Kansas City Criminal Defense Lawyers
5 Common Types of Fraud Crimes

5 Common Types of Fraud Crimes

Fraud crimes can either be committed by a single individual or at the organizational level. They are typically financially motivated, and despite not causing physical harm to others, can result in some of the most serious criminal penalties. Let’s discuss five common types of fraud crimes and what to do if you are being accused of committing fraud.

1. Identity Theft

Identity theft occurs when an individual steals someone else’s identity. This is usually done by stealing identification information, like social security numbers, or bank account information. Once the identity has been stolen, the individual usually uses it to open credit lines, take out loans, or other methods of profiting.

What you may not know is that there is another crime called aggravated identity theft. This is when someone steals another person’s identity, then uses their identity to commit another crime. For more information on the differences between standard and aggravated identity theft, click here.

2. Embezzlement

You may be charged with embezzlement if you take money or property from your employer.

Different researchers and institutions have collected interesting information about embezzlement offenses and have put out the following data:

  • Nearly 80% of embezzlement cases involve more than one perpetrator.
  • One-third of embezzlers work in finance.
  • Over 70% of embezzlement cases lasted over one year.
  • The most common type of embezzlement is billing fraud, followed by theft of cash.

3. Tax Fraud

When it’s tax season, many people are concerned they are accidentally committing fraud simply because they aren’t sure what they are doing is correct. Good news - you have to have intent in order to be charged with tax fraud. Also, the IRS is very aware that people make honest mistakes when it comes to taxes.

Typically, tax fraud involves intentionally:

  • Failing to pay taxes
  • Failing to file income tax returns
  • Neglecting to report all income
  • Making false claims on tax forms

4. Credit Card Fraud

Credit card fraud occurs when people use credit cards to purchase items or services with no intention of actually paying for them. Credit card fraud may also occur after identity theft. Each year, credit card fraud results in billions of dollars of losses.

5. Insurance Fraud

When individuals lie to insurance agencies and make false claims to gain profit, this is insurance fraud. Similarly to tax fraud, you will not be charged just for making a mistake on your reports. You must have the intent to defraud a company or individual.

Insurance fraud is common involving:

  • Automobiles
  • Healthcare
  • Workers’ Compensation
  • Property

Charged with a Fraud Crime?

If you’ve been charged with a misdemeanor, felony, or federal fraud crime, Stein Law, LLC is here to help. Call today at (913) 583-0465 to share the details of your case with our experienced attorneys who can help advise you on your next best steps.
 

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