Thoughts

The Most Common Types Of Fraud Ordinary People Commit

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Sometimes it’s easy to think of fraud being the preserve of high end criminals or the rich and elite, we can see that there is lots that has been written on the subject of billionaires who defraud the system mostly by using complex tax schemes to hide profits or cash flows in big business. What we might not really know is most fraud is not as high scale or as complicated in it’s scheming as this and is often committed by ordinary people who have found themselves in very difficult circumstances.

Tax Fraud

Tax fraud is one of the most commonly occurring methods of fraud in America today, in fact there are over 150 different types of tax fraud you can be convicted of and in fact you’re probably much more likely to be the victim of fraudsters who are trying or claiming to help you with your tax problems, like these firms that claim to be able to reduce your tax bill or negotiate settlements on your behalf, this is extremely unlikely to work and leave you with more bills, fees and taxes in the end, also be aware of those pretending to be the IRS and those trying to do any negotiation can charge what they like so don’t be a victim.

Personal Injury Compensation Fraud

Personal injury compensation is huge business in America today, we can see that in one single year alone that there were over 3 million non-fatal works related injuries were recorded by the Bureau of Labour which shows the scale of the industry. This also is the reason it leaves the personal injury market open to a large amount of fraudulent activity and we can see examples of this on a large scale, we really don’t have to look very far to find examples of a big false claims act case where here we see an overcharging of patients so that the facility can make a huge amount of undeserved profits and this shows bribery and kickbacks in a very complicated case.

Insurance Fraud

It’s common as well for individuals to commit fraud against their insurance or against another individual in the event of an accident or injury. This is an extremely common occurrence and is not helped by, and probably actively encouraged by, the prevalence of accident and workplace injury compensation firms persuading people to claim for any injury or accident. As we have read in the above article these types of fraud come in two types, soft fraud and hard fraud. Soft fraud is basically where something has happened but the resultant loss or damage caused by the accident or incident is greatly exaggerated and this is the type of claim that can easily be jumped upon by one of these compensation claim firms. The second type, the hard fraud, is where an accident or injury is basically staged completely as in it never happened at all, this is more difficult to set up and ultimately a more serious type of fraud. It’s essential to be aware of being very careful if ever considering compensation claims as fraud can affect future insurance cover and can be a criminal offence.

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