Certified Fraud Examiner Practice

The term "organizational crime" is best defined as crimes committed by structured groups. This definition encompasses a variety of illicit activities that are organized in nature and typically carried out by groups that are cohesive and operate in a systematic manner, such as gangs or businesses engaged in illegal actions. These organized groups often have hierarchical structures and specific roles, which allow them to perpetrate larger and more complex crimes than individual actors.

In contrast, while crimes perpetrated by governments, civil violations committed by companies, and criminal acts committed by individuals may involve illegal activities, they do not specifically reflect the collective and structured nature that characterizes organizational crime. Crimes perpetrated by governments can range widely in intent and impact, often involving political or state-sponsored actions. Civil violations committed by companies typically relate to regulatory breaches rather than criminal intent or actions associated with organized crime. Individual criminal acts are, by definition, carried out by a single person, lacking the structured coordination that is integral to the concept of organizational crime. Therefore, recognizing the collective aspect of these crimes highlights why the most accurate definition involves structured groups.