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Common Types of Fraud and the Consequences

Common Types of Fraud

Posted 6 years ago by Detroit Bail Bonds

We hear the word “fraud” often, because it pertains to so many different issues, especially in this day and age of online everything. Fraudulent crimes have many negative consequences for the person who is charged, for the victims, and for the government or other entity that is involved. If someone you know has been arrested and charged with fraud, the first steps are to obtain help from an attorney and a bail bond agent. It is also important to understand the common types of fraud in order to ensure that the person who was arrested is treated fairly.

9 Common Types of Fraud

The general definition of fraud is the “intentional perversion of truth in order to induce another to part with something of value or to surrender a legal right,” or, in simpler terms, “an act of deceiving or misrepresenting.”

Common Types of Fraud

According to the FBI and several other sources, some of the most common types of fraud include:

1. Insurance fraud, such as those relating to the crime of arson as well as obtaining insurance under false pretenses

2. The sale of counterfeit prescription drugs, especially online, which can be physically dangerous to the consumer

3. Business fraud, such as in an internet auction, the non-delivery of merchandise, and the notorious overpayment scheme

4. Credit card fraud, in which fraudsters use victims’ information for purchases

5. Identity theft, usually through the fraudulent use of victims’ social security numbers, and that includes such things as tax return fraud

6. Investment fraud, such as Ponzi or pyramid schemes

7. Crimes against senior citizens, such as reverse mortgage scams that steal equity from the victims’ properties

8. Health care fraud, including medical equipment fraud, fake health exams, and Medicare scams

9. Auto dealer fraud, such as the “bait and switch” tactic

Consequences of Fraud

When a crime of fraud occurs, many people suffer, including the person who allegedly commit the crime. In the event that the crime is never uncovered, the person may live with irrevocable guilt. On the other hand, if the person was arrested, he or she will face the normal consequences of arrest, such as years in jail, hefty fines, and loss of time with loved ones.

Whether it’s an individual or large entity, the victim can lose precious time, money, and faith in the system. A business or governmental body that is victimized may even lose employees and financial stability as well.

Because there are so many different types of fraud, the legal consequences vary. Most fraudulent acts are considered felonies, which can be punishable by more than one year in prison. Some may be considered “civil” cases, which require restitution.

Consult with an attorney to learn more about the possible penalties associated with the crime that you or someone you know has been charged with.

Call Us for Help

Crimes of fraud often have very high penalties, so if you need a bail bond, we’re here 24 hours a day, 7 days a week to make the process of getting out of jail faster and easier.

Contact our Port Huron bail bond agent today online or by calling (810) 605-5555.


Common Types of Fraud


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