How can such defraud practices as pointed out in the article be explained? A crime is an action or failure to act in a manner that is acceptable by society, and depending on its severity it can guarantee an individual to be disapproved in a particular society. Such deviant behaviors can be explained using various sociological theories namely differential-association, containment, anomie, and labeling.
According to differential-association theory people as social beings learn both good and bad behaviors from the people they associate themselves. This is not the first time such a case of fraud as this is brought to the public eye. Such people who defraud others in society are there and may at only less degree when they start but later bring about a mega scandal that attract the public and call for government action. And as they see the repercussions on the defrauders from the government, such criminals can continue or stop their activities. Governments should take stern actions against defrauders as is the case in this story so as to send a warning message to the society as a whole for those involved or contemplating fraud as a better option.
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Anomie proposes that whenever there is a conflict between certain set targets and availability of means to expected end, people resolves to act against the norms of society. A good life is what every person seeks in this world; success in business is the dream of every business undertaking. What happens when your way to a good life or success is blocked? If the objective is of paramount importance, some people will decide to fraud others to reach their goals. This can be the best theory that can explain fraud crimes. When a business entity feels they are being thrown out of business because a miscalculated step, they must act to maintain their niche in the market. More than often they will go for loans, but if they don’t restructure their management, the same mistake is repeated and fraud might be considered a better option. Governments should provide support for such business to prevent them from deceiving people.
The theory of containment says that a person has a conscience, values, integrity, and morality that control what they want to do. On the other hand, the police, friends, and religious authorities prevent them from breaking rules. When people are committed to their values, offences will be checked. In a society where you act according to your wishes and you can bribe the police while friends and religious authorities feel inadequate to condemn crimes because it’s within their ranks, crimes are expected to be on the rise.
Finally, the labeling theory explains crime as what people call you when deviate from the norm. As you are labeled and seen as an outfit, you might become more deviant. To stop crime it is important that society learn to distinguish between a crime and a person, and emphasize that a person is a person even when they commit a crime and they can change.