What is White-Collar Crime
Edwin H Sutherland coined in1939 the word White-Collar Crime. According to him, It is a crime committed by a person of respectability and high social status during their occupation. It should also be explained as a financially motivated, nonviolent crime committed by business people and government professionals. It means that it is achieved both by the government and business people. It is also called financially motivated nonviolent crime. Here the criminal deceives others and takes their money for financial gain. Examples; include securities fraud, corporate fraud, money laundering, bank fraud, blackmail, insurance fraud, extortion, etc.
Sutherland, in this definition, includes the big corporations and legal entities which were earlier considered to be only committed by the lower class. With the development of Technology, white-collar crime has become a global phenomenon, increasing because of economic and industrial growth. There has been an unusual and unexpected increase in the development of computer-specific white-collar crime, which brings a great challenge for the enforcement agencies, as these crimes can be committed from anywhere in the world by any enormous person.
Professor Sutherland confines the concept of financial gain to white-collar Crime and includes only activities by a person of a prestigious group which they undertaker for financial gains in the course of their legitimate business or occupation and the crime committed by these persons for other purposes, do not fall within this category.
Other Crimes versus White-Collar Crime
White Collar crime is not a new phenomenon. It has existed for centuries and can be found in all business professionals and industries. The following distinguishes a white-collar crime from other Street crimes.
First, direct access to the victim. Because of the offender's high position, the offender has direct access to the victim. Secondly, no information about the offender. Most of these crimes are committed by offenders without coming face to face with the victim. And finally, the offenders' political connections. Most offenders have significant political connections, and the politicians are involved in the crime. Therefore, it isn't easy to take action against such types and organizations.
Causes of White Collar Crime
Greed
High-class people are financially stable, but they still commit crimes because of their greed to earn more, and for this purpose, they even choose illegal ways to have economic gain.
Competition
In his theory of evolution, Darwin stated that 'survival of the fittest is necessary' and there will always be competition for survival. However, for their greed and to get ahead of their Peer, some people commit a crime.
No Fix Laws or Punishments
After committing a crime, most offender's gateway without getting any punishment because there are not enough laws to deal with such crimes.
Types of White-Collar Crime
Fraud
It is the most common type of white-collar crime. It involves Intentional misrepresentation of material fact. The most common types of fraud include;
>Computer Fraud
It means stealing Bank credit cards and other information from a computer.
>Mail Fraud
It means the use of email to commit a crime.
>Government Fraud
Engage in fraud activities regarding public housing, agriculture programs, contracts, bribery, fall certificates, etc.
>Financial Fraud
It means engaging in trade activities relating to Commercial loans etc.
Blackmail
It means demanding money in return for not causing physical harm and property damage etc.
Antitrust Violation
It involves fixing prices and building monopolies.
Tax evasion
It includes filing a false tax return or not filling takes the return at all.
Environmental Law Violation
It includes discharging a toxic substance into air, water, or soil that could harm people's property or the environment, including air, water, and land pollution.
Corporate Crime
A corporate crime is a crime committed by a corporation is a business entity. It is also committed by someone employed by a Corporation if the crime benefits the organization—examples; False advertisement, false claim, violation of environmental laws, bribery, etc.
Recommendations
We should have to control internal audits, and institutions should place anti-fraud mechanisms, the external auditor should be well paid so as not to move toward bribery, well-trained auditors, ensure political and economic stability, improve the government system dealing with the crime, and media should play an influential role.
Conclusion
Thus, white-collar crimes are increasing day by day. Different studies have pointed out that the financial loss to society from white-collar crimes is much more dangerous than other crimes. It is not an easy job to control it at all, and we along with the government should make mechanisms to eliminate and should try to reduce such kinds of elements.
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