Final answer:
A corruption scheme is a fraud involving insiders of an organization colluding with outsiders. It challenges the internal oversight due to the potential risks faced by whistleblowers, such as termination. Embezzlement is a related example of corporate crime that concerns misappropriation of funds.
Step-by-step explanation:
The fraud scheme that involves an executive, manager, or employee of the organization in collusion with an outsider is known as a corruption scheme. This type of scheme can take various forms such as bribery, extortion, and conflicts of interest. In a corruption scheme, individuals within the organization use their positions of power to obtain an undue advantage or confer it to others, often at the expense of the organization's interests.
It's important to note that internal bureaucratic oversight is crucial in preventing such unethical practices. However, this oversight is challenged by the reluctance within bureaucracies to expose misconduct due to the potential repercussions for whistleblowers. Individuals who encounter such dilemmas are often faced with difficult choices due to the personal costs associated with doing the right thing, such as the risk of termination.