NCJ Number
58893
Journal
NATIONS BUSINESS Dated: (NOVEMBER 1978) Pages: 35-36,38,41,44
Date Published
1978
Length
5 pages
Annotation
FOCUSING ON THE NATIONAL CHAMBER OF COMMERCE'S EFFORTS TO ASSIST THE FBI IN COORDINATING THE NATION'S RESOURCES TO CURB WHITE COLLAR CRIMES, THIS ARTICLE DISCUSSES THE COSTS AND EFFECTS OF CRIMES AGAINST BUSINESS.
Abstract
THE ANNUAL ESTIMATED COST OF WHITE COLLAR CRIMES IS $44 BILLION. INCLUDED IN THIS FIGURE ARE THE $100 MILLION LOST ANNUALLY FROM CREDIT CARD FRAUD, $1 BILLION FROM CHECK FRAUD, $3.5 BILLION FROM RECEIPT OF STOLEN PROPERTY, $3 BILLION FROM INSURANCE FRAUD, AND MILLIONS MORE FROM BRIBERY, SECURITIES THEFT, AND COUNTERFEIT PRODUCTS. NOT COUNTED IN THE $44 BILLION FIGURE ARE THE COSTS OF COMBATING WHITE COLLAR CRIME OR LOSSES DUE TO ANTITRUST VIOLATIONS AND INDUSTRIAL ESPIONAGE. SUCH STAGGERING COSTS LEAD TO DEBASEMENT OF COMPETITION AND LOSS OF PUBLIC CONFIDENCE IN BUSINESS, INDUSTRY, AND THE PROFESSIONS. OFTEN, THE END RESULT IS INCREASED PRESSURE FOR NEW GOVERNMENT REGULATIONS THAT SADDLE MANAGERS WITH MORE RIGID REQUIREMENTS THAN WOULD HAVE EXISTED HAD INDUSTRY INITIATED INTERNAL REFORMS. ONE OF THE MOST COMMON SCENARIOS CONTRIBUTING TO CRIMES AGAINST BUSINESS IS THE BREAKDOWN OF INTERNAL CONTROLS. TO CREATE AN ATMOSPHERE OF INTERNAL SECURITY, TOP MANAGEMENT MUST INITIATE A CLOSE EXAMINATION OF WHAT COULD GO WRONG AND WHERE TO PLACE SAFEGUARDS. THE FBI AND JUSTICE DEPARTMENT HAVE INCREASED THEIR EMPHASIS ON WHITE COLLAR CRIME. BY 1979, THE FBI HAS BUDGETED MORE THAN $65 MILLION TO FIGHT WHITE COLLAR CRIME, A 2 PERCENT INCREASE OVER LAST YEAR. THE FBI ALSO PROVIDES GUIDANCE TO BUSINESSES AND CITIZENS IN LESSENING THEIR VULNERABILITY TO CRIME. THE CHAMBER OF COMMERCE HAS PUBLISHED A HANDBOOK ON WHITE COLLAR CRIME AND HAS PROPOSED THE ESTABLISHMENT OF A NATIONAL ECONOMIC CRIME CENTER TO SERVE AS A CLEARINGHOUSE FOR INFORMATION AND TO DEVELOP EDUCATIONAL AND TRAINING PROGRAMS. OTHER PROGRAMS TO BATTLE WHITE COLLAR CRIME ARE NOTED, INCLUDING AN LEAA GRANT TO PROVIDE DEFENSIVE, DETERRENT, AND DEMOTIVATING PROGRAMS AGAINST SUCH CRIME. THE INFLUENCE OF ORGANIZED CRIME IS ALSO DISCUSSED. NO REFERENCES ARE PROVIDED. (WJR)