Documentary credit fraud against banks: analysis of Korean cases

2015 ◽  
Vol 18 (4) ◽  
pp. 457-474 ◽  
Author(s):  
Chang-Ryung Han ◽  
Hans Nelen ◽  
Matthew Youngho Joo
Keyword(s):  
White Collar Crime ◽  
Case Reports ◽  
Routine Activity Theory ◽  
Routine Activity ◽  
Content Type ◽  
Pattern Theory ◽  
Opportunity Structures ◽  
Crime Pattern Theory ◽  
Criminological Perspective ◽  
New Type

Purpose – This paper aims to explore the feature and mechanism of a new type of documentary credit fraud that victimizes banks’ issuing letters of credit (L/C), harming neither the importer nor the exporter and seeks to suggest possible measures to tackle it. Design/methodology/approach – This study analyzed 30 cases of documentary credit fraud against banks that were detected by the Korea Customs Service (KCS) and interviewed three key customs investigators to interpret the case reports more accurately and gain a deeper understanding into the mechanisms governing the fraud. This study draws on routine activity theory and crime pattern theory to analyze the opportunity structures of this fraud. Findings – This study found that the importer that engaged in the fraud cases had established a solid business relationship with the exporter and had established trust with the victimized banks; the banks, despite the fact that they had their own risk management systems to screen out unqualified L/C applicants, were defrauded by the offending importers and exporters. Unlike ordinary documentary credit fraud, fraud against banks can be tackled by customs because the offender and the victim typically operate in the same jurisdiction, and this type of fraud often results in trade-based capital flight and money laundering, which is the target of customs enforcement. Research limitations/implications – As this paper is based on case reports of the KCS, it is inappropriate to generalize the findings or to apply the findings to other contexts. Nevertheless, the opportunity structure elaborated upon in the course of this paper may prove useful in devising measures to tackle this type of fraud elsewhere. Originality/value – Documentary credit fraud against banks is relatively unexplored, in particular from criminological perspective. This study can contribute to a refinement of the application of opportunity perspective to white-collar crime.

Crime prevention in terms of criminal intent criteria in white-collar crime

2018 ◽  
Vol 25 (3) ◽  
pp. 838-844
Author(s):  
Tage Alalehto
Keyword(s):  
Activity Theory ◽  
Crime Prevention ◽  
White Collar ◽  
Routine Activity Theory ◽  
Routine Activity ◽  
Content Type ◽  
Pattern Theory ◽  
Theory Of Crime ◽  
Actus Reus ◽  
Potential Offender

Purpose In the field of crime prevention there are several theoretical approaches explaining why crime occurs and how to prevent it. Three of them – routine activity theory, crime pattern theory and the theory of crime-as-choice – are logically tested in this work. The point of departure is to test if the theories are logical consistent and logical valid, irrespective of whether the criterion for criminal intent is changed from direct intention to negligence. Design/methodology/approach The issues will be explored in a logical structure by a first-order logic propositional analysis. Findings The analysis shows that all three theories are logical consistent, but only routine activity theory is logical valid. The conclusion is that crime prevention should in general assume that routine activity theory is the legitimate theory and that social prevention as a prevention strategy is logically unnecessary to adopt because it does not matter whether the offender is motivated (direct intention) or not (negligence). Practical implications It does not really matter if the authors theoretically treat white-collar offenders as motivated, because if they have committed an actus reus, they are an offender according to the objective requisites. This means that the best strategies to prevent a potential white-collar criminal are situational prevention, i.e. complicate their access to money, where it becomes irrelevant if the potential offender has a mens rea or not. What counts is the prevention of actus reus by a potential offender. Originality/value As far as I know, no one has previously investigated the logical consistency and/or logical validity of routine activity theory, crime pattern theory and the theory of crime-as-choice as theories of crime prevention.

