Describe what is meant by economic victimization. How widespread is the problem, and what is its impact on individuals and economies? What trends do you see in economic victimization? (pages 202-203 in text)

Question

What will be an ideal response?

Answer 1

Economic victimization is the phenomenon that occurs as a result of illegal activities by individuals, institutions, and public officials using seemingly legal means for the sole purpose of profiting through deception, corruption, and fraud. It is estimated that economic victimization costs upward of half a trillion dollars annually. Even today, not much is known about economic crimes and their true impact on society; however there is tremendous damage done to individuals, companies and the economic system. The impact of economic victimization is as great and as important as street crimes and domestic violence. It is important to understand that it is difficult to estimate the amount of economic victimization because victims receive little attention, or they may not know they have been victimized or they may not report the victimization. Financially, hundreds of billions of dollars are lost every year due to corporate criminality, cybercrimes and consumer fraud. Greater than direct financial costs to victims, economic criminality can destroy businesses, individual lives, and in some cases contribute to someone's death. Beyond direct costs of economic victimization, additional impact can be seen with higher taxes, increased insurance premiums, and increased cost of goods and services purchased. These victimizations corrupt our free market system and can destroy the public trust. These crimes direct impact individuals and society as a whole by destroying individual lives and the faith citizens have in their governments and representatives, the businesses they depend upon every day, and their fellow citizens (page 205 in text). Section b is based on student opinion, but could include a discussion of the potential (or continued) increase due to more accessibility to computers among other things.