White-Collar is Organized Crime - Term Paper Example

November 18, White Collar/Organized Crime White collar crime was first defined in 1939 by Edwin Sutherland. From this definition white collar crime was described as being a “crime committed by a person of respectability and high social status in the course of his occupation (Cornell, n.d.). During this era white collar crime often was related to organized crime. Moreover, organized crime was infamous during this period for economic crimes including racketeering. In contrast organized crime would often used criminal actions including murder to enforce power over others often when a debt when unpaid. However, white collar crime has evolved since the late 1930’s. White collar crime no longer needs to be in an occupational setting. Technological advancements have provided a new gateway for crimes to be committed. Historically white collar crime was associated with organized crime. Many people associate the mafia with white collar crimes. Through the use of the mafia members demonstrated power over others to achieve their economic advancements. This was further emphasized through government corruption. During the 1920’s it was not uncommon for mafia family members to bribe officials. Moreover, many individuals feared mafia family members and would not testify against them if they had witnessed a crime (Cornell University, n.d.). During this era determining the identity was easier of the victim was easier as technology was not readily available. Current white collar crimes often do not know their victims as many crimes take place online. However, these crimes do not necessarily need to occur online for the criminal to not know his victim. For example, the Enron Scandal caused significant harm to the stock market and all employees and share-holders within this company. The Enron executives could not have identified every possible person they harmed when committing their crimes. Although the Enron scandal happened approximately nine years ago many other businesses have committed similar acts. However, these acts may not be as extreme as the Enron scandal. According to the United States Department of Justice (2006), “In 2005, among 7,818 businesses 67% exhibited one cyber crime.” Moreover calculating the exact number of cyber crimes is often hard to determine. In the research by the United States Department of Justice most businesses did not report the cyber crimes to authorities. 2. White collar crime attempts to accomplish many of the same characteristics as organized crime. Although organized crime has declined the number of white collar crimes has increased (Federal Bureau of Investigations, n.d.). Often white collar crime is hidden in business and normalized routines. Individuals not a participant may never realize that this form of crime is occurring among co-workers. Further, white collar crime is more complex that crime as a whole. This form of crime utilizes knowledge and planning of procedures relevant to the crime. For example, identity theft over the internet is not easily done by the average person. In comparison to other forms of crime the individual needs to understand how computers work and the best way to obtain someone else’s relevant information. Moreover, white collar crime seeks to accomplish financial gain for the offender through means of depiction. From an economic perspective white collar crimes cause more harm than regular crimes. According to Cornell University (n.d), “white-collar crime is estimated to cost the United States more than $300 billion annually.” In 2005, victims reported losing over 10,000 dollars to cyber crimes. Cyber crimes often take the form of identity theft, fraudulent scams and hacking. Hacking often provides the relevant information for the criminal to commit identity theft. Moreover, identity theft is often associated with economic forms of theft including general thefts of money or making purchases fraudulently. The most common cyber crime committed is fraud. Yet the effects of cyber crimes limit the trust in society as a whole. Many individuals avoid doing route tasks online out of fear of being victimized. For many offenders, white collar crime provides significant financial gain through defrauding others. In addition this form of crime seeks to accomplish stripping the victim of their autonomy; as many victims of white collar crimes remain unknown to the offender. 3. The main limitation of white collar crime is that this form of crime is easily traceable. Computer forensics provides the opportunity for the discovery and conviction of many white collar criminals. Moreover, those committing forms of identity theft online are often caught upon purchasing goods. Many goods that are frequently purchased online are shipped to the offender providing authorities with information as to where the offender is located. In addition many credit card companies now have fraud departments. These departments are flagged if a certain amount of money is spent within a time limit. Additionally, some companies issue holds on the credit card if an individual is making large transactions. These holds serve to protect the identity of the individual. For many offenders the strengths of white collar crime is that there are no witnesses. Moreover, the offender does not have known his or her victim to defraud them. Instead the offender may never meet their victim nor know the impact he or she had on the victim’s life. For some these concepts make committing white collar crime an easier form of crime to commit than other forms of crime. In addition the evolution of technology has provided white collar criminals with more opportunities to commit crimes. 