Using environmental criminology theories to compare ‘youth misuse of fire’ across age groups in New South Wales

2016 ◽  
Vol 50 (1) ◽  
pp. 100-122 ◽  
Author(s):  
Kamarah Pooley ◽  
Claire E Ferguson
Keyword(s):  
Activity Theory ◽  
New South ◽  
New South Wales ◽  
Age Groups ◽  
Routine Activity Theory ◽  
Routine Activity ◽  
Pattern Theory ◽  
Crime Pattern Theory ◽  
South Wales ◽  
Crime Pattern

Youth misuse of fire is a substantive community concern. Despite evidence which indicates youths account for a significant proportion of all deliberately lit fires within Australia, an absence of up-to-date, contextually specific research means the exact scope and magnitude of youth misuse of fire within Australia remains unknown. Despite research suggesting commonalities exist between youth misuse of fire and juvenile offending more broadly, misuse of fire is rarely explained using criminological theory. In light of this gap, a descriptive analysis of youth misuse of fire within New South Wales was performed. Routine Activity Theory and Crime Pattern Theory were tested to explain differences in misuse of fire across age groups. Results suggest these environmental theories offer useful frameworks for explaining youth misuse of fire in New South Wales. It is argued that the Routine Activity Theory and Crime Pattern Theory can be employed to better inform youth misuse of fire policy and prevention efforts.

A routine activity perspective on online victimisation

2015 ◽  
Vol 22 (4) ◽  
pp. 396-411 ◽  
Author(s):  
Bradford W. Reyns
Keyword(s):  
Secondary Data ◽  
Binary Logistic Regression ◽  
Routine Activity Theory ◽  
Routine Activity ◽  
Content Type ◽  
Online Victimization ◽  
23Rd Cycle ◽  
Victimization Risk ◽  
Research Questions ◽  
Online Forms

Purpose – The purpose of this study is to test a comprehensive routine activity framework on three types of online victimization. Prior research has utilized routine activity theory to explain varied online forms of victimization, but most have focused on its person-based forms. The present study, therefore, expands upon this research to examine the effects of online exposure, online target suitability and online guardianship upon phishing, hacking and malware infection victimization. Design/methodology/approach – Secondary data from the 23rd Cycle of the Canadian GSS were used to address the study’s research questions using binary logistic regression analyses. Findings – Particular online behaviors were consistently and positively related to all three types of online victimization, including booking/making reservations, social networking and having one’s information posted online. Other online routines exhibited unique effects on online victimization risk. Originality/value – In support of the theory, the results suggest that online exposure and target suitability increase risks for phishing, hacking and malware victimization. Online guardianship was also positively related to victimization, a finding that runs counter to theoretical expectations.

The Theory and Practice of Situational Crime Prevention

2018 ◽  
Author(s):  
Ronald V. Clarke
Keyword(s):  
Crime Prevention ◽  
Situational Crime Prevention ◽  
Routine Activity Theory ◽  
Theory And Practice ◽  
Routine Activity ◽  
Public And Private ◽  
Transit Systems ◽  
Pattern Theory ◽  
Social Settings ◽  
Sound Foundation

Situational crime prevention is radically different from other forms of crime prevention as it seeks only to reduce opportunities for crime, not bring about lasting change in criminal or delinquent dispositions. Proceeding from an analysis of the circumstances giving rise to very specific kinds of crime and disorder, it introduces discrete managerial and environmental modifications to change the opportunity structure for those crimes to occur—not just the immediate physical and social settings in which the crimes occur, but also the wider societal arrangements that make the crimes possible. It is therefore focused on the settings for crime, not on delinquents or criminals. Rather than punishing them or seeking to eliminate criminal dispositions through improvement of society or its institutions, it tries to make criminal action less attractive. It does this in five main ways: (1) by increasing the difficulties of crime, (2) by increasing the immediate risks of getting caught, (3) by reducing the rewards of offending, (4) by removing excuses for offending, and (5) by reducing temptations and provocations. It accomplishes these ends by employing an action research methodology to identify design and management changes that can be introduced with minimum social and economic costs. Central to this enterprise is not the criminal justice system but a host of public and private organizations and agencies—schools, hospitals, transit systems, shops and malls, manufacturing businesses and phone companies, local parks and entertainment facilities, pubs and parking lots—whose products, services, and operations spawn opportunities for a vast range of different crimes. Some criminologists believe that the efforts that these organizations and agencies have made in the past 20 or 30 years to protect themselves from crime are responsible for the recorded crime drops in many countries. Situational crime prevention rests on a sound foundation of criminological theories—routine activity theory, crime pattern theory, and the rational choice perspective—all of which hold that opportunity plays a part in every form of crime or disorder. There is therefore no form of crime that cannot be addressed by situational crime prevention. To date, more than 250 evaluated successes of situational crime prevention have been reported, covering an increasingly wide array of crimes including terrorism and organized crimes. Many of the studies have found little evidence that situational interventions have resulted in the “displacement” of crime to other places, times, targets, methods, or forms of crime. Indeed, it is commonly found that the benefits of situational crime prevention diffuse beyond the immediately targeted crimes. Despite these successes, situational crime prevention continues to attract much criticism for its supposed social and ethical costs.

