White-collar crime is not a world with which the layperson commonly engages – aside from, of course, sensational headlines surrounding fraudulent activity in multinational corporations or seats of government. However, white-collar crime is more than the illegal movements of society’s upper echelons; it is something that every SME can at some point be exposed to. But which white-collar crimes are the most common, generally speaking? And what form can such crimes tend to take?
Corporate Fraud
One of the more common white-collar crimes, and indeed one of the most universally recognised about such fields of law, is that of corporate fraud. Fraud is a well-litigated and wide-ranging field, covering any instances where an individual has engaged in wilful and intentional mistruths or misrepresentations to generate professional or direct financial gain. How fraudulent behaviour is enacted defines the kind of fraud committed.
Fraud cases are extremely serious, and any accusations should be taken seriously by a business and its leaders. In the event of a fraud accusation, proper legal defenses must be mounted to protect the integrity of the wider business. One of the ancillary dangers of fraud within a given business is its poisonous nature; a business’s public image can be deeply harmed by revelations relating to fraudulent practice, even if by a single ‘bad apple’.
Embezzlement
While the term ‘embezzlement’ is often lumped in with other fraudulent practices when discussed colloquially, it is a white-collar crime that is distinct from fraud as a crime. This is because fraud, by definition, requires the wilful deception of other parties to create personal or professional gain – while embezzlement amounts to little more than the theft of funds or assets.
Embezzlement describes the wilful and intentional misappropriation of assets or finances, by a trusted individual, from a business or trust. This misappropriation can take several unique forms, from the simple skimming of profits to the sequestering of funds to profit from investments or skin interest. Embezzlement is common for the simplicity with which it can be undertaken by even lower-level employees.
Copyright Infringement
Copyright infringement has become an extremely common form of white-collar crime in the 21st century, with the now-ubiquitous nature of media and publication. The exponential expansion of the internet’s reach and usefulness, and the explosion of e-commerce opportunities as a result, has placed brands, branding, and intellectual copyright at the heart of most products.
The ease of reproduction of many consumer items, from phone cases to bespoke fashion items, has led to the imitation of brands and the theft of intellectual copyright becoming much more common. High-profile cases have not been limited to counterfeit and bootleg operations, either; in mid-2023, H&M filed suit against competitor Shein for copyright infringement.