Final answer:
Fraud classification when a company is the victim includes embezzlement, identity theft, securities fraud, money laundering, and tax evasion. These white-collar crimes are nonviolent but can have devastating financial impacts on individuals and organizations, causing a loss of trust in institutions.
Step-by-step explanation:
Fraud classification according to victims, especially where the company or organization is the victim, includes several specific types of white-collar crimes. Below is an explanation of each category:
- Embezzlement is a type of corporate crime where an individual, typically someone in a position of trust, illegally takes money or property that they have been entrusted to manage or monitor. The money is used for personal gain, and this act defrauds the company or organization of its resources.
- Identity theft, also known as True-name Fraud, is when someone wrongfully obtains and uses another individual's personal identification details without permission. This can lead to drained savings accounts and unauthorized credit card debts, severely affecting the victim's financial standing.
- Securities fraud involves deceptive practices in the stock or commodities markets and can lead to substantial losses for investors. One common form is insider trading, where a person with non-public information about a company's financial situation uses this information to their advantage in the stock market.
- Money laundering is the process of making large amounts of money generated by a criminal activity, such as drug trafficking or terrorist funding, appear to have come from a legitimate source. This is a complex crime and can involve multiple financial transactions and legal entities.
- Tax evasion is the illegal non-payment or underpayment of taxes. Individuals or companies may do this by misrepresenting their income or financial position to tax authorities.
Financial crimes like embezzlement, securities fraud, and identity theft are considered deviant and can cause severe damage to the financial systems and trust in institutions. Nonviolent in nature, these acts are still detrimental and devastate individuals and families when savings or homes are lost.