Financial fraud is known as a deceptive white collar crime that can be devastating yet manageable for individuals with the correct knowledge and accurate preventative methods. Many people are not fully educated on the topic, which leaves them feeling vulnerable and helpless.
Recent studies show that 15 percent of the population are victims of financial fraud every year. On average, businesses lose an estimated $3.5 billion annually to fraud and financial crime, according to the Association of Certified Fraud Examiners. In addition, fraud losses are estimated to total $80 billion per year in the health care sector, while non-health-related insurance fraud is believed to top $40 billion annually. It seems that being well aware of the possibilities in financial fraud could greatly benefit your finances down the road along with knowing when to call a Certified Fraud Examiners if the situation calls for it.
The following are some of the Common Types of Financial Fraud
When hearing about fraud, a picture is painted in the mind of someone stealing money unlawfully. Not many people are aware of the different forms of financial fraud that could immensely effect their finances. Listed below are common forms of Financial Fraud:
Bribery, which is simply used to deceive the victim into believing false accusations that might lead them to a financial flourish.
Embezzlement, also called larceny, which is the illegal use of funds by a person who controls those funds.
Identity Theft, the fraudulent acquisition and use of a person’s private identifying information, usually for financial gain.
Elder Fraud is an act targeting older adults in which attempts are made to deceive with promises of goods, services, or financial benefits that do not exist, were never intended to be provided, or were misrepresented.
Money Laundering, which is the concealment of the origins of illegally obtained money, typically by means of transfers involving foreign banks or legitimate businesses.
Mortgage Fraud is a crime in which the intent is to materially misrepresent or omit information on a mortgage loan application to obtain a loan or to obtain a larger loan than would have been obtained had the lender or borrower known the truth.
Securities Fraud, also known as stock fraud and investment fraud, is a deceptive practice in the stock or commodities markets that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of securities laws.
Tax Evasion, the illegal nonpayment or underpayment of tax.
Fraud is real, however, the Institute of Forensics & ICT Security has organized a customized in house training in Fraud Prevention and awareness, sponsor your team to attend the training and together we can reduce fraud in Uganda.