We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What are Different Types of Financial Crimes?

Jessica Ellis
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Financial crimes, sometimes referred to as “white collar” crimes, are nonviolent criminal acts that involve the theft or misuse of money. Financial crimes are sometimes considered less important than other types of crimes because there is no violence used, but they can actually have vast impacts on personal finance and even entire financial markets. There are many different types of financial crimes, including counterfeiting, securities fraud, embezzlement, anti-trust activities, and many other categories.

Counterfeiting can be a seriously detrimental crime as it corrupts the monetary system. Counterfeiting involves the use of fake money, such as falsely manufactured bills and coins. This crime can also include the alteration of real money to resemble more valuable versions, such as altering a $10 US Dollar (USD) bill to look like a $100 USD bill. On a large scale, counterfeiting can disrupt the flow of inflation and deflation by falsely adding more money into a controlled system.

Securities fraud is a broad area of financial crime that involves the illegal manipulation of the financial market. Financial crimes that fall into this category include insider trading, preferential rates, and misrepresentation of value. Insider trading occurs when a person with non-publicly disclosed 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 rates and misrepresentation both involve artificially inflating or deflating the value of stocks in order to manipulate the market, such as by sending out an email or posting a blog with false or misleading information about a planned takeover.

Embezzlement occurs when a person entrusted with funds for safekeeping, such as an estate trustee or financial manager, uses the funds without authorization. Embezzlement can often occur between trusted friends or even relatives, but also occurs on a simple business front as well. Scrupulous examination of financial records by the estate or fund owner can help reveal signs of embezzlement, such as missing funds, duplicated checks, or accounting errors.

In regions with a free market economy, anti-trust financial crimes pose a serious systematic risk. Anti-trust activities involve the restraint of trade through the monopolization of an industry or by measures such as price fixing. One of the most famous anti-trust cases in history is the 1911 US Supreme Court decision against Standard Oil, an oil production company started by John Rockefeller that controlled almost the entire US oil market at the height of its power. Under the 1890 Sherman Act, Standard Oil was found guilty of conspiring to create a monopoly, and broken up into more than 30 separate companies.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Jessica Ellis
By Jessica Ellis
With a B.A. in theater from UCLA and a graduate degree in screenwriting from the American Film Institute, Jessica Ellis brings a unique perspective to her work as a writer for SmartCapitalMind. While passionate about drama and film, Jessica enjoys learning and writing about a wide range of topics, creating content that is both informative and engaging for readers.
Discussion Comments
Jessica Ellis
Jessica Ellis
With a B.A. in theater from UCLA and a graduate degree in screenwriting from the American Film Institute, Jessica Ellis...
Learn more
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.