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Fraud crimes punishments 'come at opportune time'

Published on 8 Jul 2009 under category: legal

The latest plans on punishment for those engaging in white collar crimes could raise some interesting points for those studying such offenders, according to a source.

Brooke Masters, writing for the Financial Times, says that the Financial Service Authority's proposals to increase fines for financial crimes "could not have come at a more opportune time" for sociologists.

The journalist comments numerous theories suggest that those engaging in white collar crimes react to deterrence due to the amount that they possibly have to lose.

She adds that "there is every reason to believe" that a high level of fraudulent activity could be exposed in the wake of the credit crunch, pointing out that this was the case in previous downturns and crashes.

Ms Masters concludes by saying that this means that it will be possible to see whether "deterrence beats desperation" when it comes to fraud crimes.

In other news, earlier this month a study by BDO Stoy Hayward found that reported fraud crimes cost businesses in the UK £960 million during the first half of 2009.