The Future is Now - 37 Fascinating Chatbot Statistics

The Future is Now - 37 Fascinating Chatbot Statistics
ByDanica Jovic
November 20,2020

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Chatbots have taken the customer service and real estate industries by storm, but that’s just the start of the story. Experts predict 90% of customer interaction in banks will be automated by 2022. 

And despite what you might think, that could be a good thing. Customers like chatbots; more than half of internet users are satisfied with them and around 60% of millennials already use them regularly to purchase basic goods. 

We’ve compiled some stats to show why eCommerce and chatbots are a match made in heaven.

Chatbot Statistics - Editor’s Choice

  • Chatbots can cut operational costs by up to 30%.
  • 85% of customer interaction will be handled without human agents by 2021.
  • 50% of businesses plan to spend more on chatbots than on mobile apps. 
  • 64% of internet users say 24-hour service is the best feature of chatbots.
  • 37% of people use a customer service bot to get a quick answer in an emergency.
  • There were over 300,000 chatbots on Facebook in 2018.
  • Blue-Bot sent two million messages to more than 500,000 customers in 2018.

Chatbot Usage and Artificial Intelligence

Today, 27% of consumers are interested in artificial intelligence support tools.

(Tidio)

The idea of using human language in communication with machines arose in the early ‘50s. However, at that time, people could not yet imagine the machines that could actually react or work like humans. In the past few decades, though, things have changed significantly. People still have unrealistic expectations about artificial intelligence, but we can say that humanity has moved a step closer to interacting with machines. Today, AI technology is used to provide virtual assistance in a range of different industries, including healthcare, business, education, and finance.

1.4 billion people are using chatbots.

(Acquire)

The advancement of AI has provided humanity with a stack of useful tools and resources. Chatbot growth has been prominent across a number of industries, to the point where 1.4 billion people now use them on a fairly regular basis. So, we might have a new answer to the question: What are chatbots? More than ever, they’re the way companies help customers ask questions or resolve problems quickly and easily.

Chatbots can answer 80% of standard questions.

(IBM)

Chatbot market statistics show that one of the reasons this technology is becoming more and more popular is that chatbots can answer most questions users might throw at them. It’s still important to have some trained customer support professionals for more complicated questions. But for everyday issues, a chatbot service reduces costs and speeds up response time. This allows customer service agents to work on more challenging tasks and take a big-picture approach.

In 2017, 34% of consumers preferred to communicate with artificial intelligence in an online retail situation.

(Statista)

Why? Because consumers like to get the information they’re asking for immediately. Bots are the best at providing fast and reliable service; they’re always on and they’re programmed to answer the most common questions immediately, which gives them an advantage over email or social media.

Chatbot Customer Service Statistics

67% of customers used chatbots in the past year.

(Invesp)

With two-thirds of customers having used chatbots in the past year, this technology has become mainstream. We live fast, online lives that are dominated by our phones and tablets. For the most part, that works in our favor. But sometimes we need help, and we need it as quickly as possible. This is when chatbot customer support steps in. Chatbot statistics for 2019 show that people are adjusting well to automated support.

64% of internet users say 24-hour service is the best feature of chatbots.

(Drift)

Why do we love chatbots? First, we like their quick response and prompt service. Second, we want answers at any time of the day and we enjoy their accessibility. This is why chatbots are so popular. As many as 64% of internet users see round-the-clock support as the biggest benefit, according to the newest chatbot industry statistics provided by Drift.

37% of people use a customer service bot to get a quick answer in emergencies.

(Drift)

Among customers who use chatbots, 37% use them for getting answers in case of an emergency. It’s also interesting to note that 35% use chatbots to resolve problem and the same percentage do so to get detailed answers or explanations.

55% of people who use chatbots would expect them to provide instant responses and answers to simple questions.

(Drift)

Customer service trends show that chatbots' benefits are numerous and customers are aware of this. Indeed, using a customer support chatbot gets you instant answers and asks you short, direct follow-up questions that are easy to understand. For speed and convenience, chatbots provide the perfect solution.

