White-collar crime refers to financially motivated, nonviolent crimes typically committed by individuals, businesses, or government professionals through deceit or concealment to gain money or business advantage
. The term was coined in 1939 by sociologist Edwin Sutherland to describe crimes committed by members of the economic upper class, challenging the notion that crime is only a lower-class issue
. Key characteristics of white-collar crime:
- Nonviolent in nature
- Committed for financial gain
- Often involves deception, fraud, or concealment
- Perpetrated by professionals or entities in positions of trust or power
Common types of white-collar crimes include:
- Securities fraud and insider trading
- Embezzlement
- Corporate fraud
- Money laundering
- Health care fraud
- Mortgage fraud
- Public corruption
- Tax evasion
- Intellectual property theft
- Bribery and kickbacks
White-collar crimes can cause significant economic harm, costing the U.S. economy hundreds of billions of dollars annually
. They often involve sophisticated schemes and complex transactions, making them challenging to detect and prosecute
. Enforcement is carried out by agencies such as the FBI, SEC, IRS, and state authorities
. Penalties for white-collar crimes range from fines and restitution to imprisonment, with harsher sentences often given when victims suffer substantial financial harm
. Whistleblowers play a crucial role in uncovering these crimes by reporting internal wrongdoing
. In summary, white-collar crime is a broad category of nonviolent financial crimes committed by individuals or organizations through deceptive practices to gain economic advantage, often involving complex fraud schemes and significant financial damage
