The term “fraud” is a large umbrella term that dozens of crimes can fit under. Some of the most common types include the following:
- Bank (or accounting) fraud: The process of illegally gaining bank-owned money or property.
- Bribery: Instances where money and/or gifts are given as a means of motivation for a favorable outcome or treatment of a group.
- Conspiracy: A plot or scheme developed by two or more people to commit a crime.
- Counterfeiting: Misrepresenting an asset. Most often this involves currency, but it can be any good or service.
- Embezzlement: Stealing money and/or property from one’s employer.
- Identity theft: Using another person’s sensitive information (name, social security number, etc.) for financial gain.
- Insurance fraud: This type of fraud can work both ways: both a policy holder can be fraudulent to claim more money than entitled and an insurance company can deny or underpay policy holders.
- Medicare/Medicaid fraud: The process of overcharging the government for products or services within the healthcare sector.
- Money laundering: The process of ‘cleaning’ money from illegal dealings through a legitimate business, a shell company or foreign banks.
- Racketeering: Criminal organizations that run illegal businesses or that use legal business to clean the money raised from illegal activities.
- Tax evasion: The process of underpaying your taxes on purpose. Often, a person falsifies documents to indicate a lower tax total owed.
- Tax fraud: Deliberately evading tax laws or not filing a return to not pay taxes owed.
With so many different types of frauds possible, it can seem easy to be a victim of fraud. However, if you can identify fraud types, you’ll be that much safer.