Technocrime and Insider Trading Question Answer

White collar crimes

Q1. What is insider trading and why can it be so detrimental to the economy and society?

According to the Cornell Law School Legal Information Institute, “Insider trading is the trading of a company’s stocks or other securities by individuals with access to confidential or non-public information about the company” (“Insider Trading,” 2019, par.1). The reason insider trading is illegal is that it is a violation of fiduciary duty and depresses economic growth when performed by “officers, directors, or someone in control of at least 10% of a company’s equity securities” (“Insider Trading,” 2019, par.1). It is also illegal for friends and confidents to act on such information, if they are aware it is privileged. As well as causing a potential conflict of interest for persons acting on privileged information who have positions of responsibility, it conflicts with free market principles which suggest that people have a right to make decisions based upon complete and transparently available information.

Q2. What is technocrime and what are its principal defining elements?

Technocrime is defined as a type of crime which is not simply facilitated by computers and technology, but which could only take place through the existence of computers. Examples include hacking into computer system to embezzle money, pranks such as malware and viruses, seizing hold of computer systems through ransomware for profit, identity theft, and other types of computer-driven crimes (Kelly, 2020). Not all forms of technocrime are perpetuated against computer users, although these are the most common scams. Skimming off of ATMs and hacking into other devices are also types of technocrime (Kelly, 2020). Technocrime is largely thought of as a white collar crime, but technocrime has also been used in terrorism and other forms of violent crime, to obtain information, spread disinformation, radicalize, and recruit members (Kelly, 2020). For technocrime to be technocrime, it does not have to be solely perpetuated through technology, although the use of technology is its primary element.

Reference

Insider trading. (2019). Cornell Law School Legal Information Institute. Retrieved from: https://www.law.cornell.edu/wex/insider_trading

Kelly, M. (2030). Technocrime: Forms and examples. Study.com. Retrieved from: https://study.com/academy/lesson/technocrime-forms-examples.html