White collar crime is common due to its easy and non-violent nature. According to the Federal Bureau of Investigation, this term was coined in 1939 and is now synonymous with the full array of frauds committed by business and government professionals. These kinds of crimes are most relatable to the opportunity theory of crime; this theory proposes that offenders make rational decisions and therefore select targets that may offer high reward with low risk and effort. Individuals commit these crimes through illegitimate means in order for the company or enterprise within which they are employed to obtain monetary gains. These crimes greatly revolve around the opportunity theory of crime; it is easily hid from discovery and allows for high reward …show more content…
His main contention being that the very permissive attitudes within society allow for this type of crime to continue to flourish without consequence; but, research has shown that Americans do in fact condemn white collar crime. There has been a lot issues with the true definition of what white collar crime is. The most common white-collar crimes include fraud, bribery, Ponzi schemes, cybercrime, copyright infringement, money laundering, identity theft and forgery insider trading, labor racketeering, embezzlement. Although Sutherland defined it first, the FBI defines it with a more narrow approach: "those illegal acts which are characterized by deceit, concealment, or violation of trust and which are not dependent upon the application or threat of physical force or violence" (1989, 3). The crimes committed which fall under the title of white collar crime are entirely dependent upon the identity of the offender; their occupation, their environment, and their opportunities are significant factors in relation to their
Throughout history there have been many white collar crimes. These crimes are defined as non-violent and financial-based crimes that are full ranges of fraud committed by business and government professionals. These crimes are not victimless nor unnoticed. A single scandal can destroy a company and can lose investors millions of dollars. Today, fraud schemes are more sophisticated than ever, and through studying: Enron, LIBOR, Albert Wiggan and Chase National Bank, Lehman Brothers and Madoff, we find how the culprits started there deception, the aftermath of the scandal and what our country has done to prevent future scandals.
White Collar crime is not a crime unto it self, but instead a criteria that has to be met in order for a crime to be considered as White- Collar Crime; (Blount, 2002) hence the reason why Corporate Crime is also considered as White- Collar Crime. At the same time, White Collar Crime and Corporate Crime can be seen as distinct criminological categories, however, in order to reveal this, this essay will firstly be exploring Sutherland's definition of white collar crime and the perplexity with this definition of white-collar crime. It will then be looking at the modification which had to take place with Sutherland's definition of white-collar crime in order to established a distinction between white-collar and corporate crime. Consequently, this essay will show in what ways and to what extent white collar crime and corporate crime are distinct criminological categories.
Lets first start off by defining each one of these types of crime. Street crime is a loosely defined term that usually refers to criminal acts that are done in public. Currently, society is more aware and familiar with this type of crime. Examples of street crime include homicides, shootings, robberies, etc; crimes that are usually depicted on the news or on television shows such as COPS. White-collar crime, on the other hand, is defined as “illegal or unethical acts committed by an individual or organization during the course of legitimate occupational activity” (Barkan, 2012). In Layman’s terms, white-collar crime is basically any type of crime committed, usually by authoritative figures, in a business or corporation. This type of crime is usually associated with criminal acts such as fraud, pilferage, embezzlement, or any type of corporate corruption. There are also two subtypes of white-collar crime: occupational crime and organizational crime. Individuals usually commit occup...
E.). There are various costs of white-collar crime, although an accurate measurement is not easy, they are hard to asses as well as very complex. There are enormous financial losses, sometimes physical damage as a result of negligence, as well as social costs: weakened trust in a free economy, confidence loss in political organizations, and destruction of public morality. “White collar crime could also set an example of disobedience for the general public, with citizens who rarely see white-collar offenders prosecuted and sent to prison becoming cynical about the criminal justice system” (Conklin, J. E.). White-collar crime is undeniably a crime and often encompasses elaborate
White-collar crime is the financially motivated illegal acts that are committed by the middle and upper class through their legitimate business or government activities. This form of crime was first coined by Edwin Sutherland in 1939 as “a crime committed by a person of respectability and high social status in the course of his occupation.” (Linden, 2016). Crime has often been associated with the lower class due to economic reasons. However, Sutherland stressed that the Criminal Justice System needed to acknowledge illegal business activity as crime due to the repercussions they caused and the damage they can cause to society (Linden, 2016). Crime was prevalently thought to only be
Most people consider this crime to consist of CEO’s manipulating their way to making a large fortune. This of course, is true most of the time in high-profile cases. For example, in late 2001 Enron Corporation executives confessed to overstating the company’s earnings. This lead to artificially inflating what the company was worth and deceived the investors. It took some time to unravel all the fraud put behind this devious act but shows how sophisticated white-collar crime can be. Although it’s usually associated with upper management of corporations, people from all different levels and occupations can perform this crime ("How White-collar Crime Works").
