White Collar Crime

10 October 2016

The definition of white collar and white collar crime * Various types of white collar crime B. Thesis statement: There are 3 causes of white collar and 5 way to combat with white collar crime. II. The cause of white collar crime is opportunities to commit crime. A. The loophole of the law and security B. An individual well known the operation of a company, the chances to commit fraud is higher. III. Second causes of white collar crime are workers situational personal pressures. A.

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Direct pressures surrounded by their environment. B. Leader gives a command to achieve impractical performance objectives at any cost. IV. Third causes of white collar crime are issues of pertaining to honesty. A. Moral principles B. Obtain a universal meaning of integrity V. First way to fight with white collar crime is tighten laws and punishment. A. Money penalty or fine B. Imprisonment 1. Explain why imprisonment is useful. VI. Second way is enforcement by government. A. Commercial Crime Investigate Department (CCID) specialized investigate white collar crime. B.

The Securities Commission Working Outline VII. Third way to prevent happen white collar crime is set up a corporate program. A. Bank Negara Malaysia increases the safety of check. B. Forensic Technology Services (FTS) – to decrease and avoid computer crime or e-fraud. VIII. The 4th ways is build positive moral principles in white collar criminal mind. A. High education and it gives them the authority to do something that is not right. IX. Other minor way to prevent and reduce the white collar crime. A. Maintaining accurate and complete internal accounting and financial records.

Developing strong leadership and cohesive work groups C. They are supposed to monitor their business and keep in touch the relationship who involve in financial units D. They can set up a physical system to protect their assets E. Not relying solely on one person to perform an important function or critical task. F. Company make sure white collar’s job and plan are under control. G. Manager should carry on a file that contain private background and up to date economic standards of white collars X. Conclusion:

This research paper had said opportunities to commit crime, workers situational personal pressures, and issues of pertaining to honesty are the three reasons to commit white collar crime. Furthermore, tighten the law and punishment, enforcement by government, set up a corporate program, build positive moral principles in white collar criminal mind, and others minor ways to prevent and reduce white collar crime are the five methods to fight with white collar crime. The Causes and Ways to Combat White Collar Crime In Malaysia Some people might do not know what “white collar” is.

According to Farlex (n. d. ), definition of white collar is an expert employee who gets a designating salaried. On the other hand, another definition is related to the office or experts workers whose works usually do not include physical energy or tiring of a uniform or standardized work dress (White-collar, n. d. ). According to Sutherland (1949), “White collar crime may be defined approximately as crime committed by a person of respectability and high social status in the course of his or her occupation”( as cited in Lim, n. d. ).

Fraud, bribery, insider trading, embezzlement, computer crime, copyright infringement, money laundering, identify theft, and forgery are a part of type of white collar crime that most people knows. Nowadays people can read news reported about white collar crime. White collar crime will cost a lot of money in every country if government do not concern about it. Therefore, government should take action to white collar crime before the problem become more serious. Why employee will commit white collar crime? How people to combat white collar crime?

Here have three causes mention and explain clearly why employee will take risk to commit white collar crime such as opportunities to commit crime, workers situational personal pressures, and issues of pertaining to honesty whereas there also have five ways to combat white collar crime such as tighten the law and punishment, enforcement by government, set up a corporate program, build positive moral principles in white collar criminal mind, and others minor ways to prevent and reduce white collar crime will give in details in the following. First of all, the cause of white collar crime is opportunities to commit crime.

Hirschi and Gottfredson (1987) explained white collar crime unlike other common crime, the reason they contravention of the law is not similar with normal crime”. In addition, there are different response from official between white collar crime and normal crime (Hirschi & Gottfredson, 1987). It is not clear between both terms itself, however, normally both terms have a correlation with it, and actually normally crime is less serious or less unsafe or less harmful to public value or social compare with white collar crime (Sutherland, 1983; Will, 1987 as cited in Hirschi & Gottfredson, 1987, p. 15). As the result, the loopholes of the law will benefit to employee when they take this as an opportunities to commit white collar crime. According to Dr. Yusof Nook (1993) and Joseph Eby Ruin (1996), when a employee well known the process of a company, a certain level of trust, especially the employee become the only one who know the system, there a big opportunities to let them commit white collar crime for instance, money laundering or computer crime. Second causes of white collar crime are workers situational personal pressures. When workers situational personal happened?

It occur when they having direct pressures surrounded by their environment. The highest frequency is they having high personal debts and financial losses. Apart from that, leader gives a command to achieve impractical performance objectives at any cost also consider one of the factors of situational personal pressures. These will encourage them to commit fraud to their company (Nook, 1993; Ruin 1996). Third causes of white collar crime are issues of pertaining to honesty. According to Dr Yusof Nook (1993) and Joseph Eby Ruin (1996), individual honesty factors refer to every individual’s personal rules of moral principles”( as cited in Lim, n. . ).

This factor appears looks like to be clear-cut determination of a people’s integrity, but this problem in reality is more multipart than what we had thought about it. Thus, people should obtain a universal meaning of integrity and untruthful conduct, and identify which ethics to accept when developing a universal characteristic of integrity. The most significant is before internalizing a typical of integrity and being nature rewarded for integrity behavior, people requirements to be always toughened for integrity conduct (Nook, 1993; Ruin, 1996 as cited in Lim, n. . ). ). White collar crimes are become more and more serious recent times. People must concern and think how to fighting with white collar crimes before it out of control. The first and most common way to fight with white collar crime is tighten laws and punishment. According to Ball and Friedman (1997), money penalty or fine and other forms of non-criminal sanctions are classified as “civil” or regulatory sanctions”( as cited in Lim, n. d. ). Nonetheless, they also said only straightforward imprisonment is usually considered as criminal sanctions.

