general and specific deterrent effects. The confiscation of assets is one of the most effective means of deterring economic crime, whose perpetrators often rationally calculate the possible negative consequences of potential offenses before they commit them. Deterrence can best be achieved if offenses are reported to the authorities. There are a number of ways in which organizations can be encouraged to report fraud as well as a number of ways in which favorable outcomes can be achieved in criminal proceedings. By dealing with fraud through criminal prosecution and punishment, the community as a whole benefits from the knowledge that wrongdoing has been detected and sanctions imposed; also, victims may be able to receive some measure of compensation for losses suffered. There are important benefits from identifying and publicizing ways in which organizations may be able to avoid victimization through fraud in the future. 15 references