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White-Collar Crimes and Computer Frauds .. Crimes investigated by the FBI which fall into the white-collar category have increased over twenty-five percent since Fiscal 1971. These of- fenses include fraud, embezzlement, bribery, anti- wust, perjury, conflict of interest, and others. . bv During Fiscal 1975, 3,427 convictions were re- , os -“gorded in white-collar crime matters investigated Sy the FBI, nearly fifteen percent more than the ‘ fevious fiscal year. - Many of these offenses are committed by per- sons in responsible positions in Government, in * private business, banks, and labor organizations. The use of computers to perpetrate these crimes is becoming more and more prevalent. This ne “eessitates the use of many FBI Agent Account- ants to conduct detailed analyses of records, * many of which are computerized, to establish the . pature and extent of the scheme. Pensa, JEL te, Fe Sof its responsibilities and is training Special * agent Accountants in the latest accounting sys~- -*- lems being utilized by Government and private ‘business. Also, research is being conducted into Site highly complex and sophisticated techniques ; ged by the white-collar criminal to perfect these “ae gimes, which, according to the U. S, Chamber of Commerce, are costing American citizens no less than $40 billion annually. Public information . programs have been implemented to increase ’ awareness of the seriousness of this type of crime, Training programs, including courses in ;., investigation of economic crimes, are being of- fered to police officers attending the FBI] Nation- al Academy at Quantico and on a local level ‘throughout the United States. : Seminars have been held at Quantico, Virgin- , for our field Agents and supervisory staff, as eli as U. S. Attorneys, their assistants, and a epartment of Justice attorneys, who have the AGCOUNTING AND FRAUD MATTERS . The FBI has set a high priority in this area responsibility of presenting these involved cases in court for prosecution. Plans for Fiscal 1976 include white-collar crime conferences for State Attorneys General and Govemment investi- gative agencies, as well as principal law enforce- ment officers in the respective states. The FBI is presently devoting approximately fourteen percent of its Agent manpower in the field to white-collar crime investigations in an-. attempt to increase convictions and eventually reduce the current rapid rise in this type of crime. Bank Fraud and Embezzlement Matters The 1975 Fiscal Year saw a marked increase in the number of prosecutions for Bank Fraud and Embezzlement. Convictions totaled 1,511, a 26 percent increase over the preceding year’s total of 1,200, Reported shortages continued the up- ward trend established during the past decade by increasing from $151.1 million in Fiscal 1974 to $188.7 million in Fiscal 1975. The number of matters investigated also rose during the past year from 7,820 to 10,181. Bank Fraud and Embezzlement matters con- tinue to pose a challenge to the Special Agent Accountant as embezzlers, some utilizing com- puters, develop more sophisticated techniques to effect their schemes. The size and complexity of these matters are evidenced by the fact that, at fiscal year end, 64 cases involving shortages of over $1 million and 300 cases involving shortages ranging from $100,000 to $1 million were under investigation. Fraud Against the Government; Bribery ; Since the middle of 1972, the FBI hag estab- Hshed a special project to combat fraudsin pro- grams administered by the United States Depart- > sp ae