Readers of this blog know we commonly post about various financial fraud topics. In one such post on financial fraud, we discussed some common financial frauds. However, that list was not exhaustive. As such, in this post, we will explore two additional common financial frauds.
For those in positions of trust, one common financial charge they could face is embezzlement. Essentially, embezzlement occurs when someone who is entrusted with something (assets, money, property, etc.), steals or misappropriates those items for their own use. This is basically a property theft charge. Even if one is not a CEO, lawyer, banker, etc., they could still find themselves charged with embezzlement. Indeed, employees, at just about every level, are in positions of trust. And, it takes one unscrupulous employer acting in bad faith to cause an unsuspecting employee to find themselves charged.
Like embezzlement, insurance fraud is a crime that could affect anyone. If one obtains an insurance benefit they were not entitled to, they could be charged. If they exaggerate losses, they could be charged. Accusations of false medical histories or injuries could also lead to charges. Even an insurer could face an insurance fraud charge if they knowingly deny an insurance benefit. They could also face charges if policies are fake, exaggerated, misuse premiums, etc.
Financial fraud charges can happen to anyone
For our New York City metro area readers, there are two key takeaways. First, these types of common financial frauds are sometimes ambiguous. And, second, even those that are innocent can find themselves charged. This is why it is so important to be on guard anytime there is money involved in our daily lives, and if we do face a charge, begin developing a defense strategy immediately.