As the holiday season approaches, a time of joy and generosity can also become a hotbed for certain types of crime, particularly what are known as white-collar offenses. While the spirit of this time of year generally fosters goodwill and spending, it also provides opportunities for fraudsters and unethical individuals to exploit the season’s increased financial activity.
Understanding white-collar crimes and their seasonal uptick is crucial for both businesses and consumers to protect themselves during this time.
What are white-collar crimes?
White-collar crimes are normally non-violent offenses that typically involve a scheme to profit financially by fooling or stealing from others. Common examples are identity theft, embezzlement, tax evasion, insider trading, money laundering, and other various forms of fraud, such as securities fraud, healthcare fraud, and mail fraud.
The term “white-collar” is derived from the professional status of many perpetrators, who often exploit their positions of power, authority, or trust to commit these crimes. However, individuals or small groups can commit these crimes too, so it’s important for everyone to stay vigilant and assume they could be the target of someone else’s fraudulent activity.
White-collar crimes prevalent during the holidays
The holiday season brings a notable increase in certain types of white-collar crimes due to heightened consumer spending, charitable giving, and a general spike in financial transactions. Specific operations tied to the holidays include:
1. Identity theft and credit card fraud
The surge in online shopping during the holidays creates opportunities for cybercriminals to steal personal information. Hackers may exploit insecure websites, phishing emails, or data breaches to obtain credit card details, Social Security numbers, and other sensitive information.
2. Charity fraud
Many people feel a stronger urge to give during the holidays. Unfortunately, scammers exploit this generosity by creating fake charities or posing as representatives of legitimate ones. Victims often donate money believing it will help those in need, only for the funds and their banking information to end up in the wrong hands.
3. Holiday loan scams
Fraudsters often prey on individuals seeking extra money for holiday spending. They may offer fraudulent loans with high fees or hidden conditions, trapping victims in financial hardship. In other cases, the loan never appears in the borrower’s account.
4. Corporate embezzlement
Companies may experience higher rates of internal fraud during the holidays as employees feel pressured by personal financial stress or a belief that the season’s chaos might mask their activities. Embezzlement schemes, such as misappropriating company funds or inflating expense reimbursements, often increase during this time.
5. Counterfeit goods and fraudulent e-commerce
The demand for popular holiday gifts creates opportunities for counterfeiters to sell fake goods online. Scammers may set up fraudulent websites offering deals on high-demand items, taking payments but never delivering the products.
Who investigates white-collar crimes?
Many white-collar crimes are investigated and prosecuted at the federal level due to their scope and impact. Any crime that crosses state lines is under federal jurisdiction, so the FBI, IRS, and U.S. Secret Service often are involved in the investigation process.
These crimes have significant consequences for both individual and corporate victims, and so they have equally severe legal ramifications for the accused. Punishment for a conviction could require the defendant(s) to pay hundreds of thousands of dollars in fines and spend years in jail.
LaHood Norton Law Group is highly experienced in criminal defense law and employs former prosecutors who are familiar with both sides of the courtroom. If you believe you have a case requiring legal representation, visit LaHood Norton Law Group online or call (210) 797-7700 to schedule a free and private consultation.
This article is educational in nature and does not constitute official legal advice.
