Convenience Theory and Cybercrime Opportunity: An Analysis of Online Cyber Offending

ABSTRACT

The private nature of business creates opportunities for financial crimes. Convenience theory suggests that opportunity, accompanied by a willingness and motive, explains financial crimes. Newer technologies have created similar private environments, which allow for criminal behavior. For example, cryptocurrencies offer a new way of generating anonymous financial transactions. This paper explores criminal opportunity using cryptocurrency and convenience theory. Specifically, we test each convenience dimension – opportunity, willingness, and motive – using a sample of adults in the United States. We find all three dimensions explain online financial crimes. Opportunity, measured through any purchase of cryptocurrency is related to an increase in financial cybercrimes. Further, when motive is considered as greed or need, a need is more important than greed. The use of cryptocurrency increases certain opportunities for financial crimes. This may partially be attributed to the crimes themselves (e.g. pump-and-dump cryptocurrency schemes) but also to the general opportunity created through cyberspace.

Acknowledgements

This work was supported by the Center for European Union, Transatlantic, and Trans-European Space Studies at Virginia Tech, USA, The institute for Society, Culture, and The Environment, at Virginia Tech, USA, and The Center for Peace Studies and Violence Prevention at Virginia Tech, USA.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

This work was supported by the Center for European Union, Transatlantic, and Trans-European Space Studies at Virginia Tech, USA, The institute for Society, Culture, and The Environment, at Virginia Tech, USA, and The Center for Peace Studies and Violence Prevention at Virginia Tech, USA.

Notes on contributors

Thomas E. Dearden

Thomas Dearden is an Assistant Professor of Sociology at Virginia Tech. He specializes in research on financial cybercrimes. Dr. Dearden currently has 14 peer-reviewed articles in journals such as The American Journal of Criminal Justice, Victims and Offenders, and The Journal of Financial Crime. His current work explores the relationship between cryptocurrency and crime using criminological theory. In addition, He has conducted research and consulted for organizations and law enforcement agencies across the globe. This work has led to 11 professional reports, one patent, and more than a dozen presentations to organizational leadership.

Petter Gottschalk

Petter Gottschalk is professor in the Department of Leadership and Organizational Behavior at BI Norwegian Business School in Oslo, Norway. After completing his education at Technische Universität Berlin, Dartmouth College, Massachusetts Institute of Technology, and Henley Management College, he took on executive positions in technology enterprises for twenty years before joining academics. Dr. Gottschalk has published extensively on knowledge management, intelligence strategy, police investigations, white-collar crime, convenience theory, and fraud examinations. He has lectured in the United States, China, Singapore, and Egypt.