White Collar Crime and Its Effects on Consumers

Have you opened a medical statement recently and68 billion dollars of all Health Care spending is lost to
had too many charges on it? Were you charged forHealth Care fraud. The FBI estimates a loss as high as
examinations that you did not need? Or were the10% for Health Care related fraud. Due to the aging of
charges from a doctors office you did not use? Youthe baby boomers Health Care fraud is only expected
may have been a victim of a white collar crime! It canto rise because of the high insurance rates and
happen to anyone! medical bills. This increase in Health Care Insurance
White Collar Crime is a term that was defined byFraud will also increase medical cost because people
Edwin Southerland, Sociologist of criminology. The termalso have to pay to replace the money that is lost in
is identifying those illegal non-violent activities thatthe cases of fraud that take place. Businesses and
involve traditional notions of deceit, deception,consumers are not only loosing financially; People are
concealment, manipulation, breach of trust or illegallosing lives and savings, their health is put in danger, the
circumvention. These crimes have been known to becost of everyday goods are higher, honest people are
committed by business professional and governmentloosing their jobs and honest businesses are loosing
agents. Today it is known that white collar crime canmoney.
be committed by anyone, from many differentBankruptcy and antitrust offenses are having the
backgrounds; whether it is race, gender, education orgreatest impact on the economy. Fraud committed by
social status. White collar crimes include: anti-trust lawexecutives does not only damages stock holders but
violations, bankruptcy fraud, bribery/kickbacks,public confidence for corporations. Some types of
computer/internet fraud, counterfeiting, credit cardfraud hurt the most vulnerable; telemarketing frauds
fraud, embezzlement, environmental law violations,target the elderly who are usually at home and
financial crimes, government fraud, health care fraud,sometimes with no one to help them with such things.
identity theft, insider trading, insurance fraud, mail fraud,Telemarketing companies committing fraud are hard to
money laundering, public corruption, qui tam, securitiestrack down and prosecute because most of the
exchange, tax evasion, telemarketing fraud and tradecompanies are between jurisdiction; making it harder to
secret theft. Though these crimes are non-violentbe investigated by local officials. The Government
they have a great affect on corporate companies,Accountability Office estimates that about 10% of all
consumers and the United States economy.funds of domestic programs will be lost through
The rise in white collar crime incidents has alsocontracting processes linked to public corruption.
contributed to a rise in cost to the nation. The cost ofComputer fraud via the internet is used to acquire
corporate crime to society is many times that ofpersonal information such as credit card numbers,
organized crime or street crime. Corporate crime canusernames, passwords or other information that can
cost billions of dollars, but because these losses arebe use in criminal activities. A study done in 2004 by
frequently spread out over so many unaware victims,the Federal Trade Commission showed that fourteen
it usually does not create the original impact aspercent of consumer fraud is achieved through the
a store robbery that only cost a few hundred dollars.internet or email.
There are various types of white collar crime thatGreed is one of the main reasons people commit
increased economic hardship for the average citizenwhite collar crimes; they are trying to get rich of hard
and consumer. Such white collar crimes increase theworking people. Today there are many agencies and
cost of doing business, which impacts consumerorganizations trying to combat white collar crime; such
through increased prices and decreased services.as the Federal Bureau of Investigation, National White
According to the Federal Bureau of Investigation (FBI)Collar Crime Center, The Department of Justice, the
these types of crimes cost the United States moreFederal Trade Commission, the Securities and
than 300 billion dollars annually.Exchange Commission and others. They provide
Insurance Fraud, excluding medical fraud, accounts forinformation for consumers on ongoing cases of white
about 40 Billion dollars annually. While premiums arecollar crime and how to protect them selves from
increased due to fraud, it is costing the average familythese types of crimes. Most of these agencies also
about $400-$700 more annually for insurance.have contact information where white collar crimes
According to the National Health Care Anti-Fraudcan be reported.
Association (NHCAA), it is estimated that about 3% or