C. Delano Gray
• Criminology is a sub-field of sociology dealing with
matters related to crime and criminal behavior. It
includes fields such as crime statistics, criminal
psychology, forensic science, law enforcement, and
• Naturally, criminology must take into account that the
definition of crime varies according to the cultural
mores and, especially, laws of a given area. This is an
area where caution is warranted; if one is comparing,
e.g., violent crimes between nations, one must be
careful that the actions counted in that category are
similar for each nation; otherwise the comparison is
A crime in a broad sense is an act that
violates a political or moral law. In the
narrow sense, a crime is a violation of
the criminal law. For example, most
traffic violations or breach of contracts
are not crimes in a legal sense.
Understanding Human Behavior
• According to Behaviorist
Why People Obey the Law
• Instrumental Perspective
– Fear punishment
• Normative Perspective
– Whether people obey the law depending on
what one considers just and moral.
• Sociologists have found that deterrence
does not fully explain why people obey
the law. Citizens choose to obey the law
when the chances of being caught
violating it are virtually zero. Yet citizens
break the law when it is risky to do so.
• The Chicago study focused on six laws with
which people deal on a daily basis. Illegal
parking, 51%; speeding, 62%; shoplifting, 3%;
disturbing the peace, 27%; littering, 25%; DUI,
• How likely they thought it was that they would
be arrested: DUI, 83%; parking violation and
shoplifting, 78%; speeding, 72%; disturbing
the peace, 35%, littering, 31%.
• Whether each offense was wrong:
almost every one of the participants felt
that any violations of the six laws were
wrong. 99% think shoplifting immoral and
speeding is the least immoral.
Theories of Crime Causation
• Classical Criminology
• Routine Activities Theory
• Biological Theory
• Psychological Theories
• Social Process Theories
• Based on the philosophical principle of
utilitarianism, has its roots in the belief
that human beings are rational and
calculating creatures and therefore do
things in order to avoid pain and produce
• People have free will which they can use
to elect to engage in either criminal or
• Criminal behavior will be more attractive
if the gains are estimated to be greater
than the losses
• The more certain, severe, and swift the
reaction to crime, the more likely it is that
the penalties will control the behavior.
Difficulties inherent in the theory
• Many people do not stop and add up the gains
and losses of lawbreaking before they engage
• The impact of penalties can be very different
for different people
• It is very difficult to know whether the penalty
will in face result from the behavior: most
offenders optimistically assume that they will
not be caught.
Routine Activities Theory
• A variation of classical theory, holds that both
the motivation to commit crime and the supply
of offenders is constant.
• The availability of suitable targets, such as
companies and individuals
• The absence of capable guardians, such as
auditors and security personnel
• The presence of motivated offenders, such as
unhappy or financially-challenged employees.
• Criminal behavior is not the result of
choice, but rather is caused by the
physical traits of those who commit
crime, proposed by Cesare Lombroso.
• There are ―born‖ criminals.
• Biological theorists now take a much
less deterministic position. Given certain
environmental circumstances, is apt to
produce illegal acts.
• Criminal behavior is the product of mental
• Freud’s idea focus on early childhood
development and on unconscious motivations.
Freud identified a three part structure to
human personality: the id(the drive for food,
sex, and other life-sustaining things), the
superego (the conscience which develops
when learned values become incorporated into
a person’s behavior), and the ego(the product
of the interaction between what a person
wants and what his conscience will allow him
to do to achieve what he wants).
• Cognitive theories stress inadequate
moral and intellectual development as
lying at the root of criminal acts. There
are also personality theories, which
believe that traits such as extroversion
are responsible for a significant amount
• Draw from choice theory, biological
theory, and psychological theory.
• While criminal activity is a choice, this
choice is heavily influenced by biological
and psychological factors. Other social
factors, such as family life, schools, and
gang membership, were also explored.
• It argues that the failure of a person to
incorporate satisfactorily the dictates of society
represents the major explanation for
subsequent criminal behavior.
• Frustration is the the precursor of aggression.
The theory suggests that the expression of
aggression, such as a fraud perpetrator
―getting back‖ at his employer, will alleviate the
frustration and allow the organism to return to
a more satisfactory state.
Social Structure Theories
• There are various kinds of sociological
theories, all based on similar premises but with
differing kinds of emphases.
• As a group, social structure theories suggest
that forces operating in the lower-class areas
of the environment push many of their
residents into criminal behavior. They
challenge those who would suggest that crime
is an expression of psychological imbalance,
biological traits, personal choice, etc.