4. In order to reform white collar crime new forms of tracking devices need to be made available. The rapid evolution of technology has increased avenues available for white collar criminals. Credit card companies need to expand security measures in order to protect consumers. Moreover, consumers need to be educated on potential white collar crimes and the best methods in order to protect themselves. However, white collar crimes may have the same impact on the victim’s lives as any other forms of crime. Unfortunately not many methods exist in the United States in order to reform and prevent white collar crimes. The United States Constitution protects civil liberties in terms of privacy. Moreover, white collar crimes can be committed globally. In order to reform these concepts there needs to be strict laws in place in regard to jurisdiction of where the crime occurred. The prosecution of white collar crime is not only the responsibility of the United States but the entire world. In order for a reform of white collar crime to be successful we need to rely on other countries to apprehend and prosecute offenders. Although the United States provides some agencies that assist with the apprehension of white collar criminals (such as the Federal Bureau of Investigations) more agencies are needed globally to combat these crimes. However, not all white collar crimes are committed online. In order to combat white collar crimes in business there needs to a system of checks and balances created. As previously note the Enron Scandal had a huge effect on the lives of many people. This scandal was first exposed by an accountant after reviewing the file relevant files and discovering the assets did not match the projected losses. Moreover, accountants need to provide the government with relevant information about potential fraudulent activities. Individuals that suspect their employers are involved in white collar crimes need to come forth and inform the authorities. Stricter laws need to be enacted that hold individual’s with knowledge of the crime to be prosecuted. Currently federal conspiracy laws provide many of these services. However, stricter punishment needs to be given to conspirators in order to prevent individuals in the future from not reporting the prevalence of white collar crime. 5. The weakness of these potential reform suggestions includes the ability to monitor potential white collar crimes globally. Unfortunately not all countries are interested in apprehending and punishing white collar crimes. Moreover, the apprehension of white collar criminals can be difficult in foreign countries. Although the United States often utilizes the Federal Bureau of Investigation to assist other countries in the apprehension of white collar criminals not all countries are looking to accept this help. Moreover, if the country refuses the help the Federal Bureau of Investigation there is little the organization can do about it. Additionally, these suggestions place a heavy reliance on the individual’s that may know something about white collar crimes that are currently being committed. The strengths of these suggestions in terms of reforming white collar crimes include the ability to strictly punish individuals that have knowledge of white collar crimes occurring and not reporting them to proper authorities. Under these guidelines more individuals would be inclined based upon their own personal protection to report potential white collar crimes. Moreover, strong tracking devices that can keep up with the rapid expansion of technology would provide more security features to consumers. In addition to lowering the instances of white collar crime this would allow for a higher consumer interest. Stricter tracking devices are both a strength and a weakness of suggestions towards a white collar crime reform dependent upon the individual’s perspective. Some individual’s may argue that their civil liberties are being violated. However, the increased security measures would prevent the loss of millions of dollars in white collar crimes each year. Moreover, individuals would experience more protection. 6. Based upon these suggestions it is recommended that white collar crime reforms focus on increasing security measures and punishments for individuals involved in white collar crime. Individuals that have knowledge of a potential white collar crime being committed or being conspired to commit maybe more inclined to inform authorities if he believes he will be held liable. Perhaps the Enron scandal may have been exposed earlier had individuals been more inclined to inform authorities. Moreover, this suggestion focuses on increasing the security and decreasing the amount of damage done by white collar criminals to their victims. Educational programs combating white collar crime need to be developed. Many individuals using the internet do not think about the possible repercussions when shopping online. Yet individuals stand to lose significantly if an offender gets a hold of their information. Although credit card companies provide security measures the consumer needs to be aware of how white collar crimes are committed online for their own protection. Some incentive needs to be given to help combat white collar crime on a global level. Some countries allow for the Federal Bureau of Investigations to assist with their own investigations. However, other countries have no incentive for cooperation. From a global standpoint jurisdiction needs to be provided regardless of country of origin. White collar crimes do not discriminate based upon geographical location. Moreover, this would allow for stricter security measures to be enforced. Although tracking the offender makes great strides in preventing white collar crimes if the offender is not prosecuted there is a strong likelihood he will reoffend. References Reports and Publications. United States Department of Justice. 2010. Web. November 20, 2010. United States Constitution. Cornell University Law School. Web. November 20, 2010. White Collar-Crime. Cornell University Law School. Web. November 20, 2010. White Collar Crime. University of Missouri. 2008. Web. November 20, 2010. Read More