How many types of fraud are there?

How Many Types of Fraud are There


Fraud is something that can be detrimental to any organization, debilitating its finances and possibly even ruining its viability. While many kinds of fraud exist, there are five that are especially virulent.

  1. Financial Statement Fraud

While not as common as some other forms, this fraud is still prevalent enough to note. This type of fraud involves bluffing about an organization’s revenue, earnings, assets, and liabilities. For recent examples of companies that committed this sort of fraud, one need only look up the long-gone entities known as “Enron” and “WorldCom.”

  1. Misappropriation of Assets

This is when people manipulate earnings, skimming off the top and intercepting income before it goes into the company’s coffers. This type of fraud is very hard to discover because there is rarely any paperwork to confirm the suspicion, making it one of the most commonly performed frauds. “Assets” can also include non-money elements of a company, such as corporate cars and the like.

  1. Stealing Intellectual Property and/or Trade Secrets

As information and technology continue to become dominant forces in the world, this sort of fraud increases in occurrence.

  1. Banking, Healthcare, and Insurance

These are three industries that involve billions of dollars. This is where false health and business insurance claims and faked bankruptcies fall.

  1. Consumer Fraud

Consumer fraud includes people being duped by a con man, unsavory telemarketers, phishing attempts, identity theft, e-mails of foreign princes seeking to transfer funds and so forth. Consumer fraud continues to be an issue, either due to the predatory behavior of a breached system or filing a false tax return that ought to give the thief a significant refund check. Companies can also be subjected to e-mail phishing scams; spear phishing, for example, is the practice of sending Trojan e-mails to employees in a business’ department in the hope that they click the dangerous links embedded within.

Fraud can take multiple forms and ruin an organization in a variety of ways that go beyond finances. Understand your vulnerabilities and work to strengthen them against fraud.

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Can You Go to Jail for Bank Fraud?

Can You Go to Jail for Bank Fraud

Everybody knows that any fraud involves deceiving an individual or a business to gain something. But you need to know the meaning of bank fraud and if it is a misdemeanor or a felony.

If you are currently facing charges against bank fraud, you will need to hire an experienced lawyer and get familiar with some of the facts surrounding bank fraud cases before proceeding.

What is Bank Fraud?

Bank fraud refers to the use of illegal means to obtain assets, money, or any other property held or owned by a financial firm. Also, it includes obtaining money from depositors or investors by fraudulently posing as a financial institution such as a bank.

In most cases, bank frauds are criminal offenses, and the components of specific banking fraud laws vary from one state to the other depending on the jurisdictions. Bank fraud applies to the actions that employ an artifice or scheme as opposed to bank theft or robbery.

The Types of Bank Frauds

There are many ways in which a person can commit bank fraud. Some of the schemes are more difficult and complex, and they affect most people and institutions resulting in harsher penalties compared to others. Here are the primary types of bank fraud.

• Stolen Check: Individuals can obtain jobs that offer access to emails such as mailbox stores, post office, corporate payroll company or tax authority. After stealing the check, they use it to open various bank accounts through the assumed names and deposit the cash.

 Bank Impersonation: Bank impersonation is the process where an individual acts as a financial firm, often by creating fake companies or websites to lure people into depositing money.

 Forgery: This type of bank fraud occurs when an individual alters a check by changing the names or any other information on a face. Individuals can change the amount of a check by adding zeroes to the available figures.

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Can a Company Take Money Out of Your Bank Account Without Permission?

Can a Company Take Money Out of Your Bank Account Without Permission

Most individuals think that a bank is the safest place to keep their money. However, in some cases, a company can reach into your account and take out some cash without your permission. While not all companies have these powers, in some circumstances your financial institution is left without an option but to comply.

When you stop paying your credit cards, the first step is for the company to send you some collection letters or call. These letters and calls get increasingly aggressive as well as nasty as the time goes by. The company will even threaten to arrest you if you do not pay your debt, which isn’t true and violates the current law.

You will have the opportunity to defend yourself, however, if you owe the cash, there are no chances of winning the suit, and the company will obtain a judgment against you. In most cases, the judgment is powerful since it allows the company to take your cash from the bank without your authorization.

General Creditors

Although the current law allows the credit card companies to access your bank accounts in some situations, they cannot touch your account without the express authorization from you. If they take your cash, you have the legal protection against losses if you report the activity within the first 60 days. The bank will have to conduct a thorough investigation and replace the illegally withdrawn funds.

Creditor Fraud

If you make any payments with your current debit card or other forms of electronic transactions, you grant the credit card company the authority to withdraw money from your account. Electronic thieves or unscrupulous creditors can use the information to withdraw more funds than they should. Since the law protects you from loss of the unauthorized transactions and identity theft, you can report the activities in a timely way. Having the information is a way in which some people can gain access to your account.


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How do I get my adjusted gross income?

How do I get my adjusted gross income

Tax season is approaching quickly. Few people feel comfortable filing their taxes without a professional looking at their tax return. One of the most critical aspects of a tax return is the adjusted gross income. The adjusted gross income determines which tax bracket a person falls under. For people who are married, there are different thresholds than people who are single.

Depending on the tax return, last year’s adjusted gross income can be in different locations.

  • Form 1040, Line 38
  • Form 1040A, Line 21
  • Form 1040EZ, Line 4

However, it is essential for taxpayers to know why knowing a person’s adjusted gross income is so beneficial. There are also tax strategies that people can utilize to lower adjusted gross income.

Standard Deduction

The standard deduction lowers the taxable income that a person earns. For a single taxpayer, the standard deduction is $12,000 per year. However, a married couple filing jointly can use a standard deduction of $24,000. Without any other adjustments, a married couple earning $40,000 per year will only pay federal income taxes on $16,000 of income.

Other Deductions

There are other deductions available to reduce a person’s adjusted gross income. Each year, a person can invest money in retirement accounts like an IRA or 401(k). Each investment option offers different contribution limits.

In 2018, the contribution limit on a 401(k) was $18,500 for most taxpayers. In 2019, the contribution limit is getting increased to $19,000. Anyone who wants to reduce their tax burden should consider investing more money in pre-tax investment options.

Other Tax Suggestions

Some people feel like paying someone for tax advice is a waste of money. However, for many people, taxes are one of the largest expenses each year. As a result, paying someone to help reduce your taxes is an excellent investment. By lowering a person’s adjusted gross income, it is possible to save thousands of dollars on federal income taxes every year.

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