Basic Types of White-Collar Crimes in the US
White-collar crimes involve a systematic way of defrauding victims of their financial property. White-collar criminals do not result in violence or physical damage, yet they command a lot of monies. The phrase “white-collar crime” was coined by Edwin Sutherland, a renowned sociologist, and criminologist in 1930. This type of crime may be committed by individuals, groups, and at a commercial level. The inception of technological tools now makes it easy for white-collar criminals to seamlessly carry out their dishonest ventures.
Common Types of white White-collar Crimes
The word “fraud” is the general concept useful to describe all schemes that involve duping people with their money. The most typical example of fraud is a money-doubling scheme. The fraudster will ask the unsuspected but vulnerable victim to transfer, say $500 so that the fraudster can double the money for the victim within an agreed period. Once the victim sends out the money, the fraudster will neither fulfill his promise nor return the victim’s money.
Dubious white-collar criminals have now orchestrated methods of producing and spending fake money. The existence of advanced laser printers further empowers to copy old currency and print a fake one. The government has tried to combat this crime by producing high-quality copies of the old money.
3. Ponzi Scheme
The first person to commit this crime is Charles Ponzi, and the reason the crime is dubbed “Ponzi” could not be far-fetched. This scheme is an investment scam that offers the investors the invested amount’s ROI (rate on interest). This scheme is an easy fraud because the old investors get their ROI on the first investment with money of new investors. The scheme ruins once that scammer cannot attract new investors to pay off the old ones, leaving many people with huge losses.
4. Money Laundering
Money laundering involves mainly channeling illegal money through different accounts. This money mixes with legitimate funds and is not identifiable as emanating from the commission of a crime.
5. Hacking, Identity Theft, and other Cybercrimes as White-collar crimes
California’s citizens suffered the most from identity theft, with more than 73,000 reported cases. Also, Hacking and identity theft are the two most popular computer heists in the US. Findings show that the United States lost approximately $2 billion to identity theft in 2019.
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