Financial Losses Due to Fraud

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In 2013, over $21 billion was lost to fraud nationwide, it is considered the fastest growing crime and is perpetrated in nearly every country in the world. Fraud can come in many different forms, from identity theft to the thousands of different scamming tactics used. In its essence, fraud simply refers to deceiving or cheating someone in order to make money or get personal gain. Last year 11,571,900 people became victims of fraud. Fraud is by far the most devastating and expensive crime in the world, and it continues to surge on in full force.

Fraud can take thousands of different forms. Fraudsters can use techniques ranging from mass scams to anyone with a telephone, computer, or mailing address, to taking on far more sinister tactics that exploit personal problems. One of the most popular tactics targets loving grandparents, “Scammers pretend to be a grandchild in need of money after being arrested or hospitalized while vacationing abroad.” (Kirchheimer 44). This con is one of the most effective, using the natural instinct to help loved ones to the advantages of the con men. Identity theft is also considered a section of fraud and is quickly becoming the most feared form of fraud. “…an identity thief can get cellular phones, bank withdrawals, go on shopping sprees, apply for a job or even health insurance with just your Social Security number and birth date…”, identity theft is one of the most devastating forms that fraud takes, it can destroy credit, empty bank accounts, and take away any chance of applying for insurance (Ballard 15 ). Other notorious types of fraud include phone scams, fake job offer scams, and the infamous Nigerian 419 scams.

“The most common forms of identity theft occur when someone obtains another per...

... middle of paper ...

...nsumer in the world takes these measures, maybe one day in the future fraud will be a problem of the past.

Works Cited

The Crime Of The 21St Century. Kiplinger's Personal Finance 65.11 (2011): 37. MAS Ultra - School Edition. Web. 19 Mar. 2014

Kirchheimer, Sid. Sneakiest New Scams. Saturday Evening Post 284.4 (2012): 44. MAS Ultra - School Edition. Web. 19 Mar. 2014.

Don't Be Taken In By Fraudulent Schemes. Top 10 Scams. Ebony 65.6 (2010): 33. MAS Ultra - School Edition. Web. 19 Mar. 2014.

Korn, Donald Jay. Don't Let Scam Artists Trap You. Black Enterprise 33.7 (2003): 115. MAS Ultra - School Edition. Web. 19 Mar. 2014.

Identity Theft. Columbia Electronic Encyclopedia, 6Th Edition (2013): 1. MAS Ultra - School Edition. Web. 19 Mar. 2014

Ballard, Scotty. How To Prevent Identity Theft. Jet 103.13 (2003): 15. MAS Ultra - School Edition. Web. 20 Mar. 2014

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