Introduction to White Collar Crime
This article examines a critical analysis of white-collar crime in India. and to have an understanding of white-collar crime in India. White-collar crime often refers to crimes done by educated, upper-class members of society in the course of their employment.
In this study, the author discusses what distinguishes a white-collar crime from common or blue crimes. It is also known as the “crime of highly educated and accomplished professionals.”
What is White Collar Crime
White-collar crime is a type of crime committed by those from the upper class and the respectable sector of society.
This offense is committed in the course of their employment. Most of the time, people who do this have a better understanding of technology, their fields, professions, etc. White-collar crime has grown significantly in recent years. And they are viewed as dedicated to huge enterprises with a wide range of operations.
So, we can say that these crimes are common in business, commerce, education, health, and other areas. Since the criminal profile has changed a lot in the past few years, white-collar crimes have taken the place of some traditional crimes in the country.
The main difference between white-collar crime and blue crime is that blue crime is done by people who come from bad situations, while white-collar crime is done by people from the upper class in a very organized way. They preserve their social standing until the crime is uncovered.
An American sociologist named Edwin Sutherland was the first person to describe white-collar crimes on a global scale. He said that the person who did this crime was a person of high social status, which was different from people who do crimes as part of their jobs.
In 1934, again, Morris highlighted the need for a shift in emphasis on crime. He said that people with high status who do bad things as part of their jobs should be charged with a crime and given a punishment.
Lastly, E.H. Sutherland’s groundbreaking work emphasized that these “upper-class” crimes, which are done by people in higher socioeconomic groups as part of their jobs and involve breaking trust, should be called “white collar crime” to distinguish them from traditional crime, which he called “blue collar crime.”
And in 1941, the notion of “white-collar crime” was introduced to criminology for the first time.
# White-collar criminals are much smarter, more successful, and from a higher socioeconomic class than blue-collar criminals.
These offenses are difficult to identify and have no personal element. On the other hand, common offenses are straightforward and extremely personal. They also entail the use of force and other forms of violence.
After committing a crime, most criminals are afraid of the police. White-collar criminals, on the other hand, don’t fear the police because if they are caught, they will be punished, moved, or at most put in jail for a short time.
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Another distinction between white-collar and blue-collar crime is that white-collar crime causes thousands of times more economic damage than common crimes. White-collar crimes impose a greater financial burden on society than crimes committed by individuals of low social standing.
White-collar crime is usually done out of greed and is carefully planned and carried out. On the other hand, blue-collar crime is usually done out of anger, revenge, or other emotions. In white-collar crime, victims or money are harmed, whereas, in blue-collar crime, there is bodily injury.
How White-Collar Crimes Affect More Than Just Criminals White-collar crime may have a significant influence on society and not just on criminals. It is sometimes referred to as a “socioeconomic crime” since it directly affects society.
When a white-collar crime happens, businesses lose a lot of money, which hurts customers and society as a whole. In the past few years, many cons and frauds have been found in our country. Some of these are the 2G scam, the Havala scam, the banking scam, and the fodder scam. Due to these frauds and cons, our nation’s economy has collapsed.
To make up for these fraud-related losses, the costs are increased. This will cause prices to go up for consumers because taxes, government income, and insurance premiums will all go up.
The societal impact of white-collar crime is significant. There is a loss in many fields, from commodity prices to stocks and insurance. A single instance of financial fraud may impact businessmen, investors, and the government. It only takes one dishonest employee who wants money to steal money, ruin the company’s reputation, lower earnings, and make losses bigger.
1) Bank fraud is the most prevalent white-collar crime in India. Fraud is when a crime is done with the goal of tricking someone and getting an unfair advantage. Bank fraud is a fraud perpetrated against banks. Companies committing fraud do so by creating false statements. It is also linked to the manipulation of things like bounced checks, securities, and bank deposits, which can be traded for money.
Because of the trusting relationship that exists between banks and the general public, the public is concerned about bank fraud. It is the most prevalent kind of white-collar crime and a corporate offense. It damages both the populace and the government of the nation.
2) Bribery is another prevalent sort of white-collar crime. By “bribery,” we refer to the exchange of money or products for a favor from a person in a position of authority. In simple terms, bribery is the act of giving money to a person in power. It is done to compel him to do something or prevent him from doing something. It is the main way that most public officials in our country make a living.
