The costs of white-collar crimes are difficult to quantify because the costs incurred are higher than those of conventional crimes (DiMarino & Roberson, 2013). The types of cost attributed to white-collar crimes are as follows.
1. Direct Cost is an economic loss/measurable loss. It is also termed as the victim’s loss that is measurable. For example, market value, financial loss, and replacement cost, etc. (Fredrichs, 2010).
2. Indirect Cost is the type of cost that is occurred in response to the white-collar crime. It is difficult to measure because it has a non-economic impact. For example, the increase in the cost of goods, residual economic cost, and high taxes, loss of jobs, negative image, and prestige, etc. (Fredrichs, 2010).
3. Physical Costs can be referred as the cost that is faced physically. It may relate to personal injury or loss of life. The physical cost of white-color crime is the substantial loss that may occur directly or indirectly by harming others physically (Fredrichs, 2010). For instance, death and injuries occur because of the environmental pollution, unsafe working conditions, unsafe ingredients used in the products, and health-related consequences, etc.
4. Other Costs associated with white-collar crimes are difficult to measure (Slyke, Michael, & Cullen, 2016). They are mainly referred to the consequences of white-collar crimes (DiMarino & Roberson, 2013). For example, trauma and physiological stress that the victim may face because of the crime.
In my opinion, the most damaging cost of white-collar crimes is the indirect cost. Although the indirect cost is difficult to measure, it has long-term impact/ongoing negative aspects that make others suffer. The consequences of white-collar crimes can be severe outcomes including financial and non-financial losses.
References
DiMarino, F. J., & Roberson, C. (2013). Introduction to corporate and white-collar crime. Florida: CRC Press.
Fredrichs, D. O. (2010). Trusted criminals: White collar crime in contemporary society. Mason: Cengage Learning.
Slyke, S. R., Michael, L. B., & Cullen, F. T. (2016). The Oxford Handbook of white-collar crime. Oxford: Oxford Publisher.