Perceptions of risk on vacation among visitors to Istanbul

2019 ◽  
Vol 18 (1) ◽  
pp. 16-29 ◽  
Author(s):  
Mine Ozascilar ◽  
Rob I. Mawby ◽  
N. Ziyalar
Keyword(s):  
Resistance To Change ◽  
Phase 1 ◽  
Research Programme ◽  
Strong Relationship ◽  
Social Contexts ◽  
Routine Activity Theory ◽  
Routine Activity ◽  
Two Phase ◽  
Content Type ◽  
Perceptions Of Risk

PurposeThe purpose of this paper is to focus on the perceptions of risk from specific crimes held by tourists at the start of their vacation in the Turkish city of Istanbul.Design/methodology/approachThe paper describes findings from Phase 1 of a two-phase research programme, during which 210 arrivals at the Ataturk airport were asked about their perceptions of their safety from crime while in the city and their intentionsvis-à-visthe adoption (or otherwise) of basic safety precautions, using a 32-question self-completion questionnaire.FindingsThe findings confirm those of earlier studies that tourists, unlike citizens in general, tend to have low expectations of their vulnerability to crime. However, variables associated with fear in conventional surveys were not generally related to the perceptions of risk. The clearest association was between prior knowledge of crime in Istanbul and perceptions of risk. The lack of any strong relationship between perceptions of risk and intent to adopt safety precautions is then discussed.Research limitations/implicationsThe study is limited to visitors to one city and to English-speaking tourists.Practical implicationsThe implication here is that if tourist centres wish to reduce crime it is not sufficient to focus on “educating” tourists on the dangers, but that more emphasis should be placed on crime prevention methods that put the onus on the host environment.Social implicationsFrom a criminological perspective, two points appear particularly important. First, the relationship between fear (in all its manifestations) and risk is not constant. It may differ in different physical and social contexts. Second, if, following routine activity theory, policy makers wish to focus on changing people’s behaviour in order to maximise their safety, in different contexts different publics may vary in their willingness or resistance to change.Originality/valueThis study is original as it focusses on tourists to a specific destination at the beginning of their holiday.

Crime script for mandate fraud

2019 ◽  
Vol 22 (4) ◽  
pp. 770-781
Author(s):  
Michael Donegan
Keyword(s):  
Law Enforcement ◽  
Routine Activity Theory ◽  
Routine Activity ◽  
Current Response ◽  
Content Type ◽  
Skill Sets ◽  
Crime Commission ◽  
Crime Scripts ◽  
The Uk ◽  
Crime Script

Purpose The purpose of this paper is to critically analyse research surrounding mandate fraud and to devise a crime script identifying the crime commission process. It is hoped this will assist in standardising investigation of mandate fraud by law enforcement. Design/methodology/approach The design of this paper follows on from the approach taken by van Hardeveld et al. (2017) in identifying a cybercrime script for carding activity. The current environment surrounding the investigation of digital fraud in the UK is examined through a review of the existing literature. Analysis of the crime commission process for mandate fraud is then outlined in a potential crime script identifying possible intervention points for law enforcement. Findings UK law enforcement’s current response to digital fraud is struggling to provide positive outcomes for victims. There is inconsistency in the investigative approach and practical issues surrounding how the digital fraud problem is tackled. Changing the emphasis of digital fraud investigation to focus on the money laundering networks based in the UK also needs to be considered. Standardising investigation into digital fraud by mapping out digital criminality using crime scripts and routine activity theory could be beneficial for law enforcement. The results of this process could also assist in effectively identifying where law enforcement resources may be best deployed to solve some of the practical issues highlighted. Originality/value There is little literature directly focused on a crime script for mandate fraud. This is despite it being a significant contributor to fraud losses in the UK. For law enforcement, both digital and financial investigation skill sets are required to investigate such offences. Therefore, mapping the crime commission process has significant value for clearly identifying investigative intervention points.

