E. Crime
E. Crime
E. Crime
ECONOMIC CRIMES
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BASIC CONCEPT OF
ECONOMIC CRIMES
BASIC CONCEPT OF
ECONOMIC CRIMES
BASIC CONCEPT OF
ECONOMIC CRIMES
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WHAT IS
ECONOMIC
CRIME? HRD
WHAT IS
● Also known as financial crime.
ECONOMIC
● Illegal acts committed by an individual
CRIME?
or a group of individuals to obtain a
financial or professional
advantage.
● The principal motive in such
crimes is economic gain.
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WHAT IS
ECONOMIC
● Usually confused with another term,
corruption.
CRIME?
● Regarded to generate a considerable social
damage.
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TYPOLOGY OF
ECONOMIC CRIME
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● Identity Theft
● Tax Fraud
● Health Care Crimes
● Schemes and Scams
● Cybercrime
● Money Laundering
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• Identity Theft
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• Identity Theft
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• Tax Evasion
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• Tax Evasion
The illegal non-payment or under-payment of taxes, usually by deliberately
making a false declaration or no declaration to tax authorities – such as by
declaring less income, profits or gains than the amounts actually earned, or
by overstating deductions.
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• Health Care Crimes
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• Health Care Crimes
This type of crime happens when an entity abuses the health care insurance system for
financial gain. This type of crime could be committed by a health care provider,
business, or individual.
Here are some examples:
Providers who charge more than procedures are actually worth
Providers who perform unnecessary procedures for
the insurance payout
Falsifying a diagnosis to justify unnecessary tests
Overbilling the insurance carrier
Medical identity theft
Fabricated health care claims
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• Schemes and Scams
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• Schemes and Scams
These types of deceptions include pleas to
send money either as an investment into a
business, product, or relationship. The
victim sends the money, and suddenly,
you’ve been ghosted. The other person or
business disappears, and so do your
chances at ever seeing your money again.
These types of scams have become even
more common in the Internet era.
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• Cybercrime
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• Cybercrime
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• Cybercrime
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• Cybercrime
Crypto jacking (where hackers mine cryptocurrency using resources they
do not own).
Cyberespionage (where hackers access government or company data).
Interfering with systems in a way that compromises a network.
Infringing copyright.
Illegal gambling.
Selling illegal items online.
Soliciting, producing, or possessing child pornography.
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• Corruption
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• Corruption
Corruption erodes trust, weakens democracy, hampers economic
development and further exacerbates inequality, poverty, social
division and the environmental crisis.
bribery,
embezzlement ,
trading in influence,
abuse of function,
illicit enrichment;
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• Money Laundering
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• Money Laundering
concealing or disguising the origins of illegally obtained proceeds
so that they appear to have originated from legitimate sources
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Historical Background
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Historical Background
● Graeco-Roman Period
The Romans took banking out
of religious temples and
formalized it in distinct
buildings.
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Historical Background
● 300 CE
Hegestratos, a Greek Merchant, took out a
loan using his ship full of corn as collateral.
This sort of loan/insurance policy was called
“bottomry,” referring to a ship’s keel or its
bottom.
He planned to sink an empty boat, keep the
loan, and sell the corn, his plan failed.
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Historical Background
● Victorian Era
Embezzlement.
1473 Carrier's case.
Flemish merchant hired an English
carrier to carry bales of wool to
Southampton. However, the English
carrier instead took the bales of wool
for himself.
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Historical Background
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Historical Background
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Historical Background
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Historical Background
● Organized Crime
provide a range of illegal services and
goods, victimizes businesses through
the use of extortion or theft and fraud
activities defraud national, state, or
local governments
by manipulating public projects,
counterfeiting money, smuggling, etc.
Organized crime include loansharking
of money at very high interest rates.
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Historical Background
Fraud
Embezzlement
Illicit loan-sharking
Money-laundering
Identity theft and benefit theft
Senior citizen extortion
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Economic Crime: Theories
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Economic Crime: Theories
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Rational Model of Crime
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Rational Model of Crime
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Rational Model of Crime
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Rational Model of Crime
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Rational Model of Crime
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Rational Model of Crime
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Rational Model of Crime
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Rational Model of Crime
● Flinn (1986)
Human capital is accumulated at work. As a result, if time spent
on crime lowers time spent at work, the amount of human capital
accumulated by an individual is reduced one would expect higher
crime rates among youth younger than age 18
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Rational Model of Crime
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Rational Model of Crime
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Myopic Model of Crime
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Myopic Model of Crime
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Myopic Model of Crime
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Radical Political
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Radical Political
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Radical Political
• Relative deprivation
The degree of deprivation is defined as the distance
between the particular group’s experiences compared with
that of the larger society, which is regarded as a proxy for
what the group is entitled to.
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Radical Political
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Radical Political
• Unemployment
The resulting deprivation then lowers the costs of criminal
activities and punishment. The indirect result is that conflict
increases (Nickerson, 1983).
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Radical Political
• Class
Marxian analysis.
Class bias is revealed in the attention that crimes, such as burglary or theft,
receive in comparison with white collar crime, although the latter type of
crimes represent a larger proportion of monetary losses than the former type
(Simon & Witte, 1982).
Gordon (1973) contrasts white-collar crimes typically committed by the richer
classes of society with those committed by the poor.
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Economic Causation
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CAUSATION
● Expected gains from crime when compared with legal works
● Chance of being caught and convicted
● Extend of punishment
● Opportunities in legal activities.
● High cost of education is the prime reason for illiteracy, lack of
institution and access, corruption and income inequality also
the main determinants of crimes.
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● The development of a global, networked economy opened up
many avenues for such activities as asset misappropriation,
bribery, false accounting, insider trading and money
laundering. Particularly as some countries have immature
controls, checks and penalties for illegal financial activities.
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Importance of Studies
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Importance of Studies
It has been observed that the impact of economic crime manifests itself in
the phenomena of inflation, poverty, commercial crime, development, and
corruption. In each of the stipulated sectors, a key objective of the inquiry will
determine the causal connection with criminal business. Among its many
deleterious effects on social well-being, violent conflict—including widespread
criminal violence—can undermine economies by reducing investment, output,
and growth. Improvements in economic conditions, such as lower
unemployment and higher wages, play an important role in reducing crime.
So, the changes in the relationship between supply and demand causes crime
as they are inextricably linked.
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REFERENCES
● Economic Crime
https://www.europol.europa.eu/crime-areas-and-statistics/crime-areas/economic-
crime
● What is economic crime? http://www.cipce.org.ar/en/what-is-economic-crime
● The History of Financial Crime: Exploring Examples of Modern Money
Crimes Team BusinessForensics Jan 27, 2021
https://businessforensics.nl/financial-crime-history/
● Economic Crime: Theory
https://www.encyclopedia.com/law/legal-and-political-magazines/econo
mic-crime-theory
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Question, Discussion,
and Open Forum.
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THANK YOU!
G S C HRD