Understanding Financial Fraud

What is Financial Fraud? 

When someone steals money or other assets from you through deception or criminal activity, this is referred to as financial fraud. Recognize the different types of financial fraud and how to protect yourself.

Information You Should Have Regarding Financial Fraud

Fraud occurs when a person or business intentionally deceives another with promises of goods, services, or financial benefits that do not exist, were never intended to be provided, or were misrepresented. Usually, victims donate money but never get what they expected. In the United States, millions of people fall victim to fraud crimes every year.

Who are the fraud victims?

Fraudulent crimes can affect almost anyone. Con artists do not exclude anyone because of their age, wealth, level of education, gender, race, culture, ability, or location. In fact, fraud perpetrators often target certain groups based on these factors.

Who engages in fraud offences?

Fraudsters come in a variety of educational, social, geographic, and economic backgrounds, just like their victims. The majority of con artists make a living off their illegal activities. Some even become members of professional associations to give their schemes legitimacy and present a respectable façade.

What causes underreporting of fraud crimes?

Although fraud victims are not alone, they often suffer their losses alone and in silence. Only about 15% of the nation's fraud victims report their crimes to law enforcement, for a variety of reasons, including shame, guilt, embarrassment, and disbelief. Other reasons include victims' doubt about their own judgment, a sense of betrayal, and fears about how their family members, friends, and business associates will react. Some victims don't want to report the crime because they believe their losses aren't significant enough, they don't want to get involved, they believe law enforcement will not take the crime seriously, or they believe nothing will happen if they do. While intelligent, skilled perpetrators are to blame for these criminal acts, many victims believe that they alone are to blame. 

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