Did you know that 90% of white-collar crimes go unreported? So, what is reported is just the tip of the proverbial iceberg.
Corporate crime, also called white-collar crime, is perpetrated by a company or company officers. Examples of corporate crime include, but aren't limited to, false claims, bribery, corporate fraud, and breaking environmental laws.
While corporate crime cases involving Enron, Bernie Madoff, and Charles Ponzi were highly publicized, many white-collar crimes go unreported.
Here's a look at five corporate crime statistics you should know about. You might be surprised.
1. 6.1% of White Collar Criminals Come From Troubled Family Backgrounds
According to the University of Cincinnati School of Criminal Justice, few corporate crime criminals come from troubled family backgrounds. In fact, the amount is a mere 6.1%.
While people sometimes believe criminals likely grew up in bad neighborhoods or had less-than-ideal families, research shows this is not so with corporate criminals. Only a handful had histories that might have helped pave the way toward delinquency in adulthood. So, why would men and women with good upbringings take this risk? One possible answer is greed.
2. Financial Statement Frauds Are the Costliest Corporate Crime Type
The 2020 Global Study on Occupational Fraud and Abuse study notes that financial statement frauds are the costliest corporate crimes. They're also the least common kind, which is a good thing considering that the median loss of these incidents tallies $954,000. Financial statement fraud, which involves purposefully falsifying corporate financial statements, garners attention when reported in the news.
3. Most Perpetrators Are Outwardly Successful Men
The typical person charged with corporate crimes is a male, employed, homeowner, well-educated, and has little prior experience with the criminal justice system. Again, this seems like white-collar criminals defy the common belief that those who break the law are seedy individuals bent toward lives of crime. Most people who commit corporate crimes are outwardly successful and don't seem to fit the profile of criminals.
4. Women Less Likely to Be Involved in Corporate Crime
Women are less likely to be involved in white-collar crimes than men. In 2022, men committed 73% of corporate fraud while women committed 27%. Ten years before -- in 2012 -- 65% of corporate frauds were committed by men compared to 35% by women.
Meanwhile, in 2022, the median loss resulting from fraud committed by men was $125,000 compared to $100,000 for women. In 2012, the median tally for men was $200,000, while the median tally for women was $91,000. Based on these statistics, it shows that the few women who commit such crimes are almost as greedy as their male counterparts.
5. Corporate Crime Costs the U.S. Hundreds of Billions Per Year
Corporate crime costs the U.S. north of $300 billion per year. In terms of the global impact, white-collar crime hurts the economy to the tune of $1.7 trillion annually. Meanwhile, victims of corporate crime are out an average of $120,000 per incident. So, the financial impact is huge.
There are some troubling and surprising statistics about white-collar crime. Many people aren't aware of the extent of the problem. One reason for this is, as was mentioned above, it's an underreported crime. While it's good to learn more about this type of crime, it's one thing to read about it or see it portrayed on a TV program. It's another thing if you find yourself on the receiving end of charges for corporate crimes. Remember that not everyone accused is guilty. If this scenario plays out in your life, find an experienced and reputable criminal defense attorney.
That's your best bet for a legal outcome you want versus one you dread.