Identification and Means of Prevention of White Collar Crimes

Introduction

White-collar crimes are difficult to identify as they easy to commit. The discovery mechanisms on which police and government traditionally rely seem unusually scarce for this huge new body of crimes. Moreover, though people have land through the ages to be suspicious of strangers on the street. They have not yet learned to protect themselves against huge enterprises. Much more scientific study has to be under taken on the causes and characteristics of white-collar crimes before we can develop workable prevention strategies.

They are many categories committed by individuals may be identified under white collar and commercial crimes which includes Insurance fraud, bankruptcy fraud, fraud against the government and Insider related fraud. Fraud, cybercrime, bribery, inside trading, forgery, money laundering and identity theft, this are crimes that are not violent which are committed by employees in the course of their employment is referred to as white collar crime. (Khan, 2015). Commercial crime includes crimes such as fraud which also includes deceiving a person or a company to get goods and money through forgery. It is caused by greed, common criminality and not being sure about employment.

Definition of concepts.

1. Deceit- The practice or action of deceiving another individual by misrepresenting the truth
2. Greed- Selfish and intense desire for a certain thing more especially wealth, power or food
3. Corruption- fraudulent or dishonest conduct by those who are in power involving bribery
4. Non-violence- not using force but the means of peace to bring about social or political change
5. Power- the skill or capacity to do something or effect behavior of others or the source of event.

The characteristics of white collar and commercial crimes

Characteristics of white-collar crime

White collar offenses are viewed as equally serious as street crimes, there may be a tendency among some to view white collar criminals as similar to street criminals such an assumption, however is misguided and represents mistaken picture of the white-collar criminals. As well focusing narrowly on white collar offenders may result in individual’s failings to recognise the connections between the offender’s background characteristics and their offensive behaviours. (wheeler, 2003)Those who commit even run of the mill garden change white collar crime offenses can, as a group be clearly distinguished from those who commit ordinary street offenses, in one of the most comprehensive white-collar crime studies. For example, they found that white collar offenders were more likely that conversional offenders to have a college education, be white males, be older, have a job commit fewer offenses and start their criminal careers later in life. Focusing on the interaction between offenders characteristics and offense characteristics, the same researcher demonstrated that white collar crime was more likely than street crime it involve the following: National or international scope, Involve a large number of victims, Have organizations as victim, follow demonstrated patterns, be committed for more than a year and be committed in a groups. (wheeler, 2003)

Characteristics of commercial crime

As Edwin H Sutherland stated in 1939 this crime is defined by the perpetrator who commit it in this case they are respected by communities and the have high social status in the course of their occupation. This type of crime includes any illegal acts or series of illegal act committed by nonphysical by the means of keeping the crime under carpet to get money or property or to obtain a business of position. this crime in the process of being committed includes an array of different crimes being committed now forming part commercial crime in the process of the perpetrator achieving they main goal. Crime that are identified in the commercial crime are used interchangeably with white collar crime.

The predominant characteristics of this crime includes the absence, a reason for financial gain, or possible loss and an element of misrepresentation, disguise, dishonesty, or abuse of trust. The South African Police Service define commercial crime which they associated with criminal acts of fraud, embezzlement, stealing of trust funds, corruption, forgery, uttering, money laundering, specifically computer related crimes and cybercrimes includes crimes of statutory offences relating to finance. Tax, corporate governance, and the proceeds of crime, and intellectual property which all does not include the physical misuse of portable property.

Types of white-collar and commercial crimes

Types of white -collar crimes

Insurance fraud

The fraud may be simple a false death claim or it may become complex when multiple policies are involved in the insurance fraud. There are many changes of insurance fraud police holders, management defrauds the public. The insurance fraud mostly commits when the person makes a false claim of a stolen car in order to benefit. This fraud occasionally committed by employees of the insurance company to assist in the preparation of the claims to benefits both of them. For example, they can claim for the filing of false death. (wheeler, 2003)

Bankruptcy fraud

Bankruptcy fraud proceedings are governed by laws legislation to protect insolvent debtors. Most corrupted person has devised numerous means to commits bankruptcy fraud any scam designed to take advantage to get out in the bankruptcy. It can also involve a profitable corporation that is well positioned in a market but experiences a change in ownership. They fraud can also be committed when involve employees of an already established secure, motivate the desire for quick profits, cheat the company of its money and assets and file for bankruptcy. Such a fraud is typically used when the company is losing money or has lost its hold on a market. (wheeler, 2003)