Chatbot Implementation Statistics

The first chatbot, ELIZA, was created in 1966.

(PSS)

ELIZA was created by Joseph Weizenbaum. Although this first-ever bot failed the relevant tests, it blazed a trail for the development of chatbots in the future. Today, we can make use of sophisticated chatbots, which have gained enormous popularity over the past couple of years due to the great service they provide

The top five countries in terms of chatbot use are the USA, India, Germany, the UK, and Brazil.

(Chatbots Life)

As we’d expect, the US is home to the largest portion of the world’s chatbot users (36%), followed by India (11%). Germany came in third place (4%) - it’s the highest-ranked non-English-speaking country on the list. The United Kingdom (3%) and Brazil (2%) have almost the same number of chatbot users.

It's estimated that nearly a quarter of the world’s population was using chatbots by the end of 2019.

(Chatbots Magazine)

How many people are going to use chatbots in the future? Well, according to these chatbot statistics, by the end of the year, almost a quarter of the global population will be using some kind of chatbot support on a daily basis.

The real estate industry is the most profitable field for chatbots.

(Chatbots Magazine)

More than 28% of real estate business now use chatbots. That makes sense; this is the industry that profits the most from chatbot usage. Why? Because agents have realized that chatbots can do most of the everyday work real employees used to do. This saves time, resources, and ultimately money. If you are in this industry, setting up a real estate chatbot is a must. Remember, chatbot companies offer specific services that are specially designed for real estate purposes.

$5 billion will be invested in chatbots by 2021.

(Chatbots Magazine)

The chatbot market is growing fast. We already have millions of chatbots operating through various industries, which is why investing in chatbots could be a very good move. More and more companies are using chatbots to provide their customers with better, faster service. We’ve already mentioned the real estate industry, but did you know the travel industry also benefits extensively from chatbots? This is because chatbots are actually very useful in filtering and speeding up the process of booking, as chatbot statistics for 2019 prove.

Interest in chatbots increased by 160% in 2018.

(Gartner)

Clients were more interested in implementing chatbots in 2018 than in any previous year. You can see the change for yourself; just browse through any good company’s website and pay attention to the customer service options. Today, companies both large and small are investing resources into customer experience and support. Aside from cutting costs, all these companies are trying to automate the work process and enable around-the-clock customer service.

Statistics on Customer Service and Chatbots

53% of service organizations are going to use chatbots within the next 18 months.

(SalesForce)

Customer service organizations are using chatbots more and more every day. This technology helps identify issues, then solve them promptly without human assistance. A growth rate of 136% was predicted for 2019, proving that chatbots will have an even bigger role in the near future.

58% of users say chatbots have changed their expectations of customer service.

(SalesForce)

Chatbots have changed customers’ experience for good. Consumers have certain expectations when it comes to AI, but according to the latest research, most say chatbots have positively affected their user experience.

46% of users would prefer to communicate with a live person instead of chatbot.

(Tidio)

If we look at customer service stats, we can conclude that customers are still more likely to opt for a conversation with a real person. Although a chatbot can save them a lot of time, almost half of the internet users in the US say they would rather receive support from a live person, according to Chatbots Magazine. However, 40% of consumers are fine with both; they don’t care if they get help from a real human or chatbot, as long as they get help, according to HubSpot chatbot statistics.

64% of agents who use chatbots are free to spend their time solving more difficult and complex problems.

(SalesForce)

With the help of AI chatbots, 64% of agents can work on resolving complex problems. In comparison, only 50% of agents without chatbots have the same luxury.

16% of Americans have used channels like Alexa or Google Home chatbot for shopping.

(Chatbots Magazine)

Customers use chatbots for a range of purposes: to get information, pay bills, or get assistance. Shopping is also at the top of the list. After all, nearly 16% of Americans own smart speakers. Chatbot customer service trends for next year predict that around 15% of people will use Amazon Alexa, while 16% plan to use some other type of voice-controlled chatbot tool.

Predictions About the Future of Chatbots

Chatbots can cut operational costs by up to 30%.

