NCJ Number
81297
Journal
Today's Office Volume: 16 Issue: 9 Dated: (February 1982) Pages: 52-56
Date Published
1982
Length
5 pages
Annotation
Prevalent types of white-collar crime are described, and ways of countering them are discussed.
Abstract
Embezzlement, the most prevalent form of white-collar crime, ranges from the occasional misappropriation of staplers and pens to padding expense vouchers to absconding with millions of dollars of company funds. The warning signs of embezzlement are inventory shortages, books that are not kept up-to-date, and a sloppy system for keeping track of shipping and receiving receipts. Preventive measures should include the handling of the receipt or disbursement of cash by a department other than accounting, and, where possible, credit, rather than cash, should be given for refunds. When cash deposits are made to a bank, a firm should require that the depositor not be the person who prepared the deposit slip. A firm should never presign checks, and two signatures should be required to all company checks. Computer fraud appears destined to become the leading business crime. An absence of checks and balances in the data processing department, hiring computer personnel who have not been thoroughly screened, and using the same person to do both the programming and operating of the computer are practices that leave the door open for computer fraud. To minimize opportunities for computer fraud, all security measures should be reviewed regularly and often. Another frequent white-collar crime is bankruptcy fraud. The victims of this type of scam include the creditors and suppliers of goods and services to the bankrupt firm. This can usually be countered by preventive measures that can establish the integrity of the company with which one does business. Other white-collar crimes include product counterfeiting and insurance fraud. Countering white-collar crime should include a company policy of prosecuting white-collar offenders. Employees must be aware of the consequences if they are caught, so that the risks will outweigh the potential profits.