Fiduciary fraud occurs when a person in a position of trust mismanages or misappropriates a client’s finances or assets. The client must prove deliberate breach of trust and financial loss to seek damages. Examples include fraudulent financial institutions and investment scams. Fiduciary fraud is a legal term that applies in a situation where there is […]
Criminal fraud involves deception for personal or financial gain, with various types such as charity, counterfeiting, embezzlement, tax, insurance, and benefit fraud. Penalties vary by state, and fraud committed through electronic means has become more common. The precise legal definition of criminal fraud may vary slightly by jurisdiction. Typically, however, criminal fraud involves an act […]
Financial fraud is the unethical or illegal management of financial resources, resulting in substantial losses for investors or corporations. It can take various forms, including embezzlement, falsifying financial statements, and accepting bribes. Companies may choose to take legal action or handle the situation internally. Financial fraud is a situation in which the legal and ethical […]
Procurement fraud involves violations of the tender process, such as overcharging, uncompetitive bidding, conflicts of interest, and defective materials. It can occur during bid preparation, selection, and through deception or manipulation. Contractors may inflate costs or falsify documents, and controlling fraud during emergencies is challenging. Procurement fraud refers to violations of the tender process when […]
Real estate fraud occurs when a borrower misrepresents information to obtain a loan they are not entitled to. This can include altering pay stubs or obtaining false letters of credit. More complex forms include illegal flipping of properties and fake appraisals. Lenders conduct investigations to reduce the risk of fraud and the public should report […]
Contractor fraud involves deception for financial gain in the construction industry, such as overcharging, selling bad parts, or not completing work. Warning signs include cash-only payments, no license, and no written contract. Reporting fraud is crucial, and governments have anti-fraud departments to investigate and prosecute offenders. Contractor fraud is a type of fraud against homeowners […]
Welfare fraud is intentionally misrepresenting information to receive government benefits, including food stamps and housing assistance. Penalties vary but can include reimbursement and imprisonment. Reporting false information or not reporting changes in income or dependents can constitute fraud. Repayment and fines are common penalties, but recouping losses can be difficult. Welfare fraud is the receipt […]
A fraud audit is a review of a company’s financial records to detect and prevent fraudulent activity. It is separate from the routine financial audit and is used as a compliance tool by company management. The audit is more investigative in nature and focuses on identifying warning signs of fraud. The auditors are not responsible […]
Check fraud covers a range of illegal practices, including insufficient funds, check kiting, and paper switching. Physical alteration of paper checks is another form of fraud. Modern banking practices have made some forms of check fraud more difficult to commit. Considering the number of checks written every day around the world, it’s sometimes easy to […]
Immigration fraud can be reported to federal agencies in the US, such as USCIS, ICE, and CBP, or to Citizenship and Immigration Canada. It can involve false statements, fictitious marriages, or victimization of immigrants. Reporting can be anonymous and relevant information should be provided. Lawyer misconduct can be reported to the state bar association. If […]
Job fraud involves tricking job seekers into applying for fake job openings, often through work-from-home schemes or phishing. Identity theft is also used to apply for jobs. To avoid being scammed, job seekers should fact-check and confirm company legitimacy, ask questions, and protect personal information. The crime of job fraud involves both job hunters and […]
Check fraud is a type of white-collar crime where high-ranking employees use company assets for personal gain. It involves accounting fraud, forgery, and Ponzi schemes. The CEO is in a unique position to commit this crime, and it can lead to the failure of companies and even governments. Check fraud is a type of white-collar […]
Outgoing, gullible, and risk-tolerant individuals are at a higher risk of fraud. People with inflated self-esteem and low comfort with math and finance are also vulnerable. Fraudsters manipulate victims by gaining their trust and promising exaggerated returns on investment. There are three specific actions that increase your risk of fraud: personality, gullibility, and risk tolerance. […]
Fraud management is a set of policies and procedures implemented by companies to prevent and detect internal employee fraud. This process involves assessment, prevention, detection, investigation, mitigation, and corrective actions. The US passed laws to increase management’s legal responsibilities for active employee fraud protection. Large companies employ dedicated staff to manage internal fraud. Fraud management […]
ATM fraud is a major problem worldwide, with fraudulent deposits and skimming of card information being common. Criminals use various methods, including implanting devices on ATMs, using cameras, and card skimmers to steal information and withdraw funds. Financial institutions and cardholders are most concerned about these types of fraud. Financial fraud of all kinds is […]
Real estate fraud involves misrepresenting information on mortgage loan applications or other real estate-related documents. It can result in hefty penalties, including fines and jail time. Common types include preparing two different transaction statements and using fraudulent qualifications to qualify for a loan. Even accidental failure to disclose financial liabilities can be considered fraud. Real […]
Bank fraud involves illegally obtaining funds from a bank or financial institution through deception, including check fraud, identity theft, embezzlement, and document fraud. Prevention methods include strict identification policies and careful review of check history. Identity theft-related bank fraud is a growing problem in the internet age. Embezzlement and document fraud are also common forms […]
Fraud involves lying or misrepresenting information for profit. Types include false advertising, tax evasion, investment schemes, insurance fraud, and identity theft. Investigations are handled by various authorities, with penalties including fines and jail time. False advertising is investigated by the FTC, tax evasion by the Department of the Treasury, and investment fraud by the SEC. […]
Escrow fraud can be avoided by using reputable escrow companies with a good reputation, being wary of sellers who insist on using a particular escrow service, and using shipping services that provide proof of delivery. Buyers can commit fraud by canceling payment for an item after receiving it, so sellers should use shipping services that […]
Securities fraud litigation is legal action against parties accused of deceptive conduct in the sale of investment vehicles. Misrepresentation, churning, and other fraudulent practices can lead to litigation and severe penalties. The SEC regulates securities and can prosecute fraud cases, while investors can seek compensation through the Securities Exchange Act. International companies can also face […]
