Money Laundering and Embezzlement

Money Laundering and Embezzlement

Description of selected white-collar crimes

White collar crimes relates to financially inspired criminal activities that are committed by both business and government experts. In the current digital age, white collar crimes has advanced through nonviolent fraudulent activities to extract funds from unsuspecting parties. Among the common white collar crimes observable today involves money laundering and embezzlement. Money laundering is a criminal act that is facilitated through illegal procurement of money based on series of transactions that are made to appear legitimate. On the other hand, embezzlement relates to acquisition of money from an individual or a business that a person owes some form of duty.

Money laundering is characterized by three steps that that makes the practice fruitful. One of the steps involved is the deposit of funds in a financial institution like a bank. Then, money is separated from its illegitimate owners by complex transactions to make it untraceable. Finally the money is integrated to legally earned money often through legal purchase of an asset to facilitate its legitimacy. Money acquisition through embezzlement is facilitated through siphoning money by employees into their personal accounts.

How technology has increased the opportunity to commit each type of crime

Like many illegal activities, white collar crimes have been evolving and revolutionizing to attain their motives. This is because technology provides alternative pathways for crooks to launder for illegal profit. The use of the internet has promoted the efficiency and the effectiveness of money laundering due to its phenomenon. The use of internet payment systems, prepaid card, and mobile payment have encourages the vulnerability of money laundering (McGruff, 2017).  Availability of numerous third party payment methods enabling individuals to purchase commodities online, funding accounts with wired transfer mechanisms encourages increment of transactions without face to face relationship with customers. This encourages transfer of money to personal accounts through legal means after purchase of illegitimate products online. Embezzlement in the digital era has been made possible due to the capacity of technological techniques that warrants access to crucial networks and facilitate crimes. Individuals are using discarded credit cards, bank statements and tax information to gain access to other people or organizational information that is used to assume other person’s identity.  This is achievable through technological drudge to access crucial databases with an aim of siphoning money to personal accounts.

Possible effects of money laundering and embezzlement on victims

Processing of funds on bribery basis to facilitate blinding particular individuals in an institution facilitates criminal activities through active complicity with criminals. This aspect impacts employees or shareholders of an institution directly through negative economic consequences (McGruff, 2017). Bleach of financial integrity leads to inexplicable financial transactions that leads to loss of personal money. Moreover, the practice increases the volatility of an institution due to untraceable capital flow that in turn leads to losses. Also, the integrity of an institution is also affected due to dishonesty of financial intermediaries. For instance, to a bank both money laundering and embezzlement demonstrates the capacity of a bank to be vulnerable to losses that in turn impacts customers trust on a bank. Moreover, in a financial institution where financial crimes have been practices leads to losses of customer’s funds as well as their investment due to spurious financial undertakings.

How law enforcement might use technology to address the selected crimes

In response to the advancing irregularities in the financial system, the law is building substantial operations aimed at mitigating risks of financial crimes. The law is incorporating technological advancements such as protection codes and inscriptions that protect personal information from access by unauthorized parties. This aspect prevents embezzlement by ensuring employees among other shareholders do not access any financial information. Also, the law emphasized on implementation of strict laws as well as surveillance means to monitor and detect any form of money laundering (McGruff, 2017). This is facilitated through creation of policies that uphold integrity as well as creation of protective softwares that detect money transfer.


McGruff. (2017). Evolving with technology. Chapel Lake Drive.


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