What is business fraud?

On Behalf of | Oct 4, 2021 | White Collar Crime, white collar crimes

If accused, you can face serious jail time, fines, and other penalties when it comes to white-collar crime. One of the most common white-collar crimes includes corporate or business fraud.

According to the FBI, business fraud includes corporations’ fraudulent or illegal activity to receive an advantageous financial outcome.

Can you avoid becoming a victim of business fraud?

There are several ways to spot it for those who do not want to find themselves mixed up in business fraud. Never work with dealers or other companies without a strong reputation. You should have more than a phone number or physical address when dealing with other businesses. If a seller does not provide you with information about addresses, email addresses or telephone numbers, be wary of working with him or her. In addition, check for trademarks, copyrights and patents.

What constitutes business fraud?

When it comes to fraud, one of the most accessible types of fraud to spot includes non-payment or non-delivery. If a company does not send the goods or services or refuses to pay you for your goods and services, this is fraud. Likewise

One common type of business fraud includes reshipping schemes. For example, you may accept a job from a company that asks you to receive merchandise at your home and you have to repackage and ship the merchandise. Companies who do this generally receive merchandise through fraudulent credit cards.

Another scheme companies may attempt to include overpayment schemes. A company wires you a significant amount of money and tells you to return the excess. After you send back the excess money, you find out they sent you a fraudulent transfer and lost your money in the process.