White collar crime sounds fancy and a little mysterious, but the consequences of these types of crimes ruin businesses, families, relationships, and reputations. There are numerous white-collar crimes committed each year, but some tend to be more popular than others. Keep reading to learn what the most common white-collar crimes are today. 

White Collar Crime 

White collar crime is generally non-violent in nature and most often has some type of fraud associated with it. The term was coined in 1939; “white collar” referring to the white dress shirts that businessmen wear as these crimes take place in a professional, high-status setting. Public corruption, health care fraud, mortgage fraud, securities fraud, money laundering, embezzlement, tax evasion, insider trading, and cybercrime all fall under the white collar crime category. 

White collar crime has existed to some degree for centuries. The first perpetrators were those who unfairly traded goods and services, either taking goods with promises for repayment that never occurred, or selling goods or services they knew were of low quality. Usually these wrongdoers were looked at as untrustworthy, not criminals. 

During the Industrial Revolution when businesses were growing, the opportunity to commit white collar crimes exploded. New forms of misconduct such as securities fraud and corporate fraud were developed, and the laws had to change to address them. The U.S. Congress passed The Sherman Antitrust Act in 1890 to fight against unfair business practices and corporate fraud. 

White collar crime looks very different in our world today. With advancements in technology and the expansion of global markets, the chances to commit white collar crimes are plentiful. Some new laws such as The Foreign Corrupt Practices Act (1977), the Sarbanes-Oxley Act of 2002, and the Dodd-Frank Act of 2010 have all been put in place to battle white collar crime. 

Three Most Common Types of White Collar Crime

White collar crimes are estimated to only make up 3% of federal prosecutions, with 90% of white collar crimes going unreported. The annual cost of white collar crimes in the United States is thought to be somewhere between $426 billion to $1.7 trillion! 

There are a few white collar crimes that seem to be the most common. Fraud is usually involved in every type of white collar crime. The most common white collar crimes committed today include: 

Identity Theft

Identity theft occurs when someone uses your personal identification or financial information without your permission. There are several ways that criminals can steal your personal information, either online, in person, through social media, and by phone. Identity theft can affect your credit, create fraudulent debt or false medical records, and much more. 

There are some things you can do to try to prevent identity theft. These include: 

• Tracking what bills you owe and when they are due. If you’ve stopped receiving a monthly bill, it may be because someone has changed your billing address. 

• Review your bills. Always check the charges made to any credit cards you have. 

• Check your bank statements. Withdrawals you didn’t make should be a red flag. 

American adults lost a total of $43 billion in 2023 to identity theft. 

Cybercrime 

Cybercrime is any illegal activity carried out using computers or the internet. Cybercriminals can be rogue individuals working alone, or they can be part of organized crime groups or state-sponsored entities. Cybercrime’s financial toll is estimated to be in the hundreds of millions of dollars every year! 

There are some things you can do to protect against cybercrime, they include: 

• Turning on multifactor identification. Making it harder to access accounts by setting up two or more passwords to retrieve information is recommended. 

• Updating your software. Turn “on” automatic updates. 

• Thinking before you click. More than 90% of successful cybercrimes start with a phishing email. 

• Using strong passwords. Use strong passwords and a password manager to generate and store unique passwords. 

Embezzlement

Embezzlement is the fraudulent appropriation of property by a person to whom such property has been entrusted, or into whose hands it has lawfully come. It differs from larceny in that the original taking was lawful, or with the consent of the owner, while in larceny the felonious intent must have existed at the time of the taking.

Most embezzlement occurs in the workplace, although it can also occur in volunteer organizations or between individuals. Embezzlers often target small to mid-sized organizations, possibly because they lack the internal controls in large companies. Embezzlement most often involves money, but it can involve property, misuse of property or kickbacks. 

Embezzlement is estimated to cost US businesses up to $50 billion annually. 

Since most embezzlement happens within a company or business, it’s extremely important to have ways of safeguarding the business or company. Businesses should have more than one person involved in handling money, and also have established internal financial policies in place. 

If You Are Accused of a White Collar Crime

If you are being investigated for a white collar crime the first thing you should do is secure legal counsel. Protecting your rights and your life should be your top priority. 

A trustworthy, committed, experienced attorney will help you navigate the legal process and advise you on what to do. Having this source next to you during the process will alleviate stress, keep you informed on what’s happening, and protect your rights during the investigation. 

The legal team at the Law Offices of Robert J. DeGroot is experienced and ready to help! 

Contact the Law Offices of Robert J. DeGroot if you, or someone you know, has been accused of a white-collar crime.