WCC Test one study guide

Is there a commonly accepted definition for WCC. 

No

What percent of the population is the target of WCC each year.  What are the reasons it is not reported many times.

Approximately 5-10% of the population, often underreported due to stigma and lack of awareness.

How does WCC differ from “street crime” and how do they compare in cost.

Street crime are blue collar crimes- Murder, rape, armed robbery, burglary, auto theft…

-       17 times more costly than street crime

How widespread is WCC. 

  Very widespread

-        Costs cannot be measured in cents- industrial pollution, toxic waste, job injuries, unsafe workplaces/products

How harmful is WCC it to society. 

WCC’s are more harmful to society than blue collar crimes  

-       17 times more costly than street crime

How does the public view WCC in comparison to street crime.

  Public does not express the same outrage or concern as they do to street crime because it is not seen as a threat to their personal safety. Business crimes are complex and confusing- more speaking up about it is leading to more attention and concern punishments getting harsher

What is a Ponzi scheme, how does it work, what is another term for it, how do they usually end.  How common are they today.

 Pyramid schemes

-        50 percent return on investment in 45 days

-        Early investors are paid off by new investor money – attracting more money

-        Collapse when they run out of investors

In what industries does WCC seem to occur most.  How do large corporations compare with small corporations in the commission of WCC.

  It is clear that WCC is concentrated in specific industries whose structure are conducive to criminal behavior

-        41 of 70 or 60 percent (cross sectional studies)

-        Larger cooperation are more likely to commit offences than smaller ones

Why does the public have a problem understanding WCC and why is it difficult to study/measure.  Does it have a social cost.

  Business crimes are complex and confusing and difficult to determine because many do not want to admit they were victims in victimization surveys  

-       Demoralization cost: weakening of the citizens overall respect for the law

What group do many fraud schemes target and why.  

elderly

What groups do telemarketers target and why. 

 Elderly, poor and in financial distress

What tactics and techniques do magazine sweepstakes use to lure people in.  Who do they target.

  Use predatory marketing practices: give false impressions that you will win with slogans “guaranteed winner” “finalist”

-       Target elderly, retired, and disabled to make them think they have a personal relationship with the contest manager “personalized letter” “personal guarantee”

How does a telephone swindle work,

  Boiler rooms with salesmen and suckerlists to call scripted sales pitch to people who have fallen before

what are the three phases called, and what elements make up each phase. 

he three phases called, and what elements make up each phase. 

-        Front: introduce the scheme low pressure; promise to send literature friendly talk slow

-        Drive: Statistics and data, hard sell. Talk fast then give time to think

-        Close: Urgency, “only accepting 100 and have 4 more spots” people are worn down and cave in “don’t miss opportunity”

What the slang term for the victims.

Marks – marked as lifetime targets

What percentage of the American population is considered elderly.

  12 percent

What percentage of fraud victims are they (elderly). 

   30 percent

What percentage of the nation’s net worth do they possess.

 75 percent

 Why are elderly especially vulnerable to scams and fraud.

• As you age your cognitive process changes

• Less cynical about what they read and are more trusting

• The print is tiny and difficult for them to read

• Letters carefully worded and include terms like “if you hold winning number”

What are the arguments for and against government regulation in advertising. 

•  Free market economy proponents believe there is no need for governmental control because most business are law abiding.

• Laissez faire idea of free market is against too much regulation

• Some argue it’s on the consumers to be wary even though markets are too complex for them to understand

What percentage of ads did the FTC find certainly contained at least one false statement.

40 percent almost certainty false and 55% very likely to be false  

What are the various categories of advertising . 

• Informative: least visible and common

• Puffery: “blowing hot air” celebrity endorsements

• Deceptive: untrue claims, trick photography, rigged tests (ex. Nutrition, natural if 1% of product is/ weight loss)

Where do drug companies budget their marketing and advertising costs. 

 lump marketing into their research and development costs/budget

How do other countries view ads that target children.

Illegal in other countries, considered to be immoral

What is the impact of counterfeit merchandise.

  Knock offs can make loss of  profit by the legitimate company and can be in the billions; shoddy and fall apart quickly, music, cds video games, computer software, jewelry,  shoes, airline parts, toothpaste, garments, watches  (most fakes made in China)

How much corruption has there been at the executive level of the federal government.

 Very little in the two elected POTUS and VP but common thought department employees

Where is most of the money coming from for congressional campaigns,

Campaigns are funded by donations and rely on Political interest groups

what does PAC stand for, and who receives PAC contributions.

