Business Innovation

White Collar Crimes In Businesses: What You Need To Know

By Mashum Mollah

April 23, 2021

White Collar Crimes

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White-collar crimes are often associated with corporate crimes. These crimes might involve copyrights, forgery, and other underhanded tactics that can be done in a business. Due to no strict measures being taken to streamline these processes, white-collar crime is on the rise.

What Is White Collar Crime?

White Collar Crime

White-collar crime is a nonviolent crime and mostly associated with finances. White-collar criminals are the professionals who hold major positions in the corporate industry, enjoying prestige, power, and have commands over a large compensation.

The term “White Collar Crime” was first coined in 1930 by Edwin Sutherland, and Criminologist And sociologist. He talked about the white-collar crimes when he talked about the different types of crimes a person can commit.

Prior to the statement of Edwin that people always thought that upper-class society could never give birth to criminals. Alas! Who knew white-collar criminals could be more dangerous than normal criminals.

Types Of White Collar Crime

According to the criminal defense attorney kansas city, there are several categories in which white-collar crime can be subdivided. Given below are a few.

1. Fraud


Fraud is an umbrella term used for activities that defraud people of their money. Fraud happens when a person is wrongfully convinced and asks to send money in the hope to mutually benefit from the transaction.

For instance, a fraudster can contact you in the name of a trader and convince you to invest money in an asset and then ask you to send money on a certain platform. And once you send them the money, they are nowhere to be contacted.

2. Insider Trading

Insider trading is done with the help of non-public information that gives the white-collar criminal an advantage over the others. For example, an employee knows that company A is thinking of absorbing company B. The employee uses this information to buy company A stock to make more profit.

3. Identity Theft & Cybercrimes

Identity theft and cybercrime are the two of the most widespread crimes today. Alone, America lost more than $2 billion with data in 2020.

4. Counterfeiting

Counterfeiting is the process of copying currency. Despite having all the advanced technology at our disposal, there are still people who find ways to counterfeit.

5. Money Laundering

Money laundering has always been an issue for the nation. Despite every effort, money laundry still remains in the current financial ecosystem. Money laundering is the process of making black money in legitimate money by funneling the cash through several accounts.

How Does The Federal Define White-Collar Crimes?

If the FBI is involved, the federal definition applies to white-collar crimes. White-collar crimes are then defined as the act of illegal acts that can be categorized as deception, concealment, and violation of trust. Putting it simply, if an illegal act is done without any physical violence, it is called White-Collar Crime.

Who Is Involved In White Collar Crimes?

White-collar crimes often happen on the corporate level, and the white-collar criminals are the very corporate executives. Hence, white white-collar crimes are more organized and planned out.

On the contrary, white collars are very hard to identify, and even if the crime is identified, people find it hard to determine who the real culprit is.

Businesses and governmental officials are mostly associated with white-collar crimes. In addition to that, individuals, organizations, and small business groups can also be a part of white-collar crimes.

What To Do If Falsely Accused Of A White Collar Crime?

There are times when white-collar crimes are committed under a person’s name as a strategy to keep the regulators away from the real culprit. For instance, if you are working in a corporate organization and find that you are falsely charged for money laundering.

If you ever come across such scenarios, hire a Criminal Defense Attorney Kansas City MO immediately. This will help you build a case in favor of yourself.

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