White Collar Crime: What You Need to Know

• Author: Denis Clifford
• Jan 28, 2026

White collar crime is a broad term used to describe financially motivated, non-violent offences that usually take place in business or professional settings. From fraud and bribery to insider trading and embezzlement, these crimes can be complex and carry severe legal and reputational consequences.

White-collar crimes may also include violations of copyrights, trademarks, competition laws, or patent laws. Some people may also violate domain names or commit corporate crimes that come under white-collar crimes.

In such situations, experienced white-collar crime lawyers may prove to be of great help to you. They can easily navigate complicated legal systems, fight for their rights, and may also develop a strategic defense that will help to reduce legal repercussions.

What is White Collar Crime?

White-collar crime refers to non-violent or non-directly violent offenses, often financially motivated and committed by businesses, individuals, and government professionals. It involves gaining advantages and actions that can be concealed to avoid losing money or property. These crimes may not physically harm anyone but may impact individuals, trust issues may arise, cost thousands of dollars, and may also drain your savings.

The Federal Bureau of Investigation (FBI) notes that while these crimes don’t involve violence, they can lead to financial deception and create various personal or business problems.

Is white-collar crime civil or criminal?

White collar crime can be both criminal and civil, depending on the nature of the offence and how it is prosecuted. In many cases, white collar crime is treated as a criminal offence, particularly when it involves intentional fraud, embezzlement, money laundering, or bribery.

White collar crime can also give rise to civil cases, especially when financial loss or damages are suffered by individuals, businesses, or investors. In the context of criminal law vs civil law, civil white-collar matters focus on financial accountability rather than punishment. These cases often involve claims for compensation, financial recovery, or regulatory penalties rather than jail time.

Unlike criminal proceedings, civil cases are usually resolved through courts, settlements, or regulatory enforcement actions. Understanding criminal law vs civil law helps explain how white-collar crime cases are handled in court. Most white-collar crimes are prosecuted under criminal law, as they involve intentional financial wrongdoing and potential imprisonment.

In some situations, white-collar crime investigations involve both civil and criminal proceedings at the same time. Understanding whether a case is civil or criminal is crucial, as each follows different legal standards, procedures, and consequences within white-collar crime law.

Understanding The Foreign Corrupt Practices Act (FCPA)

White-collar crimes may also include international businesses that are mentioned under the Foreign Corrupt Practices Act (FCPA). The FCPA does not allow American businesses to make payments to government officials to retain or obtain business and contracts in foreign countries.

They also prohibit payments done by third parties such as joint-venture partnerships in which the payment is made to the third party to transfer that payment as a bribe to a foreign government official. FCPA also applies to money laundering and businesses that are mentioned in the U.S. Stock Exchange and businesses conducted within America.

Examples Of White Collar Crimes

White-collar crimes encompass a range of nonviolent offenses committed by individuals, businesses, or government officials for financial gain. Some common types include:

Corporate Fraud:

Corporate fraud that happens on a large scale in government or corporate institutions may incur financial losses to the investors. It may also damage the U.S. economy. Therefore, these frauds involve partners who investigate the FBI, the Commodity Futures Trading Commission (CFTC), the U.S. Securities and Exchange Commission (SEC), and the Federal Energy Regulatory Commission.

Money Laundering

Money laundering refers to earning cash from illicit activities that may include drug trafficking and making it appear to be earning from any legal business. Criminals may try to filter money from crimes such as public corruption, human trafficking, and terrorism.

Criminals begin committing such crimes when they try to enter into the financial system. Then, the process of layering takes place when they create an audit trail deliberately by a series of financial transactions. Then the integration happens in which the criminal’s financial proceeds are returned after laundering and they will appear to be legitimate sources.

Falsification of financial information

Corporate fraud cases involve accounting schemes that are done to deceive auditors, investors, and analysts, about the financial condition of any business. This is done by manipulating share price, financial data, and other measurements that will inflate the financial performance of a business.

Such crimes involve manipulation, abuse of trust for illicit gains, and financial deception. If you have an involvement in any of such crimes, a white-collar crime lawyer may help to defend your case.

