Fraud takes place when a person deliberately practices deception in order to gain something unlawfully or unfairly.
In most states, the act of fraud can be classified as either a civil or a criminal wrong. While fraud is most commonly committed to obtain benefits of value, it sometimes occurs solely for the purpose of deceiving another person or entity..
Fraud investigation is extremely wide. We provide numerous types of investigation, but here are the top four services:
Fraud in the context of insurance refers to any duplicitous act performed with the intent
to obtain an improper payment from an insurer.
This crime is committed by individuals from all walks of life. Law enforcement officials have prosecuted doctors, lawyers, chiropractors, car salesmen, insurance agents, and people in positions of trust.
Anyone who seeks to benefit from insurance through making inflated or false claims of loss or injury can be prosecuted.
Tax fraud occurs when an individual or business entity willfully and intentionally falsifies
information on a tax return in order to limit the amount of tax liability.
Tax fraud essentially entails cheating on a tax return in an attempt to avoid paying the entire tax obligation.
Examples of tax fraud include claiming false deductions; claiming personal expenses as business expenses; using a false Social Security number; and not reporting income.
Tax fraud may also be referred to as tax evasion.
Embezzlement is a form of white-collar crime wherein a person or entity misappropriates the assets
entrusted to him or her.
In this type of fraud the assets are attained lawfully and the embezzler has the right to possess them, but the assets are then used for unintended purposes.
Embezzlement is a breach of the fiduciary responsibilities placed upon a person
This is fraud committed by an employee on an employer in the course of their employment.
They are more common and cause more financial loss to businesses than frauds committed by third parties. As employees will continue to work at the business, they will generally try to hide these frauds permanently, meaning that occupational fraud can be committed over an extended period of time.
This also involves the theft of inventory items when the theft is hidden by manipulating the perpetual inventory records.
The other main method is hiding the theft through sale or purchase frauds, which are the subject to another paper in the series.