Fraud against the government

Government officials most consider all the levels of crimes that have been committed in the government official, who affect level of economy, the victims of a huge amount of fraud, which includes knowledge in bidding on how to commit a certain fraud. Also, government insiders can commit crime by filling of false claims and hiring of friend’s instance of hiring those who has apply and have qualification that is required or by associating with formerly employed. Fraud that is against government, that where the insider employee offer bribes in the government official to hire their family without any interview, and which payoffs and kickbacks of the expenditures by government official that exceed the budget. (wheeler, 2003)

Types of commercial crimes in South Africa

Burglary at non-residential premises

In the Burglary cases the perpetrators enter the premises without the owner’s consent, sometimes without the owners being available. In the process of this crime being committed no victims are confronted or injured in the process. The South African Police Service reports show a number of 195 times per day of burglary taken place per day this may be that most burglaries happen in the absent of owners. South African Police Service crime Stats Presentation (2018) by Business Tech.

Shoplifting

Business Tech (2018) reports this as a non-violent crime, this case of this crime goods is taken without consent of the owners from the shops. The stats show that shoplifting takes place 170 times a day. In this case the criminal pretends to be the normal, regular shopping customer. The police when it comes to such a crime do not focus on location base to find the perpetrators but focuses on areas which economically active, such as city hubs in Gauteng, Western Cape and KwaZulu Natal.

Common robbery

Common robbery is when the perpetrator is taking the property of another person without their consent, with the intent to permanently deprive the rightful owner of that property, this may happen through force or threats. It may happen that the perpetrator makes use of a weapon in this case which then becomes a robbery with aggravating situation, changing from being a normal common robbery shifting to assault, or even the worst-case scenario if it continues. Stats show that in South Africa we have 139 common robberies taken place per day. Business tech, South African Police Service Stats Presentation (2018).

The consequences of white collar and commercial crimes

Consequences of white-collar crime.

Societal economic losses

It entails the total amount of losses suffered by society from white-collar crime. They suggested that white-collar crime cost the worldwide a billions of dollars a year in financial losses, cost are at the peak in the economic cycle when we compare them with the secondary societal economic cost. (piquero, 2008)

Emotional consequences

Emotional consequence is also suffered by the victims of the white-collar crime and also by the group of society who affected by the white- collar crime to this unlawful. The emotional consequences such as stress and depression from victimization violence of trust also the wounds to the public morale a lot of stress comes along the white-collar crimes and the victimization is experiencing stress. (piquero, 2008)

Physical harm

The result from white collar offence it is also a physical harm, white collar crime also leads to violent result, its result can be a direct result of the white-collar offence for example the effect of physical harm or sexual patient abuse will be the result in physical harm for victims. Sometimes going through financial harm can direct lead to the physical problems. There can be a loss of a member of retirement savings for example, the particular person has been found to involve to health problems for white collar crime victims, serious physical injury is also a likely consequence of white-collar offense. (piquero, 2008)

The consequences of commercial crimes

According to Helen du Toit, the head of audit and forensic at Santam due to the increase in commercial crimes rate as reported by police minister Nathi Mthethwa, she was concern that continued increase in the commercial crimes will disadvantage the country economy from growing. Commercial crime affects not only the economy but also the business sector, private sector and the society as a whole. It also affects the Gross domestic production this will lead to the society becoming the cashless society. It may cause the foreign investors to withdraw from investing in South Africa and even then, the other countries may advice their local citizens from visiting our country. This crime may affect the health of the victim by due to the sustained injuries and frustration.

It may affect the state of mind of an individual decreasing the element of motivation and increasing depression. Commercial crime will increase the poverty rate due the increase in the number of middle working-class population being retrenched and loss of investment. Crime happens all over the country and in both big and small cities, mostly close to drinking areas at night. Criminal activities happen in areas of social deprivation. Crime may not only affect the economic productivity when the victim miss work because the some at the hospital, but it also affects the communities negatively because of the loss in tourism and retail sales. There are so called victimless crimes of prostitution, drug abuse and gambling which have a bad impact in social consequences, drug abuse affects an individual to commit criminal activities in order to support the expenses of drug habit.