Embezzlement

Embezzlement is considered to be one of the most common crimes in the corporate industry. Embezzlement refers to such actions in which a trusted individual who is handling property and monetary matters will illegally steal the funds by using their power. Example: When an employee illegally transfers the company’s funds without the knowledge of the company’s officials.

Ponzi scheme

The name of the Ponzi scheme originated from its perpetrator Charles Ponzi. This scheme is also known by the name pyramid scamming. The scammer tried to create some investment scheme that was lucrative and promised to return the money. This attracted new investors which helped the white-collar criminals as they received money and then they ran away.

Intellectual Property Theft

Intellectual property theft is one of the white-collar crimes that involves robbing companies or people of their inventions, ideas, and creative expressions which is called intellectual property. It may include proprietary products, music, movies, and software.

What Percentage Of Crime Is White-Collar?

Zippa reports that these crimes make up 3% of federal prosecutions. Interestingly, there has been a significant reduction of 53.5% in these crimes since 2011. However, it’s worth noting that nearly 90% of such crimes go unnoticed. A notable example of a significant white-collar crime is Bernie Madoff’s infamous Ponzi Scheme, considered one of the largest financial frauds in American history.

Distribution Of White-Collar Crimes

White-collar crimes exhibit a diverse distribution across various types, each with unique characteristics and consequences. Fraud, embezzlement, insider trading, and identity theft are standard categories.

The percentage distribution can vary based on the economic landscape, technological advancements, and regulatory changes. While there is no fixed percentage for each type, understanding the prevalence of these crimes helps individuals, businesses, and law enforcement agencies address specific challenges associated with different categories of white-collar offenses.

What Are The Penalties For White-Collar Crimes?

Penalties for white-collar crimes can vary depending on the offense’s severity and the jurisdiction’s specific laws. Individuals convicted of white-collar crimes may face fines, restitution, probation, or imprisonment. Sometimes, sentences can be substantial, especially for financial fraud or corporate crimes.

Moreover, individuals may be subject to asset forfeiture, where ill-gotten gains are seized. Penalties may also include court-ordered supervision, community service, or other forms of punishment. The legal consequences aim to deter such offenses and ensure accountability for those engaging in fraudulent or deceptive practices.

Schedule a consultation with a criminal lawyer

An experienced criminal defense lawyer can provide essential assistance when facing legal charges. They can assess your case, explain your rights, and guide you through the legal process. Furthermore, they can negotiate with prosecutors, represent you in court, and provide legal advice tailored to your situation.

FAQs About White-Collar Crime

What is white-collar crime?

White collar crime refers to non-violent, financially motivated offences typically committed in business or professional environments. These crimes often involve deception, fraud, or abuse of trust.

What are the most common types of white-collar crime?

Common types include fraud, embezzlement, insider trading, bribery, money laundering, tax evasion, and identity theft. These offences usually aim to gain a financial or competitive advantage.

Who can commit white-collar crime?

White collar crime can be committed by individuals, company executives, employees, or organisations. Anyone in a position of trust or authority with access to financial or sensitive information may be at risk of involvement.

Is white-collar crime punishable by jail time?

Yes, white collar crimes can carry serious penalties, including imprisonment, fines, confiscation of assets, and professional bans, depending on the severity of the offence.

How are white-collar crimes investigated?

They are typically investigated by specialist enforcement agencies using financial records, digital evidence, emails, and forensic accounting. Investigations can take months or even years.

What is the difference between white collar crime and fraud?

Fraud is a specific type of white-collar crime that involves intentional deception for financial gain. White collar crime is a broader category that includes fraud and other financial offences.

What should you do if you are accused of white-collar crime?

If accused, you should seek legal advice immediately. Early legal support can help protect your rights, manage investigations, and prepare a strong defence.

Can white-collar crime affect your career?

Yes, allegations or convictions can cause serious reputational damage, loss of employment, and restrictions on future professional opportunities, even before a case reaches court.

What kind of prison do white-collar criminals go to?

White-collar criminals are usually sent to low-security or minimum-security prisons, especially if the offence is non-violent and the individual has no prior convictions. These facilities often focus more on supervision and rehabilitation rather than strict confinement.