What Is Fraud?
There are so many different definitions of fraud both locally and internationally. But the basic dictionary definitions are along the lines that fraud is a deliberate misrepresentation which cause another person to suffer damages, especially monetary losses. You could also say it is obtaining money or financial advantage for yourself or another person, through dishonesty. Whichever way you look or describe it, the common factor is that losses are incurred and that it is a criminal offense.
A person who commits fraud is a fraudster. Fraudsters are plentiful and not a single day passes without fraud happening. Fraudsters are always looking for new methods to use. They will try to target you through your emails, phone calls, social networking sites and chat rooms. They spend 24 hours every day looking for the loopholes which means that it it is not surprising that those that are complacent are easy targets.
Fraud causes loss of billions and affects millions of people. Although most cases are investigated by the police and forensic accountants, these cases are not easy to prove and may take years before they are resolved, if at all. To avoid all this, you must always be alert, try to understand how fraudsters work and how you would recognize a fraud. It is always better to be safe than sorry.
Some leading examples of fraud are as follows:
Credit card fraud
Due to advancements in technology, scammers try to retrieve your personal information whenever you are using your credit card. This then allows them to make purchases or withdraw money in your name.
Investment fraud
This is any scheme or deception relating to investments that affects a person or a company. Being sold worthless stocks or shares can deplete life savings or break a company. People have been driven to suicide as a result of investment fraud.
Bank fraud
Bank and banking related frauds include credit card fraud, cheque frauds, uninsured deposits and falsification of loan applications.
Government fraud
This occurs when funds of the federal government are diverted to personal or unrelated causes.
Land fraud
Con artists impersonate land owners and forge the documentation then appear to sell the property to you.
These are just five types of fraud listed here, there’s hundreds more and it’s your duty to be vigilant and avoid any of these happening to you. Be safe and make sure that your business does not need a fraud investigation in the future.
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