Question

What is employee fraud and white-collar crime? Give definitions and specific examples of each.

Answer 1

Employee fraud occurs when an employee commits a fraud against their employer. The employer may be any form of business including a sole proprietorship, partnership, corporation, organization and so on.

While there are many types of employee fraud, the severity of the fraud, and the legal remedies available to the employer are based on many factors, including:

• the amount of damages,
• whether the fraud was an isolated incident, or a complex scheme over a prolonged period of time,
• if the employee was in a position of trust, and
• whether an employee in a position of trust is found to have had a fiduciary obligation to the employer.

Types of employee fraud may include:

1.theft of cash

2.unauthorised money transfers

3.benefits fraud

4.bribery, kickbacks

5.workers compensation

6.Asset misappropriation

7. Payroll fraud

White collar crime is nonviolent crime committed for financial gain. According to the FBI, a key agency that investigates these offenses, "these crimes are characterized by deceit, concealment, or violation of trust." The motivation for these crimes is to obtain or avoid losing money, property, or services, or to secure a personal or business advantage.

Examples of white-collar crimes include securities fraud, embezzlement, corporate fraud, and money laundering. In addition to the FBI, entities that investigate white-collar crime include the Securities and Exchange Commission (SEC), the National Association of Securities Dealers (NASD).