4 Examples of White Collar Crime

Dated Added: 04 October 2017

4 Examples of White Collar Crime

When we think of crime, we often think of murder, robbery, violence etc. However, white collar crime is one of the most significant types of crime that exist in the world today, only becoming more relevant as financial systems become more complicated, and people find ways of abusing them.

Fraud

The definition of fraud is misleading someone for the sake of monetary gain. This is a very common type of white collar crime. For example, you may have experienced an attempted fraud over the phone, where the fraudster attempts to trick you into giving your bank details, so they can steal your money. A different kind of fraud is 'insider trading', this is defined by someone having 'inside' confidential information on a company, and trading based on it, IE: selling stocks because you know a company is about to fail.

Embezzlement

Embezzlement is slightly more straightforward than fraud. This means abusing funds that you have control over, but are not for your personal use. For example, changing the allocation of funds for a business to cover-up directly taking cash from customers.

Tax Evasion

Tax evasion, not to be confused with Tax avoidance, which is the legal equivalent, is an extremely common type of white-collar crime. Either an individual, or a company, evades taxes. There are various ways of doing this, paying a employee with cash instead of declaring it, for example.

Money laundering

Money laundering is slightly more complicated. It is a method of filtering “dirty” money that has been obtained illegally through  transactions to make it seem “clean” hence: laundering. By feeding “dirty” money from, for example, drug dealing, into a legal business, criminal attempt to eliminate the evidence against them in the form of money.

1.      Tax evasion

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