(Chatbots Life)

eCommerce chatbot statistics show that businesses spend around $1.3 trillion on customer requests per year. With the assistance of chatbots, this expense could be reduced by 30%.

Bank systems will automate up to 90% of customer interactions using chatbots by 2022.

(Chatbots Magazine)

Almost 40% of major companies with more than 500 people are going to implement at least one intelligent assistant or AI-based chat robot in 2019. By the end of 2020, 80% of entrepreneurs will use chatbots.

85% of customer interactions will be handled without human agents by 2021.

(Chatbots Life)

Chatbots will change the world, that is for sure. No matter whether or not we prefer talking to agents, in the future we will be forced to rely on chatbot support. Chatbot statistics in this Gartner report predict that 85% of customer interactions will be managed without humans by 2021. This is good news. Consumers will get answers instantly, companies will reduce costs, and agents can spend their time solving more important issues.

Companies will save 2.5 billion customer service hours using chatbots by the end of 2023.

(Chatbots Life)

One of the main goals of the companies that implement chatbots is to reduce customer service work time. According to Juniper's research, the introduction of chatbots will save 2.5 billion customer service hours over the coming years. The customer service cost reduction across the retail, banking, and healthcare sectors is estimated to amount to $11 billion annually by 2023.

Statistics About Chatbots in Business

By the end of 2020, 80% of entrepreneurs will use chatbots.

(Chatbots Magazine) (SiteVisibility)

Chatbots have become one of the most useful tools for marketers, and it’s safe to say that by the end of 2020, they will dominate the customer service field. Well, we already know that chatbots save time and money, and users of all ages and groups like them. Why? Because many users are more comfortable chatting online than talking with human agents or waiting too long to get the answers they need. Statistics on chatbot marketing show that 56% of people would rather message than call customer service.

50% of businesses plan to spend more on chatbots than on mobile apps.

(Chatbots Life)

Are chatbots going to replace mobile apps? According to Gartner’s report, many companies are prioritizing implementing chatbots over mobile apps. Chatbots have become more reliable and effective due to technological advances, as chatbot engagement statistics point out. As such, people have become more and more interested in chatbots, leaving mobile apps behind. Of course, this doesn’t mean that chatbots will replace mobile apps for good. It simply means that for getting quick service, people will look to chatbots first.

Companies with between one and 50 employees use chatbots more than others.

(Think Relay)

If you’re working in a company that has more than 250 employees, it’s less likely that your company will enjoy these benefits; mid-market companies usually don’t deploy chatbots. However, chatbot use statistics show us an interesting trend about smaller businesses. It seems nearly 40% of companies that have between one and 10 employees use chatbots, making them the most-frequent users.

Only 0.5% of B2B companies use chatbots.

(Think Relay)

B2B companies are not into chatbot services. As many as 99.5% of these companies didn’t deploy chatbots in 2018. And what are the consequences? Well, some research has shown that it’s important to make B2B sales friendlier. These companies tend to deploy conversational marketing strategies to move buyers through sales funnels using the advantages of real-time conversations.

Chatbot User Statistics

Approximately 40% of people of all ages prefer to use chatbots when shopping online.

(Tidio)

More and more chatbots are appearing across the internet. The reason for the fast-growing chatbot market is that people are more and more satisfied with this kind of customer support. Recent research has shown that all age groups enjoy shopping with the assistance of chatbots. Of shoppers aged 30-44, 49.30% say they prefer using chatbots as their communication channel when shopping online, and around 44% of shoppers aged 45-60 use the same channel.

Three in five millennials have used chatbots at least once in their lives.

(Forbes)

More than half of millennials tried out chatbots in 2018, according to chatbot use statistics by Forbes. As we already know, millennials use social media apps more than any other generation - they interact with friends via social media, get information, shop, or use apps for entertainment. They are also more open to trying new technologies and applying them in everyday life. It’s thanks largely to this generation that chatbots are becoming more and more popular.

Baby boomers are more likely to expect benefits from chatbots than millennials.

(Apiumhub)

You might be surprised to discover that baby boomers are the generation most likely to enjoy the benefits of chatbots. Many people assume that impatient millennials want technology like this, but actually baby boomers use chatbots to resolve problems more than the younger generations. Around 61% of baby boomers expect an instant response from chatbots.

