The conception of organisational fraud: the need for rejuvenation of fraud theory

Abstract

Purpose

This paper aims to challenge some of the underlying concepts about causation of fraud and in doing so enriches knowledge and insight into the management of fraud.

Design/methodology/approach

This study is a part of fieldwork carried out in Indonesia.

Findings

Organisational fraud is an exceptional type of crime. Hence, the underlying antecedents and consequences of fraud in organisation are distinct from other crimes, especially violent crimes. The underlying logic in criminological and sociological theories and literature cannot fully explain the causal factors of fraud in the organisation. This leads to a theoretical discussion about the reconstruction of the fraud theory. Implications and suggestions for further studies are discussed in this study.

Originality/value

This study provides a new understanding of fraud and its antecedents and consequences. In doing so, it examines the long-standing debate in criminology and sociology about the theories concerning crime causation, as these areas provide the underlying logic of fraud theory.

Citation

Maulidi, A. and Ansell, J. (2021), "The conception of organisational fraud: the need for rejuvenation of fraud theory", Journal of Financial Crime, Vol. 28 No. 3, pp. 784-796. https://doi.org/10.1108/JFC-09-2020-0180