White collar crime: definitions, types, and consequences

White Collar Crime: Identifying Valid Deterrents for White Collar Criminals

Recent studies suggest that white collar crime is on the rise (Chayet, Waring & Weisburg, 2001; Recine, 2002). Many stereotypical beliefs regarding white collar criminals have been debunked over time as researchers start understanding what white collar crime is and who it effects.

White collar crime affects all communities regardless of affluence, demographics, social factors or other considerations. White collar crime comes in many forms. Some traditional examples include bank fraud, blackmail, bribery, credit card fraud, extortion and more. The intent of this research is to examine what factors contribute to white collar crime and what action law enforcement officials can take to effectively deter criminals and protect citizens from fraud related to this type of crime.

Background

The term "white collar crime" was first used by Edwin Sutherland in 1939 as he addressed the American Sociological Society (Chayet, Waring & Weisburg, 1). At the time the intent was to challenge the traditional thinking that crimes only happened to disadvantaged people from "broken homes and decaying neighborhoods" (Chayet, Waring & Weisburg, 1). In fact a survey of the most popular fears and concerns in modern neighborhoods suggests that white collar crime is more of a concern that other forms of crime, particularly identity and credit card theft. As technological advances have enabled new forms of communication, so too have they enabled criminals to conduct crime more efficiently and stealthily. Most community members report some concerns regarding theft from Internet use or computer technology. Many report interest in learning what methods law enforcement officials will adopt to help reduce crime or deter criminals.

Methodology

The aim of this study is an investigation of the impact of white collar crime and an attempt to identify solutions that will deter criminals from engaging in white collar activities in the future. The researcher intends to perform an exploratory study to investigate community attitudes regarding white collar crime and to discern what methods are available for deterring criminals based on evidence collected from the literature review.

Literature Review

Today sociologists understand that white collar criminals may fit any demographic. Many are well respected members of the community with high social status. Still others are middle aged and often well-known members of the community (Chayet, Waring & Weisburd, 2001). In order for society to combat white collar crime effectively it must first debunk the predominant conceptions that exist of the traditional criminal.

Studies of white collar crime suggest that offenders typically seek out victims during times of crisis or times of opportunity (Chavet, Waring & Weisburd, 2001). Many white collar offenders report owning their own homes and living within stable communities; many also have steady jobs (Chavet, Waring & Weisburd, 2001). However there are an equal number of chronic white collar offenders without homes or employment histories, which fit the stereotypical profile of a criminal most people have.

Studies suggest that white collar crime theory and understanding is still in the infancy stages (Poveda, 1994). However as more criminal offenses are reported, law enforcement officials continue to identify new methods for identifying and capturing white collar criminals. In 2002 the White Collar Crime Penalty Enhancement Act was passed, sentencing white collar criminals to longer prison terms (Recine, 2002). Such penalties and bills support the idea that Congress is catching on to the problems and devastation associated with white collar crime. Recine (2002) also notes that such litigation arose in part due to major corporations filing bankruptcy due to criminal activities, including Enron, Global Crossing, Adelphia and World.com. In these situations the companies withheld valuable information regarding financial assets from both creditors and shareholders (Recine, 2002). This eventually led to an inability to fulfill financial obligations.

Recine (2002) examines whether penalty theory is a sufficient approach to combating white collar crime. The idea is that harsher penalties will result in a reeducation in criminal activity. However thus far this theory has not proven effective. Part of the reason as the research points out is most white collar cases are "complicated to investigate and difficult to prosecute (Recine, 1535). Many prosecutors also have limited resources at this time to investigate expensive criminal activity.

The stigma associated with long jail times however may prove a more effective deterrent for white collar criminals (Recine, 1535). This may be more the case for prominent members of society or low frequency but high profile citizens who engage in occasional criminal activity. Regardless, any measure that effectively deters white collar criminals is worth further exploration and investigation.

Conclusions

At this time there is sufficient evidence to support that white collar crime is a primary concern among community members regardless of their social status, race, gender or other demographic variables. Because of the nature of white collar crime, victims stand to lose much in the way of finances and emotional well being when hit by white collar criminal activity. Because of this it is vital law enforcement agencies continue to adopt new measures for combating white collar crime and deterring criminals.