Cybercrime is the largest contributor to these types of crimes in India. It is the most recent issue plaguing the online world. Cybercrime is a criminal activity involving computer networks.
With the fast growth of technology, there has also been a surge in crimes involving technology. Cybercrime concerns those who are knowledgeable in computer technology. And it is done directly or indirectly to the victim to hurt his reputation or cause him physical or mental harm using the internet, networks, and other forms of technology.
Cybercrime endangers governments as well as the safety and financial condition of individuals. Cybercrime may result in enormous financial losses for the nation. In addition to financial loss, identity theft may also compromise a person’s privacy. Disclosure of private information might lead to privacy issues. Additionally, cybercrime against women is on the rise.
Criminals are cyberstalking women and sending them sexually explicit messages and images more and more by using cell phones and other communication networks.
Examples of cybercrime include hacking, child pornography, copyright infringement, cyber terrorism, and cyberstalking.
4) Money Laundering: In money laundering, criminals conceal the origin of the funds. In this crime, the people who did it try to hide the original owner of the money and the place where they got it through illegal means. Money laundering is used to ensure that funds came from legitimate sources. Money laundering is the process of disguising illegal funds as lawful ones.
For example, if a person gets money through black marketing or the trafficking of illegal goods, the money will be considered “dirty,” and he won’t be able to put it in a bank because it might look suspicious if he deposits it directly since he would have to make statements and records showing where the money came from. Money laundering is a three-step process:
# First, the owner of the money obtains the money by unlawful means and deposits it in a bank. # Next, the money is transferred through various transactions. # Finally, the money is returned to banks to make it legitimate.
5) Tax Evasion: Tax evasion is when someone hides from the government their true taxable income and starting position. This income concealment is done to lower the tax burden in the government’s eyes. It is the act of hiding money that was earned illegally so that a person’s tax bill will be lower and their income will look lower to the government.
Tax evasion hurts society’s values because it makes honest taxpayers feel bad, which makes them more likely to evade taxes themselves, and because it gives too much economic power to a few people who don’t deserve it.
Identity theft is one of the easiest types of crimes to commit nowadays. Because of advances in technology, it is not too hard to get hold of the personal information of anyone.
Identity theft is a crime in which the person who does it gets money by stealing personal information like a person’s name, address, phone number, and so on. Taking someone else’s identity to commit fraud or get money through illegal means is called identity theft.
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White Collar Crime in Various Professions
1) In the Medical and Health Professions: Doctors forging medical credentials
# False and intentional therapy prolongation to increase costs
# Due to financial constraints, doctors discriminate against the child’s gender.
# Doctors delay care in order to increase the patient’s bill total.
# The sale of prohibited sample medications to pharmacists
2) In the legal field, making fake documents and threatening the witnesses for the other side.
Money-motivated violation of the legal profession’s ethical standards
3) In education, collecting large sums of money under the guise of student donations to gain admission
Admissions based on merit are substituted by contributions.
Collect enormous sums of cash under the guise of government handouts.
In India, the government has enacted several laws designed to identify white-collar crime. This Act includes penalties for various offenses.
1960 Companies Act,
The 1961 Income Tax Act,
1860 Indian Penal Code,
1955’s Commodities Act,
1988’s Prevention of Corruption Act,
, the Negotiable Instruments Act, and the Money Laundering Prevention Act of 2002
and the IT Act of 2005,
The 1950 Imports and Exports (Control) Act
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Conclusions and Suggestions:
White-collar crimes are those that hurt the national economy. It undermines the nation’s economy through bank fraud, economic theft, tax evasion, etc. It has a detrimental effect not only on the financial position of a country or individual but also on society. The impact of crimes such as bribery, corruption, and money laundering on society has been bad.
In Indian law, there is no concept of “white collar crime. These socioeconomic offenses should not be tolerated by the government. White-collar crime should be punished more harshly, as a harsh penalty can significantly deter these crimes.
If the offense is particularly egregious, the sentence may be increased to life in prison. The majority of these crimes are unknown to the general population; hence, the dissemination of information through any means of communication is also vital.
