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The Different Types of Financial Crimes and Fraudulent Activities

The Different Types of Financial Crimes and Fraudulent Activities Leave a comment

I am an economist and the founder and owner of Finance Blog Zone

financial crimes

Both fraud and financial crimes are theft that involves taking money from another to use it unlawfully to benefit from it. There is some deceit involved, or a person may abuse the trust they have been given in a job position. This is what distinguishes these crimes from traditional robbery or theft. If you have been victim to these crimes, or require representation for other financial needs, be sure to hire the best!

Financial crimes can appear in different forms, which include the following:

  • Embezzlement
  • Fraud
  • Identity theft
  • Investment fraud
  • Money laundering
  • Mortgage fraud
  • Racketeering
  • Securities fraud
  • Tax evasion
  • White-collar crimes

Embezzlement

Embezzlement is a crime that involves stealing money or somebody else’s property after being entrusted to manage it.

Fraud

This crime includes tax evasion, identity theft, insurance fraud, wire fraud, and other types of fraudulent activities. Fraud per se is defined as the wrongful or criminal deception performed with the goal of obtaining financial or personal gain. Such deception can not only happen through lies, but also by withholding relevant information.

Identity Theft

This occurs when a person uses somebody else’s identifying information unlawfully to commit various other crimes like credit card fraud. Fraudulent withdrawals or charges will often appear on bank and credit card accounts, or the criminal may use personal information to open new bank or credit accounts. A person that has become a victim of identity theft is often left with a damaged credit rating and is usually pursued by various collection agencies.

Identity theft
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Investment Fraud

Selling securities or investments with fraudulent, misleading, or false information is called investment fraud. It often involves grandiose promises while hiding key information that should be supplied for the other person to make an informed decision. Assets lost due to the investment fraud can sometimes be recovered by taking legal action against the agent or entity responsible.

Money Laundering

This form of criminal activity involves moving illicit money into legitimate channels to disguise the illegal source of the money to avoid paying taxes. This practice of “legalizing” the money is what allows bad actors to move their wealth into legitimate banks and spend it without immediately drawing the attention of law enforcement.

Mortgage Fraud

When mortgage documents are misrepresented or contain false statements to defraud a homeowner or a lender, this is considered mortgage fraud. This type of fraud is more often happens as a result of individuals and organizations trying to get approved for loans they don’t qualify for, or trying to get better deals on their existing loans.

Racketeering

Occurs when a criminal organization profits from other legitimate business operations. Big organized crime syndicates will typically run dozens of even hundreds of different “rackets”, which serve as a source of funding and a way to expand their influence.

Securities Fraud

When misleading statements are made by someone in authority, such as a corporate officer, regarding the company’s stock or its performance, it is considered securities fraud. This also applies to any confidential information that is leaked about the stocks.

Tax Evasion

Tax evasion refers to not paying the required state or federal taxes. There are happy punishments associated with this crime, including prison time or the forfeiture of assets.

White-Collar Crimes

This umbrella term covers many different criminal activities linked to the use of deceit to get financial gains. This can include embezzlement, tax evasion, securities fraud, Ponzi schemes, and other financial crimes.

White-collar crimes can happen to anybody at any time, and they often occur when a person is least expecting it. If you have become a victim of such a crime, it’s important to reach out to a securities fraud attorney as quickly as possible. A federal offense attorney can fight for your rights when subjected to a financial crime.

I am an economist and the founder and owner of Finance Blog Zone

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