A Cross-sectional Qualitative Study Describing Banking Employee Perceptions on White-Collar Crime in the Banking Sector, within Durban

Abstract

The prevalence of White-Collar Crime in the banking sector has led to increased financial damage and increased reputational risk. This crime was also committed by employees of high social status and was not usually taken seriously by individuals. Additionally, the General Strain Theory (GST) stated that employees engaged in White-Collar Crime due to having experienced subjective and economic strain. This study aimed to describe employee perceptions on reasons as to why banking employees commit White-Collar Crime in the banking sector, as well as to suggest better control systems to be implemented by banks. In-depth interviews were conducted with four banking employees; the data collected was categorised into themes, interpreted and utilised in confirming or refuting existing literature and the GST. The findings declared that the crime was committed by both high and low social status individuals, employees engaged in the crime mostly due to economic strain and finally, White-Collar Crime was taken seriously and reported on a regular basis by both employees and the leadership of the bank. Furthermore, it was discovered that White-Collar Crime affected the profitability and reputation of the bank, thus losing trust in the eyes of stakeholders and the community.