1997-98 Academy Text Supplement
Chapter 21-9
Federal Crimes: White Collar/Economic Fraud/Bank Robbery
Statistical Overview
- In 1996, there were 465,000 arrests for fraud crimes and 15,700 arrests for
embezzlement. In addition, there were 121,600 forgery and counterfeiting offenses
charged in 1996. (Federal Bureau of Investigation. (released September 28, 1997). Crime in the
United States, Uniform Crime Reports, 1996, p. 214. Washington, DC: U.S. Department of Justice.)
- In 1994, there were 419,800 arrests for fraud crimes and 14,300 arrests for
embezzlement. In addition, there were 115,300 forgery and counterfeiting offenses
charged in 1994. (Bureau of Justice Statistics. Sourcebook, 1995, p. 394. Washington, DC: U.S.
Department of Justice.)
- The results of a nationwide study of fraud conducted by the National Institute of Justice
found that 58% of survey respondents reported having experienced a fraud victimization
or an attempted fraud victimization. (Titus, R., Heinzelmann F., & Boyle, J. "The Anatomy of
Fraud: Report of a Nationwide Survey, August, 1995." National Institute of Justice Journal.
Washington, DC: National Institute of Justice, U.S. Department of Justice.)
- Projected losses to telemarketing and direct personal marketing fraud schemes alone
figure to be more than $40 billion annually. (Ibid.)
- It is estimated that as little as 15% of fraud victims report cases of fraud to the police or
other law enforcement agencies. (Ibid.)
- According to the latest survey by the American Bankers Association, check fraud
accounts for losses of at least $815 million a year, or more than 12 times the $65 million
taken in bank robberies annually. (San Jose Mercury News. Wednesday, January 2, 1996)
- Contrary to common belief, older people are less likely to be victims of fraud than
younger people. Older people are, however, more likely to report economic crimes than
their younger counterparts. (Titus, R., Heinzelmann, F. & Boyle, J. (1995, January). "Victimization
of Persons by Fraud." Crime and Delinquency, 41:1:58. Washington, DC: National Institute of Justice,
U.S. Department of Justice.)
- Fraud victims with some college or a college degree appear to be the most vulnerable to
fraud schemes, with persons who did not graduate from high school being the least
vulnerable. Ibid., p. 60)
- Of successful fraud attempts, respondents to a study conducted by the National Institute
of Justice indicated that of those respondents who fell prey to a fraud scheme, 85 percent
lost money or property; 20 percent suffered financial or personal credit problems; 14
percent suffered health or emotional problems directly related to their victimization; and
14 percent of fraud victims lost time from work. (Ibid., p. 54)
Office for Victims of Crime Efforts to Assist Fraud Victims
In April of 1997, the Office for Victims of Crime (OVC) published the most recent revised
Guidelines for implementation of the Victims of Crime Act. Importantly, many of these revisions
addressed services and assistance to victims of economic crimes. As OVC states, while VOCA
funds cannot be used to compensate victims of fraud for their financial or property losses, many
supportive services can be provided to these victims, including counseling and advocacy and
support throughout the criminal justice system.
In its revised 1997 guidelines, OVC encouraged states to fund new or expanded services for
victims of fraud and economic exploitation. (1997 VOCA Victim Assistance Final Program
Guidelines, Sections IV.B and IV.C)
Specifically, the amended Guidelines address the following key issues relating to victims of fraud
and economic exploitation:
- The definition of "victim" was expanded to include victims of financial crimes.
- The definition of "elder abuse" was expanded to include economic exploitation
and fraud.
- The definition of "previously underserved" priority areas was expanded to include
victims of fraud crimes.
As a result, VOCA grant funds may be used to support many direct services for fraud victims.
These services can include those that address:
- Immediate health and safety
- Mental health assistance and support groups
- Respite care and serving victims with disabilities
- Credit counseling advocacy or other special services
- Advanced technologies, such as notification of victims in mass fraud cases
In addition to the important changes in the VOCA Guidelines, OVC has supported several
projects to improve the treatment and services afforded to victims of economic crimes. These
efforts include:
- VOCA Federal Victim Assistance/Demonstration Project on White Collar Crime
Victimization. This project, as previously discussed in this chapter, is an ongoing
collaborative effort between OVC and the United States Attorney's Office for the
Northern District of California to improve services for white-collar crime victims. The
demonstration project will identify, implement, and document promising practices for
assisting white-collar crime victims with the goal of having these important services
replicated by other U.S. Attorney's Offices nationwide. An important component of the
project is to develop a referral network of programs across the nation that is able to assist
victims of white collar crime and fraud.
- Promising Strategies and Practices to Improve Services to White Collar Crime
Victims. OVC provided support to the Police Executive Research Forum (PERF) to
develop a comprehensive package of materials for federal criminal justice personnel to use
in their efforts to assist federal victims of while collar crime and fraud. PERF, in
cooperation with an AD-HOC Department of Justice Working Group (composed of
representatives from the Executive Office for U.S. Attorneys, National Institute of
Justice, Federal Bureau of Investigation, Federal Law Enforcement Training Center, and
other federal criminal justice agencies and victim assistance programs) collected model
policies and procedures and a wide range of other key information to produce the
following: a camera-ready victim pamphlet, a victim handbook, a coordinator guidebook,
and a 20-minute videotape on assisting white collar and fraud victims.
- Other Efforts to Address Victims of Economic Crime by the Office for Victims of
Crime. OVC is funding several additional projects that involve federal, state, and local
efforts to address victims of economic crime. These projects consist of training, technical
assistance, demonstration, and other efforts that are designed to prevent and address
telemarketing crimes targeted to senior citizens, are national in scope or will have national
impact, and provide products or materials that can be adapted and disseminated to senior
citizens groups and others who come into contact with elderly victims of crime. Projects
currently funded by OVC include: the Elder Financial Exploitation Prevention Program
in Oregon; the Telemarketing Fraud Project for Latino Elderly in Washington, D.C.;
Operation Fraud Stop: A Partnership to Reduce Telemarketing Fraud and Assist Victims
conducted by the National Sheriffs Association in Alexandria, Virginia; and telemarketing
fraud prevention, public awareness, and training activities in Maryland.
- Nation's First White Collar Crime Summit. Following National Crime Victims' Rights
Week, in April of 1998 the Office for Victims of Crime (OVC) co-sponsored, in
conjunction with the National White Collar Crime Center of Morgantown, West Virginia,
the nation's first Economic Crime Summit in St. Louis, Missouri. This landmark
conference brought together over 500 individuals representing federal, state, and local
justice agencies and a wide range of programs serving crime victims. Highlights of the
conference included a focus group on improving services and support for victims of white
collar crimes conducted by OVC staff, and numerous workshops targeting the specific
needs of victims of white collar crimes, including presentations of model programs.