White-collar crime refers to non-violent crime committed in commercial sectors. It is compared to blue-collar crime, which more often can include a use of force. Those who commit white-collar crime are usually business professionals and they are motivated by financial reasons and/or to gain an advantage in a competitive commercial field.
Types Of White-Collar Crime
The following are usually classified as white-collar crimes: commercial fraud, insider trading, forgery, money laundering, insurance fraud, mortgage fraud, embezzlement, Ponzi schemes, and copyright infringement.
misrepresent what is really happening financially for a company. According to the Federal Bureau of Investigation (FBI), this form of fraud can include misrepresenting information, hiding losses and exaggerating profits, and evading regulations. T
hese forms of falsification can deceive investors out of money, which can have negative ramifications for many businesspeople and even families. Furthermore, corporate fraud can include insider trading. This involves individuals using insider, non-public knowledge to make specific deals or trades on the stock market. Moreover, if corporate employees use corporate property forpersonal reasons or for a personal advantage, then this constitutes a misuse of such property, making it corporate fraud.
Another form of white-collar crime involves insurance fraud. This crime can be committed by either the policyholders or the insurance companies. Individuals, or even groups, can file false claims in order to receive some form of a benefit. On the other hand, insurance companies can also illegally withhold a benefit/payment from a policyholder, which creates a situation of insurance fraud.
Reporting A White-Collar Crime
More common than not, white-collar crimes are not reported, and consequently go undetected. However, it is important to note that while these criminal acts may not physically hurt only one individual, they can have a tremendous effect on the financial livelihoods of investors, businesses, and families.