20 Shocking White-Collar Crime Statistics [2023]: The State Of White Collar Crime In The U.S. - Zippia (2024)

White-collar crime research summary. White-collar crime refers to a range of fraud committed by business and government professionals. You might be shocked to discover just how prevalent white-collar crime is and how little it gets prosecuted. According to our extensive research:

• White-collar crimes are estimated to make up only 3% of federal prosecutions.

• White-collar crime prosecutions decreased 53.5% from 2011 to 2021.

• Annual losses from white-collar crimes as of 2021 are anywhere from $426 billion to $1.7 trillion. The wide range here is due to the lack of prosecutions.

• There were 4,180 white-collar prosecutions in 2022.

• It’s estimated that up to 90% of white-collar crimes go unreported.

For further analysis, we broke down the data in the following ways:
Prosecutions | White-Collar Criminals | Trends + Projections | Industry | Costs

General white-collar crime statistics

Knowing that white-collar crimes make up only 3% of federal prosecutions, it can be rather shocking to find out just how many people are affected. Here are some general white-collar crime statistics that outline the severity of the problem:

• White-collar crime affects over 35% of U.S. businesses.

  The statistics for employees are shocking, as an estimated 75% of all employees steal from their employer at least once, and another half of that percentage is repeatedly stealing. Plus, over 50% of embezzlers are managers.

• There are roughly 5,000 white-collar crime-related arrests for every 100,000 people in the U.S.

  Despite this number, less and less of those arrested are being prosecuted. For example, in 2001, there were 9,507 white-collar crime prosecutions, and in 2011 there were 10,162. Yet, even though the number of crimes committed hasn’t decreased, the number of prosecutions in 2022 had only been 4,180.

• Fraud makes up 63% of white-collar crimes, making it the most common.

  After fraud comes embezzlement, followed by larceny/theft. Overall, fraud has such high numbers because it encompasses a wide range of different white-collar crimes.
  

• Identity theft and fraud alone have affected over 17 million Americans.

  In fact, at least 24% of U.S. households have been victims of a white-collar crime. And unfortunately, most of these occurrences go unnoticed, with 88% of victims opting not to file a formal complaint.

• Since 9/11, there’s been a 22% increase in the rate of Suspicious Activity Reports (SARs) filed by financial institutions.

  This can include anything from commercial loan fraud to self-dealing. Overall, this spike in criminal activity doesn’t look good compared to the decline in prosecutions.

• Identify theft complaints rose by 113% from 2019 to 2020.

  2020 saw a huge rise in complaints for identity theft, consumer issues, and fraud compared to 2019, likely related to the pandemic causing more criminals to go digital.

While identity theft made up only about 14% of complaints in 2018, it made up 29% of 2020’s identity theft and fraud cases.

White-collar crime statistics by prosecutions

White-collar crime prosecutions are surprisingly low compared to increased crimes committed. Well, you might also be surprised to note that prison sentences for white-collar crimes are lower than other crimes as well. Here are the facts:

• In 2022 there were 4,180 white-collar crimes prosecuted in the U.S.

  That’s 53.5% less than the prosecutions that occurred ten years ago and 24.4% less than five years ago. Overall, this indicates a steady decline in white-collar crimes prosecuted, although fraud and identity theft crimes have increased. In part, the prevalence of the internet and globalization could be playing a part.

Federal White-Collar Crime Prosecutions 2011-2022

Fiscal Year	Total Prosecutions
2022	4,180
2021	4,727
2020	4,200
2019	5,702
2018	5,932
2017	5,825
2016	6,253
2015	6,935
2014	7,864
2013	8,373
2012	8,433
2011	10,162

• The average prison sentence for white-collar crimes (such as fraud) is only 27 months.

  Even though white-collar criminals can face sentences of up to 30 years, these lengthy punishments rarely occur. Far more commonly, these criminals only face small sentences or fines.

• Rackateering/Extortion is the white-collar offense that carries the highest average sentence, 79 months.

  That’s more than six and a half years behind bars. Rackateering involves making a real criminal enterprise with regular income from criminal activities, rather than something simple like embezzlement, where you’re essentially just stealing from your place of employment.

  See Also

  FBI Financial Crime - FBI Retired Financial Crime | Official SiteCompliance ReferenceProtect Your Business: 10 Types of Business Fraud to Look out For - FreshBooks

  Gambling/Lottery crimes carry the lowest average sentence — less than half a year.

  Average/Median Sentences for White-Collar Crimes

  Primary Offense	Average Months	Median Months
  Larceny/Theft	11	2
  Fraud	27	14
  Embezzlement	10	1
  Forgery/Counterfeiting	16	12
  Bribery	27	18
  Tax Evasion	13	10
  Money Laundering	29	18
  Racketeering/Extortion	79	51
  Gambling/Lottery	5	4

• White-collar criminals can face fines of up to $1,000,000.

  This hefty fine, in particular, is for those who commit bank fraud. Other common crimes, such as tax evasion and mail/wire fraud, have maximum fines of $100,000. Fines are by far the most common method of punishing white-collar criminals.

White-collar statistics by white-collar criminals

As with any crime, certain demographics are more likely to commit it than others. White-collar crime is no exception, as white-collar criminals need a certain status, job type, or know-how to commit their crimes. When it comes to white-collar criminals, our research shows that:

• More than half of white-collar criminals are between 41 and 60.

  In fact, there are very few cases where the perpetrator of a white-collar crime is under 40. This is likely due to the fact that individuals in this age range tend to hold positions of power in the workplace, as well as know a great deal about how money cycles through the workplace.



• In the United States, less than 10% of white-collar criminals are female.

  Further, only 8.6% of criminals engaging in income tax violations are female. This is in line with the fact that less than 5% of people believe that women would participate in white-collar corruption.

