Business crimes and commercial frauds are some of the most common and devious criminal activities taking place today. Although there are many different types of business crimes, they all have one thing in common: the victim suffers a personal and financial loss.

Commercial or consumer frauds involve the use of deceptive and misleading business practises, and while all consumers are at risk of commercial fraud, the most commonly victimised people are senior citizens and college students.

This article will outline different types of commercial frauds so that you know when you are being misled by unethical business practitioners and aren’t deceived into experiencing a financial loss.

Identity Theft

Identity theft is a type of business crime where your personal information is stolen by someone else. This personal information includes your social security number, name, bank account number, and credit card information.

Identity thieves use your personal information to access your bank accounts and finances, typically resulting in the draining of your funds. They can even take out bank loans in your name or use your health insurance to cover their medical bills.

Mortgage Fraud

Mortgage fraud is one of the most common types of commercial fraud taking place today. The FBI annually deals with thousands of such scams, most of which are aimed at distressed homeowners. Mortgage fraud scams involve foreclosure rescue schemes, equity skimming, and loan modification schemes.

Mortgage fraud is typically carried out by mortgage and real estate professionals, who use their authority and specialised knowledge to deceive the victim into releasing their funds. The FBI recommends that homeowners protect themselves against mortgage fraud by avoiding unsolicited advice related to a real estate deal.

Credit and Debit Card Fraud

Credit or Debit card fraud occurs when someone finds or steals your credit or debit card and obtains your personal and bank information. Once they have a hold of this information, the thief can use your card to purchase goods for themselves.

Credit and Debit card fraud is one of the most common types of commercial fraud today. However, you can avoid it by watching out for red flags such as unrecognisable charges on your bank statement or orders from locations you have not visited.

COVID-19 Scams

COVID-19 scams are about as new as the virus itself. These scams came about due to the fast-paced government legislation, which created opportunities for scammers to take advantage of people by using financial need and fear as their main drivers.

If you are contacted by someone regarding a new vaccine or brand new cure or are contacted by someone pretending to be a representative of the CDC or WHO, do not engage them in conversation because they are most probably involved in a COVID-19 scam.

Final Words

With so many different types of business crimes happening today, everyone needs to be on the lookout for misleading and deceptive practises by a person who contacts you and speaks with an air of authority.

For more information on the different types of commercial frauds, visit gov.uk, where you can learn about the signs of fraudulent practises and what you can do to avoid them.

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