Number Crunch

Workers Are Reporting a Record Number of White-Collar Crimes

Another perk of working from home? The freedom to blow the whistle on your employer.

31%: That’s the increase in the number of tips the U.S. Securities and Exchange Commission received about white-collar malfeasance in the fiscal year ending September 30, 2020, a total of 6,900, up from the previous annual record of about 5,300 tips in fiscal year 2018, according to Bloomberg.

Consider it an unexpected benefit of the sudden shift to remote work. The SEC says the surge in tips began in March when the pandemic forced white-collar workers to work from home. Working outside the direct physical scrutiny of supervisors and colleagues may have emboldened employees who witnessed fishy activity to become whistleblowers. The record $330 million the SEC awarded to informants since the pandemic began may have also encouraged them (though these payouts likely went to those in its whistleblower program who piped up months or years earlier).

It’s also possible there was simply more crime to witness during the pandemic, as some businesses may have taken desperate and potentially dubious measures when faced with a sudden downturn. One indicator of such behavior is the $4.2 billion in potentially fraudulent loans handed out under the original Paycheck Protection Program.

So maybe less supervision leads to better behavior?

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