INSTITUTIONAL AFFILIATION: TSHWANE UNIVERSITY OF

TECHNOLOGY
DEPARTMENTAL AFFILATION: SAFETY AND SECURITY
SUBJECT: CRIMINOLOGY IN CORRECTIONAL SERVICES IIB
SURNAME& INITIALS: KWINDA T.C
STUENT NUMBER : 218452477
RESPONSIBLE LECTURER: MR ZENZILE
SUBJECT CODE: CRB216D

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 TABLE OF CONTENT

Introduction...............................................................................................Page 3

1.Definitions..............................................................................................Page 3

2.The Phenomenon of white-collar crime.................................................Page 4

3.Motivation and triggers for commit white-collar……..............................Page 4

3.1. Reason’s for committing white-collar crimes…………………………..Page 5

3.2. Types of white-collar crimes…………………………….……………….Page 5

4.Tips to stop white-collar crime before it even begins..............................Page 6

4.1.Screen employees properly and timeously..........................................Page 6

4.2.Maintain a strict segregation of duties..................................................Page 6

4.3.Ensure you have a good, anonymous tip-off line.................................Page 7

4.4.Prioritise an internal audit function and make sure it is

effective.....................................................................................................Page 7

4.5.Use powerful software to perform exception monitoring in real

time...........................................................................................................Page 7

4.6.Provide employees with proper training.............................................Page 7

4.7.Develop and manage an ethical culture throughout the

company..................................................................................................Page 7

5.Conlusion.............................................................................................Page 8

6.References..........................................................................................Page 9

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 INTRODUCTION
White-collar crime, also known a mic crime, is a relating new form of criminal activity.
Types of crimes that would be considered as a white-collar can range greatly in severity
from simple employee theft all the way up to executive level inside trading, and
everything in-between. These crimes sere often committed by people that are not
who… you would expect to be atypical criminal. In an effort to make a distinction
between different forms of criminal activity, and to challenge the conventional stereo
types that are typically associated with those involved in other types of crime, Edwin
Sutherland (1950) coined the term ''white-collar crime'' and explained that these types
of crimes differ from other crimes in that they are typically nonviolent and financially
motivated. Additionally, according to Sutherland, the crimes are often committed by a
person of respectability and high social status in his/her occupation. Compare this with
the social stereotype of ''typical'' criminals who are generally thought to be committed by
disadvantaged young men from broken homes and decaying neigh boyhood’s.

1.DEFINITIONS

• Commercial crime: Insurance that covers a business against direct

financial losses that arise as a result of theft and fraud by employees,
computer fraud, loss due to a computer virus, electronic data loss,
extortion, fraudulent transfer instructions or third-party impersonation
fraud, among other things.

• Violent crime: Is when someone physically hurts or threatens to hurt

someone, and also include crimes where a weapon is used. The
police will record a crimes as violent if the offender clearly intended or
intends to physically harm you regardless of whether or not it results
in a physical injury.

• Violent: Using or involving physical force intended to hurt, damage,

or kill someone or something.

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2.The phenomenon of white-collar crime

The phenomenon of white-collar crime exists in all countries in varying

degrees, and is of particular concern to developing countries since it
undermines economic growth, discourages foreign investments and attacks
the very moral fabric of society. It places a heavy burden on the resources
available to both the public and the private sectors of the economy and
contributes to the existing atmosphere of lawlessness. However, the focus
in this country has been on the traditional ''blue collar crimes'' larceny and
robbery to name a few, since it is visible and involves the loss of personal
property or injury or even the death of it's victims. Research in this area
concentrated on the lower class of society and various theories have been
developed to explain the behaviour of such perpetrators. This type of
offending has usually been associated with deprivation, the breakdown of
family values and acculturation. The turn of the twentieth century saw an
emergence of deviant behaviour that could not be explained by traditional
criminal theories. The eminent criminologist E.H. Sutherland introduced the
concept of ''white-collar crime'' in (1939) a crime committed by a person of
respectability and high social status in the course of his occupation. The
difficulty with this concept was that what is considered morally wrong in one
segment of society is quite acceptable in another for instance, in the past,
some people may have considered it unethical to pay a ''kick-back'' in order
to secure a contract, whilst others viewed it as a way of doing business.
Thankfully, this way of thinking is changing with the introduction of legal
codes in societies that expressly forbid certain types of behaviour.
However, legislation is only as effective as it’s enforcement.

3.Motivation and triggers for committing white-collar crimes

White-collar crimes can be committed for a few different reasons. They

could be influenced by money influence or eve power, but they are typically
non-violent offences that are committed by someone with some level of
privilege. There is more on understanding the psychology of a white-collar

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criminal than knowing why they commit these offences. But what separates
them form other crimes is that it requires some level of privilege. Unlike
burglary and assaults (which can be committed by anyone), a white-collar
crime such as embezzlement and corporate fraud can only vet committed if
someone has access to certain financial accounts and confidential
information.

3.1.Reasons for committing white-collar crimes

The main reason for committing a white-collar crime is personal gain, which
typically involves some type of profit. But if you really want to understand
why people commit these crimes, you need to understand the psychology
that motivates them to ignore business ethics and violate the law. Some of
the motivations that drive a white-collar criminal include:

• No regard for company or industry ethics.

• Believing that their actions are not serious enough to have any major
consequences.

