There are several reasons why religious organizations can be prone to fraud and white-collar theft.
1. Religious organizations tend to be small organizations. Yes, there are exceptions like the "mega churches" or the Catholic Church. However, many religious organizations are much, much smaller.
2. Religious organizations, by their very nature, engender trust among members. This tends to lead to the false belief that trust is an adequate control. Remember, fraudsters and white-collar criminals feed off the trust of other people to perpetuate their crimes.
3. Unfortunately, in many instances, when fraud does occur in a religious organization, there is a cover up so members do not feel threatened.
4. Religious organizations are usually nonprofit organizations under US law and therefore are often not tightly regulated.
Credit for the above goes to Robert Cornell and Carol B. Johnson and the Jan/Feb 2012 issue of Fraud Magazine.
1. Religious organizations tend to be small organizations. Yes, there are exceptions like the "mega churches" or the Catholic Church. However, many religious organizations are much, much smaller.
2. Religious organizations, by their very nature, engender trust among members. This tends to lead to the false belief that trust is an adequate control. Remember, fraudsters and white-collar criminals feed off the trust of other people to perpetuate their crimes.
3. Unfortunately, in many instances, when fraud does occur in a religious organization, there is a cover up so members do not feel threatened.
4. Religious organizations are usually nonprofit organizations under US law and therefore are often not tightly regulated.
Credit for the above goes to Robert Cornell and Carol B. Johnson and the Jan/Feb 2012 issue of Fraud Magazine.
NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR
IS IT INTENDED TO BE LEGAL ADVICE. IF
THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.
Have a great and fraud-free day.
----------à>>>>>>>>>>>>>>>gene
tausk
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