Chapter 14: White-Collar, Organized, and Cybercrime

What is white-collar crime?

White-collar crime refers to non-traditional offenses committed by upper-class individuals, often involving work-related violations.

What criteria are used to distinguish white-collar crime from traditional crime?

The criteria include: (1) the perpetrator is upper-class, (2) the crime is work-related, (3) violations by blue-collar workers are excluded, and (4) regular crimes committed by upper-class individuals are excluded.

Who coined the term 'white-collar crime'?

Edwin Sutherland, a prominent criminologist of the 20th century.

What types of offenses are included under white-collar crime?

White-collar crime includes fraud, labor violations, manufacturing violations, unfair business practices, abuse of authority, and regulatory/administrative violations.

What did Sutherland's study of corporate crime reveal about large corporations?

Sutherland found that the 70 largest mercantile and industrial corporations had multiple violations, with an average of almost eight adverse decisions per corporation.

What is the recidivism rate for corporations involved in white-collar crime?

Nearly 100% of the corporations studied recidivated, indicating that corporate misbehavior is common.

How do the economic costs of white-collar crime compare to street crimes?

White-collar crime causes an estimated $500 billion in financial harm annually, which is 30 times more than street crimes.

What are some examples of significant white-collar crimes?

Examples include Enron's fraud and the savings and loan bailout, which resulted in massive financial losses.

What are the physical costs associated with corporate crime?

Corporate crime is estimated to cause at least 105,000 deaths annually, significantly more than traditional street crimes.

How does corporate crime impact society's economic well-being?

It leads to taxpayer-funded bailouts and recovery funds, making addressing white-collar crime crucial for protecting economic well-being.

What is the relationship between corporate success and violations?

The more successful a company is, the more likely it is to have been charged with violations.

What are the key issues associated with cybercrime?

The notes did not specify, but key issues typically include data breaches, identity theft, and online fraud.

What is the impact of white-collar crime on the moral fabric of society?

Corporate crimes can weaken the moral fabric of society by normalizing unethical practices.

What is the significance of the term 'white-collar crime' in criminology?

It highlights the need to understand non-traditional forms of crime that have substantial societal impacts, distinct from street crime.

What does the ongoing debate about white-collar crime focus on?

The debate centers around its precise definition and the behaviors it encompasses.

How does white-collar crime differ from traditional street crime in terms of societal impact?

White-collar crime causes greater property and financial losses and often results in more violence than traditional street crimes.

What are the criticisms of the criteria used to define white-collar crime?

Critics argue that the criteria are too broad and can be loosely applied to various behaviors.

What role does the criminal justice system play in addressing organized crime?

The notes did not provide specific details, but typically, it involves law enforcement responses and legal frameworks to combat organized crime.

What is the significance of corporate crime in the context of public safety?

Corporate crime poses significant risks to public safety, leading to injuries and fatalities that exceed those caused by street crimes.

What is the impact of white-collar crime on taxpayer funding?

White-collar crime can lead to financial burdens on taxpayers through bailouts and recovery efforts.

What is the general perception of corporate misbehavior in successful businesses?

It is perceived that corporate misbehavior is not the exception but the norm among highly successful businesses.

What evidence suggests about corporate crime rates compared to street crime rates?

While street crime rates have decreased, evidence indicates that corporate crime injuries are on the rise.

How does corporate crime affect the moral fabric of society?

Theorists argue that corporate crime damages the moral fabric of society due to hypocrisy and lack of accountability.

What is a common characteristic of individuals who commit corporate offenses?

They are often individuals in positions of trust who condemn street crimes but commit worse offenses.

How is corporate crime treated compared to street crime?

Corporate crime is treated more politely and is rarely punished as severely as street crime.

What impact does white-collar crime have on the general public?

White-collar crime impacts the general public, with taxpayers and consumers bearing the financial burden and risks.

What significant environmental issues arose from the Industrial Revolution?

The Industrial Revolution led to severe environmental damage due to increased industrial activities and pollution.

What agency was established to address environmental issues in the U.S.?

The Environmental Protection Agency (EPA) was established in 1970 to protect human health and safeguard the natural environment.

What are common corporate violations of environmental regulations?

Common violations include hazardous waste disposal and air and water pollution.

What federal act established the Occupational Safety and Health Administration (OSHA)?

The Occupational Safety and Health Act of 1970 established OSHA.