Prevention of white collar and commercial crimes

How to prevent white collar crime in a business

Implementing verification systems

One employee must not handle all the contracts, financial management or monetary transactions. It helps the business to prevent white collar crime by implementing verification and balances system. None of the employees should have enough information or power that would allow them to commit crimes. A thorough verification should be done if one fishy transaction was done or attempted so the perpetrator can be found. (Weakley, 2017)

Tracking internet activities

The internet is mostly used to commit white collar crime, so the business must make sure that they use software that closely monitors the websites, the activities done by the employees and social media connections. Make sure the business has an internet usage policy in place and require the employees that are using their personal devices to have monitoring software installed by the business information technology department. (Weakley, 2017)

Working with an attorney

The business must work with a white- collar crime attorney. When you suspect your employees are doing illegal activities these legal practitioners can advise you on what to do and they can also make you aware of your rights as a business owner, also including information about pressing charges for white collar crime. (Weakley, 2017)

Monitoring employees

Insert video cameras to monitor areas of temptations helps to keep your business safe because they will be an effective prevention to criminal activities such as supply cabinets and cash registers. Make sure that you have a system that will save the recordings just in case you need them in future evidence of white-collar crimes. (Weakley, 2017)

Inventorying equipment

To reduce the risks of theft the equipment and supplies must be listed. A wise plan must be made to check the purchase orders against your inventory. Radio frequency identification must be implemented tagging system, supplies owned by your business and a regular survey of the equipment. The methods above require energy, investment of time and resources. They help reduce the risks of being victimized of white-collar crimes in your business. In so doing you will be preventing your business from dealing with the results of major criminal activities. (Weakley, 2017)

Prevention of commercial crime

According to Benenkos & Merio (2004:127) The appearance of a business can attracts or deter crimes of many natures. The following are some steps that can help make your business more secure maintain the property. A rundown business or building with attract criminals so make sure that the building, the landscaping, the sidewalks and the parking areas are all clean and well-maintained. Do not keep old or damaged displays, posters or signs that are no longer useful to you. Store Layout Have the checkout counter near the front of the store, so that employees can monitor activities inside and outside the store. Clearly mark public and private areas and make private areas hard to access for non-employees. (Student Opinion) they have to mark parking areas and entrances to the business, keep trees near the building well-trimmed and secure fire escape ladders so that they cannot be used to access the roof.

This are the shoplifting, make sure that your employees are trained at spotting and apprehending shoplifters. Keep your store and the display shelves neat and organized, so that your employees can observe the customers and see if something has gone missing. Eliminate blind spots by placing mirrors in the corners, and consider using electronic article surveillance systems or cameras to monitor your store and merchandise.Prevent grab-and-runs by keeping merchandize away from the exits, and design your layout so that all people entering and exiting the store must pass by security personnel or employees. Keep expensive items in locked cases, and limit the number of items that employees remove at any one time for a customer, and ensure that they are replaced when the customer is finished. Fitting rooms and restrooms should be watched at all times, and limit the number of items taken into a fitting room, and don't allow un-paid merchandise to be taken into the restrooms. (Benenkos P.J & Merio A.V 2004, sociology 6th edition. New Baskerville MC Grew-hill).

Conclusion

People have different tolerance towards behaviors of others; environmental signals can push people to behave different when they are faced with right choices. Most of white-collar crimes take place because of the observed doubt in the environmental signals. Good or bad behavior can be caused out of people in a working environment. Uncertain clues slightly push people towards slippery route of forming wrongdoings which leads to criminal acts. Some people give in to temptations and compromise their proper values. (Khan, 2015).

Communities that suffer from crime are more likely to continue suffering from crime and its crime rates unless they learn and adopt to the prevention of criminal activities from educational programs for the young and upcoming generation in criminalized are, which is seen as the best tool and technique. But this does not solve the crime problems in affected areas, police officers are still needed to deal with this issue and they must come up with different techniques which can be sniffing dog K9, patrol officers, which work at night whereby criminal activities are more likely to be committed.