Crime Science

2017 ◽  
Author(s):  
Ella Cockbain ◽  
Gloria Laycock
Keyword(s):  
Crime Control ◽  
Research Question ◽  
Science Research ◽  
Routine Activity Theory ◽  
Problem Definition ◽  
Routine Activity ◽  
Crime Science ◽  
Pattern Theory ◽  
Targeted Interventions ◽  
Unifying Principles

Crime science (or more accurately crime and security science) has three core tenets: • the application of scientific methods • the study of crime and security problems • the aim of reducing harm. Beyond the unifying principles of scientific research (including a clear problem definition, transparency, rigor, and reliability), tools and techniques vary between studies. Rather than following a prescriptive approach, researchers are guided in their selection of data and methods by their research question and context. In this respect, crime scientists take an inclusive view of “evidence.” “Crime and security” is a broad construct, covering problems associated with diverse illicit goods and acts, offenders, victims/targets, places, technologies, and formal and informal agents of crime control. Its pragmatic approach distinguishes crime science from “pure research” (i.e., the pursuit of knowledge for its own sake). Contributions to harm reduction might be immediate (e.g., evaluating a novel intervention) or longer term (e.g., building theoretical or empirical knowledge about a particular issue). Crime science is broad: researchers may contribute to it without self-identifying as crime scientists. Indeed, its early proponents hesitated to draw its parameters, suggesting they should be defined operationally. Under a shared focus on crime, crime science research transcends traditional disciplinary boundaries. The prevalence of multi- and interdisciplinary work reflects the inherent complexity of crime and its control. The social, physical, biological, and computer sciences—and their associated technologies—all have contributions to make. Although the term crime science was first formalized in 2001, its roots go back much further. Within criminology, it particularly overlaps with environmental and experimental criminology. As well as sharing methods with these two areas, crime science’s theoretical underpinning derives from opportunity theories of crime (e.g., routine activity theory, the rational choice perspective, crime pattern theory). Crime is conceptualized accordingly as primarily non-random and as influenced by both individual criminal propensity and environmental factors that facilitate, promote, or provoke, criminal events. Crime science techniques have been applied to a variety of issues: primarily volume crimes (e.g., burglary), but also more serious and complex crimes (e.g., terrorism and human trafficking). There is now substantial evidence of the effectiveness of targeted interventions in tackling crimes by manipulating their opportunity structures. Claims that such approaches are unethical and merely cause displacement have been discredited. Crime science now faces other, more challenging criticisms. For example, its theoretical underpinnings are arguably too narrow and the boundaries of the field lack clear distinction. Other challenges include expanding interventions into the online world and resolving tensions around evaluation evidence. Crime science can clearly help explain and address crime problems. Its focus on outcomes rather than outputs speaks to the growing demand that research be impactful. Evidence generated through robust studies has value for policy and designing primary, secondary and tertiary interventions. In times of austerity and increased focus on multi-agency collaboration, there is a clear audience for crime-related research that can inform targeted responses and speaks to a broader agendum than law enforcement alone.

A tale of two triangles: comparing the Fraud Triangle with criminology’s Crime Triangle

2015 ◽  
Vol 28 (1) ◽  
pp. 45-58 ◽  
Author(s):  
Grace Mui ◽  
Jennifer Mailley
Keyword(s):  
Management Strategies ◽  
Routine Activity Theory ◽  
Routine Activity ◽  
Future Research ◽  
Fraud Triangle ◽  
Content Type ◽  
Fraud Risk ◽  
Starting Point ◽  
Accounting Practitioners ◽  
Fraud Risk Management