27% of adults in America have used chatbots for shopping at least once in their life.

(Chatbots Magazine)

Consumers now buy basic goods, like food or clothes, using chatbots. What’s more, nearly 13% of shoppers are now buying more-expensive items using chatbots.

48.78% of female shoppers like chatbots and use them as a channel of communication when buying online.

(Tidio)

Nearly 50% of female shoppers like to use chatbots while shopping, while only 36.81% of men do the same. According to chatbot engagement statistics, 41.67% of men prefer using email over chatbots when purchasing online.

47.92% of men use chatbots if they can’t find answers to simple questions.

(Tidio)

While women use chatbots for online shopping, men are most likely to turn to this technology to get answers to simple questions.

Chatbot Growth Statistics and Social Media Platforms

63% of consumers think businesses should be on Messenger.

(Chatbots Life)

Social media platforms have become so popular in the past couple of years that the number of Facebook users is growing by the day. If you take a look at Facebook trends in 2017, you’ll see some astonishing figures. More than 1.3 billion people used Facebook Messenger, many of them for business purposes.

There were over 300,000 chatbots on Facebook in 2018.

(Venture Beat)

According to Messenger chatbot statistics, the number of chatbots increased in 2018 by 100,000 users. Business and customers combined sent around 8 billion messages a day over the past year.

BlueBot sent two million messages to more than 500,000 customers in 2018.

(Convince & Convert)

BlueBot, or simply BB bot is a Facebook Messenger chatbot launched by KLM Royal Dutch Airlines to help passengers book tickets and inform them about flights, gate changes, and other important flight-related info. The idea behind the program was to reduce customer service hours by engaging an automated chat bot. And KLM succeeded. In its first six months, BlueBot helped more than 500,000 customers, according to Facebook messenger bot stats.

More than 80% of small businesses in India and Brazil say WhatsApp helps them improve customer service and grow business.

(Sprout Social)

WhatsApp’s chatbot is among the top chatbots used specifically for business purposes. Many companies over the world have implemented this chatbot in order to improve customer support on one of the world’s most-used apps.

Frequently Asked Questions
How many chatbots are there?

According to Facebook statistics, there were 300,000 chatbots on Facebook alone in 2018. Across the web, the number of chatbots has increased dramatically over the past few years, thanks to the newest technological trends and AI development.

How many companies are using chatbots?

Statistics on chatbot usage show that by the end of 2020, 80% of companies will use chatbots.

Why are chatbots so popular?

Chatbots have become very popular because they save time and resources by automating customer support services. In this way, human agents can focus on solving more complex problems.

What is the best chatbot?

Mitsuku is the best conversational chatbot. This chatbot can chat about anything, answering users’ questions in a human-like way.

Why do people use chatbot?

People use chatbots for different purposes. Online chat bots are used for 24/7 customer support, which provides customers with instant responses to simple questions. Around 37% of customers use chatbots to get quick answers in case of an emergency.

Do consumers like chatbots?

Yes, consumers like chatbots. Around 67% of customers used chatbots in 2018, and by the end of 2019 more than a quarter of the population was estimated to be using some kind of chatbot support. However, chatbot statistics have shown that 46% of users would prefer to communicate with a live person instead of chatbot.

Sources

About the author

Danica’s greatest passion is writing. From small businesses, tech, and digital marketing, to academic folklore analysis, movie reviews, and anthropology — she’s done it all. A literature major with a passion for business, software, and fun new gadgets, she has turned her writing craft into a profitable blogging business. When she’s not writing for SmallBizGenius, Danica enjoys hiking, trying to perfect her burger-making skills, and dreaming about vacations in Greece.

