Introduction
White-collar crime is a non-violent crime that is committed by people for financial gain (Gottschalk 2010). The first white-collar crime was reported in the year 1939. Most people consider white-collar crime as a victimless crime. This is because the occurrence of this crime can make a company go bankrupt or wipe out a person’s lifetime savings. This type of crime has over the years cost investors billions of dollars (Gottschalk 2010). There are various types of white-collar crimes which include bank fraud, mobile phone fraud, counterfeiting, computer crime, credit card crime, embezzlement, forgery, extortion, money laundering, and tax evasion. There has been a steady rise in the number of white-collar crimes reported in the last 5 years. There is a need for the government through its various security organs to come up with strategies aimed at combating this type of crime and ensuring that the culprits face the full force of the law.
The entities that are tasked with the responsibility of investigating and preventing white-collar crimes in the United States of America include the national association of security dealers, the Federal Bureau of Investigation (FBI), and the Securities and Exchange Commission (SEC).
Social response
There has been increased public awareness about this crime. The media has been recently exposing companies and other organizations which have lost millions of dollars as a result of people engaging in white-collar crimes (Ferguson 2010). There has been a huge outcry from the public for the government to curb this crime. People continue to lose their hard-earned money through criminals who engage in this heinous crime. According to the public, the government is doing little to curb the prevalence of crime (Gottschalk 2010).
According to recent research, the American people think that the government should increase funding of its various security organs so as to be able to effectively fight this crime (Payne 2012). This is because the perpetrators of this crime are using highly sophisticated technology to commit this type of crime. It is only through increased funding that the various security organs can be able to effectively fight the prevalence of this crime.
The same research shows that the American people think that violent criminals should face more severe penalties than white-collar criminals. This is due to the fact that violent criminals cause physical harm to their victims.
The American people also think that companies should be able to prevent this type of crime by installing high-security systems (Payne 2012). They should invest in the most suitable and up-to-date security systems that will enable them to curb this crime. This is because companies also have a part to play in preventing white-collar crimes.
The American people also think that the criminals who engage in white-collar crimes should face severe punishment. Currently, criminals found guilty of committing white-collar crimes can be punished by being imprisoned or by paying hefty fines. The public area in the opinion that the criminals found guilty of committing this type of crime should serve long jail sentences (Ferguson 2010). This is because, if the culprits are not severely punished more and more people will engage in this crime.
Combating white-collar crime
Increased funding of security agencies
It is important that the government agencies tasked with the responsibility of preventing and investigating white-collar crimes have the necessary legal, technological, and personnel resources that will help them in combating the crime.
The agents should also be well compensated (Payne 2012). Most of the agents working for these agencies are forced to leave their jobs in search of greener pastures. This is has led to a brain drain situation in these agencies. The government has to intervene and ensure that the agents who work in these agencies are given a decent salary that will cater to all their needs (Gottschalk 2010).
Legislation
Congress should draft laws that will help in the prevention of white-collar crimes. The Sarbanes-Oxley act is one of the acts that congress has so far passed into law with the aim of combating white-collar crimes. However, more still needs to be done since the Sarbanes-Oxley act has some loopholes (Gottschalk 2010). The act should be amended to ensure that the loopholes in the current act are deleted from the act.
Accounting education
Accounting students in our various higher learning institutions should undergo proper training that will enable them to prevent white-collar crimes. They should be trained to deal with and automatically detect any fraudulent practices at their workplaces. Accounting students should also take criminology and securities law classes (Gottschalk 2010).
Professional bodies
The professional bodies should also take tough measures on accountants who are found guilty of malpractices that lead people to commit white-collar crimes. Their licenses should be revoked. This will go a long way in the prevention and fight against white-collar crimes (Payne 2012).
References
Ferguson, J. E. (2010). White-collar crime. New York: Chelsea House.
Gottschalk, P. (2010). White-collar crime: detection, prevention and strategy in business enterprises. Boca Raton: Universal Publishers.
Payne, B. K. (2012). White-collar crime: a text/reader. Los Angeles: SAGE.