• 75.2% of those who commit property crimes, embezzlement, counterfeiting, bribery, or fraud are White.

  Which is notably higher than 60.1% of the population that identifies as White. In fact, the percentage for bribery, in particular, is a considerable 84.9%.

White-collar crime trends and projections

We’ve provided a helpful table to show just how much white-collar crime prosecutions have decreased over time. According to our research:

• White-collar crime prosecutions decreased 53.5% between 2011 and 2021.

  In 2021 there were 4,727 white-collar crime prosecutions, a 53.5% drop from the 10,162 prosecuted in 2011. Compared to 20 years ago (2001), the number of crimes prosecuted has decreased by over 50%.

• Identity theft is the fastest-growing white-collar crime, impacting over 10 million American people in 2020 alone.

  This increase can be partly attributed to the digitization of money and ID. It’s easier than ever for criminals to receive access to credit cards, SS numbers, and more.

White-collar crime statistics by industry

White-collar crime affects some industries more disproportionally than others. According to our research, these are the industries most impacted by white-collar crime:

• The Financial Services industry has the most white-collar crimes, with 17% of embezzlement cases occurring in this industry.

  Other common industries affected by white-collar crime include nonprofits/religious organizations, depository institutions, insurance companies, loan or finance companies, money services businesses, and securities/futures.

• Companies with less than 500 employees represent 69% of federal white-collar cases.

  And believe it or not, these crimes occur most commonly within even smaller businesses, as businesses with 150 employees are 10x more likely to be victimized by fraud. Further, 80% of thefts occur in companies with less than 150 employees.

• Non-profits suffer at least 1/6th of all major embezzlement.

  Overall, non-profit organizations are far more at risk of white-collar crime than private industries. Some other common crimes non-profits suffer from are theft, fraud, and additional unauthorized uses of funds or organizational assets.

White-collar crime statistics by costs

White-collar crime in the U.S. takes a hefty financial toll. After all, white-collar crimes are all about money. Here are the facts about the cost of white-collar crime:

• As of 2021, annual losses from white-collar crimes are anywhere from $426 billion to $1.7 trillion.

  Due to the sheer number of crimes and the lack of prosecutions, it can be hard to estimate how much money is lost from white-collar crimes. However, even on the conservative side of $426 billion, that’s more than America’s entire marine economy.

• The average company loses at least $9 each day per employee to white-collar crime.

  At the end of the year, that amounts to 6% of the company’s total annual revenue lost to white-collar crimes committed by employees.

White-collar crime statistics FAQ

1. What percent of crime is white-collar?

   The percentage of white-collar crime is unknown due to issues like underreporting, lack of prosecution, and criminals who never get caught. For example, despite an estimated 24% of American households being impacted by white-collar crime, 88% of victims do not file a formal complaint.

   Further, only 3% of federal prosecutions are white-collar crimes, a number that’s been steadily decreasing over the past ten years.

2. Who commits the most white-collar crime?

   White males between the ages of 41-50 are the most common demographic that commits a white-collar crime. Males commit at least 75% of white-collar crimes, and crimes like bribery are overwhelmingly committed by white individuals (84.9%).

   On the other hand, women commit very little white-collar crime, with less than 10% of white-collar criminals being female.

3. Is white-collar crime increasing or decreasing?

   While there are no concrete numbers, stats indicate that white-collar crime is steadily increasing. However, we can pinpoint that the rise in crime is due to advancing technology and globalization.

   Today, we rely on smartphones and computers to access personal and financial information more than ever, making us vulnerable to cyber-attacks worldwide.

4. What is the biggest white-collar crime in U.S. history?

   The biggest white-collar crime in U.S. history is Bernie Madoff’s Ponzi scheme. The crime took place in 2008 and involved an estimated $65 billion. The main individual involved, Bernie Madoff, pled guilty to 11 counts of securities fraud and money laundering.

   He was sentenced to 150 years in prison and ordered to pay $170 billion in restitution to the investors.

5. What are five white-collar crimes?

   Five white-collar crimes include fraud, embezzlement, forgery, tax evasion, and money laundering. White-collar crimes are primarily financial in nature and typically involve the theft or misappropriation of funds through illegal means.

6. What is the most common white-collar crime?

   The most common white-collar crime is fraud. Many phone scams, phishing attempts, and other deceptive practices fall under the category of fraud.

   Fraud can also occur in the workplace, such as an employee using their corporate credit card for personal purchases or including personal purchases on an expense report.

7. What is the average sentence for white collar crime?

   The average sentence for a white-collar crime is only 23 months. While white-collar crime average sentences can vary based on the crime committed, the crime’s publicity, and other factors, sentences are typically far shorter than other crimes.

   For instance, the average sentence for robbery in the US is 163 months, despite the fact that the nature of the crime has an uncanny similarity to many white-collar crimes.

Conclusion

Costing the U.S. over $400 billion per year, white-collar crimes affect people and businesses from coast to coast. An estimated 24% of households have been affected by these crimes, and businesses lose as much as 6% of their total annual revenue to white-collar crimes committed by employees.

Unfortunately, little is done to remedy these issues. Of the households who suffer from white-collar crimes, a massive 88% never even report the crime. Businesses and companies also do little to keep tabs on their employees, who steal an average of $9 per person per day.

Unsurprisingly, the lack of accountability for white-collar criminals leads to low prosecution rates. So low that white-collar crime prosecutions in the U.S. have fallen by 53% over the last decade. Overall, white-collar crimes currently make up only 3% of federal prosecutions.

Undoubtedly, white-collar crime in the U.S. is an issue that needs to be improved. Overall, businesses, individuals, and the government need to make more effort to identify, report and prosecute criminals.

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