• People living in equivalent social environments
seems to behave in a similar, predictable
Theory of Anomie
• The discrepancy between what people are
indoctrinated into desiring and the ways that
are available to them to achieve such ends is
the cornerstone for explanation of criminal
• Anomie in the United States was characterized
by an almost overpowering emphasis on the
acquisition of things and on the fact that social
status and importance is usually measured in
terms of money. There are different ways to
Social Process Theories
• Criminality is a function of individual
socialization and the social-psychological
interactions people have with the various
organizations, institutions, and processes of
• The various social process theories all share
one basic concept: all people regardless of
their race, class, or gender, have the potential
to become delinquents or criminals.
Social Learning Theories
• Criminal behavior is a function of the way
people absorb information, viewpoints,
and motivations from others, most
notably from those to whom they are
close, such as their peer.
• Social learning theories believe that all
people have the potential to commit
crime if they are exposed to certain kinds
Theory of Differential
• Provided by Edwin Sutherland.
• Criminal behavior is learned in interaction with
other persons in a process of communication.
• The criminal learning process includes not
only techniques of committing crime but also
the shaping of motives, drives, rationalizations,
• While criminal behavior is an expression of
general needs and values, it is not explained
by these general needs and values because
noncriminal behavior is an expression of the
same needs and values.
Social Control Theory
• By Travis Hirschi (1969)
• The institutions of the social system train
and press those with whom they are in
contact into patterns of conformity. To
the extent a person fails to become
attached to the variety of control
agencies (school, parents) of the society,
his or her chances of violating the law
• There is no well-accepted definition.
• The term was coined by Edwin H. Sutherland
• Definition by Sutherland:‖Crime in the upper,
white-collar class, which is composed of
respectable, or at least respected, business,
and professional men.‖
• Then he gave examples of thefts by chain
store employees and overcharges by garage
mechanics and watch repairers—which is
inconsistent with his definition.
• More commonly accepted definition:
―nonviolent crime for financial gain
committed by means of deception by
persons whose occupational status is
entrepreneurial, professional or semi-
professional and utilizing their special
occupational skills and opportunities.‖
Public Perceptions of White-
Collar Crime (National Survey
of Crime Severity)
• An employee embezzles $10
• A store owner knowingly puts
“large eggs into containers
marked “extra large”
• A person makes an obscene
Public Perceptions of White-
• An employee
• A person beats a
victim with his fists.
The victim requires
treatment by a
doctor but not
Profiles of White-Collar
• White males, with a moderate social
• They are slightly more likely than the
general population to have a high school
diploma (78% vs. 69%), or a college
degree (24.7% vs. 19%).
• They look like any honest people
• When compared with prisoners incarcerated
for property offenses, they are
– less likely to be caught, turned in, arrested,
convicted, and incarcerated
– less likely to serve long sentences
– considerably older
– better educated, more religious
– less likely to have criminal records, abused alcohol,
– in better psychological health, enjoy more
optimism, self-esteem, achievement, motivation
and family harmony.
• When compared with college students,
they differed only slightly.
Why people commit Fraud?
• Fraud triangle
– Pressure(perceived or real one)
– Opportunity (perceived or real one)
– Rationalization (I didn’t do anything wrong,
I’ll pay it back, didn’t hurt anyone)
• Best way to prevent fraud is to eliminate
What are the 4 types of pressure?
Types of Financial Pressures
• Living beyond one’s means
• High bills or personal debt
• Poor credit
• Personal financial losses
• Unexpected financial needs
What are the three parts of
1. To commit fraud
2. To conceal fraud
3. To avoid punishment
What factors increase
opportunity to commit fraud?
• Ability to get around internal controls
• Inability to judge performance
• Failure to discipline prior frauds
• Lack of access to information
• Ignorance, Apathy, Incapacity
• Lack of an audit trail
Comment on the Control
• Modeling Factoids
• Appropriate Hiring Honest
• Clear Organizational 40% Honest All
Structure the Time
• Effective Internal Audit & Internal Audit
Security & Loss Detects 20% of
What are the 3 components of
1. The Theft – Assets Are Taken
2. Concealment – Hide It from Others
3. Conversion – Spends or Converts to
Cash and then Spends
What does a good account system
What does a good accounting
system do for transaction?
• Provides Validity
• Proper Authorization
• Complete transactions
• Proper Classification
• Report in Correct Time
• Properly Valued
• Summarizes Correctly
What are the 5 primary control
1. Segregation of Duties or Dual Custody
2. System of Authorizations
3. Independent Checks and Balances
4. Physical Safeguards
5. Documentation & Records
• Review the concept
• Provide examples of
how you have heard