White-collar crime is a widespread problem, but many people know much about what white-collar crime involves. It is not often dramatic, exciting, or
interesting to hear about. Other types of crime, such as a murder, robbery, or rape, are emotional events that evoke feelings of anger, disgust, and
sadness within people of all ages and classes. Unfortunately, white-collar crime does not create this same reaction. Securities fraud or corrupt loans do
not stir up feelings of rage and disappointment in most people, unless they are the victims of these crimes.

White-collar crime does not involve violent, drug-related, or overtly illegal activities. In fact, perpetrators are typically involved in otherwise lawful
businesses and may hold respectable positions in the community prior to the discovery of their fraudulent schemes.

Fraud
is intended to employ dishonesty to deprive another of money, property, or a right. It can also be a crime for which the fraudulent person(s) can be
charged, tried and convicted. Borderline overreaching or taking advantage of another’s naiveté involving smaller amounts is often overlooked by law
enforcement, which suggests the victim seek a “civil remedy” (i.e., sue).

For anyone working in the insurance, financial planning, or financial services fields, a working knowledge of the various bad actions that fall under the
term “white-collar crime” is important for several reasons.

· White-collar crimes are a constant presence in any economy whether it is controlled, free, growing, or in recession.

· White-collar crimes are constantly changing and adapting to current economic situations.

· White-collar crimes erode public confidence and trust in the financial institutions – banks, investments brokerages, and insurance companies – that
financial professionals count on for their livelihood.

It is in every financial professional’s interest to know white-collar crime well enough to avoid it, and, more importantly, to prevent it.