The Private Sector

The private sector is a sector of the economy It is sometimes referred to as the citizen

sector It is run by private individuals or groups,

usually as a means of enterprise for profit, and is not controlled by the state.

Businesses in the private sector include; sole traders Partnership, either limited or unlimited liability Private Limited Company or LTD-limited

liability, with private shares Public Limited Company – shares are open to

the public.

Common Crimes Committed within the Private Sector 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.

This often overlaps with-White collar crime-Organized Crime

Examples of corporate crime include Fraud bribery insider trading embezzlement computer crime copyright infringement money laundering http://www.youtube.com/watch?v=vxZeTncWgMo identity theft 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.

BCCI The Bank of Credit and Commerce International was a major international

bank founded in 1972 by Agha Hasan Abedi Jokily described as the ‘Bank of Crooks and Criminal International’ 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

Investigations revealed that it was involved in massive money laundering and other financial crimes, and illegally gained controlling interest in a major American bank.

Closed down on July 5th 1991 Liabilities

$10bn owed to 800,000 depositors in 1.2 million accounts over 70 countriesUK authorities lost £100 million (est)

Effects on Private Sector

Fraud losses cost the UK £30bn a year (including scams, online theft, insurance cheats and tax fraud)

The annual cost of identity fraud is over £2.7bn More than 1.8 million people are affected by

identity fraud every year The number of cases coming to light has risen by

almost 10% in the first nine months of 2010 National Fraud Authority highlights that in can

take 200 hours to sort out a single case of identity fraud

31% of losses came in the private sector

Prevention

Shredding personal documents before throwing out Check bank and credit card statements carefully Contact a bank or credit card company if a

statement fails to arrive Make sure computers have up-to-date anti-virus

software installed Use all the privacy settings available on social

networking sites but do not put too much personal information up there

Special forensic bankers whose job it is to detect fraud and traces of money

Blue Collar Crime

Private Sector industries face the risk of blue collar crimes being committed against them too

Things such as robbery, vandalism, theft (by employees) are things businesses have to consider

Effects on Private Sector

Increase in security such as CCTV, locks, alarm systems etc

Use of more security guards Training for staff to know how to deal

with volatile situations Can increase fear of employees Costs rise as security measures are

put in place

USEFUL ARTICLES http://news.bbc.co.uk/1/hi/business/

3102800.stm

http://www.independent.co.uk/news/uk/crime/minister-declares-war-on-whitecollar-crime-579366.html

http://www.bbc.co.uk/news/uk-12294381

http://www.bbc.co.uk/news/business-11608770

http://news.bbc.co.uk/1/hi/business/8473167.stm

http://www.info.gov.za/view/DownloadFileAction?id=85235 (in South Africa)

CORPORATE CRIME

http://www.bbc.co.uk/news/uk-england-derbyshire-12710294

http://www.bbc.co.uk/news/uk-northern-ireland-12722697

http://www.bbc.co.uk/news/uk-england-manchester-12740415

BLUE COLLAR CRIMES