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Explaining four major types of fraud

Money laundering, identity theft, Ponzi schemes, intellectual property theft and piracy are all examples of white collar crime, but one of the most imposing white collar crimes; fraud, carries many faces. Four major fraud styles include corporate fraud, financial institution fraud, mortgage fraud and health care fraud.

Continuing, we’ll cover the generalities of these styles of fraud.

If you are seeking representation, it would be wise to contact an attorney who can personally guide you through the complexities associated with white collar crime.

Corporate fraud

Corporate fraud is and has been a very popular criminal venture. This fraud option leads to significant losses for investors, damage to the United States economy and weakens investor confidence. Many corporate fraud cases include an accounting scheme aimed at fooling investors, auditors and analysts. Their goal is to misguide these individuals about the actual financial condition of a corporation or business by inflating and manipulating financial data and other corporate measurements.

Other acts of corporate fraud can include: fraudulent trading, illegal transactions to avoid regulatory oversight, personal use of corporate funds, insider trading and late trading.

Financial institution and mortgage fraud

Financial institution fraud (FIF) criminals focus their intent on retail banks, credit unions and other Federal Deposit Insurance Corporations (FDIC.) The actions of these criminals often include compromising customers’ accounts and stealing their personal information. Another term for stealing this personal information is identity theft.

Bank employees and others with no ties to the institution can commit this style of fraud. FIF strategies can include impersonating an account holder, using counterfeit checks and credit card scams among others.

Mortgage fraud

This brand of fraud is a described as a misrepresentation of a mortgage loan. The lie leads to the bank approving the loan, accepting a reduced payment option or agreeing to a lowered payoff amount. There are two styles of mortgage fraud: profit fraud and housing fraud.

  • Fraud for profit is often committed by industry insiders with depths of knowledge in the subject. The goal of profit mortgage fraud is to cheat the mortgage lending process to gain profit from said lenders and homeowners.
  • Fraud for housing is often committed by a homeowner trying to secure and maintain ownership of his property. This style of mortgage fraud is committed when the owner misrepresents his income or asset information when applying for a mortgage loan, or attempts to persuade an appraiser to change the already appraised property value.

Health care fraud

According to the federal Bureau of Investigation (FBI,) health care fraud costs the country billions of dollars each year. Many health care theft schemes aim to steal patients’ medical information. They use this information to get reimbursed for services or goods not provided to the patient.

Common ways these criminals attempt to obtain personal information include:

  • Free screenings at health fairs
  • Using sign-in sheets at medical clinics that offer a reward (money or a gift) for proving personal information
  • Persuading medical personal to copy and provide the criminal with private patient information by telling these employees that they will be paid for their troubles

As a corporation, financial institution, homeowner or healthcare institution or patient, safeguard your information. Exercise your right to privacy and keep your personal and financial information safe from preying eyes wishing to cash in.

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