Does the economic downturn increase the rate of financial crime Essay

Does the economic downturn increase the rate of financial crime - Essay Example While the model has value as an economic representation of the decision to act illegally, these decision become more complex as deeper studies reveal more variables. Once the criminal decision is discussed, the way in which that decision is influenced by economic factors within a society is revealed. The aspect of crime for the need of survival is discussed as it pertains to the perception of survival over punishment becomes relevant. Choice becomes a matter that is based on fluctuating needs. As a global economic crisis has developed in recent history, the possibilities of criminal activity having been affected by the situation raises questions that are relevant to issues of safety and security of self and property. Growing numbers in unemployment creates a rich turmoil of need that may result in pursuits that are outside the boundaries of socially accepted behaviors. In an exploration of the economic repercussions of a declining financial system in comparison to the survival needs and the impending losses of individuals that suffer under those repercussions, a rational can develop that overrides the normal sociological imperatives against criminal behavior. Economic crime can be developed in many forms. The way in which financial transactions can be manipulated in order to achieve unearned gains is a form of economic crime that can take the form of frauds which are based on cheques, credit cards, and bank accounts. As well, manipulating transactions in order to hide the origins of the income is considered ‘money laundering’ which is a crime that is preceded by the commission of other crimes. These types of crimes can be committed by people from many walks of life and are predicated on the initial sociological perception of how committing these crimes affects the character of the individual involved. From the ‘floating’ of a cheque to cover groceries until payday comes, to the large scale laundering of felonious income sources,