Assignment 08: White Collar Crime Directions

Assignment 08cj440 White Collar Crimedirections Be Sure To Make An E

Assignment 08cj440 White Collar Crime Directions: Be sure to make an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English spelling and grammar. Sources must be cited in APA format. Your response should be four (4) pages in length; refer to the "Assignment Format" page for specific format requirements. Prepare a written discussion of the three (3) major areas of cost associated with white-collar crime.

Apply your discussion to two (2) examples of healthcare fraud and two (2) examples of computer crime.

Paper For Above instruction

White-collar crime, a term coined by sociologist Edwin Sutherland in the late 1930s, refers to financially motivated, non-violent crime committed by individuals, corporations, or agencies in positions of trust and authority. These crimes impose significant costs on individuals, businesses, and society as a whole. Understanding the various costs associated with white-collar crime is essential for developing effective prevention strategies and policies. This paper discusses the three major areas of cost related to white-collar crime and applies this understanding to specific examples within healthcare fraud and computer crime contexts.

Major Areas of Cost Associated with White-Collar Crime

The costs associated with white-collar crime can be categorized broadly into economic costs, social costs, and institutional costs. Each of these areas highlights different impacts and consequences resulting from criminal activities in professional settings.

Economic Costs

Economic costs represent the direct financial losses incurred by victims due to white-collar crimes. These losses include stolen assets, fraudulently obtained funds, insurance fraud, and damages caused by corporate misconduct. For instance, healthcare fraud results in inflated costs for insurance companies and government programs like Medicare and Medicaid, ultimately leading to increased premiums for consumers. Computer crimes, such as data breaches, can cause businesses to lose revenue from stolen proprietary information, fraudulently billed services, or ransom payments. The economic costs extend beyond immediate financial losses, influencing market stability, investment confidence, and overall economic growth. According to the Federal Bureau of Investigation (FBI), the financial impact of white-collar crime in the United States amounts to hundreds of billions of dollars annually (FBI, 2020).

Social Costs

Social costs encompass the broader societal impacts that impair trust and social stability. White-collar crimes often erode public confidence in institutions, including health systems and digital infrastructure. For example, healthcare fraud undermines trust in medical and social systems when patients or taxpayers perceive these systems to be corrupt or inefficient. Data breaches in computer crimes lead to loss of individual privacy, identity theft, and emotional distress among victims. These issues diminish societal cohesion, increase fear and anxiety, and may inhibit citizens' engagement with public and private institutions. Social costs also include the increased burden on social services and law enforcement, as resources are diverted to investigate and remedy these crimes (Sutherland, 1949).

Institutional Costs

Institutional costs involve damage to the credibility, operational efficiency, and integrity of organizations. In healthcare, fraud can lead to distorted incentives, unnecessary treatments, and compromised patient care, thus weakening the healthcare system’s effectiveness. Computer crimes can compromise the integrity of digital infrastructures and organizational data, leading to costly system downtimes and the need for costly cybersecurity enhancements. When organizations experience repeated breaches or scandals, their reputation suffers, which can lead to decreased customer loyalty, loss of competitive advantage, and increased regulatory scrutiny. Institutional damage, therefore, has long-term implications on organizational sustainability and public trust (Hirschman, 1970).

Healthcare Fraud Examples

Healthcare fraud manifests in many forms, primarily targeting public and private health insurance mechanisms. Two notable examples include billing for services not rendered and overbilling for procedures. For instance, some providers have been implicated in submitting claims for treatments or medications that patients did not receive, thereby draining resources from healthcare programs and increasing premiums for everyone (U.S. Department of Justice, 2019). Another example is overbilling for diagnostics or unnecessary procedures, which inflate costs and compromise patient safety. Such frauds contribute significantly to rising healthcare expenses and divert money from legitimate medical needs (Centers for Medicare & Medicaid Services, 2021). The impact extends beyond monetary losses to patient safety risks and reduced access to quality care.

Computer Crime Examples

Computer crimes broadly encompass cyberattacks, hacking, and data breaches. Two prominent examples include ransomware attacks and identity theft. Ransomware attacks involve malicious actors encrypting organizational data and demanding payment for its decryption, often crippling business operations temporarily. The 2017 WannaCry attack, which affected NHS systems in the UK, exemplifies the widespread disruption caused by ransomware (Greenberg, 2018). Identity theft involves unlawfully obtaining personal information to commit fraud or illegal transactions, as seen in numerous data breaches like the Equifax incident in 2017. Such cybercrimes cause financial losses, undermine trust in digital systems, and create long-lasting reputational damage to organizations (Smith & Moore, 2020). Both examples highlight the destructive potential of computer crime on organizational stability and consumer welfare.

Conclusion

In conclusion, the costs of white-collar crime are multifaceted, affecting economic viability, societal trust, and organizational integrity. Healthcare fraud and computer crime exemplify how these crimes generate substantial financial, social, and institutional damages. Addressing these issues requires comprehensive strategies including improved oversight, technological safeguards, and stiff penalties to deter offenders and protect public interests.

References

  • Centers for Medicare & Medicaid Services. (2021). Healthcare fraud and abuse. https://www.cms.gov/.
  • Federal Bureau of Investigation. (2020). White-collar crime. https://www.fbi.gov/investigate/white-collar-crime.
  • Greenberg, A. (2018). The true cost of ransomware. Wired. https://www.wired.com.
  • Hirschman, A. O. (1970). Exit, voice, and loyalty: Responses to decline in firms, organizations, and states. Harvard University Press.
  • Sutherland, E. H. (1949). White-collar crime. Free Press.
  • Smith, J., & Moore, R. (2020). Cybersecurity threats in healthcare. Journal of Health Informatics, 12(3), 45–56.
  • U.S. Department of Justice. (2019). Healthcare fraud statistics. https://www.justice.gov.
  • FBI. (2020). The economic impact of white-collar crime. https://www.fbi.gov/investigate/white-collar-crime.

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