Purpose – This paper aims to propose the application of the Crime Triangle of Routine Activity Theory to fraud events as a complement to the universally accepted Fraud Triangle. Design/methodology/approach – The application of the Crime Triangle is illustrated using scenarios of asset misappropriations by type of perpetrator: external perpetrator, employee, management and the board and its governing bodies. Findings – The Crime Triangle complements the Fraud Triangle’s perpetrator-centric focus by examining the environment where fraud occurs and the relevant parties that play their role in preventing fraud or not playing their role, and thus, allowing the occurrence of fraud. Applying both triangles to a fraud event provides a comprehensive view of the fraud event. Research limitations/implications – The scenarios are limited to asset misappropriations with one perpetrator. Future research can apply both triangles to different types of fraud and cases where perpetrators collude to commit fraud. Practical implications – This paper maps the Crime Triangle to the Fraud Triangle to provide forensic accounting practitioners and researchers with a comprehensive perspective of a fraud event. This comprehensive perspective of fraud is the starting point to designing fraud risk management strategies that address both the perpetrator and the environment where the fraud event occurs. Originality/value – This paper is the first to propose the application of the established Crime Triangle environmental criminology theory as a complement to the Fraud Triangle to obtain a comprehensive perspective of a fraud event.

scholarly journals A framework for estimating crime location choice based on awareness space

Crime Science ◽  
2020 ◽  
Vol 9 (1) ◽  
Author(s):  
Sophie Curtis-Ham ◽  
Wim Bernasco ◽  
Oleg N. Medvedev ◽  
Devon Polaschek
Keyword(s):  
Location Choice ◽  
Empirical Work ◽  
Routine Activity ◽  
Pattern Theory ◽  
Individual Level ◽  
Crime Pattern Theory ◽  
Reliable Knowledge ◽  
Crime Pattern ◽  
Behaviour Type ◽  
Selection Of

Abstract This paper extends Crime Pattern Theory, proposing a theoretical framework which aims to explain how offenders’ previous routine activity locations influence their future offence locations. The framework draws on studies of individual level crime location choice and location choice in non-criminal contexts, to identify attributes of prior activities associated with the selection of the location for future crime. We group these attributes into two proposed mechanisms: reliability and relevance. Offenders are more likely to commit crime where they have reliable knowledge that is relevant to the particular crime. The perceived reliability of offenders’ knowledge about a potential crime location is affected by the frequency, recency and duration of their prior activities in that location. Relevance reflects knowledge of a potential crime location’s crime opportunities and is affected by the type of behaviour, type of location and timing of prior activities in that location. We apply the framework to generate testable hypotheses to guide future studies of crime location choice and suggest directions for further theoretical and empirical work. Understanding crime location choice using this framework could also help inform policing investigations and crime prevention strategies.

Capable guardianship against identity theft

2020 ◽  
Vol 27 (1) ◽  
pp. 130-142 ◽  
Author(s):  
Norah Ylang
Keyword(s):  
General Population ◽  
Credit Card ◽  
Identity Theft ◽  
Routine Activity Theory ◽  
Routine Activity ◽  
Crime Victimization ◽  
Protection Measures ◽  
Content Type ◽  
Highly Educated ◽  
Self Protection

Purpose This paper aims to examine demographic differences between individuals who do not take measures to protect themselves from identity theft victimization and those who do. A majority of the research on identity theft has focused on predictors of victimization, reporting behaviors of the victims and their health and mental outcomes. However, little remains known about the individuals who choose to take any identity-theft measures despite concerns over this fast-growing breed of crime. Design/methodology/approach Guided by Felson and Cohen’s routine activities theoretical framework (1979), this study uses the 2014 Identity Theft Supplement of the National Crime Victimization Survey to identify the demographic characteristics that influence the use of self-protection measures among individuals in the general population. Findings This study finds that these individuals are much more likely to be white, older, female and highly educated. The decision to undertake protection against identity theft is also influenced by the following factors: prior experience of misuse, possession of a bank account in the prior 12 months, current possession of at least one credit card and awareness that one is entitled to a free copy of one’s credit report. Originality/value This study addresses the gap in scholarship on identity theft prevention by applying the concept of guardianship in Cohen and Felson’s routine activity theory (1979) to the usage of self-protection measures in a general population. Future findings will identify the areas which agencies and researchers can focus on to inform policies that foster individuals’ own initiatives to take self-protection measures against potential identity theft.

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