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Handgun sales in October 2020 rose by 65% when compared to the same period in 2019.  Video game sales amounted to $4.93 billion in July 2021, marking a 5% year-over-year increase. Toilet paper sales and fun facts about spending in the US show that demand for this product rose by 845% in 2020. 60% percent of sales reps increased their number of virtual meetings since 2015. (Salesforce) Even before the pandemic, virtual sales were on the rise, with many sales representatives reporting that they touch base with prospective customers and existing clients via video chat rather than traveling to meetings and lunches. Perhaps unsurprisingly, 62% also said they spend more time on their computers, tablets, and smartphones than they did a few years ago. These sales trends tell us that virtual selling is here to stay.        AI adoption rose 76% since 2018, with 37% of sales teams now using it. (Salesforce) As is the case in many industries, the acceleration of the digital transformation process is evident in the sales sector. Artificial intelligence or AI is one of the technologies that’s being rapidly adopted, with 37% of sales teams implementing these advanced tools globally in 2020. That marks a 76% increase since 2018. According to recent sales statistics, 77% of sales leaders and 84% of sales ops professionals claim their digital transformation has become more rapid since 2019. The AI tools also help power CRM software, which is crucial for managing customer relationships.  The use of smart sales tools has gone up by 300% since 2017. (Membrain) The substantial increase in both the types and the use of sales technology tools is being fuelled by online purchasing. Sales stats from 2017 reveal that most organizations at the time used only two main tools: CRM software and online meeting tools. Two years later, leads list/database, social selling, account targeting, and skills training and recruiting were added to the list. With six tools in regular use, the sales sector started to see more opportunities for leveraging technology to better cater to customers.  91% of consumers would like to see interactive content in marketing emails. (Hubspot) A Litmus report dubbed 2021 State of Email reveals most respondents feel that only interactive content in marketing emails can get their attention. However, only 17% of marketers actually use such content when advertising their products or services. Depending on your target audience and relevant sales information and analytics, you can add interactivity into your emails by including an embedded video, animated GIFs, a form, faux video, or carousel. Think about creative SMS content, too, or employ mass text software to help you create one with catchy phrases.  An average of 18 calls is needed to connect with buyers. (Gartner) Reaching potential buyers isn’t always easy. Consumers are generally suspicious when it comes to calls from sales reps and tend to avoid them by hanging up or not answering the phone at all. Likewise, only 23.9% of sales emails are opened, and others usually end up in a bin. The sales numbers indicate that more investment is needed into technologies that help locate potential buyers and improve the quality and quantity of communication. 60% of all contacted buyers reject the offer four times before saying yes.  (Invesp) Follow-up calls can make all the difference. But almost half of the salespeople (48%) never make a single follow-up attempt. Statistics that expose this passive trend among sales reps also indicate that consumers tend to change their minds if called at least four times. An astounding 60 percent of contacted prospects agree to buy a product or service during the fifth call, according to sales follow-up statistics compiled by the US consulting company, Invesp.  57% of people prefer buying from sales representatives that do not hassle them. (Invesp) Even though follow-ups are essential for convincing customers to purchase your product, more than half of the respondents said they prefer buying from sales representatives who aren’t too pushy. Salespeople have a reputation for hassling potential consumers, and these figures show that they would improve their chances of making a sale if they change their approach.  70% of businesses agree that retaining customers is cheaper than acquiring new ones.  (Invesp) Prospecting statistics reveal that even though most newly established businesses have to focus on acquiring new customers, the long-run focus should be on retaining them. Namely, it costs five times as much to gain a new buyer than to keep an existing one. Unfortunately, despite the convincing figures in favor of focusing on retention, only 40% of companies and 30% of agencies cultivate the same approach to acquisition and retention.  The American auto industry was showing signs of recovery in the summer of 2021, with nearly 1.2 million cars sold in July. (Goodcarbadcar) Following a sharp decline that saw sales plummet from 17 million in 2019 to just a little over 14.5 million in 2020, the car industry started showing signs of recovery by mid 2021. But according to United States car sales statistics, the positive trend failed to extend into the spring, with only 589,743 automobiles sold in October. Those are the lowest monthly sales figures in years.  