11 February, 2020
The term white collar crime evokes images of the rich unfairly taking from others. However, this is only one aspect of a much larger picture.
Learn more about white collar crimes and what they truly encompass.
5 Facts About White Collar Crimes
In 1939, criminologist Edwin Sutherland coined the phrase white collar crimes. Since that day, the definition has transformed to mean something more.
1. White Collar Crimes Encompass a Broad Range of Acts
White collar crimes are not limited to embezzlement or bribery, although these are two examples. Instead, these crimes are best thought of as frauds committed by business and government officials. However, other experts define them as nonviolent crimes conducted for financial gain.
Thus, a multitude of criminal acts may be considered white collar:
- Falsification of financial documents
- Market timing schemes
- Cybercrime
- Copyright infringement
- Identity theft
These offenses have serious repercussions.
These crimes leave a profound impression on the economies in which they occur. In the US, it is estimated white collar crime costs the government $300 billion annually.
Behaviors associated with white collar crime also wreak havoc on stocks, as shareholders and entire companies can be sabotaged or weakened.
News coverage of white collar crime leads many to believe these acts are increasing in frequency. However, government reports indicate the opposite is true: white collar crime is decreasing.
Arrests and prosecutions associated with white collar crime have decreased in the past several decades, hitting a 20-year low in the first seven months of 2018.
Yet this data only considers prosecutions. What of crimes that go unreported? The questions concerning white collar crime’s definition also add to the confusion, as some experts defy the FBI’s current comprehension of the term.
Numerous societal factors, such as an aging population and an increase on internet reliance, suggest white collar crime should be rising.
4. Criminals May Not Adhere to Stereotypes
Because white collar crime is associated with higher classes, it is understandable most individuals picture offenders to be rich and privileged. Yet the broad definition of white collar crime means perpetrators can be anyone from your neighbor to your boss.
Many individuals commit crimes due to financial factors rather than for malicious reasons. Some studies indicate most embezzlers, for instance, are middle-aged women. Further, most theft occurs in small companies rather than in large corporations.
The FBI is not the only agency investigating crimes like embezzlement and fraud. The Securities and Exchange Commission, the IRS, the National Association of Securities Dealers, state and local officials and others also lend a hand.
The fact that several organizations investigate these crimes begs the question, are white collar crimes handled in federal or state court? Depending on the circumstances surrounding the case, it could end up in either.
White collar crime is a serious offense, and individuals accused of committing unlawful acts should seek a law professional expertise.
Aqib Ijaz is a digital marketing guru at eyesonsolution.com. He is adept in IT as well. He loves to write on different topics. In his free time, he likes to travel and explore different parts of the world. You can read more of his blogs at eyesonsolution.