Types Of White-Collar Crimes

White-collar crimes are non-violent, financially motivated crimes. They often take place in the business world and usually involve deceit, concealment or violation of trust.

Understanding the types of white-collar crime can help you protect yourself from this type of allegation.

Fraudulent activities

Fraud is one of the most prevalent white-collar crimes, encompassing a broad range of deceptive practices. Credit card fraud, insurance fraud and mortgage fraud all fall into this category.

Fraudulent activities involve the use of false information to secure financial gains. It can result in significant monetary loss. The Federal Trade Commission reports that fraud cost Americans $8.8 billion in 2022 alone.

Insider trading

Buying or selling securities based on confidential information about a company is insider trading. This illegal practice undermines the fairness and integrity of financial markets.

People with insider knowledge gain unfair advantages. They may receive substantial fines and prison time for a conviction.

Embezzlement

This offense involves the theft of organizational funds entrusted to an individual. Employees or officials may embezzle money by altering records or creating fictitious transactions.

Identity theft

Identity theft occurs when someone obtains and uses another person’s personal information, such as Social Security numbers or credit card details, without consent. They misuse the stolen information for financial gain.

Money laundering

Money laundering involves disguising the origins of funds obtained illegally. The person makes it look like the money came from legitimate sources. This crime may involve complex financial transactions. It is often associated with organized crime and terrorism financing.

In a world where financial transactions can occur at the click of a button, it can be difficult to determine when actions cross the line. Knowing the laws about these crimes can help you prepare to face charges of a white-collar offense.