Edwin Sutherland
was the first person to come up with the term “white collar crime.” It was referring
to those who worked in a high respectable occupation, who was also high in
social class (Strader, 2002). When white collar crime first started back in the
mid-1970’s, the types of crimes in this category were much smaller than what it
is now. Before white collar crimes were crimes such as, securities fraud or tax
fraud; these types of crimes were also only done by those who were high in
social class. Now, we have middle class or lower class committing securities
fraud or tax fraud. So, Sutherland’s definition of white collar crime is now
evolving and is becoming outdated.
Why commit a white
collar crime? Sutherland describes these types of criminals as wealthy; these
criminals have money and yet they want more. James Coleman wrote about understanding
white collar crime. In his book, Coleman states that wealthy people who commit
white collar crimes do not want to lose what they have because they worked so
hard to get where they are. They don’t want to become someone in middle class
or lower class; these wealthy criminals want to keep their high social status
and will do anything to make sure the money keeps flowing in.
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| FBI's suspicious activity reports (SARs) |
What is
considered a white collar crime? There are many different types of crimes that
fall under the “white collar crime” category. These crimes vary from different
types of fraud, schemes and identity theft. White collar crimes affect everyone.
It can either affect you as an individual or as a company. Depending on what
type of white collar crime occurred, would depend on how much damage was done.
For example, mortgage fraud targets our nation’s financial institutions; this
can be done by an individual or by an organized crime group. There are a
variety of methods in which mortgage fraud can be accomplished, whereas the most
known include misstatement, misrepresentation, or omission relating to a real
estate transaction (FBI, 2010-20122).
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| suspicious activity reports (SARs) |
Another example would be identity theft; which
affects you as an individual. Identity theft can happen to anyone, no matter
what age you are. According to the Bureau of Justice Statistics (BJS), in 2010
they found that ages 12 and older have experienced one or more types of
identity theft in the United States. Click the identity theft statistics for more information.
When white
collar crimes occur, who are the ones benefiting from these crimes? The white
collar criminals are the ones who benefit from these types of crimes. If the
criminal(s) are targeting the nation’s financial institutions, they are giving
themselves a lump sum of money. If the criminal(s) are targeting individuals, they
are gaining some type of the victims’ identity. They can steal their social
security number, debit and/or credit cards; they can get a loan, a car, or even
a house with your information.
Protection starts
with you. We are all responsible for what we have and we are the only ones that
can make sure our information is protected. Be smart about where you use your debit
or credit card(s) or who you give your social security number to. Our government,
such as the Federal Bureau of Investigations (FBI), is now taking action. The
FBI has resources available to us which helps stop white collar crimes early or
even prevent them from occurring. Knowledge about white collar crime can only
help you protect yourself from future incidents.
References:
Federal
Bureau of Investigations , (2012). Financial
crimes report to the public.
Retrieved from website: http://www.fbi.gov/stats-services/publications/financial-crimes-report-2010-2011
Coleman,
J. (2006). The criminal elite.
(Sixth ed., pp. 193-209). New York, NY: Worth Publishers.
Langton, L. (2011, November 30). Identity theft reported by households, 2005-2010. Retrieved from http://bjs.ojp.usdoj.gov/index.cfm?ty=pbdetail&iid=2207
Strader,
K. (2002). Understanding white collar crime. Lexis
Nexis, Retrieved from http://www.lexisnexis.com/lawschool/study/understanding/pdf/WhiteCollarCh1.pdf
U.S.
Department of Justice, Bureau of Justice Statistics. (2011). Identity
theft reported by households, 2005-2010. Retrieved
from website: http://bjs.ojp.usdoj.gov/content/pub/pdf/itrh0510.pdf
