Common Types of Business Fraud - Explanation
What are some Common Types of Business Fraud?
Written by J. Mance Gordon
Updated at April 21st, 2024
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
-
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
What are some common types of business fraud?
Many examples of business fraud include a scheme or plan designed to take from a person the tangible right of honest services. Below are some common examples of fraud in the business context:
- Mail or Wire Fraud
- Securities Fraud
- Insurance Fraud
- Healthcare Fraud
- Tax Fraud
What is Mail or Wire Fraud?
It is illegal to use the US postal service or electronic means of interstate communication to carry out a scheme to defraud. This is a very broad statute, as it includes any fraudulent conduct employing mail or wire transmission. To mail means a communication is sent or received through use of the US Postal Service or any interstate carrier. Wire transmission includes the use of radio, television, telephone, Internet, or other wired form of communication.
What is Securities Fraud?
Federal laws defining securities fraud are the Securities Acts of 1933 and the Securities Exchange Act of 1934. Section 17 of the 1933 Act covers fraudulent activity in the issuance of securities. Section 10 and Rule 10(b)(5) of the 1934 Act cover fraud in the purchase or sale of a security.
What is Insurance Fraud?
This is a common state-law crime in which an insured makes a fraudulent claim for benefits under an insurance policy. For example, intentionally setting fire to the building of a failing business to collect the insurance proceeds is insurance fraud.
What is Healthcare Fraud?
Healthcare fraud generally involves making fraudulent claims for payment or reimbursement of healthcare expenses. The common offenders are healthcare providers who make fraudulent claims for reimbursement for services never performed or unnecessary. The prosecution usually falls under the False Claims Act.
What is Tax Fraud?
Tax fraud is the knowing concealment of transactions or property ownership in an attempt to illegally avoid paying federal, state, or local taxes.
Related Topics
- Criminal Law (Intro)
- What is Criminal Law?
- What are the elements of a crime?
- Classifications of crimes Misdemeanor vs Felony Criminal Charges?
- What is the process of bringing criminal charges?
- Cease and Desist Order
- What is the process for executing an arrest?
- What are the exceptions to reading Miranda Rights?
- What is the process for initiating criminal charges?
- Prima Facie
- What is the Arraignment and Initial Appearance
- Investigation - Subpoena
- Common Defenses to Criminal Conduct
- Ex. Castle Doctrine
- Types of Punishment for Criminal Activity
- Theories Behind Criminal Punishment
- Federal Sentencing Guidelines
- What are the 4th Amendment protections against Search and Seizure?
- What are the 5th Amendment criminal law protections?
- What are the 6th Amendment criminal law protections?
- What are the 8th Amendment criminal law protections?
- Crimes Against the Property of Others
- Activity Constituting Fraud
- Good Faith as a Defense to Fraud
- Common Types of Business Fraud
- False Statement as a Criminal Charge
- Conspiracy as a Criminal Charge
- Obstruction of Justice as a Criminal Charge
- Aiding and Abetting or Conspiracy to a Crime