Question

Describe in brief various financial fraudulent practices.

Answer 1

1. Credit card fraud: Credit card fraud involves the theft of a credit or debit card and the unauthorised use of funds. Fraud may involve obtaining products without payment or withdrawing illegal funds from an account. Credit card fraud can occur in two major ways. First, there is the left side of the physical card. Second, information about the credit card and bank account could be taken.
2. False Accounting Fraud: False accounting Fraud happens when a corporation overstates its assets or understates its obligations to appear financially stronger than it actually is. Any account can be altered, destroyed, or defaced by an organisation or its employees. Because of misleading accounting, the firm's financial statements do not provide a truthful and fair picture of its financial health. False accounting includes falsifying records, altering figures, and keeping two sets of financial accounts. Some further examples of false accounting are as follows:
   1. An employee inflates expenditure claims.
   2. An employee falsifies accounts to steal money.
   3. False accounting by employees to hide losses from trading or fraudulent conduct.
   4. A company that operates despite being insolvent.
3. Insurance Fraud: Insurance fraud refers to actions conducted with the goal of obtaining a fraudulent benefit from the insurance procedure. Fraud occurs when a person seeks an advantage to which they are not legally entitled. Insurers may intentionally deny a benefit to their insured or beneficiaries. Insurance fraud can involve both insurance company staff and claimants. False insurance claims are one example. These are claims filed with the goal of defrauding an insurance company.
4. Intellectual Property Fraud: Intellectual property fraud involves property protected by patent, trademark, copyright, and trade secret laws. It involves a variety of behaviours, including illegal access to protected material, theft by fraud or misrepresentation, and false registration.
5. Internet and Cyber Fraud: This sort of fraud uses a computer and a network. A cybercrime is defined as intentionally harming a victim's reputation or causing physical or mental harm through the use of modern telecommunication networks like the Internet or mobile phones.