Experienced Criminal Defense Attorneys

5 kinds of fraud that can get people into big trouble

On Behalf of | Apr 18, 2023 | CRIMINAL DEFENSE - White Collar Crimes

Fraud is the deliberate act of devising others for one’s own benefit. Many people get away with fraud because victims don’t realize they’re being taken advantage of. 

New kinds of fraud appear every day. The following are a few commonly known kinds of fraud:

1. Insider trading

Insider trading happens when people within a company trade public stock with non-public, material knowledge. Non-public information is anything that the public wouldn’t be able to know legally. This kind of information can give investors unfair advantages over others who lack this information. 

2. Mortgage fraud

Mortgage fraud can be committed by both borrowers and mortgage lenders. Borrowers may lie about their income or assets to gain ownership of a property through a fraudulent loan approval. Mortgage lenders, appraisers and bankers may use insider information to misuse the mortgage lending process.  

3. Money laundering

Money laundering is a complex process where large amounts of money look like it comes from a legitimate source but is done through criminal activity. The reason this is done is that the source of the money may source from drug trafficking or terrorist funding. This kind of fraud is called money laundering because the money from criminal activity is considered dirty. Criminals try to make the money look clean and use it legitimately. 

4. Internet fraud

The internet can be used for many great causes, but it’s also making fraud easier. People store their private information online where people may be able to hack, expose and use for their own use. Some forms of internet fraud occur because of data breaches, phishing or malware. 

5. Debit and credit card fraud

Debit and credit card fraud is fairly simple and straightforward. Criminals will take people’s debit or credit card information and use it to make purchases. 

Fraud has attracted the attention of the authorities more and more regularly. That sometimes causes them to see issues and irregularities when there are simple explanations. If you’re being accused of fraud, then you need to build a legal defense strategy. By reaching out for help, you may be able to learn about your legal options.