Any crime or civil wrong for gain that utilizes some deception practiced on the victim as its principle method. Plagiarism which is copying of data and papers, redundant publications, gift author ship, not attributing other authors, not publishing research, and not disclosing a conflict of interest all falls under the category of fraud. Mainly it is a deception made for personal gain. Fraud occurs in many aspects of life such as art, archeology, and science. Hoaxes are another example of fraud an example of this is electrical fraud.
Types of Fraud:
- Internet: Fraud scheme using email, websites, chat rooms, or message boards to present fraudulent solicitations to prospective victims to conduct fraudulent transactions or to transmit the proceeds of fraud to financial institutions or to other connected with the scheme.
- Credit Card: The unauthorized and illegal use of a credit card to purchase property.
- Check: Drawing out money from one bank account that does not have sufficient funds to cover the check. Most check kiting schemes are achieved with the use of two bank accounts.
- Insurance: Intentional lying or concealment by policy holders to obtain payment of an insurance claim that would otherwise not be paid.
- Computer: Computer related crimes involving deliberate misrepresentation or alteration of data in order to obtain something of value.
How to avoid Fraud:
Don't buy from Unknown Companies, legitimate businesses and known business, are more trust worthy since they don't want to ruin they representation. Always check out unfamiliar companies with your local consumer protection agencies.
Obtain a salesperson's information name, business identity, telephone number, street address, mailing address, and business license number before you transact business. Verify the accuracy of these items. Before you give money to a charity or make an investment, find out what percentage of the money is paid in commissions and what percentage actually goes to the charity or investment, so you know if it is a good investment. You must not be asked to pay in advance for services. Pay services only after they are delivered. Don't let con artist come to your house to pick up your money as a “service” of theirs, they usually just take your money and leave you with nothing. Don't pay for a "free prizes." If a caller tells you the payment is for taxes, he or she is violating federal law. It's never rude to wait and think about an offer.
Be sure to talk over big investments offered by telephone salespeople with a trusted friend, family member, or financial adviser. Never respond to an offer you don't understand thoroughly. Never send money or give out personal information such as credit card numbers and expiration dates, bank account numbers, dates of birth, or social security numbers to unfamiliar companies or unknown persons. Your personal information is often brokered to telemarketers through third parties.
Internet Fraud
The term "Internet fraud" refers generally to any type of fraud scheme that uses one or more components of the Internet - such as chat rooms, e-mail, message boards, or Web sites - to present fraudulent solicitations to prospective victims, to conduct fraudulent transactions, or to transmit the proceeds of fraud to financial institutions or to other connected with the scheme. For most people, that phrase simply means that things seem to happen more quickly on the Internet - business decisions, information-searching, personal interactions, to name a few - and to happen before, during, or after ordinary "bricks-and-mortar" business hours.
People who engage in fraud often seek to take advantage of the Internet's unique capabilities - for example, by sending e-mail messages worldwide in seconds, or posting Web site information that is readily accessible from anywhere in the world - to carry out various types of fraudulent schemes more quickly than was possible with many fraud schemes in the past.
What are the major types of internet fraud?
Identity Theft and Fraud - The wrongful obtaining and using of someone else's personal data in some way that involves fraud or deception, typically for economic gain.
Credit-Card Schemes - Some Internet fraud schemes, which appear to be variations on the online auction schemes described earlier, involve the use of unlawfully obtained credit card numbers to order goods or services online.
Market Manipulation Schemes - Criminals are using one basic method for trying to manipulate securities markets for their personal profit. In so-called "pump-and-dump" schemes, they typically disseminate false and fraudulent information in an effort to cause dramatic price increases in thinly traded stocks or stocks of shell companies (the "pump"), then immediately sell off their holdings of those stocks (the "dump") to realize substantial profits before the stock price falls back to its usual low level.
Auction and Retail Schemes Online - These schemes typically offer high-value items - Ranging from watches to computers to collectibles - that are likely to attract many consumers. These schemes induce their victims to send money for the promised items, but then deliver nothing or only an item far less valuable than what was promised (e.g., counterfeit or altered goods).
How Fraud Affects Business
The business world is changing every day, with revolutions in many fields, and even in the way
we do business. With all these new ways of selling or buying products, you have to be careful of fraudulent
sellers, and businesses. Many business must be careful of who the work with, having a good relationship with there partners is essential to know who they are dealing with. There are also many organizations that will have a name similar to a well known business or organization to be able to scam you. Most businesses should have a set control system that sets procedures to follow to try and ensure they will not fall into the hands of scam artists.
Not only do businesses have to be aware of fraudulent companies and operations, but consumers should be well aware of them too. Some of the more obvious scams are offers requiring credit cards, or ask for personal information, without providing much information about them. There are also companies who will name themselves after a well known organization, and collect donations, with no cause. All people must read things carefully, and know who they are dealing with before they buy or sell things to people.
