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Fraud Types

Fraud can come in many different forms. That’s why it’s always important to keep in mind…

"If it sounds too good to be true, it probably is!"

 

Mass Marketing, Mail, Wire, Telephone & Internet Fraud

 

Mass Marketing Frauds can target anyone. Victims are lured with false promises of significant cash prizes, goods, and services, in exchange for upfront fees, taxes, or donations.

  • Credit and loan fraud includes a variety of scams that target folks applying for credit and dealing with debt.
  • Advance-fee loan scams involve charging an upfront fee to guarantee a credit card or loan before you apply. These offers are illegal and often target people with credit problems.
  • Debt settlement scams include deceptive ads that promise debt relief when in fact they are offering bankruptcy, and others that promise bogus creditor negotiation services in exchange for money.
  • Mail fraud is a scheme to get money or something of value from you by offering a product, service, or investment opportunity. If any part of the fraud involves the use of the US Mail, it is considered to be mail fraud. For more information on mail frauds, how to protect yourself, and what to do if you have think you have been a victim, visit USPS at:

Mortgage, Loan, Lending, and Related Fraud


Traditional Mortgage Fraud
This is a type of fraud in which homebuyers and/or lenders materially misrepresent or omit information on a mortgage loan application to obtain a loan or to obtain a larger loan than would have been obtained had the lender or borrower known the truth.


Mortgage Rescue & Loan Modification Scams

Many so-called foreclosure rescue companies or foreclosure assistance firms claim they can help struggling homeowners save their home from foreclosure. Some even offer a money-back guarantee. Unfortunately, most of these foreclosure fraudsters take the money and run. Before committing, verify that the organization is legit by contacting the Better Business Bureau .


Reverse Mortgage Scams
  

A reverse mortgage is a special type of loan that enables senior homeowners, ages 62 and over, to convert some of the home equity into cash without selling the home or having to make monthly payments. Reverse mortgages can be useful products, but unfortunately have been associated with deceptive practices and allegations of high-pressure sales tactics and the risk of being steered into inappropriate loans and annuities. For more information regarding reverse mortgage facts, visit the FTC .


Tax Fraud

Schemes that offer instant wealth or exemption from your obligation as a United States citizen to file tax returns and/or pay taxes are types of tax frauds. Participating in an illegal scheme to avoid paying taxes can result in imprisonment and fines, as well as the repayment of taxes owed with penalties and interest. For more information on tax frauds, visit the IRS .


Other Types of Fraud

Charity Fraud
Everyone receives requests for donations in one form or another. Many legitimate charities use telemarketing, direct mail, email, and online ads to ask for contributions. Unfortunately, scam artists also use these techniques to pocket your money. If someone asks for a donation, take the time to familiarize yourself with the charity. Ask for the charity’s name, address, and phone number, and written information about its programs.  A common trick is to use a name that is similar to a legitimate charity.  Check out any charity you are not familiar with at the office that regulates charities in your state. For a list of state offices, visit the National Association of State Charity Officials . Additional information can also be found in the Charity Fraud section of the FTC website.


Job Scams

Many people looking for work have been ripped off by scam artists who promise a job, access to special job listings, interviews, or a way to make a big income working from home – that is, if they just pay a fee or turn over their credit or debit card information. Don’t pay for the promise of a job.


Some information on this page was gathered from http://www.stopfraud.gov/protect.html . Visit this site for more details and information on types of fraud and how to protect yourself.