Fraud happens when someone acts in a deceptive, unfair, misleading or manipulative way that benefits them the most.
Fraud is a white-collar crime and can lead to fines and incarceration. Here’s what you should know:
There are many ways people can commit bank fraud. One example would be accounting fraud, which happens when a business alters statements so they seem more profitable and can apply for more loans. Another kind of fraud is loan fraud, which may happen when a thief commits identity fraud and takes out loans in the name of the stolen identity. In essence, bank fraud happens when someone obtains money illegally from financial institutions.
Insurance fraud may happen when someone makes a false claim with an insurance company. By doing this, the claimant may attempt to benefit from the claim. However, this kind of dishonest action can lead to serious criminal charges. Another way insurance fraud can occur is if the insurance company withholds or denies benefits they know a claimant deserves.
Someone may own property and place it in the name of someone else. This may attempt to avoid or deceive creditors by placing this property out of reach. If it’s found that the transfer of the property was a fraudulent conveyance, then the court may have it handed to the creditor.
Wire fraud is the use of technology when deceiving others for personal gain. People who commit wire fraud may use phones, text, social media, email, etc. to trick others.
Mail fraud and wire fraud are very similar. Mail fraud often works by using products, services and goods under false premises using mail services. Some common forms of mail fraud include pyramid schemes, Ponzi schemes and sweepstakes.
If it’s believed you were involved in fraud, then you need to be aware of your right to a legal defense.