Schram, Introduction to Criminology 3e
SAGE Publishing, 2021
Lecture Notes
Chapter 14: White-Collar Crime, Organized Crime, and Cybercrime
Learning Objectives
14.1 Explain the criteria experts use to distinguish white-collar crime from traditional forms of
offending, as well as criticisms of these criteria.
14.2 Discuss the ways in which corporate crimes impact society in terms of physical and
property damage, as well as weakening the moral fabric of society.
14.4 Explain some of the theoretical explanations for white-collar crime.
14.6 Discuss the key issues associated with cybercrime.
Chapter Outline
I. Introduction
i. The types of offending examined in this chapter include various types of
white-collar, organized, and computer (or cyber) crimes.
ii. The first section covers those crimes generally referred to as white-collar,
corporate, or occupational.
iii. The next section presents various issues pertaining to organized crime,
II. White-Collar Crime
i. White-collar crime is perhaps more emphasized today due to the global,
multibillion-dollar nature of corporations in the modern world.
ii. It is amazing that white-collar crime did not gain much attention from
criminological researchers.
A. Definitions and History
i. White-collar crime: The criteria include (1) upper-class offender, (2)
work-related violations, (3) work-related violations of blue-collar workers
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ii. White-collar criminality is real criminality, being in all cases in violation of
the criminal law.
v. Some have even claimed that there is virtually no distinction between
white-collar crime and organized crime.
vi. A short list of the general categories of various white-collar offenses
III. Incidence and Impact on Society
i. Edwin Sutherland examined the decisions of courts and regulatory
commissions against the 70 largest mercantile and industrial corporations
in the nation.
a. Sutherland found that a total of 547 adverse decisions had been
made against these 70 companies, with an average of almost eight
decisions per corporation.
A. Economic Costs
i. Some modern estimates by the FBI’s Uniform Crime Reports have put the
cost of all street crimes at close to $17 billion for the year 2002.
B. Physical Costs
i. The scientific evidence clearly shows that “corporate crime kills, maims,
and injures enormously larger numbers of innocent people than all street
crimes combined.”
C. Breakdown in Social Fabric
Schram, Introduction to Criminology 3e
SAGE Publishing, 2021
i. Corporate crime creates a higher level of immorality in American society
because of the nature of hypocrisy typically inherent in the offenders and/or
offending.
IV. Types of White-Collar Crime
A. Crimes Against the Environment
i. Once the Industrial Revolution hit, there were countless numbers of
factories and plants that had no concern for the environment, and this
resulted in unprecedented dumping of deadly chemicals and waste products
into bodies of water, toxins being released from endless streams of smoke
coming out of factory chimneys, and massive destruction of majestic
forests and natural resources.
ii. Environmental Protection Agency: started in 1970, charged with
protecting human health and safeguarding the natural environment.
iii. The EPA estimates that there are about 60,000 deaths—mostly among the
B. Labor Violations
i. Labor violations range from hiring illegal workers (e.g., children) to
exploiting workers to keeping unsafe work conditions and many more
variations.
ii. The primary legislation developed to investigate labor violations is the
Occupational Safety and Health Act (OSHA), passed in 1970.
iii. This 1970 federal act established the Occupational Safety and Health
Administration and made it a misdemeanor to cause the death of a worker
by willfully violating safety laws.
V. Theoretical Explanations
i. Various studies were examined regarding the theories of differential
association/social learning, techniques of neutralization, deterrence/rational
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ii. Portions of rational choice theory are strongly supported by empirical
research, in the sense that violating ethical business rules often gains much
in terms of financial profit and/or employer recognition.
VI. Organized Crime
A. Definition
i. Organized crime is sometimes defined through a typology, such as the
means of obtaining the goals and the reasons for engaging in such activity:
An economic objective or a political objective.
ii. Howard Abadinsky listed various factors associated with this type of
criminal activity as identified by law enforcement agencies and researchers.
a. Organized crime is absent of political goals.
b. Organized crime is hierarchical.
c. Organized crime has limited or exclusive membership.
B. The Historical Context of Organized Crime in the United States
i. Pirates during the American colonial era were a form of organized crime
group.
ii. Tammany Hall got its name from the Indian chief Tamanend.
a. It was founded in 1789 to oppose the ruling conservative Federalist
party.
b. A primary strength of Tammany Hall was its skill in electing
candidates to the state legislature in Albany and to the board of
aldermen in New York City.
C. Types of Criminal Organizations
i. The Mafia
a. One opinion is that the Mafia evolved as a ninth-century response
to Arabic domination of Sicily.
excellence, the term Mafioso referred to characteristics of a man,
such as pride, self-confidence, and an “arrogant” attitude.
ii. Outlaw Motorcycle Gangs
a. During the late 1940s, outlaw motorcycle gangs (OMGs) evolved
as disorganized and unruly groups made up of disgruntled World
War II veterans.
iii. Prison Gangs
a. Some have attributed the growth of prison gangs to the 1964 U.S.
