Question 1

There are a lot of impacts that can emerge as a result of white collar and economic crimes on an individual, business or an entire community in general.  When a business is hit by extortion from any given source, it is forced to make up for it by all means necessary. This may include increasing prices of services or  less pay for workers and  retrenchment of  workers to cut on the labor force .The ripple effect can spread to employees or entrepreneurs who might find themselves in positions where they cannot pay loans they had previously borrowed and hence credit become hard to acquire. (CRJ3015 W2 readings).

A company’s reputation can be easily ruined due to stock fraud. When stock fraud scandals come out into the public domain, investors may lose confidence in the stock market. Embezzlement of a high magnitude such as the Enron scandal cleared the retirement savings of many innocent Americans. (CRJ3015 W2 readings).

White collar crimes slows down a society’s progress in the long run. For example an individual can continue to pay for a service that he or she no longer uses. True green lawn company was one of the companies that was suspected to use this technique. Paying for services that are no longer relevant leaves one broke without any extra money to invest in other ventures. (CRJ3015 W2 readings).

Some people commit suicide after realizing that they have lost their hard earned money to fraud. This in turn reduces the quality and quantity of the labor force .The number of people who lose their lives due to white collar crime related crimes is estimated to be more than three hundred thousand. (CRJ3015 W2 readings).

 

 

Question 2

One of the main reasons why white collar crimes go unreported is due to the simple fact that the crimes are normally committed by people of high social status during their tenure in office. Such individuals can easily cover their crimes. When a problem is not reported it is difficult to tell the actual magnitude of the challenge. Hence it is very difficult to come up with a true picture of white collar crimes. (SU_CRJ3015_L2_G1 Consumer fraud pdf).

The lack of a global definition to clear and explicitly define white collar crimes. The lack of a proper definition is actually the key to the problem of evaluating white collar crimes. When a phenomena is not properly defined, then it cannot be measured accurately. Existing definitions bring about a definition variance that makes it very hard to gather data when a crimes deemed white collar is committed. The data gathered cannot be properly evaluated and often leads to inconsistency set of information that cannot warrant an arrest. (SU_CRJ3015_L2_G1 Consumer fraud pdf).

Another reason that makes it challenging to measure and account for white collar crimes is the manner in which such crimes are handled. They lack proper consistency .Some serious cases may be taken care of administratively instead of criminally while other cases of a similar magnitude may be handled using the conventional criminal prosecution processes. The place, time and traits of any criminal activity should be recorded down for analysis to prevent the occurrence of such an offense in the future but   lack of a clear definition, has been a great stumbling block. (SU_CRJ3015_L2_G1 Consumer fraud pdf).

 

 

 

Question 3

Most of the economic crimes have a ripple effect on the whole country .Consumer frauds are one of the most common kinds of economic crimes. It is very hard to tell whether the crime was deliberate or the error made was intentional. For example when there is a defective item or product in the market, one cannot tell whether the reason behind it being defective was as result of a manufacturing blunder or deliberate action by an individual .When a company comes up with a false advertising scheme to lure an innocent, unknowing consumer into a business entity with a product that does not exist is also an example of fraud. Car dealers are notorious for false advertising. They normally market a car and put a price tag that is below what the public expects. When a potential buyer arrives at the car dealer’s shop, he does not find the car he intended to buy but is forced to leave with an alternative product. False advertising cannot be penalized as one can easily claim that the specific item advertised has been sold out. (SU_CRJ3015_L2_G1 Consumer fraud pdf).

Telemarketing is another kind of economic crime that may affect a society as whole if committed. It is a very vast business and can happen anywhere in the world no matter the distance. Bringing the perpetrators of telemarketing to justice is very difficult in most cases. Telemarketing is also referred to as ‘boiler room operations’. The perpetrators of the crime are usually very organized as they go about selling everything from land to stocks. The elder people usually fall victim to telemarketing due to certain reasons. First of all they are usually home most of the time hence can be easily accessed. Secondly they stay alone and tolerate any phone call even if it is from a stranger. They live alone hence cannot get a second opinion from another person who might recognize the fraud. The swindlers are usually enticed by the retirement benefits or business that the elder might have invested in. (Ferguson, 2010).

An example of a telemarketing fraud is displayed when a swindler sends an email to an unknowing person promising to deliver items or services that are fake. The products and services and up not being delivered. The perpetrator of the crime does not incur any loss. (SU_CRJ3015_L2_G1 Consumer fraud pdf).

Religious and charity kinds of economic crimes. Religious institutions generate a lot of money as unsuspecting people give in faith and without expecting anything in return thus religious fraud is hard to prosecute. Opus dei and scientology an institution which are part of the Catholic Church, have assets worth millions of dollars. A good example of religious fraud is a religious leader who pretends that he can heal people of their diseases instead he wants to use his trickery to embezzle the congregation of their hard earned money. (SU_CRJ3015_L2_G1 Consumer fraud pdf).

Phony sweepstakes is a techniques of economic fraud. One receives a congratulatory email claiming that they are winners. Most of the times the recipient’s name is included in the head line to make the message more believable. One receiving the congratulatory message, they are required to part with processing fee or subscribe to a certain magazine or even purchase something. A quick analysis of the message can reveal that the recipient is not the winner. (SU_CRJ3015_L2_G1 Consumer fraud pdf).

The consequences of financial fraud go beyond loss of finances and economic stability of a society.it robs people of the right to fell that they live a in a just and fair world which consequently results to a resentful society. (SU_CRJ3015_L2_G1 Consumer fraud pdf).

Question 4

Ways in which victims of white collar crimes facilitate these crimes. The extent to which a victim cooperates in a criminal occurrence may influence the cause of the crime. One of the usual actions happens when the victim initiates contact with the perpetrator of the crime or takes initial steps that may lead to the perpetrator to come into contact with the victim. For example when an individual visits a website where a certain syndicate hosts his company, they can easily fall into the trap. (Payne, 2013).

The second action that can help facilitate the crime is when a victim reveals their information to the perpetrator. This makes it easily for the perpetrator to use to the information to commit the crime (Payne, 2013).

The victims can also give the perpetrator permission to access their bank account or credit and may convert a business relationship into a personal friendship which easily aids the white collar crime. Most of the actions mentioned above also apply to businesses. A business may reveal vital information that they might facilitate white collar crimes. (CRJ3015 W2 readings).

Question 5

Yes. Some people are more likely to fall victim to white collar crimes than others. Potential victims of the vice people may be ignorant and may not know the trickery behind the schemes therefore becoming more vulnerable than individuals who are more aware. (CRJ3015 W2 readings).

 

 

Question 6

Citizens can make flyers using stories that elaborate more about white collar crimes. Writing new paper articles will also assist to spread information on fraud hence creating awareness in the process. (CRJ3015 W2 readings).

A consumer can research on product before purchasing it. This will protect him or she from potential harmful products .Employees who are accused of stealing public funds can be terminated from the business premises. (CRJ3015 W2 readings).

 

References

 CRJ3015 W2 readings

Ferguson, J. E. (2010). White-collar crime. New York: Chelsea House.

Payne, B. K. (2013). White-collar crime: The essentials. Thousand Oaks, Calif: SAGE Publications.

SU_CRJ3015_L2_G1 Consumer fraud pdf