 Political Action Committee, federal candidates and political parties

What types of cases have judges manipulated in exchange for payoffs.

Drunk driving cases- Teflon nothing will stick mentality

What are the acts for which members of Congress have been prosecuted .

• Violate election laws: illegal contributions, false campaign finance

• Payroll fraud: divert money meant for office into pocket

• Bribery: accepting bribes; pay for votes, introducing legislation, help securing government contracts, intervening on someone’s behalf

What is expected in return for a bribe to a member of Congress.

Expect things to be done in their favor

-       PACS expect a politician to vote for for the things they advocate in exchange for their financial support

Can members of Congress put their household staff on the congressional payroll.

nope

What purposes do lobbyists serve and how are they viewed by members of Congress.

Represent a special interest group or corporation and meet with members of congress urging them to vote certain ways

When did the term WCC originate ad by whom? 

1939 edward sutherland 

What is Southerland’s WCC based on.  

• Based on expanding “crime” and whp are “criminals” 

• expand what is and what causes crime 

• Occupation = the way they commit the crime 

• Connected two things: Social status and occupation 

How was WCC first viewed by criminologists when the concept was first proposed. 

Justice systems response to WCC confirmed sutherlands hypothesis that these crimanals were treated differently 

White collar crimes are more harmful to society 

true

What forms does police corruption take and what are some of the causes. 

• Corruption of authority: PO are offered free stuff- food, which diminishes their image; expect more free stuff conditioning 

•  Kickbacks: receive money/goods/services for referring businesses 

• Shakedowns: Bribe for not making an arrest/citation 

• The Fix: issue/ticket arrest but have it diminished for a payoff

• Opportunistic theft: Stealing from the criminal 

• Protection of Illegal activities: Have a criminal pay money to keep other officers off of them 

What helps keep police corruption from being reported.

Code of silence/ blue wall of silence: don't speak out against another officer; us v. them mentality, speak up = no backup, abandoned under fire fear   

How rare is the misuse of public authority in American history, what explains its occurrence, and how widespread is it.

Has been unfortunately persistent throughout American history 

Is the screening of federal employees thorough at hiring and does it impact later cases of corruption

It was not, especially in reference to homeland security- sloppy hiring, inadequate training, week internal controls, greed  .

Define computer crime. 

“Any international act associated with or facilitated by computers where the victim suffers a loss and the perpetrator make a gain”

How widespread is computer crime and who is most effective at perpetrating it.  

Fastestest growing category of crime in the U.S.: it is worldwide. Hackers are most effective at perpetrating it 

What are the various types of computer hackers and what are their goals.

• Showoffs: Break in for fun (test of skill)

• Cookbook: cruise the internet without a target and just to see what they can access

• Stunt: Evil Intent; steal for profit 

What are the stages embezzlers go through. 

Stage 1: faced with a financial problem and need money 

Stage 2: see an opportunity to secretly get the money they need

Stage 3: rationalize they are just borrowing the money and will pay it back and then take it 

Who commits most computerized theft.  When is it most effective.

Employees of the business, authorised users and (disgruntled employees)

In what group is ID theft growing the fastest.  How often are computers used.

Children- very often  5% of americans have their ID stolen each year 

How effective are American copyrights in foreign countries.

Not very - no official world wide protection of copyrights

Wards rule #1

You can steal more with a pen than a gun

Wards rule #2

If it seems too good to be true, then it is

Wards rule #3

Keep an eye on your employee’s lifestyle

1990’s

the betrayal decade: tax fraud, proliferation of embezzlers

Ward’s rule #4

Run a criminal background check on job applicants and check their references

cooking the books

fraudulent financial reports giving a false picture of the company’s performance

Defense Contractors:

a government accounting office study in 1855 found half the firms engaged in overcharging, defective products, or conflicts of interest

Securities Industry:

insider trading in wall street firms

victimization studies

1/3 reported they have been targets of fraud

Wards rule #5

“There is a sucker born every minute”- PT Barnum

Caveat emptor

let the buyer beware

reload scam

con artists call with another scheme, mark is eager to make up for what the lost

Rip and tear scheme

swindlers pose as law enforcement agents and tell victims they are investigating con artists and need cooperation and can help recover what was lost just need banking info to directly deposit into account

home equity loans - target finical distress

second mortgage with rates of interest impossible to pay off - some backed by reputable banks

poor are targets for what

disreputable vocational schools

price gouging

after disasters prices will go up, gas water, batteries, tc…