California accounts for the highest number of car sales in the US. (Statista) Research from 2019 shows that the state of California registered more than 14.8 million automobiles that year alone. The state is also the biggest market for electric vehicles, plug-in hybrids, and for used car sales. Statistics by state reveal that Texas had the second-highest number of automobile registrations, with just over 8.3 million cars registered. Texas is followed by Florida (7.8 million) and New York (4.4 million). Handgun sales in the US in 2020 rose by 65% compared to 2019. (Statista) The US gun industry is having a good pandemic, with Americans buying handguns in record numbers. Research shows that in October 2020, around one million handguns were sold, marking a 65% increase compared to the same period in 2019. Gun sales statistics also reveal a spike in handgun sales in June 2020, when 1.511.710 items were sold. The American trade book market recorded a 9.7% increase in revenue in July 2021. (Association of American Publishers) During the pandemic-induced global lockdowns, many people turned to books. Perhaps unsurprisingly, book sales generated $750.7 million in revenue in July 2021. Reading once again became a favorite pastime in many American households, who contributed to the 9.7% growth in this sector, compared to July of 2020.  According to book sales statistics, eBook revenues in July 2021 went down 16% compared to the same period last year. Meanwhile, Paperbacks went up by 30%, generating $274.3 million in revenue. Video game sales amounted to $4.93 billion in July 2021, marking a 5% year-over-year increase. (Statista) Video games had a huge 2020 with more people than ever buying and playing games during the pandemic. Sales soared to $177.8 billion - an increase of 23.1% from 2019. The future looks equally promising, with some forecasts suggesting that the global gaming market will be worth $268.8 billion by 2025. Video game sales statistics for the US market in 2021 show that the industry is maintaining its upward trajectory. 2020 has seen a significant decline in draft beer sales, while canned beer sales went up. (NBWA) The forced closures of bars and restaurants during the pandemic had a significant impact on alcohol sales. Draft beer’s share of total volume declined from 10% in 2019 to around 6% in 2020. Beer sales statistics also show that demand for canned beer rose from 60% in 2019 to 67% in 2020. At the same time, sales of beer in glass bottles remained relatively unchanged, accounting for 29% of the market share in 2019 and 28% in 2020. Toilet paper sales in the US spiked by 845% in 2020. (Business Insider) Toilet paper hoarding in 2020 resulted in a spike in sales of 845% in March 2020, compared to 2019, with a total of $1.45 billion sold in a single month. In March 2020, 73% of all grocery stores ran out of toilet paper. By May, that figure dropped to 48%. Toilet paper sales statistics in 2020 exposed a somewhat disturbing and equally commercial side of consumer behavior in times of crisis.  Girl Scout cookies sales amount to around $800 million during each cookie season. (Girl Scouts) Selling Girl Scout cookies has been a tradition in the US since 1912 and has become a lucrative business for many. Girl scouts sell about 200 million boxes of cookies each season and earn nearly $800 million in revenue. According to mouth-watering girl scout cookie sales statistics, the most popular variety is Thin Mints, followed by Samoas, Caramel deLites, and Tagalongs/Peanut Butter Patties.  Sales: the Bottom Line In the choppy waters and hazy horizons of the pandemic-hit world, steering your business in the right direction isn’t easy. There are many challenges facing sales teams and managers, especially when it comes to locking down customers and promoting products and services. On the other hand, some industries are doing better than ever. Business sales statistics show that demand for canned beer, video games, and guns has never been higher. But that doesn’t change the fact that the future is uncertain for everyone, and the new business world is yet to shape out.
By Danica Djokic · November 10,2021
Victimless crimes without bloody traces, fingerprints, or mysteries worthy of Hercule Poirots’ insights and findings don’t shake the public too much. People don’t usually expect white-collar office workers with their noses buried into piles of papers to keep dark secrets. Despite that, white-collar crime statistics show the seriousness of this problem, which can have devastating consequences on businesses and enterprises.  Money laundering, embezzlement, financial statement frauds, check or payment tampering are among the most common crimes committed by white-collar workers. We compiled data regarding those felonies to help you learn more about white-collar corporate crimes.  White-Collar Crime Stats: Editor’s Choice Only 28% of white-collar employees involved in corporate crimes are women. A typical white-collar felon is a married male in his forties.   