NCJ Number
191987
Journal
Journal of Financial Crime Volume: 9 Issue: 1 Dated: September 2001 Pages: 54-70
Date Published
September 2001
Length
17 pages
Annotation
This article discusses the impact of the development of online technology within security markets. Digital technology offers small businesses access to prospective investors and enhances information available to small investors, but also offers opportunities for criminal exploitation.
Abstract
A fundamental strategy of governments in modern democratic systems is the ability for capital markets to flourish and drive economic growth. However, in the flourishing of economic growth, crime sees opportunity. This paper discusses how from the birth and growth of digital technology crime has been facilitated from trade in securities. First, the paper presents a brief historical overview and then a discussion of traditional forms of illegality and the vulnerability of security markets to these illegalities. Second, there is a review of the regulatory apparatus that exists ensuring fairness and efficiency in markets. Third, the article discusses the impact of digital technology on securities markets and the new potential for criminal exploitation that accompanies these technologies. Fourth, discussion focuses on available countermeasures and prevention efforts against securities-related crime with the use of digital technology, by exploring the adequacy of current legislation and regulatory arrangements and discussing the potential for self-regulation. The paper concludes by looking to the future and speculating on what the layout of the securities industry and vulnerability to criminal exploitation might look like in the coming years. References