What is the consequence of willfully violating safety laws under OSHA?

It is made a misdemeanor to cause the death of a worker by willfully violating safety laws.

How does OSHA enforce labor violations?

OSHA conducts inspections and issues fines for violations, but fines are often nominal for large businesses.

What is a limitation of OSHA in addressing labor violations?

OSHA rarely pursues criminal charges, resulting in little enforcement or deterrence for labor violations.

How are labor issues sometimes connected to organized crime?

Labor issues are sometimes connected to organized crime and racketeering in corporations.

What theory suggests that perceived benefits outweigh potential sanctions at the corporate level?

Deterrence Theory suggests limited evidence for deterrence at the corporate level.

What does Rational Choice Theory imply about ethical business rules?

Violating ethical business rules can lead to financial gain and employer recognition.

How does Social Bonding Theory explain white-collar crime?

Cultural norms in the workplace overwhelm university-led ethical training, leading individuals to prioritize profit.

What makes white-collar crimes attractive according to Routine Activities Theory?

Ready-made opportunities and low likelihood of being caught make white-collar crimes attractive.

What does Strain Theory suggest about American cultural values?

The American cultural value of monetary success and greed can lead to strain for financial gain.

What is a characteristic of corporate goals according to Conflict Theory?

Corporate goals of profit transcend political or economic ideologies.

What is a common public perception of organized crime?

The American public is fascinated by organized crime, often portrayed in movies with fictional elements.

How does Howard Abadinsky define organized crime?

Organized crime is characterized by being absent of political goals, hierarchical, having limited membership, constituting a unique subculture, perpetuating itself, using illegal violence, and being monopolistic.

What is the significance of needing topic-specific theories for white-collar crime?

Conventional theories may not fully explain white-collar crime; more targeted theories are needed.

What characterizes organized crime in terms of structure?

Organized crime is monopolistic and governed by rules and regulations.

How did organized crime become integrated into American life?

It became organized with the cooperation of government officials.

What was an early form of organized crime in the American era?

Colonial pirates.

What was Tammany Hall?

A notorious Democratic political machine in New York City from the 1790s through the 1960s, influential in city and state politics.

What impact did Prohibition in 1919 have on organized crime?

It created opportunities for illegal alcohol distribution, leading to the rise of notorious criminal organizations.

What significant establishment marked organized crime's control of the gambling industry?

The Flamingo Hotel in Las Vegas, opened by Bugsy Siegel in 1947.

How has the nature of casinos in Las Vegas changed over time?

They were once controlled by organized crime but are now major corporate entities.

What was the awareness of organized crime in the 1980s?

There was increasing awareness of various criminal organizations beyond the Mafia, including prison gangs and outlaw motorcycle gangs.

How has organized crime adapted to modern technology?

It has involved itself in activities like credit card cloning, computer viruses, and child pornography.

What are the origins of the Mafia according to different theories?

Some suggest it evolved in response to Arab domination of Sicily, while others propose it originated as a political organization to free Sicily from French rule.

How did the Mafia's role evolve over time?

It transitioned from a self-protection group to engaging in criminal activities such as smuggling, cattle rustling, and extortion.

What is the significance of the oath taken by Mafia members?

Members swore an oath of silence under punishment of death.

What led to many Mafiosi immigrating to the United States?

The Italian government's efforts to eliminate the Sicilian Mafia in 1878.

What is a notable characteristic of outlaw motorcycle gangs (OMGs)?

They are secretive, close-knit groups with selective membership, often symbolized by colors on jackets.

What is the image associated with outlaw motorcycle gangs?

A tough-guy image that has increased membership and sophistication.

What criminal activities are women associated with OMGs often involved in?

Prostitution, drug transportation, and weapons trafficking.

Which outlaw motorcycle gang is considered the wealthiest and most powerful?

Hell's Angels.

What was the outcome of the Cooper v. Pate Supreme Court decision?

Incarcerated persons were allowed to sue state officials in federal court, changing prison conditions.

What do prison gangs demand from their members?

Absolute obedience, with strict initiation and exit requirements.

Name some notable prison gangs and their characteristics.

Mexican Mafia, La Nuestra Familia, Texas Syndicate, Black Guerilla Family, and Aryan Brotherhood, each with distinct criminal activities and territories.

What is a major feature of urban street gangs?

