Crime and the private sector (1)


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Crime and the private sector (1)

  1. 2. The Private Sector <ul><li>The private sector is a sector of the economy </li></ul><ul><li>It is sometimes referred to as the citizen sector </li></ul><ul><li>It is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state. </li></ul><ul><li>Businesses in the private sector include; </li></ul><ul><li>sole traders </li></ul><ul><li>Partnership, either limited or unlimited liability </li></ul><ul><li>Private Limited Company or LTD-limited liability, with private shares </li></ul><ul><li>Public Limited Company – shares are open to the public. </li></ul>
  2. 3. Common Crimes Committed within the Private Sector <ul><li>Corporate crime refers to crime committed either by a corporation (i.e., a business that has a separate legal obligations from the people in charge) or by individuals that may work for a corporation or other business entity. </li></ul><ul><li>This often overlaps with -White collar crime -Organized Crime </li></ul><ul><li>Examples of corporate crime include </li></ul><ul><li>Fraud </li></ul><ul><li>bribery </li></ul><ul><li>insider trading </li></ul><ul><li>embezzlement </li></ul><ul><li>computer crime </li></ul><ul><li>copyright infringement </li></ul><ul><li>money laundering </li></ul><ul><li>identity theft </li></ul><ul><li>Forgery These are often committed using computers and technology where hackers can access information illegally. They can often be deemed at INVISIBLE as they are easier to conceal. </li></ul>
  3. 4. BCCI <ul><li>The Bank of Credit and Commerce International was a major international bank founded in 1972 by Agha Hasan Abedi </li></ul><ul><li>Jokily described as the ‘Bank of Crooks and Criminal International’ </li></ul><ul><li>It operated in 78 countries, had over 400 branches, and had assets in excess of $20 billion, making it the 7th largest private bank in the world by assets </li></ul><ul><li>Investigations revealed that it was involved in massive money laundering and other financial crimes, and illegally gained controlling interest in a major American bank. </li></ul><ul><li>Closed down on July 5 th 1991 </li></ul><ul><li>Liabilities $10bn owed to 800,000 depositors in 1.2 million accounts over 70 countries UK authorities lost £100 million (est) </li></ul>
  4. 5. Effects on Private Sector <ul><li>Fraud losses cost the UK £30bn a year (including scams, online theft, insurance cheats and tax fraud) </li></ul><ul><li>The annual cost of identity fraud is over £2.7bn </li></ul><ul><li>More than 1.8 million people are affected by identity fraud every year </li></ul><ul><li>The number of cases coming to light has risen by almost 10% in the first nine months of 2010 </li></ul><ul><li>National Fraud Authority highlights that in can take 200 hours to sort out a single case of identity fraud </li></ul><ul><li>31% of losses came in the private sector </li></ul>
  5. 6. Prevention <ul><li>Shredding personal documents before throwing out </li></ul><ul><li>Check bank and credit card statements carefully </li></ul><ul><li>Contact a bank or credit card company if a statement fails to arrive </li></ul><ul><li>Make sure computers have up-to-date anti-virus software installed </li></ul><ul><li>Use all the privacy settings available on social networking sites but do not put too much personal information up there </li></ul><ul><li>Special forensic bankers whose job it is to detect fraud and traces of money </li></ul>
  6. 7. Blue Collar Crime <ul><li>Private Sector industries face the risk of blue collar crimes being committed against them too </li></ul><ul><li>Things such as robbery, vandalism, theft (by employees) are things businesses have to consider </li></ul>
  7. 8. Effects on Private Sector <ul><li>Increase in security such as CCTV, locks, alarm systems etc </li></ul><ul><li>Use of more security guards </li></ul><ul><li>Training for staff to know how to deal with volatile situations </li></ul><ul><li>Can increase fear of employees </li></ul><ul><li>Costs rise as security measures are put in place </li></ul>
  8. 9. USEFUL ARTICLES <ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> (in South Africa) </li></ul><ul><li>CORPORATE CRIME </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li>BLUE COLLAR CRIMES </li></ul>