What do economists typically classify as financial crime?

Economists classify financial crime as economically motivated illegal activities. This classification encompasses various illegal actions that are primarily driven by the pursuit of financial gain, which can include fraud, money laundering, bribery, insider trading, and other illicit acts that undermine the integrity of financial systems. Such activities are characterized by their intention to profit illegally at the expense of others or society, thereby justifying their categorization as financial crimes.

In contrast, illegal acts that do not involve financial motivation are not considered financial crimes, as they do not align with the economic factors that define this category. Similarly, acts motivated by social justice, while potentially illegal, stem from different intentions and are not driven by economic gain. Lastly, legal activities with financial consequences do not fit the criteria for classification as financial crime, as they occur within the bounds of the law, despite potentially having negative financial implications for individuals or entities.