When a person becomes a victim of a financial crime it can be one of the most devastating things they can encounter. If a person is victimized by an identity thief it can threaten their life style, their retirement, and their children’s ability to attend college. Financial crimes can also severely impact a person’s credit score and their ability to obtain credit now and many years in the future.
Financial crimes, sometimes referred to as “white collar” crimes, are nonviolent criminal acts that involve the theft or misuse of money and credit. Financial crimes are sometimes considered less important than other types of crimes because there is no violence used, but they can actually have more severe impacts on personal finance and even entire financial markets. There are many different types of financial crimes, including credit card counterfeiting, insurance fraud, embezzlement, and many other financial crimes categories.
Crimes involving fraud are a form of theft/larceny that occur when a person or entity takes money or property, or uses them in an illicit manner, with the intent to gain a benefit from it. These crimes typically involve some form of deceit, subterfuge or the abuse of a position of trust, which distinguishes them from common theft or robbery. In today’s complex economy, fraud and financial crimes can take many forms. Many times these crimes are not prosecuted because they are considered to be non-violent or victimless crimes. The following pages will introduce you to the more common forms of financial crimes such as Identity theft, credit card fraud, embezzlement and insurance fraud.