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What are Different Types of Financial Crimes?

March 31, 2019

Economic crimes sometimes referred to as “white collar” crimes are non-violent criminal acts involving theft or misuse of money. Economic crimes are sometimes considered less important than other types of crimes, because no violence is used, but they can actually have major implications for private finance and even financial markets as a whole. There are many types of financial crime, including forgery, securities fraud, embezzlement, anti-trust activities, and many other categories.

 

Counterfeiting can be a serious injury crime as it destroys the monetary system

Counterfeiting can be a serious injury crime as it destroys the monetary system

Counterfeiting involves the use of counterfeit money, which mistakenly produced bills and coins. This crime can also include changing real money to look like more valuable versions, such as changing a $ 10 US Dollar (USD) bill to look like a $ 100 USD bill. On a large scale, forgery can interrupt the flow of inflation and deflation by mistakenly adding more funds into a controlled system.

 

Illegal manipulation of the financial market

Illegal manipulation of the financial market

Securities fraud is a wide area of ​​financial crime involving illegal manipulation of the financial market. Financial crimes that fall into this category include insider trading, advantageous rates, and value corruption. Insider trading arises when a person with unpublished information about a stock or investment uses the information to buy or sell shares with an entity that does not have access to the same information. Preferential tariffs and corruption both involve artificial inflation or deflate the value of stocks in order to manipulate the market, such as by sending an e-mail or posting a blog with false or misleading information about a scheduled acquisition.

 

When does it occurs

When does it occurs

Underlining occurs when a person who has been transferred funds for storage, such as a property administrator or finance manager, uses the funds without permission. Underlining can often occur between trusted friends or even family, but also occurs in a simple business front as well. Careful investigation of financial items by the estate or fund owner can help reveal signs of defamation that lack funds, duplicate checks or accounting errors.

 

Anti-trust economic crime

Anti-trust economic crime

In regions with a free market economy, anti-trust economic crime involves a serious systematic risk. Anti-trust activities include a non-compete clause through the monopolization of an industry or by measures such as pricing. One of the most famous anti-trust cases in history is the 1911 US Supreme Court’s ruling against Standard Oil, an oil-producing company started by John Rockefeller, who controlled almost the entire US oil market at the height of its power. During the 1890 Sherman Act, Standard Oil was found guilty of conspiracy to create a monopoly, and broken up into more than 30 different companies.

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