Business leaders face a host of threats in the modern world, from cybercrime to litigation. One of the most insidious, however, is that of white-collar crime: employees who use company resources to defraud people, including the firm itself.
White-collar crime is a particularly nasty type of crime. Unlike the rest of the threats that your company faces, white-collar crime comes from within – people you’ve employed are acting in ways that are unethical and illegal. It is often a terrifying experience and can lead to a profound sense of betrayal.
The types of white-collar crime vary from situation to situation. In some instances, it is “corporate fraud” where people inside organizations engage in “insider trading,” selling their shares in the company before bad news hits the market, thus avoiding losses. Other types of corporate fraud include things like misusing property and not paying enough tax. In 2011 alone, the FBI convicted more than 241 corporate criminals.
The other primary type of white-collar crime is money laundering. This crime occurs when people in a company use financial apparatus to make stolen money look as if it came from a legitimate source, thus allowing them to use it how they like. In 2011, the FBI investigated more than 303 money laundering cases.
Are you interested in finding out more about white-collar crime and how it could affect your business? If so, then check out the following infographic. It chronicles the history of white-collar crime and provides some ideas for how organizations can prevent it from happening.
Infographic by University of Southern California