Consequences of White-Collar Crime
White-collar crime is a widespread problem which have resulted in significant financial loss to victims. A few well-known white-collar crime case made headline to aware of the seriousness. They are Enron collapse in 2001, WorldCom financial fraud in 2002, Bernie Madoff Ponzi Scheme in 2008 and Leman Brothers scandal in 2008. These frauds all linked to large amount of money. According to Friedrichs (2009), the financial damage result from white-collar crime in the United States with an estimate of $250 million to $1 trillion. Further, with a phone interview of 1605 adults in the United States, “46.5% of household and 36% of individual” reply that they have experienced white-collar crime in 2005 (Kane & Wall, …show more content…
White-collar crime encompassed various types of crime offense, thus causing a set of consequences. The consequence of white-collar crime could be mainly categories into four types: individual economic losses, societal economic losses, emotional consequences, and physical harm (Payne, 2011). Individual economic losses is the individual victims’ loss from white-collar crime. Even though the economic loss was done by a small group of offenders, they could still create a significant large amount of dollar losses. (Payne, 2011)The second consequence is the societal economic loss which indicate to total loss to society as a result of white-collar crime event. From the 2005 National Public Survey on White Collar Crime, it is estimated that white-collar crime trigger annual financial cost between $300 and $600 billion dollars (Kane & Wall, 2006). This amount of societal economic loss indicates the magnitude of negative impact by white-collar crime to the society as a whole. Moreover, the emotional consequence suffered by the victim of white-collar crime mainly relative to emotional feeling of stress and upset. And the last consequence is the physical harm. It includes the direct body harm from white-collar crime like sexual assault or indirect physical harm from financial harm. (Payne,
White-collar crime is a widespread problem which have resulted in significant financial loss to victims. A few well-known white-collar crime case made headline to aware of the seriousness. They are Enron collapse in 2001, WorldCom financial fraud in 2002, Bernie Madoff Ponzi Scheme in 2008 and Leman Brothers scandal in 2008. These frauds all linked to large amount of money. According to Friedrichs (2009), the financial damage result from white-collar crime in the United States with an estimate of $250 million to $1 trillion. Further, with a phone interview of 1605 adults in the United States, “46.5% of household and 36% of individual” reply that they have experienced white-collar crime in 2005 (Kane & Wall, …show more content…
White-collar crime encompassed various types of crime offense, thus causing a set of consequences. The consequence of white-collar crime could be mainly categories into four types: individual economic losses, societal economic losses, emotional consequences, and physical harm (Payne, 2011). Individual economic losses is the individual victims’ loss from white-collar crime. Even though the economic loss was done by a small group of offenders, they could still create a significant large amount of dollar losses. (Payne, 2011)The second consequence is the societal economic loss which indicate to total loss to society as a result of white-collar crime event. From the 2005 National Public Survey on White Collar Crime, it is estimated that white-collar crime trigger annual financial cost between $300 and $600 billion dollars (Kane & Wall, 2006). This amount of societal economic loss indicates the magnitude of negative impact by white-collar crime to the society as a whole. Moreover, the emotional consequence suffered by the victim of white-collar crime mainly relative to emotional feeling of stress and upset. And the last consequence is the physical harm. It includes the direct body harm from white-collar crime like sexual assault or indirect physical harm from financial harm. (Payne,