5 WAYS PEOPLE COULD BE COMMITTING FRAUD WITHOUT EVEN KNOWING IT AND WHAT BUSINESSES CAN DO TO KEEP THEMSELVES PROTECTED

On 8 September, Professional Security Magazine International carried an article about a report from AML service, SmartSearch.  The 5 frauds it describes are –

  • Fronting is where a car owner intentionally lies about who the main driver of the vehicle is in order to reduce their car insurance quote, which is now the most common type of consumer fraud in the UK;
  • De-shopping is where buyers purchase items of clothing with the intention of wearing the products before returning them for a full refund – it can be considered as attempting to gain ‘pecuniary advantage by deception’, which is an offence;
  • Money Muling is where a bank account holder allows criminals to use their bank account, in order to make the funds more difficult to trace, in exchange for a share of the money;
  • Friendly fraud/chargeback fraud is where consumers make an online purchase and then call their card issuer to request a refund, citing fraud as the reason. The credit card provider refunds the money and the consumer gets to keep the goods; and
  • Opportunistic fraud is a type of insurance fraud, however, unlike ‘crash for cash’ or ‘ghost broking’ schemes, opportunistic fraud is not premeditated and doesn’t involve a huge amount of planning. It involves a genuine incident, but the damage is exaggerated in order to get pre-existing damage fixed in the repair process.

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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