For as long as currency has been around, there have been criminal-minded individuals that are motivated to steal it. In recent years, technology has risen to the forefront as a tool for committing financial crimes. It’s relatively simple to master, convenient and easily accessible for anyone with fraudulent intentions. Even worse for the victim is that criminal activity may go undetected for some time and it’s difficult to pinpoint the perpetrator. There are ways to safeguard your interests, especially when you know the four most common financial crimes.
1: Identity Theft:
A person who unlawfully uses your personal data to facilitate financial gains in your name is committing the crime of identity theft. Typically, someone would utilize your Social Security or tax ID number, credit history or account PIN details to take money or open a line of credit. Unfortunately, this type of fraud is usually accomplished without the victim even knowing the crime took place until long after it occurs. The best way to protect against identity theft is to safeguard your financial information and check your credit report periodically.
2. Debit/Credit Card Fraud:
This scam is similar to identity theft in that it involves the use of the victim’s personal data to charge purchases to a credit card or remove money from the account. Debit or credit card fraud generally falls into two categories:
- Account takeover by the fraudster, who often goes on a spending spree; and,
- Application fraud, where another person’s identity is used to apply for a line of credit.
To avoid these financial crimes, you should check your credit and debit card activity often for unauthorized purchases. Again, running your credit report on a regular basis is recommended.
3. Embezzlement:
A person who takes money entrusted to them by another, and then keeps the funds for his or her own use is guilty of embezzlement. The difference between embezzling money and some of the other financial crimes is that the perpetrator actually received the fund properly. The unlawful activity occurs when it’s spent for purposes other than those for which it was designated. Always entrust your personal data and financial matters with someone you trust.
4. Wire Fraud:
A crime that takes place over interstate wires is known as wire fraud and it usually takes the form of telemarketing scams, phishing or email plots. It’s similar to other forms of fraud, but is distinguished because the transaction involves phone lines or some electronic communication. Avoid giving out any personal information over the phone or via email unless you’ve initiated the contact.
These are the most frequently used tactics employed by criminals with access to the right technology, but there are many other schemes used to defraud victims. Of course, technology has also become quite effective when used by certified financial investigators and law enforcement agencies to fight these financial crimes. Still, the best way to protect yourself is to educate yourself and consult with forensic experts if you become a target for fraudsters.
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Veriti Consulting LLC provides various fraud and forensic accounting services for individuals and businesses across the United States. To learn more about the financial fraud services we offer call 855.232.4410 or send your question via email.
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