Uncovering the Invisibility of White Collar Crime

A dark cloud looms over the world of finance concealing the crimes of white-collar officials; A potential storm is brewing, with the world of finance at the storm's very eye. But what is white-collar crime, and what makes it "invisible"? This week's weather report will provide an introduction to white-collar crime and its so-called invisibility.

What is White Collar Crime?

The term white-collar crime refers to the crimes committed by those with status (such as a businessperson) in the course of their occupation. Examples of white collar crime include: money laundering, bribery, fraud, tax evasion and a range of other related offences.

After, the Wall Street crash and the 2007 global recession, the term white collar crime has been expanded to include the crimes of businesses, this is called corporate liability. Corporate liability means businesses can be liable for the crimes of their employees. Examples of where corporate liability can arise is where a businesses fails to implement "reasonable measures" to prevent bribery or fraud.

White collar crime can be differentiated from conventional crime because often white collar crime involves the abuse of a person's status. For instance, a banker has a special skill, this means a banker is a position whereby an individual relies on his knowledge. Consequently, this leaves the victim vulnerable to exploitation. But what makes white-collar crime invisible?

White Collar Crime's Invisibility

Invisibility, in this context, refers to when a crime occurs outside the public's eye. Some of the hallmarks of invisible crime include limited information surrounding the criminal acts, a lack of public awareness, and a lack of research. But is white-collar crime an invisible crime?

White-collar crime is also considered a less serious form of offending, this potentially is because white-collar crime does not present an immediate physical threat to a civilian's safety. Consequently, there is less public anxiety surrounding white-collar crime in comparison to other, violent offences such as knife crime.

In the past, the public's perception of white-collar crime has ensured white-collar crimes remain an invisible form of offending because less pressure is placed on the government to address such crimes. If there is no pressure to address white collar crime, white collar crime can remain invisible, and for this reason, white-collar crime's invisibility has been described as cyclical.

After the global recession following the Wall Street crash, millions of homes were lost, in large part due to white-collar crime. The global recession was an eye-opener to many, acting as the perfect storm to awaken those to white-collar crime.

In the years following the recession, greater pressure was placed on the government to address the crime which ultimately contributed to the rescission; in the wake of the global recession, the UK introduced the new Reckless Banking Act to address the toxic banking culture before the recession, which ultimately resulted in large banks failing, and government pay-outs to ensure the bank's survival.

Nevertheless, even in light, of these new offences, white-collar crime at this very moment is becoming more complex, and more difficult to deal with. As a result important information relating to white-collar crime is often difficult to access. Ultimately, this ensures there remains a lack of information available to the public and the prosecutors. Hence, even after the Wall Street crash, white-collar crime remains an invisible crime, the public remains asleep, and white-collar crime continues to operate outside the public eye.

The Aim of the Blog

In light of white of collar crime's continued invisibility, FCWR aims to provide a forecast for the future, to predict whether the future holds more clouds, rain, lighting and thunder, or whether the sun will shine upon the world of finance exposing the crimes of the financial world.

To generate a weather forecast, this blog aims to provide the latest developments and insights into white-collar crime, whilst also providing a platform for further discussion. So, stay tuned for the FCWR which will shortly follow after the news.