Why do companies hesitate to prosecute white-collar criminals?
Negative publicity. Companies are reluctant to prosecute fraud because of the financial damage that could result from negative publicity. A highly visible fraud is a public relations disaster. The company could lose a lot of business due to the adverse publicity.
Exposes system weaknesses. Reporting and prosecuting fraud may reveal vulnerabilities in a company's system. This could attract even more acts of fraud.
Concern for the perpetrator's family. If an employee is willing to make retribution, companies may not press charges to protect the employee’s family and reputation.
Society is more concerned with "real" crime. Political considerations motivate enforcement officials to focus their resources on more violent and visible crimes such as rape, murder, and robbery. Some people see fraud as an internal problem and not as a serious crime that demands prosecution.
Unclear definition of computer fraud. One reason computer fraud is not prosecuted more is that the definition of computer fraud is so vague. As a result, no one really knows how much it really costs and there isn't as much motivation to go after computer fraud cases.
Prosecution difficulties.It is difficult, costly, and time consuming to investigate fraud. It is even harder to prove. As a result, it can be hard to prosecute fraud cases successfully and get convictions.
Light sentences. When fraud cases are prosecuted and a conviction is obtained, the sentences received are sometimes very light. This discourages prosecution.