White-collar crimes cost the United States over $300 billion per year. Only 6.1% of corporate criminals come from an unhealthy family background. Only 9% of frauds happen in nonprofit organizations. Corruption accounts for 43% of white-collar crimes and causes a median loss of $200,000 per case.  The maximum prison sentence for insider trading in the US is 20 years. White-Collar Crime Demographics: Who Commits the Crimes? Only 28% of white-collar employees involved in corporate crimes are women. (2020 Global Study on Occupational Fraud and Abuse) If there has ever been a need to draw a forensic sketch of a typical corporate criminal for identification purposes, it very likely wouldn’t be a woman. Detailed research into the demographics of white-collar criminals showed that women are very rare corporate crime offenders, accounting for only 27% of committed frauds. The fact that a vast majority are men is understandable given the disproportion of females in higher management positions at corporations. Corporate crime statistics reveal that a typical white-collar felon is a married male in his forties. (Bajoka) (University of Cincinnati School of Criminal Justice) The typical white-collar criminal doesn’t look any different than the co-workers you sip your morning coffee with. He is likely in his mid-forties, though some start earlier. He doesn’t have a criminal record and hasn’t committed any criminal acts until his late 30s. Most of them boast at least a Bachelor’s degree and belong to the professions not so often associated with illegal activities: lawyers, financial advisors, accountants, and clergy members. Some companies use employee tracking software to get a better insight into their workforce, but these felons are usually in positions of power, where they don’t get tracked or at least know how to circumvent it.  Statistics of white-collar crime in the US show 35.3% of felons have more than $10,000 in assets. (University of Cincinnati School of Criminal Justice) As we can see from the statistics gathered in the research commissioned by The University of Cincinnati School of Criminal Justice, over a third of white-collar criminals are well-established in the society, with more than $10,000 in assets. 63.5% have residential stability, and out of that number, 50.3% are homeowners. They are usually highly ranked in their companies, often at managerial positions, and 65.8% of them have steady employment.  White-collar crime racial statistics reveal 73.9% of offenders are white. (University of Cincinnati School of Criminal Justice) Social and other prejudices often take over the minds of people when they think of criminal activities. Corporate crime is a different beast, though.  Nearly three-quarters of white-collar offenders are white people coming from middle-class or better backgrounds. Notably, income tax frauds are overwhelmingly white-male driven crimes, with 91.4% of perpetrators being male and 89.1% white. Only 6.1% of corporate criminals come from an unhealthy family background. (University of Cincinnati School of Criminal Justice) When we speak or think about thefts, kidnapping, rape, or murders, we often envision the perpetrators coming from tough financial conditions and unhealthy family backgrounds. Statistics on white-collar crime indicate some often overlooked facts regarding the families the felons come from. Namely, only 6.1% of them were raised in families where they were abused, neglected, or abandoned as children. Only 6% grew up with at least one family member involved in criminal activities, and 15% had parents who struggled to provide the necessities of life. Common Types of White-Collar Crimes Asset misappropriation schemes account for 86% of frauds and cause a median loss of $100,000 per case. (2020 Global Study on Occupational Fraud and Abuse) Now that we know who commits white-collar crimes and the statistics behind them, we can determine the most common types of these crimes. According to the data gathered in the Report to the Nations global study on occupational fraud and abuse, the most frequent fraud scheme is asset misappropriation. This felony accounts for 86% of all white-collar crimes, but, luckily, it’s the least costly type with a median loss of $100,000 per case. Asset misappropriation happens when an employee misuses or steals the company’s resources and thus defrauds their employers.  Financial statement frauds are the most costly type of white-collar crime, with a median loss of $954,000. (2020 Global Study on Occupational Fraud and Abuse) Luckily, white-collar crime statistics indicate that financial statement fraud schemes are the least common type of corporate fraud, accounting for only 10% of the cases. So what are financial statement frauds? They involve schemes in which the offender intentionally omits or misstatements the material in the company’s financial statements. Corruption accounts for 43% of cases and causes a median loss of $200,000 per case. (2020 Global Study on Occupational Fraud and Abuse) Corruption takes up an expectedly high proportion of occupational frauds. Offenses such as bribery, extortion, conflicts of interest, bid-rigging, and other illegal activities cause losses of around $200,000 per case. One of the more alarming facts about white-collar crime is that corruption cases often cost companies more than just money. Often their reputation goes on the line, and many have to reach out to costly reputation management services to mitigate the damage. 