The mundane world is riddled with deception, corruption, and lies. And no one wants to be a victim of fraud. You hear about fraud all the time in the news, but you usually think it will never happen to you. Today’s con artists use more devious schemes than ever before, and even the most circumspect individuals fall victim to their schemes. Ponzi schemes, money laundering, intellectual property infringement, phishing, corporate fraud, and other schemes are examples of these. In other words, those found guilty of any level of fraud may face severe penalties. This article will look at the various types of fraud that exist in the banking, law, business, accounting, credit card, and insurance industries, among others.<\/p>\n
The courts divide fraud into two primary categories: criminal and civil. Civil fraud occurs when a deliberate distortion of facts is made. Criminal fraud occurs when theft is included in the fraud.<\/p>\n
Insurance fraud, generally, is a deliberate deception committed against or by an insurance company or agent for financial gain. This fraud may be committed at various stages by aspirants, policyholders, third-party petitioners, or professionals who provide services to petitioners. Insurance agents and company employees may also commit insurance fraud. The following are some other types of commonly committed acts or schemes of insurance fraud<\/p>\n
Types of home insurance fraud include:<\/p>\n
Types of health care insurance fraud include:<\/p>\n
Types of auto insurance fraud include:<\/p>\n
Types of disability & life insurance fraud include:<\/p>\n
The notion asserts that there are three elements that, when combined, result in fraudulent activity. They consist of a\u00a0perceived unshareable financial need (motivation\/pressure),\u00a0a perceived chance to conduct fraud, and\u00a0the explanation for committing fraud.<\/p>\n
Application fraud, often known as “true name fraud,” occurs when an identity thief utilizes your personal information (such as your Social Security number) to open new accounts in your name. Credit card account statements are sometimes sent to the thief’s address rather than the victim’s, so you may not learn about the theft for months.<\/p>\n
Types of fraud in banking involve the dishonest use of another person’s personal information to gain access to a financial institution. There are several types of fraud in banking, and understanding them can help you prevent it. These include:<\/p>\n
Accounting fraud, generally, is the deliberate manipulation of financial statements to create the appearance of a company’s financial health. Furthermore, an employee, accountant, or the organization itself may deceive investors and shareholders. The three major types of accounting fraud are listed below.<\/p>\n
Accounting fraud occurs when a company overstates its revenue. If the company’s revenue is insufficient To conceal this situation, the firm may claim to generate more income on financial statements than it actually does. Hence, the company’s profits would be amplified on its financial statements. If the company overstates its revenues, the firm’s share price will rise, creating a false impression of financial health. Other types of accounting fraud include misstating assets and liabilities, and expenses not recorded.<\/p>\n
Misstating assets and liabilities are types of accounting fraud that occur when a company misrepresents or understates its assets. A company, for example, may overstate its current assets while understating its current liabilities. Hence, this type of fraud deceives investors about a company’s short-term liquidity.<\/p>\n
Accounting fraud also occurs when a company fails to record its expenses. On the income statement, the company’s net income is overstated, while its costs are understated. However, this type of accounting fraud creates a false impression of a company’s net income, which results in a fraudulent act. Other types of fraud in accounting include demand draft fraud, remotely created check fraud, uninsured deposits, etc<\/a><\/p>\n Federal and State laws, prosecute various types of fraud through the United States attorneys. But this depends on the circumstances of the case. Below are the most common types of federal law and state fraud crimes.<\/p>\n The use of regular mail or any form of wired communications technology, such as telephones or the internet, is part of a fraudulent scheme. Federal prosecutors may add wire or mail fraud charges to bribery and corruption charges. Similarly, fraudsters use charges of wire or mail fraud in the prosecution of racketeering<\/a> and RICO Act violations. <\/p>\n When a taxpayer attempts to avoid paying federal income taxes. Tax fraud examples include knowingly underreporting taxable income, overestimating business deductions, and simply failing to file a tax return.<\/p>\nTypes of Fraud in Law<\/span><\/h2>\n
#1. Mail and Wire Fraud<\/span><\/h3>\n
#2. Tax Fraud<\/span><\/h3>\n
#3. Stock and Securities Fraud<\/span><\/h3>\n