White-collar crimes are otherwise known as non-violent crimes. The reason why they are called white-collar crimes is because enterprises, corporations, and organizations commit them. Most of these crimes take place in business environments.
As you can see, these crimes can include a wide variety of fraudulent crimes, such as money laundering, embezzling money, bribing people for funds, insider trading, and committing identity theft. The motive behind white-collar crimes is money. In this guide, you will about the eight types of white-collar crimes that happen in the business world.
Unlike the other crimes on this list, fraud is more of a broad term. It can describe a variety of schemes that trick people out of their money. The most common kind of fraud is when someone promises to send thousands of dollars as long as the victim sends a few hundred dollars. The fraudster receives the money, but never sends the money they promised.
Bribery is the act of agreeing, giving, promising, or receiving money or something else of value in exchange for action. The bribe can be anything that has material value. This crime is not only illegal but it is also an unethical practice in the business world. This crime commonly happens among employees and government officials.
Embezzlement happens when an employee uses company funds for personal means. They might transfer those funds into another embezzler’s account. Or, they could use this money to support their lavish lifestyle.
4. Money Laundering
Money laundering channels large amounts of money into several bank accounts. Most of that money stems from corporations and legitimate businesses. It is such a messy crime that it becomes entangled with the revenues generated from the business. It is no longer identifiable as a source of income since it sources a crime.
Forgery is the practice of forging a document. This crime is committed when a person alters the signature with the intent to defraud the victim. False documents are commonly used as forged records. This counterfeit crime involves the exchange of money or foreign currency.
6. Identity Theft
Identity theft is on the rise in cybersecurity. This crime occurs when a hacker uses your financial or personal information without your consent. It can damage a company’s reputation and credit status. It costs companies time and money to recover that information.
7. Insider Trading
Contrary to popular belief, insider trading is a serious white-collar crime. This occurs when the trader releases private information that benefits them financially. For example, an employee in the auto industry might find out that one company wants to acquire its competitor. That employee could purchase stock in that company with the knowledge their stock will rise. They benefit from the stock’s rise once this information becomes public knowledge.
8. Ponzi Schemes
The Ponzi Scheme was named after fraudster Charles Ponzi. This investment scam promises investors with high returns. The initial investors receive returns from the deposits of new investors. When the scam fails to attract new investors, the Ponzi Scheme falls apart. It leaves people with huge financial losses.