Fraud is a very serious matter for both sides. For the defendant, showing that they didn’t try to commit a crime is a priority. For the victim, recouping their money is the focus. Because these are complex matters, it is imperative that you have all the information possible if you are involved in any way.
Some types of fraud are more common than others. By understanding these, it might be possible for you to avoid defrauding customers or being defrauded by a business. It can also help you to address any issues if they do occur.
Mortgage fraud can benefit either the person who initiates the mortgage or the person asking for the loan. It is common for this situation to involve being untruthful about an applicant’s income or ability to repay the borrowed money. Not being truthful about the value of the real property being purchased is another way that this might occur.
Insurance fraud means that either you overinflate the value of a property or you have false claims made on a current policy. The outcome is that the person who commits the fraud gets money that they weren’t entitled to receive. This hurts the insurance company’s bottom line, and the cost is usually passed down to other customers, which isn’t fair. This is also why insurance fraud is likely going to be harshly prosecuted.
Investment fraud usually occurs when someone claims that an investor will receive prosperous returns on their investment, but keeps the money for themselves instead. One form of this, a Ponzi scheme, is what landed Bernie Madoff in prison. These are often discovered because the promised returns are high and consistent, payments are very slow when an investor wants to cash out and when there are problems with the paperwork.
When you are dealing with fraud of any sort, there is likely a lengthy paper trail behind it. It is imperative that you take the time to understand your case so that you know where to go from there. If you are fighting against being defrauded, you need to know the options you have available to address the issue. Your goals are to stop it in its tracks and recover the money you’ve lost.