Regulatory Regimes for White Collar Crime & Corporate Crime.

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  • Topic: Fraud, Credit card fraud, Environmental law
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  • Published : April 20, 2008
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White Collar Crime: Essay 3.

Regulatory regimes for white collar crime & corporate crime.

The regulatory regimes in place for white-collar crime (WCC) and corporate crime (CC) are much more extensive than those for any other sort of crimes, problematically WCC and CC continues to grow. This essay will firstly, examine the regulatory regimes in place for the increasing WCC of credit card fraud and secondly how corporations are regulated to prevent CC against the environment through fly-tipping.

The controversial facts and figures that surround the fast growing crime of credit card fraud can be very disturbing. The most recent figures suggest that credit card fraud has had a major increase from April to December 2006 it rose 6.6% to 56,065. Furthermore the Home Office suggested that the estimated cost of credit and plastic card fraud alone costs £428m in 2006.

The increase awareness to the fast growing crime many regulated regimes have been introduced to try and combat credit card fraud. One major change has been the long awaited Fraud Act. Historically fraud was prosecuted under various and extremely outdated guises of deception. The Fraud Act 2006 has established a single statutory for the general offence of fraud with three ways of committing it. The first is through false representation, by failing to disclose information and by abuse of position. The second way is by obtaining services dishonestly and of possessing, making and supplying articles for use in frauds, and finally through fraud by abuse of position. The Fraud Act enables new measures for modernising the law to equip investigators and prosecutors to detect and successfully impose the penalties for the offence committed.

There are many external regulators that many companies use. To dominant regulators are APACS and CIFAS. Each has developed regulatory regimes to try and combat credit card fraud. Apacs is the UK trade association for payments and for those institutions that deliver payment services to customers. One of Apacs key responsibilities is co-ordinating a whole range of activities to tackle payment related fraud.

According to Apacs UK card fraud losses fell by 5 per cent in the first six months of 2006, and total fraudulent losses fell from £219.5 million to £209.3 million a decline Apacs attributed to with the introduction of the chip and pin. The chip and pin system allows shoppers to verify purchases at the point of sale by keying in a four digit pin instead of signing on paper was launched to tackle the growing problem of credit card fraud. According to Apacs, the scheme has already had an impact, reducing the losses suffered by banks as a result of counterfeit or lost or stolen cards.
In addition Apacs ensures that the UK payments industry operates to the highest international standards and that those payments are safe, reliable and resilient. The increase of credit card fraud, has also been seen in card not present fraud, were transactions are carried out over the Internet, phone and mail order transactions. In 2005 card not present fraud grew by 21% to £183.2 million, and since tighter regulations being enforced this has slowly decreased with retailers having to request additional details, known as secure- code system. These details include the three digits on the signature strip, but also cardholder addresses, with these details not being authorised can decline payment.

Consequently, even through the costs of fraud is slowly decreasing with the regimes in place such as the chip and pin system, it has incurred short term problems which have had negative responses. Apacs noted that the introduction of the new card system meant new cards were issued and with the large volume of cards made and sent out to customers, many cards and the new pins were never received. Also the secure- code system suffered as retailers refused to use this added measure.

A second regulator is the UK’s fraud prevention...
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