Government who like to use imprisonment as a sanction said that the impact of white collar crimes is very serious so they need more cruel punishments to criminals. Besides that, most of the white collars criminal basically are very success in their life on morality. Thus, imprisonment is a very useful way restriction to white collar criminal. The reason they will feel shame is because they will feel shame of it when other people know they had the experience of imprisonment (Ball & Friedman, 1997 as cited in Lim, n. d. ).

According to white collar criminal testimony, even only six month imprisonment punishment was most terrible by white collar criminal (Braithwaite, 1984; Clinard, 1952 as cited in Lim, n. d. ). On 17 September 1993, the Parliament had modified the punishments to white collar criminal in Malaysia. A mandatory least term of imprisonment (one year) with mandatory whipping, and the court have the right to plus fine to the same criminal when the white collar criminal that violate of trust below law section 406 to 409 and cheating below section 420 of the Penal Code (Lim, n. . ). Next way to reduce white collar crime is enforcement by government. In Malaysia, government had a main organization, which is Commercial Crime Investigate Department (CCID) specialized investigate white collar crime. CCID help The Royal Malaysia Police to investigate white collar crime cases. Nowadays white collar crime cases had become more complicated, it makes CCID hard to investigate. Hence, extra manpower and equipments, and Forensic Computer Laboratory (established in 1 January 2005); it helps CCID faster and easier when investigating white collar crime.

The changes in enforcement makes police very successful reduce the white collar crime. What’s more, police also deletion millions of ringgit from white collar crime. As the result, enforcement successful prevents the loss of millions ringgit and reduces the white collar crime. The Securities Commission from the time 1993 year was prosecuted 110 people on corporate fraud cases such as provides deceptive information to insider trading and fraud (Lim, n. d. ). Inspector-General of Police Tan Sri Ismail Omar mention that police will cooperation with banks or trade associations to overcome cheating cases.

Apart from that, he also stated police will come with a better way to reduce the white collar crime (as cited in The Star Online, 2010). DCP Mohd Shukri, who is the 18th police leader in Perak, stated that he can protect people and can reduce the white collar crime in 2011 (as cited in The Star Online, 2010). Third way to prevent happen white collar crime is set up a corporate program. Bank, financial institutions, and companies are the location that always happen white collar crime because there are a lot professionals. The probability to happen white collar crime is higher.

Therefore, three of these places should take action to prevent white collar crime. Bank Negara Malaysia has given an instruction to every commercial bank to improve the safety characteristics of check to prevent white collar criminal used fake check instead of the real check. The paper is sensitive to chemical substances; normal ink pen and ultra-violet ink pen will dissolves when mix with water is the characteristics of the check. “Account Payee Only” show on the check the purpose is to prevent the third person taking out the money from the account.

Using electronic payment instead of using check is a good method to reduce white collar crime. Besides that, Bank and credit cards users should always check the procedure to prevent credit card fraud (Lim, n. d. ). KPMG Malaysia has established a new department, Forensic Technology Services (FTS) to decrease and avoid computer crime or e-fraud. In the past three years, “KPMG analysts use the latest techniques, including data extraction, data storage, data mining and visualization, password cracking and de-encryption, to provide a cost-efficient resolution to data investigation” (New Straits Times, 2005 as cited in Lim, n. . ). Therefore, FTS can from an empty monitor into a picture of criminating support. In addition, way to reduce white collar crime is build positive moral principles in white collar criminal mind. People who work at managerial and administrative levels are tending to be more involved in this crime. The reason is because they have the high education and it gives them the authority to do something that is not right. High level leaders should be the model of moral principles and honesty to overcome this trouble.

An agreement of business moral values is not only to read, to sign, but also to follow by managers and employees (Lim, n. d. ). Last of all, there also have other minor way to prevent and reduce the white collar crime. The company should always double check the maintaining exact and entire interior accounting and monetary records. Therefore, white collar criminals are harder to commit fraud. On the other hand, corporation should build a strong headship and work groups. They are supposed to monitor their business and keep in touch the relationship who inv lve in financial units, for instance, debtors, creditors, vendors, and buyers. They can set up a physical system to protect their assets, which no trouble in replaceable or exchangeable standards in the market such as goods and money. There is a huge opportunities to happen white collar crime when the company is only rely on a single person to achieve an significant project or task. Therefore, company gives a task or project in a group will be more secure. To avoid the fraud attempts, company make sure white collar’s job and plan are under control.

Moreover, manager should carry on a file that contain private background and up to date economic standards of white collars. On the top of the examination and deception detection, if white collar had broken the rules during the examination, the person who takes function in examination can identify deception. Although deception detection is not the major cause, but if view it in the long period, a suitable reaction by the society may construct an expert trustworthiness. It also helps out company to avoid risky and prevent the huge losses (Lim, n. . ). All in all, this research paper had said opportunities to commit crime, workers situational personal pressures, and issues of pertaining to honesty are the three reasons to commit white collar crime. Furthermore, tighten the law and punishment, enforcement by government, set up a corporate program, build positive moral principles in white collar criminal mind, and others minor ways to prevent and reduce white collar crime are the five methods to fight with white collar crime. Government must pay a lot of attention in white collar crime.

This is because white collar usually had the higher education compare to other person. They may use high techniques to hide when they decide to commit white collar crime. That’s why government must take action before it become more serious. Additionally, once government had given new methods to arrest and reduce white collar crime, nation also must follow instruction given by government and cooperated with government. There is no way to eliminate white collar crime if nation do not want to cooperate with government.

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