An overview on White Collar Crime

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 So, Sutherland’s definition of white collar crime is now evolving and is becoming outdated.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.

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). 

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