What Do Criminals Do With Cash?

Cash, an essential part of our daily transactions, is often the preferred currency for criminals due to its discreet and untraceable nature. But what do these criminals do with the cash they earn from their illicit activities? This article explores the various ways criminals spend or launder their money, highlighting the stark differences between those who engage in conventional and white-collar criminal activities.

Conventional Criminals: Petty Crime to Jail

In today's technological landscape, criminals are typically categorized into two types: conventional and white-collar. Conventional criminals often engage in activities such as stealing, bootlegging, forgery, and robbery. These crimes, while less sophisticated, often result in hefty fines and imprisonment. It is a well-known fact that many such criminals, when faced with a large sum of cash, have limited options beyond spending it immediately. Just as a burger flipper or any average worker might, they often squirrel away small amounts, understanding that a bigger pile could be tempting but also dangerous.

White-Collared Criminals: The Educated and Sophisticated

In contrast, white-collar criminals comprise individuals who are well-educated and often use their brains to outsmart the system. Unlike their conventional counterparts, white-collar criminals include hackers, online fraudsters, and other tech-savvy individuals who mastermind complex schemes from afar. These cybercriminals often escape the law and enjoy a comfortable life in countries that lack extradition treaties. They are difficult to catch not only due to their technical skills but also because their crimes often leave no footprint in physical evidence.

Laundering Money: A Necessity for Survival

For many criminals, the primary goal is to dispose of their ill-gotten gains without facing legal repercussions. This is where money laundering comes into play. Some criminals simply spend their cash as if it were regular water, while others reinvest it in legitimate and illegitimate businesses to create a legitimate cover for their illegal activities. Here's a detailed look at how criminals might spend or launder their cash:

Reinvesting in Business

Many criminals reinvest a significant portion of their cash back into their criminal enterprises. This can involve upgrading equipment, hiring staff, paying for travel, and even investing in property. For example, if a criminal made a large sum of money from bootlegging, they might use some of it to invest in better equipment and expand their operations. This reinvestment creates a cycle where the money is continuously laundered and legitimized through various means.

Employing Staff and Paying Taxes

A substantial part of criminal cash often goes towards paying staff, editors, and other professionals involved in the production of illegal content. For instance, a film producer who makes hardcore porn videos might allocate funds to pay actors, directors, and other crew members. This ensures that the operation runs smoothly and that all parties are compensated. Additionally, a portion of the cash is often used for advertising and public relations to maintain a profile in the underground market. The aim is to keep the business afloat and lucrative.

Fraudulent Travel Investments

Cash is often used to pay for travel, especially to sunny locations where criminals can conduct film shoots, record videos, or perform other activities that do not leave traceable evidence. Some criminals might even set up beach scenes or film in unconventional locations, all to avoid detection. This money is used to fund these trips, ensuring that the cash is spent in a legitimate manner.

Disposing of Large Sums Practically and Legally

For those with substantial sums of money, criminals might find ways to invest in less conspicuous and more practical items. These could include items such as cars, rugs, handbags, and even gold teeth. Such items are not easily traced and can be used to generate additional cash if necessary. Additionally, some criminals might invest in collectibles like stamps, coins, and comic books, which can be sold over a prolonged period without suspicion. The trick is to break down large sums into smaller, non-traceable transactions.

Real-Legitimization Through Investments

In some cases, criminals might even invest in genuine businesses or properties and declare these as legitimate sources of income. For example, they might purchase a famous artist's sketchbook, break it down into individual pages, and sell them over a period. By doing so, they can create a paper trail that shows they have a valuable but legitimate business. Another technique is to suggest a bigger criminal enterprise by buying houses or businesses and showing these as legitimate sources of income.

Concluding Thoughts

The world of criminal activities is a complex one, and the ways in which criminals handle and launder their cash are even more intricate. Understanding these methods is essential for law enforcement agencies, financial institutions, and anyone seeking to combat these crimes. As technology continues to evolve, so too do the techniques used by criminals. But with knowledge and vigilance, we can gain the upper hand in the ongoing battle against criminal activity.