White Collar Crime - White Border Crimes No one knows the exact cost of white collar crime, but the US Chamber of Commerce puts the annual tab at a whopping US$40bn, the world over. White collar crime generally results from a combination of two factors: opportunity and motivation. Opportunity arises when too much trust is placed on key employees, when management controls are not in place, when employees are allowed to get too close to suppliers, customers and others outside the organisation, when records and books are not kept properly or when management is just too lax. Motivation arises from all weaknesses known to humanity: the very familiar greed, covetousness, the inability to say 'no' to things that one cannot afford, the need to keep up with the Joneses, that often lead to debt and more debt; some say adding to this is 'fast women and slow horses'! While the monetary losses can sometimes be recouped through insurance, other losses cannot. These include losses from adverse publicity, the disruption of operations, loss of competitive edge, and time spent with criminal investigators, insurance companies and us, lawyers. And often overlooked also is the personal cost to those caught stealing: failed careers, broken families and a lifelong stigma. For some, white collar crime is not viewed as a crime at all because of its non-violent nature. Violent crime has an immediate and observable impact on its victim, which incurs the wrath of the public; whereas white collar crime often goes undetected or is viewed merely as a 'bending of the rules'. Yet, white collar crime can have far more serious consequences. The victim of an assault can recover, but an elderly retiree, who has invested his life savings in a bogus investment firm, will have little or no hope of | |
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