The website Zippia reports that the losses associated with white-collar crime, as of 2021, are estimated to be between” $426 billion to $1.7 trillion” every year. We’re sure you’ll agree that this is a colossal amount of money being lost to this form of criminal behavior.
But what is white collar crime? And why are there such immense amounts of money linked to it?
In this short guide, we’ll run you through the fundamentals of what white-collar crime is all about. Read on to be in a better position to research further into the matter, and possibly even identify this crime in practice.
First of all, it’s a good idea if we put a definition to the term “white collar.” The term refers to anyone who works in an office or some type of professional environment. It also refers to any work done in these types of environments.
So, white-collar crime is any crime committed that’s associated with white-collar workers or work. In general terms, white-collar crime is often associated with affluent and educated individuals who deal in large sums of money in their various business affairs.
What Are White Collar Crimes?
In many cases, white-collar crimes come in the form of:
- Insider trading
- Fraudulent behavior
- Ponzi schemes
- Identity theft
- Money laundering
Many deem espionage as a form of white-collar crime. Plus, cybercrime is a relatively new form of white-collar crime that’s wreaking havoc on the economy. Here, you can learn about white collar crime in more detail.
White-Collar Crime Examples
One of the major issues with white-collar crimes is that law enforcement agencies tend to have a much harder time detecting them. The reason for this is that many of these crimes are complex in their nature. Also, the individuals who commit these crimes are often very clever at covering their tracks!
To understand white collar a little more, it’s a good idea to look at examples of real-life white-collar crime cases. Here they are:
Martha Stewart Caught Insider Trading
Martha Stewart is a well-known businesswoman who got caught insider trading. She had insider information about a company she owned shares with that she used to her advantage to not lose money.
The company in question was ImClone. Martha sold 4,000 shares in this company the day before the FDA refused to review the company’s Erbitux drug. The refusal meant that the share price of ImClone dropped, meaning that Martha dodged the bullet through her insider info.
Al Capone Tax Evading
Another famous example of white-collar crime is Al Capone getting caught tax evading. He got away with all sorts of other nasty crimes, but not tax evasion.
In the end, he was served an eleven-year prison sentence. This was due to him not paying $215,000 in taxes.
What Is White Collar Crime Answered
Now, your question about what is white collar crime should be answered on a basic level. Of course, the subject of white-collar crime can be much more complex and fascinating in many ways.
Read more about subjects like this by heading over to our main blog page.