How does Organizational Fraud Occur?

Analysis of Corporate Fraud Process with ArchiMate

Abstract

Recently, a series of corporate scandals have come to light in Japanese companies. Corporate management is required to prevent the recurrence of these scandals. There is a need to elucidate the causes and processes of organizational fraud. In this study, based on Cressyʼs Fraud Triangle Theory, we systematically identify and visualize the relational structure and behavioral processes behind a fraudulent loan case using ArchiMate, focusing on the case of local bank loan fraud that occurred in Japan as an example of organizational fraud to show that organizational fraud is caused by a chain of fraud triangles within an organization.