White collar and corporate crimes are crimes that many people do not associate with criminal activity. Yet the cost to the country due to corporate and white collar crime far exceeds that of “street” crime and benefit fraud. White collar and corporate crimes refer to crimes that take place within a business or institution and include everything from Tax fraud to health and safety breaches.
It is customary to divide the categories of crimes, according to their violence ratio. For example, there are violent crimes, typically thought of as street crime, such as first degree, second degree, manslaughter and non-violent crimes such as blackmail, bribery, embezzlement, and forgery. However, the term “violent” can be applied to both street crimes and white collar crimes. Although street crimes are usually thought of as taking something by force, white collar crimes are typically perpetrated by a “respectable person”. The Department of Justice defines white collar crimes as “those classes of non-violent illegal activities which principally involve traditional ideas of deceit, deception, concealment, manipulation, breach of trust,
In order to coherently understand the meaning of white collar crime, Friedrichs (2010) states that it must be approached in stages. The first stage is polemical, and is related to the definition. The second and third stages are typological and operational. As previously mentioned, white collar crime has been quite heavily debated, and currently there is no definition that is generally accepted by criminologists. Some argue that the term white collar crime should be abandoned altogether, and another issue is where it is appropriate to draw the line between legal practices and illegal practices (Hayes & Prenzler, 2012; Dobovšek & Slak, 2015). Throughout time, the scope of white collar crime has broadened to include many other typologies of white collar crime, due to the fact that technology has and continues to advance. The most common types of white collar crime include occupational crime, corporate crime, state crime, financial
White collar crime is a term created by Edwin Sutherland in 1939 that refers to crimes committed by people of higher social status, companies, and the government according to the book “White-Collar Crime in a Nutshell” by Ellen Podgor and Jerold Israel. White collar crimes are usually non-violent crimes committed in order to have a financial-gain (Podgor and Israel 3). A very well known white collar crime that has even been taught in many history classes is the Watergate scandal. This is a white collar crime that was committed by government authorities. Watergate was a crime that shocked the nation.
White collar crime is viewed as non-violent and treated differently than other types of crimes; some that are even violent in nature. In general, personal and public perception can vary from one individual to another. “A recent survey conducted by the National White Collar Crime Center (NWCCC) confirm that the public considers certain white collar crimes as more serious than some street crimes, according to Drs. Marilyn Price and Donna Norris” (Perri, J.D., CFE, CPA, 2011, p. 23). Even though white collar crimes do not seem a violent as someone that commits murder; there is still major damage done. For example, a fraud victim goes through a lot of hardship. They can be harassed, have their identity stolen and lose everything. This in many cases can be looked at as a severe crime. Valuables taken during a burglary can be replaced easily, but someone’s identity and livelihood cannot be given back. Most white...
...o be intense for arrests for white collar crime than for predatory violence or drug dealing. Indeed, political pressure is more likely to be exerted in blocking or derailing white collar crime investigations than in conventional crime cases, and the police can operate effectively against white collar crime only to the extent that they are relatively free of political influence” (2010:278). Until political influence and the powers of corporations are subdued little can be done to battle this type of crime. People who commit this type of crime have the power to avoid prosecution primarily due the powerful corporations they work for or the institution they are a part of.
In the twentieth century, White Collar and Organized Crimes have attracted the attention of the U.S. Criminal Justice System due to the greater cost to society than most normal street crime. Even with the new attention by the Criminal Justice System, both are still pretty unknown to the general public. Although we know it occurs, due to the lack of coverage and information, society does not realize the extent of these crimes or the impact. White Collar and Organized is generally crime committed by someone that is considered respectable and has a high social status. The crimes committed usually consist of fraud, insider trading, bribery, embezzlement, money laundering, identity theft or forgery. One person would not normally commit all of these but likely one or the other.
White-collar crime, specifically computer crime, is becoming more popular as computers become more readily available. Crimes using computers and crimes against computers are usually committed without fear of being caught, due to the detachment of the offender from the victim.
Fraud and white-collar crime are common forms of crimes that people commit in various aspects and positions in the corporate world. Fraud and white-collar crimes have similar meaning as they refer to the non-violent crimes that people commit with the basic objective of gaining money using illegal means. The cases of white-collar crimes have been increasing exponentially in the 21st century due to the advent of technology because fraudsters apply technological tools in cheating, swindling, embezzling, and defrauding people or organizations. White-collar crime is a complex issue in society because its occurrence is dependent on many factors such as organizational structure, organization culture, and personality traits. Thus, the literature review examines how organizational structure, organizational culture, and personality traits contribute to the occurrence of white-collar crimes.