Violence or the threat of violence.

How do urban street gangs differ in terms of existence?

Some exist for short periods while others are more persistent.

What is the primary criminal activity of urban street gangs?

Involvement in the drug trade, with limited engagement in other criminal enterprises.

What common bonding practices are found among street gangs?

Bonding through rituals and initiation rites.

What factors contributed to the emergence of transnational organized crime in the 1970s and 1990s?

Changes in geopolitical climate, globalization, softer borders, and advanced information technology.

What are the primary goals of transnational criminal organizations?

To seek power, monetary gains, and influence through illegal means while using corruption or violence.

What types of major theft crimes are associated with transnational organized crime?

Art theft, cargo theft, and jewelry and gem theft.

How does transnational organized crime impact the U.S. economy?

By increasing consumer prices and causing loss of tax revenues to states and communities.

What was the purpose of the Chicago Crime Commission formed in 1919?

To address Chicago's crime problem and improve its reputation through a public-relations campaign.

What notable list did the Chicago Crime Commission introduce?

The 'Public Enemy' list.

What did the Wickersham Commission find regarding organized crime?

It flourished around bootlegging operations.

What was one of the recommendations of the Wickersham Commission?

A comprehensive study of organized crime.

What were the three responsibilities of the Kefauver Committee established in 1950?

Investigate organized crime's use of interstate commerce, identify involved individuals or entities, and determine corrupting influences.

How many witnesses did the Kefauver Committee hear testimony from?

Over 600 witnesses.

What was a significant finding of the Kefauver Committee regarding the Mafia?

It did not provide conclusive evidence supporting the existence of an international Mafia conspiracy.

What did the McClellan Committee investigate?

Labor racketeering in trade unions.

Who provided limited testimony on Italian American organized crime during the McClellan Committee hearings?

Valachi.

What did the President's Commission on Law Enforcement and the Administration of Justice identify regarding organized crime?

24 Cosa Nostra cartels with gambling as a primary revenue source.

What is RICO in the context of the Organized Crime Control Act of 1970?

Racketeer Influenced and Corrupt Organizations; it provides enhanced penalties for engaging with criminal organizations.

What are the three criminal penalties under RICO?

A fine of up to $25,000, a prison term of up to 20 years for each racketeering count, and forfeiture of interests obtained through violations.

When was the Commission on Organized Crime established by President Reagan?

In 1983 through Executive Order 12435.

What model was developed to understand criminal organization involvement?

A contingency model.

What theories attempt to explain organized criminal behavior?

Cultural transmission, culture conflict, strain theories, and low self-control theory.

What does ethnicity and ethnic succession theory suggest about immigrant groups?

Successive immigrant groups turn to crime due to limited legitimate opportunities.

What does enterprise theory posit regarding illicit entrepreneurs?

Illicit entrepreneurs fill market voids where legitimate options are lacking.

What does Reuter's mini-theory propose about adult gangs?

Adult gangs engage in crime for economic reasons influenced by illegal market opportunities, recent ethnic migration, and local political authority.

Who is Evgeniy Mikhailovich Bogachev and what is he known for?

He is on the FBI's most wanted list for his involvement in GameOver Zeus (GOZ) malware, responsible for over a million infections and $100 million in losses.

What organization was established in 2000 to address cybercrime?

The Internet Crime Complaint Center (IC3).

How many complaints did IC3 receive per year from 2018 to 2022?

Approximately 652,000 complaints.

What was the recovery amount reported by IC3 for internet crime losses?

$590.62 million with a 73% recovery rate.

What are the three features that define cybercrime?

1) The act was committed using a computer, 2) a 'victim' computer, and 3) an intermediary network.

What is the origin of the term 'hacker'?

Originated from MIT's 'hacks' and evolved to mean creative invention in computing.

What distinguishes black hat hackers from white hat hackers?

Black hat hackers violate computer security for malice or personal gain, while white hat hackers protect systems and notify owners of vulnerabilities.

What are gray hat hackers?

They blend black and white hat hacking, accessing systems and offering to fix vulnerabilities for a fee.

What are script kiddies?

Low-level hackers using premade utility programs, potentially causing harm due to limited technical knowledge.

What motivates hacktivists?

They are motivated by spreading political messages through hacked systems.

What is the goal of cyber terrorists?

To target critical infrastructures, potentially causing severe damage or loss of life.