Legal Definitions - economic crime

Economic crime refers to illegal acts committed primarily for financial gain. These crimes often involve deception, manipulation, or abuse of trust, and their main objective is to acquire money, property, or other financial benefits. While typically non-violent, economic crimes can cause significant financial losses to individuals, businesses, and the broader economy.

Here are some examples illustrating economic crime:

• Example 1: Investment Fraud

  A financial advisor convinces several clients to invest their life savings into a fictitious company, promising unusually high returns. The advisor then absconds with the money, leaving the clients with nothing.

  This is an economic crime because the advisor's sole motivation was to illegally acquire the clients' money through deception and false promises, resulting in significant financial loss for the victims.

• Example 2: Corporate Embezzlement

  The chief financial officer (CFO) of a large corporation secretly diverts company funds into personal bank accounts over several years by creating fake invoices and manipulating financial records.

  This illustrates economic crime as the CFO's actions were driven by the desire for personal financial gain, achieved by illicitly taking money from the company through a breach of trust and falsification of financial documents.

• Example 3: Identity Theft for Financial Gain

  An individual steals personal information, such as Social Security numbers and bank account details, from multiple victims. They then use this information to open new credit card accounts in the victims' names and make large purchases, never intending to pay the bills.

  This is an economic crime because the perpetrator's goal is to obtain goods and services without payment, or to acquire cash, by fraudulently using someone else's identity, directly leading to financial harm for the victims and credit card companies.