Money, Morals and Motives: An Exploratory Study into Why Bank Managers and Employees Commit Fraud at Work

Hollow, M.

Abstract

Purpose – The purpose of this paper is to look in more depth at what motivates bank managers and bank employees to commit fraudulent offences at work. Design/methodology/approach – This exploratory study adopts both quantitative and qualitative methods to better comprehend what motivates bank managers and employees to commit fraud at work. Evidence is taken from a sample of 64 cases of fraud from the UK financial sector. The sample cases were then subdivided in relation to the occupational status of the offender and classified based on the motives of the offender. Findings – The research findings from this study indicate that, as with other sorts of white-collar crimes, financial pressures play a hugely significant role in motivating bank employees and managers to commit fraudulent offences at work. However, the nature of these financial pressures appears to differ significantly depending on what role the offender occupies within the bank. Thus, for cashiers and those in lower positions, personal pressures generally act as the motive, whereas for more senior management offenders, personal financial considerations tend to come second to those of the organisation as a whole. Research limitations/implications – The preliminary findings from this paper emphasises that there is a need for more research to be conducted on occupational fraud in the financial sector as to better understand what motivates insiders in the banking profession to commit financial fraud and other criminal offences. Practical implications – This paper will help accountants and financial regulators to better understand what motivates those in the financial sector to commit fraudulent offences at work. This, in turn, will enable them to better assess fraud risks and establish improved preventive and detective measures. Originality/value – The paper fills a gap in the fraud literature by providing an in-depth study that focuses exclusively on what motivates those inside the financial sector to commit fraudulent offences at work.

Citation

Hollow, M. (2014). Money, Morals and Motives: An Exploratory Study into Why Bank Managers and Employees Commit Fraud at Work. Journal of Financial Crime, 21(2), 174-190. https://doi.org/10.1108/jfc-02-2013-0010

• Journal Article Type: Article
• Publication Date: Mar 1, 2014
• Deposit Date: Sep 12, 2013
• Publicly Available Date: Dec 8, 2014
• Journal: Journal of Financial Crime
• Print ISSN: 1359-0790
• Publisher: Emerald
• Peer Reviewed: Peer Reviewed
• Volume: 21
• Issue: 2
• Pages: 174-190
• DOI: https://doi.org/10.1108/jfc-02-2013-0010
• Keywords: Finance, UK, Banking, Fraud, White-collar crime.