64% of organizational offenses in the United States happen in closely-held or private corporations. (United States Sentencing Committee) Speaking of the structure of the organizations where frauds are committed, 64% of them are private or closely-held corporations. US white-collar crime statistics show that limited liability companies account for 22.7% of cases, and 9.3% of cases happen in publicly traded corporations. If we dig deeper into the infrastructure of American businesses committing corporate offenses, we can conclude that most are small in size. Namely, 66.1% had fewer than 50 employees, and only 9.7% had more than 1,000.  Only 9% of frauds happen in nonprofit organizations. (2020 Global Study on Occupational Fraud and Abuse) Although nonprofit organizations reported very low white-collar crime rates, the $75,000 in damages per case can be a serious blow to smaller organizations. According to the 2020 Report to the Nations study, private organizations accounted for 44% of corporate frauds, public ones for 26%, government agencies for 16%, and other company types for 6%. General White-Collar Crime Statistics FBI white-collar crime statistics show that these criminal offenses cost the US over $300 billion per year. (Cornell Law School 2020 Global Study on Occupational Fraud and Abuse) According to the Federal Bureau of Investigation (FBI), corporate crime offenses are estimated to cost the US more than $300 billion every year. Aside from fines, other penalties for white-collar crimes include paying the cost of prosecution, home detention, forfeitures, community confinement, supervised release, and even imprisonment.  Only 56% of organizations conducted an investigation of their worst corporate criminal incident. (PwC's Global Economic Crime and Fraud Survey 2020) When we look at white-collar crime report statistics, we can see that the main reason for the persistent recurrence of corporate crime might be the lack of people willing to report it. Figures show that only 56% of businesses conducted an investigation of their worst incidents related to white-collar crime. Simultaneously, barely one-third of organizations reported the incident to the board. 89% of the interviewees reported negative emotions after an incident or fraud happened at the company. Taking all the necessary steps to address and better understand the issue results in fewer fraud cases in the future. Ignoring white-collar crime sentencing statistics for a moment, nearly 60% of companies who conducted detailed investigations into the fraud cases ended up being better off for it.  80% of white-collar crime perpetrators received some punishment in 2020, but only 59% of the cases were referred to law enforcement agents. (2020 Global Study on Occupational Fraud and Abuse) Organizations can refer to the corporate criminal incident internally, through civil litigation, or by reaching out to law enforcement. The statistics on the response to frauds indicate that nearly half of the victim organizations (46%) never refer these frauds to law enforcement, believing that internal discipline is sufficient. Another big reason for refraining from reaching out to the criminal justice system is the fear of bad publicity (32%). There were 755 cases of money laundering in the United States in 2020. (United States Sentencing Committee) White-collar crime statistics by the state indicate that the Southern District of Florida had the highest number of money laundering cases during the fiscal year of 2020 (42). This was followed by the Southern Districts of New York and Texas, with 33 convictions each. One of the ways to prevent money laundering and tax evasion is to engage professional tax software solutions to help companies stay up-to-date and compliant with state and federal tax laws. White-collar crime prison statistics reveal that the maximum prison sentence for insider trading in the United States is 20 years. (US Securities and Exchange Commission) Even though not many people and organizations are willing to go to law enforcement in resolving corporate fraud cases, there are exceptions. When reaching out to the criminal justice system to solve the problem, victim organizations can expect the maximum prison sentence for insider trading to be 20 years. At the same time, the maximum amount of money charged from corporate criminals is $5 million for individuals and $25 million for organizations. Obviously, insider trading is just one of the many corporate frauds that can ruin a company’s finances and reputation, but the steep punishments should serve to encourage more people to speak up and get the felons convicted.
By Danica Djokic · October 07,2021

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