Criminal fraud is widespread and occurs in many guises. It is committed whenever someone intentionally misrepresents a material fact that another person reasonably relies on to their detriment or financial loss.
Most criminal fraud is considered a white-collar crime since it does not involve violence or any coercion to induce someone to do something he or she would not otherwise do. It is form of criminal trickery or deception.
Credit card fraud occurs whenever someone uses another person’s card without their permission. Other than stealing a card, most criminals surreptitiously obtain the numbers, expiration date, security code, and even the unsuspecting victim’s address and use it to buy expensive items, usually online.
Embezzlement is criminal fraud that is usually categorized as a first or second degree theft or as grand or petty theft depending on the value of the item taken. An “embezzler” is someone in a position of trust who fraudulently transfers or appropriates property to which he or she is entrusted for their own use. A felony is committed when the property misappropriated is over a certain amount, usually around $1,000.
Insurance fraud typically occurs when someone makes a false claim for an injury or other loss to collect benefits, or when they fail to disclose or misrepresent information to obtain insurance coverage.
Tax evasion is criminal fraud when the taxpayer fails to list all sources of income or illegally hides assets from tax consideration.
Healthcare fraud is committed by healthcare providers who submit false billings to medical insurers or who over-charge for services.
Insider trading is criminal fraud by company executives or employees trading stocks based on confidential information not available to others.
Real estate fraud occurs in foreclosure transactions with the forging of deeds, defrauding homeowners into selling their homes, and in falsifying appraisal or loan documents to inflate prices after a home has been bought at auction and then flipped for a quick resale.
Read the full article on criminal fraud