Scams and fraud (2024)

FAQs

Scams and fraud? ›

The 15% saying they or someone in their household has succumbed to a scammer's tricks puts scams among the four most prevalent crimes affecting American households.

The 15% saying they or someone in their household has succumbed to a scammer's tricks puts scams among the four most prevalent crimes affecting American households.

Fraud can have a devastating impact on these victims and increase the disadvantage, vulnerability and inequality they suffer. Fraud can also cause lasting mental and physical trauma for victims. Fraud also results in lost opportunities for individuals and businesses.

According to Albrecht, the fraud triangle states that “individuals are motivated to commit fraud when three elements come together: (1) some kind of perceived pressure, (2) some perceived opportunity, and (3) some way to rationalize the fraud as not being inconsistent with one's values.”

Scammers often come up with various reasons, such as emergencies, medical expenses, or travel costs. Never send money to someone you've only met online.

Financial fraud comes in many varieties, with the most common including mortgage fraud, insurance fraud, and securities fraud. Common mortgage fraud schemes include identity theft and income or asset falsification by mortgage applicants.

Be on the lookout for these red flags: Being asked to pay money in order to receive a prize or get a job. Pressure to act immediately. Use of scare tactics, e.g. telling you a loved one is in danger, that your computer has been hacked or threatening arrest if you don't act now.

With an astounding 466,501 online scams in 2022, the U.S. lead the world as the country with the most scam victims per year. The U.K., Canada, India and Australia follow as the respective second through fifth most-scammed countries across the globe.

When looking at instances of fraud more generally, Atlanta, Georgia, saw the most complaints between January and September 2023 — with 1,890.40 complaints per 100,000 residents. It narrowly beats these cities: Tuscaloosa, Alabama (1,844.00). Miami, Florida (1,686.00).

How to prove intent to deceive? ›

Fraudulent intent is shown if a representation is made with reckless indifference to its truth or falsity.” Intent can be reasoned from statements, conduct, victim testimony, and complaint letters, all of which can help demonstrate that the perpetrator knew that victims were being misled.

Deception – making others believe something that is not true. Recklessness – acting without care, responsibility or regard to the consequences of their actions (this includes a disregard to the harm caused to others) Concealment – preventing actions from being seen or known about.

Financial need ​ The pathological desire for crime ​ The desire to beat the system – 'catch me if you can' attitude. Coercion (ie, people could be forced by their peers, family or superiors)​

Man-in-the-middle (MITM) is an attack where the attacker secretly relays and possibly alters the communications between two parties who believe they are directly communicating with each other.

The 'fraud triangle theory' has been established as Cressey's (1953) model in which three conditions that can lead to fraud are analysed; Opportunity, pressure, and rationalization. Fraud is essentially motivated by external forces. The motivation for managers to commit fraud is 'pressure'.

You might be dealing with an online scammer if they request sensitive personal information, money, or insist on speaking on a chat app of their choice. You might be dealing with an online scammer if they request sensitive personal information, money, or insist on speaking on a chat app of their choice.

Phone hackers create fake or malicious apps, and use fake installers, dangerous links, and lookalike app stores to try and dupe you into downloading malware that gives them access to your phone — and everything on it.

Fraud Detection by Tip Lines

According to the Association of Certified Fraud Examiners (ACF), tips are by far the most prevalent technique of first fraud detection (40 percent of instances).