Supreme Court decision Cooper v. Pate.
b. The “death oath,” or “blood in and blood out,” requires the
member to remain a member forever.
c. Prison gangs are more powerful in state correctional facilities
iv. Urban Street Gangs
a. The first characteristic of organized crime groups is corruption.
b. The second characteristic, violence or the threat of violence.
c. The third characteristic, continuity, is a feature for certain street
gangs.
d. The fourth characteristic is multiple enterprises.
e. Structure and involvement in legitimate businesses is the fifth
characteristic.
D. Criminal Justice Responses to Organized Crime
i. Chicago Crime Commission
a. In 1919, a group of Chicago businessmen, concerned about
Chicago’s “gangland” reputation, formed the Chicago Crime
Commission.
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b. While some would argue that the Commission was “a self-serving
exercise in hypocrisy,” it was able to demonstrate the city’s crime
problem through a successful public relations campaign.
ii. The Wickersham Commission
a. To assess the effect of Prohibition on criminal activity, the
Wickersham Commission was formed in 1929.
iii. The Kefauver Committee
a. In May 1950, Senator Estes Kefauver became chair of the Special
Committee to Investigate Organized Crime in Interstate
Commerce.
b. The Kefauver Committee was charged with three responsibilities:
a. To conduct an extensive study and investigation to assess
whether organized crime used the services, or avenues, of
violation of federal or state laws.
iv. The McClellan Committee
a. In the early 1960s, the Senate Permanent Subcommittee on
Investigation, chaired by Senator John McClellan, was formed to
v. The President’s Commission on Law Enforcement and the Administration
of Justice
a. In 1965, President Lyndon Johnson established the President’s
Commission on Law Enforcement and the Administration of
vi. Organized Crime Control Act of 1970
a. Congress passed the Organized Crime Control Act in 1970 – the
Racketeer Influenced and Corrupt Organizations (RICO) Act.
b. The act provides for enhanced criminal and civil penalties for
individuals engaging in activities with criminal organizations.
Schram, Introduction to Criminology 3e
SAGE Publishing, 2021
vii. The President’s Commission on Organized Crime
a. During its three years of existence, the commission produced five
E. Theoretical Explanations of Organized Crime
i. Organized crime has been described as being “caused” by the efforts of
successive immigrant groups to make it in America.
VII. Cybercrime
i. Between 2014 to 2018, the IC3 has received approximately an average of
300,000 complaints per year.
B. Definition of Cybercrime
i. High-technology crime refers to any criminal act involving the use of high-
technology devices.
ii. High-technology crimes can comprise traditional crimes committed prior to
technological developments and more recent crimes that use high-
technology devices.
C. Types of Cybercrime
i. Hacking
a. Hackers: individuals who violate computer security.
b. Today individuals who claim to be hackers contend that true
hackers are concerned with enhancing computer security.
ii. Identity Theft
a. Identity theft is the procuring of false identity regardless of its use
to commit identity fraud, but in some cases, it is used by criminals
and terrorists to establish false identities and escape detection.
b. Three types of Identity theft:
a. The first type is when the identity thief assumes the life of
the victim.
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c. The third type of identity theft occurs when a victim’s
iii. Child Pornography
a. Child pornography portrays children engaged in sexual acts or in a
sexual way.
b. During the spring of 2018, the Department of Justice initiated the
iv. Internet Fraud
a. Types of Internet fraud:
1. Fraudulent sales online. Online purchases create risks for
both the merchant and the customer.
2. Advance fee frauds. With this type fraud, the victim is lured
3. Mail-order bride services/solicitation of prostitutes. Mail-
order bride services and solicitation of prostitutes are not
new offenses, but engaging in these crimes through the
Internet is a relatively new phenomenon.
v. Cyberstalking
a. Cyberstalking is a means to engage in a course of conduct to
communicate, or to cause to be communicated, words, images, or
D. Criminal Justice Responses to Cybercrime
i. Investigation of Cybercrime
a. Law enforcement has lagged behind the remarkable technological
advances and the easy availability of this technology to millions of
individuals.
b. Law enforcement needs to determine whether they will be reactive
or proactive when investigating the various types of cybercrimes.
c. Another important facet to investigating cybercrime involves
Schram, Introduction to Criminology 3e
SAGE Publishing, 2021
ii. Relevant Legislation
a. Compared with state legislatures, the U.S. Congress has acted
more swiftly to enact legislation establishing computer-specific
statutes—specifically, legislation that addresses such crimes as
electronic fraud and hacking.
b. Computer Fraud and Abuse Act: It was originally designed to
protect national security, financial, and commercial information;
medical treatment; and interstate communication systems from
malicious acts, including unauthorized access.
E. Theoretical Explanations of Cybercrime
i. Routine activities theory contends that when a motivated offender, a
suitable target, and the absence of a capable guardian converge, a crime
will occur.
ii. Social process theories, such as learning theory and differential