• Believing that everyone else in the industry engages in the same

activities or behaviours.

• Believing that there is a moral justification for their actions (such as

an act of retaliation or punishment).These are some of the main
driving factors, but there may be other reasons why someone will
commit a white-collar crime. In most cases, it involves a thought
process where the person committing the offence weighs the benefits
over the potential consequences.

3.2.Types of white-collar crimes

Because they're non-violent, some white-collar crimes can seem victim less
at first. But every white-collar crime has a victim, which are often the
shareholders of a company. In other cases, they can be company
employees and even their customers. I f a white-collar criminal commits an
offense inside a governmental body or non-profit organization, the people
who are served by these entities are the ones who suffer. Even the

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government will's suffer when someone in a particular department commits
a white-collar crime, and it will often affect it's continents. The are many
types of white-collar crimes, but some of the common ones include but may
not be limited to:

• Identify theft
• Insider trading
• Securities fraud
• Personal use of corporate or government frauds
A white-collar criminal can either act alone or work with a group. Depending
on the offense, a person who is convicted of this type of crime could face
the following penalties:
• Probation
• Prison time
• Loss of professional licenses
• Community service
Most of the people who commit these types of crimes have a managerial
position in a company, but they can also work as consultants or constrictors
for the organization. They will also have at least a bachelor's degree and
will make a comfortable living. Some of the people who can commit a
white-collar crime include but may not be limited to: Lawyers, Accountants
and corporate vendor’s. Unlike a robbery or act of harassment that
becomes obvious the moment the incident occurs, a white-collar crime can
go undetected for months or even years. But there are a number of laws
that are meant to sabotage and prevent white-collar crimes.

4.Tips to stop white-collar crime before it even begins:

4.1.Screen employees properly and timeously
Companies need to be sure that employees have the qualifications they
say have, and that they have a record of honesty.

4.2.Maintain a strict segregation of duties

It is critical that those approving expenditure or any sort of contract are not
those who action them. In tough economic times, when retrenchments

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occur it can be hard to maintain proper segregation of duties, but says
Lorton, it is a vital safeguard against common types of fraud, such as
payments to bogus suppliers or the granting of tender to family Member.

4.3.Ensure you have a good, anonymous tip-off line

whistle-blowing by employees or customers is one of the primary source of
information about underhanded practices by an organisation's employees.

4.4.Prioritise an internal audit function and make sure it is effective

Experience shows that internal auditors, with their inside knowledge of how
the company works, are second only to whistle-blowers as identifiers of
fraudulent practices.

4.5.Use powerful software to perform exception monitoring in real

time
This software is relating inexpensive and increasingly intelligent. It can flag
anomalous activity as it happens, providing an invaluable early-warning
system.

4.6.Provide employees with proper training

Even senior executives find it hard to define exactly what constitute fraud or
unethical business practices, Lorton says understanding what is
unacceptable is the essential first step in preventing it from happening and
alerting potential whistle-blowers.

4.7.Develop and manage an ethical culture throughout the company

One hears about tone at the top but it is critical that the same note is struck
across middle management as well. Employees see and discuss
everything and if any managers do not act ethically, their subordinates will
dismiss ethics as window dressing. This may involve some difficult
decisions for example holding a high performer to the company's ethical
standards even though it might mean losing him or her.

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 5.CONCLUSION

It has been found that white-collar crime victimization elicits relatively little
attention from law enforcement due to an enduring focus on traditional
crime ( National Public Survey 2010). However reports indicate that white-
collar crime occurrences are increasing at an alarming rate. If this
exponential increase continues white-collar crime will quickly become the
most prevalent type of crime in the world. Therefore it is of most importance
that business owners continue to educate themselves on potential threats
so that they can eliminate them before they have the chance to destroy
their business. We must acknowledge that there is a real problem occurring
at a greater rate than ever before, and we must also see that the criminal
justice system sues not have an effective deterrence in place to effectively
deter offenders from committing these crimes. Therefore we must make a
conscientious effort on our part to dissuade white-collar activity before it is
committed.

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 6.References

1.Coffin, Bill.(2003).Breaking the silence on White Collar Crime,

Vol.50,No.9.

2.Croall, Hazel (1989). Who is the white-collar criminal? Criminology.29(2),

157-174.

3.Cullen, F.T, Link. and Polanzi,C.W.(1982).The seriousness of crime

revisited:Have attitudes toward. white-collar crime changed?
Criminology.20,83-102.

4.Posner, Richard (1979-1980). Optional sentences for white-collar

criminals.Criminology.Rev.409,All.

5.Simpson, Sally S & Weisburd,David (2009).Developmental trajectories of

white-collar crime.The Criminology of white-collar crime.Part II,153-171.

6.Sutherland, Edwin(1950).Review:White-collar crime.Journal of criminal

Law and Criminology.Volume 41,No1,80-82.

7.White-collar Crime:Cases. materials, and problems Book by J,Kelly

Strsder and Sandra D.Jordan(2005).

8.Policing White-collar Crime: Characteristics of white-collar criminals.Book

by Petter Gottscholk(1930)

9.Taft, Donald R., and Ralph W.England, Jr.1964 ''white-collar crime'' in

Criminology, 4th ed.New York: Macmillam:199-207.

10.Sutherland, Edwin H. 1949a white-collar crime.New York:Holt, Rinehart

& Winston.