White-Collar Crimes

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White-Collar Crimes

White-collar crimes are defined as non-violent crimes committed in the commercial sector. Those who commit white-collar crimes are business professionals who are motivated for financial reasons. The motivation behind white-collar crimes is usually connected to gaining advantages within the competitive business sphere.

Types of White-Collar Crime

The most common crimes that are classified as white-collar are:

  • Insider trading
  • Money laundering
  • Mortgage fraud
  • Insurance fraud
  • Commercial fraud
  • Embezzlement
  • Forgery
  • Ponzi schemes
  • Copyright infringement

 

One of the most significant white-collar crimes is corporate fraud. Corporate fraud includes deceit and misrepresentation in order to mask what is happening to a company. The FBI states that corporate fraud can include: hiding losses, misrepresenting information, exaggerating profits, and ignoring regulations. Any form of falsification can not only deceive investors but also creates profound negative ramifications. Many corporate fraud cases contain insider trading. Insider trading involves using private (insider) information to make stock market decisions. Corporate personnel is not allowed to use corporate property or information for personal reasons.

Insurance fraud can be made by both individual policyholders and insurance companies. Filing false claims in order to receive benefits is illegal and is classified as insurance fraud. On the reversal, insurance fraud happens when insurance companies withhold benefits from individuals.

Reporting

White-collar crimes are commonly overlooked and remain under the radar. Although these crimes don’t involve violence, they can be very damaging to people and their families. Financial livelihoods are usually lost from white-collar crime.

 

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