Meaning of White Collar Crime
It is defined as an illegal act committed by a person of the higher socio-economic class of a society during the course of his or her profession or occupational activities.
Causes for white collar crimes
White collar crimes are becoming increasingly common in this day and age. They are caused due to the following reasons – - greed, - lack of awareness among people, - lack of strict rules and laws, - lack of accountability, - peer support, - loopholes of legal structure, - technological and industrial development, etc.
Types of white collar crimes
- Bank fraud – is when a person illegally withdraws money or assets by falsely representing himself or herself in front of the bank. This is punishable under Section 403, 405, 415 etc. of the Indian Penal Code, 1860.
- Tax evasion - is a crime where one person changes their states of affairs to avoid applying tax. It can be done by a company, individual or trusts and the same is punishable under the Income Tax Act, 1961.
- Embezzlement - is an act where a person who is entrusted with money uses it for unintended purposes and this is punishable under Section 403 of the Indian Penal Code, 1860.
- Fraud – is when individuals use false documents or use illegal means to obtain compensation or insurance money by burning down their property or causing harm to themselves on purpose, etc.
- Bribery- is when one person gives money or kind to get a certain job done for them.
- Money Laundering - is the process by which a person converts his or her illegal money into legal money hiding it in plain sight.
Legislations that help curb white collar crime in India The Companies Act 1960 The Income Tax Act 1961 Indian Penal Code 1860 The Prevention of Corruption Act 1988 The Prevention of Money Laundering Act 2002 The Special Court Act 1992
