A Brief Guide to the Types of White Collar Crime

A Brief Guide to the Types of White Collar Crime

The word “crime” usually conjures up an image of a masked intruder, someone lurking in the bushes, or serial killers portrayed in countless TV shows, movies, and documentaries. But did you know that non-violent crime is actually more common? And that the different types of white-collar crime actually cost us more money as a society than violent crimes?

If you want to learn more about white-collar crime, read on for some of the different types of white-collar crimes.

1. Fraud

The term fraud encompasses a wide range of acts, ranging from corporate fraud to welfare fraud to email phishing scams. The goal of fraudsters is to defraud people (or organizations) of their money.

Based on the FBI definition, fraud could include using false pretenses to obtain money or property and could be sophisticated schemes or as simple as trying to pass bad checks.

2. Embezzlement

Like fraud, embezzlement ranges from simple schemes to large-scale operations where hundreds of thousands of dollars (or more) are funneled from the workplace or organization to the offender.

Embezzlement typically occurs when someone is entrusted by an employer or other organization (for example, the treasurer of a volunteer organization) to handle money. That person is then in the position to use their position of trust to misappropriate funds, direct funds into their own bank accounts, or make personal purchases that are not authorized. Embezzlement can often go on for years before it is discovered.

3. Insider Trading

Insider trading occurs when someone with insider knowledge uses that information to buy or sell stocks before that information is made public. If you know that a company is about to file for bankruptcy, for example, you might quickly sell those stocks before that information is announced. Or, if you know a pharmaceutical company is about to receive FDA approval for a new drug, you might buy stock before the approval is announced, as you’ll likely get it at a lower price.

4. Identity Theft

Identity theft can be low-tech, such as using information from someone’s trash to assume their identity. Or, it can be as sophisticated as using technology to steal someone’s identity to open credit cards, bank accounts, file tax returns, or even get passports or other identification with their identity on it.

5. Cybercrime

Advances in technology have made cybercrime that much easier. Cybercrimes could include identity theft, embezzlement, hacking, data breaches, and phishing. There are a wide range of crimes that can be committed with a computer and the popularity of smartphones, smart homes, and other tech have made us very vulnerable to cybercriminals.

White-collar crimes, especially those that involve many victims or large amounts of money can result in stiff penalties, including fines and lengthy prison terms. If you are being accused of one of these offenses, you need a white collar crime attorney to represent you.

Your Guide to the Different Types of White-Collar Crimes

Now that you have a clear understanding of the different types of white-collar crimes, make sure that your activities are on the up and up. If you find that you are facing accusations of a white-collar offense, be sure to hire an experienced attorney to handle your case.

If you found this information valuable, be sure to read through some of our other articles before you go.