Fraudulent trading is a criminal offense in some jurisdictions, commonly occurring in the context of bankruptcy law. It involves accepting orders without the intention or ability to fulfill them, causing creditors to suffer losses. To prove it, it must be demonstrated that someone profited from the transactions. Damages are awarded to compensate creditors, and proving […]
Wire fraud is a federal crime in the US where individuals use electronic communications to defraud victims of property. Most cases involve the internet, and scammers can use various methods to mislead victims. Governments fight this fraud through criminalizing the behavior and investigating financial activity. Educational campaigns also aim to raise awareness and protect citizens […]
Child support fraud includes avoiding paying child support by avoiding employment, switching jobs, working for cash, holding assets in others’ names, or declaring less income. It is easier to trace payments with a paper trail, and some may place assets in others’ names or report less income if self-employed. Child support fraud is a term […]
A fraud auditor prevents and detects fraudulent activities, developing standardized procedures for accounting and internal accounting. They investigate complaints, assemble a team of accountants, and liaise with law enforcement. A degree in accounting or mathematics is required, and certification may be necessary. A fraud auditor is responsible for preventing and detecting various types of fraudulent […]
Contract fraud is when someone intentionally misrepresents a material fact in the formation of a contract. Remedies include voiding the contract and collecting damages. Criminal penalties may apply depending on jurisdiction and severity. Fraud is defined as any intentional misrepresentation of a material fact made knowingly by one person to another with the intent that […]
Healthcare fraud involves intentionally falsifying information for payment of healthcare services or equipment. It is committed by patients, physicians, and medical equipment providers, leading to higher costs. Fraud can involve falsifying diagnoses, upcoding, unnecessary stages of billing, changing co-payments, and selling drugs for profit. Reporting suspicions of fraud can help reduce fraudulent activity. Healthcare fraud […]
Corporate fraud occurs when executives, directors or employees deceive the public, government or investors about a company’s financial performance. This is often done to cover up failures or for personal gain. Fraud can impact a company’s stock price and tax liability. Fraud cases often involve high-level employees and can be difficult to detect. Whistleblowers and […]
Fraud claims are filed to report fraudulent activity, such as credit card, computer, welfare, insurance, or securities fraud. They can be filed by victims or those with information, and the process varies by jurisdiction. Hotlines and specific complaint centers are available for certain types of fraud. Multiple organizations may be involved in investigating a fraud […]
To report medical fraud, identify the type of fraud, gather documentation, and contact the relevant agency. Insurance companies and governments may have fraud investigation offices. Report identity theft to the police and insurance company. False diagnosis or treatment should be reported to the licensing board. Gather documentation and stay in contact with investigating authorities. Properly […]
Insurance fraud can take many forms, including life, property, health, auto, and more. Detecting fraud is primarily the responsibility of insurance agents and companies, who employ underwriters, appraisers, and investigators to double-check claims. The importance of fraud detection is highlighted by the fact that hundreds of billions of dollars are paid each year for fraudulent […]
To detect payroll fraud, review payroll records for terminated or phantom employees, suspiciously high hours, and duplicate information. Check canceled checks for matching names and signatures. Regularly review payroll data and observe the payroll process for errors and inconsistencies. Recognizing payroll fraud often requires reviewing payroll records for signs that terminated employees are still receiving […]
Prescription fraud is a crime where people obtain prescription drugs illegally. Reasons for this include addiction and wanting to use the drugs for other purposes. The most commonly sought-after drugs are those that help calm down, create a euphoric high, or treat pain. The most common groups that commit prescription fraud include teenagers, drug addicts, […]
Insurance fraud is a common problem where people use fraudulent means to obtain reimbursements from insurance companies. It affects consumers by causing higher premiums. Auto, life, health and property insurance can be subject to fraud. Insurance companies use algorithms to detect fraud, and many nations have laws in place to stop it. However, there are […]
Insurance fraud is a crime with penalties defined by regional penal codes. Whistleblowers and investigations often uncover fraud. National laws may also outline evidence of fraud not found in regional penal codes. Aggravated insurance fraud is a crime in most jurisdictions and penalties often include prison time. The insurance fraud law is often a part […]
Fraud can be detected through recommendations, accidental discovery, audits, data mining, and hotlines. Companies use internal and external controls, informal methods, and prevention tactics such as screening employees and adopting a code of ethics to reduce the risk of fraud. The most common method of detecting fraud is through recommendations from people inside or outside […]
Charity fraud involves deceiving donors by soliciting donations for a fake cause. Fraudsters use high-pressure tactics and may exploit tragic events to appeal to donors’ compassion. They establish false legitimacy by using names similar to reputable charities. Fraud can occur through phone calls, street corner solicitations, or online requests. Donors can prevent fraud by verifying […]
Reporting government fraud can be done through official channels in most countries. Contact the relevant agency and ask about the reporting process and eligibility for rewards. Fraud types include tax, procurement, healthcare, and securities fraud. Whistleblowers can earn financial rewards, but anonymity may affect eligibility. The US government has a successful whistleblower bounty program, and […]
Settlement fraud involves deceiving someone to waive a legal right for profit. Debt and life insurance settlements are common targets. Fraudsters pose as debt attorneys or settlement companies, charge upfront fees, and fail to reach agreements. Life settlement fraud targets elderly policyholders with promises of a new policy paid for by a third party. Warning […]
Stockbroker fraud involves a broker using false or misleading information to persuade an investor to invest their money. Inside trading is another form of broker fraud. Penalties for committing fraud include losing their securities license, facing civil lawsuits, and criminal charges. Fraud comes in many forms, one of which is stockbroker or broker fraud. Fraud […]
Oral contracts may be binding in some cases, but in the US, the statute of fraud requires certain agreements to be in writing. This includes marriage contracts, land transfers, and contracts involving property sales. The contract must include all parties’ names, the purpose of the agreement, and the terms agreed upon. All parties must sign […]
