eLearningClasses.com
Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

Fraudster! Five ways you could have committed fraud without knowing it

It’s estimated that fraud cost the UK almost £190 billion¹ in 2019, with losses increasing by 57% in the past decade. The cost of fraud is expected to continue to rise, but could you be committing fraud without even realising?

With recent research² revealing that one in five adults under the age of 35 has committed at least one form of fraud, anti-money laundering service, SmartSearch, reveals five ways you could be committing fraud without even knowing it:

  1. Fronting

Fronting is where a car owner intentionally lies about who the main driver of the vehicle is in order to reduce their car insurance quote, which is now the most common type of consumer fraud in the UK.

Recent statistics show that³ half of the UK population said fronting was an acceptable practice, however, not only could it result in a criminal record, but it could also invalidate the insurance policy.

It is also important to remember if you’re involved in an accident, while insurance companies are legally obliged to pay out to third parties involved in an accident, they could refuse to cover any costs, damage or injury claims associated with those involved in the fronting arrangement.

  1. Deshopping

Research² has shown that one in every 20 adults in the UK has engaged in deshopping. This activity is where buyers purchase items of clothing with the intention of wearing the products before returning them for a full refund.

Deshopping can be considered as attempting to gain ‘pecuniary advantage by deception’, which is an offence under The Theft Act, 1968 (c.60).

  1. Money Muling

Some see being a money mule as a stress-free, get rich quick scheme, however, the consequences can be devastating. The act of ‘money muling’ is where a bank account holder allows criminals to use their bank account, in order to make the funds more difficult to trace, in exchange for a share of the money.

This method is a form of money laundering that can result in a prison sentence of up to 14 years. Former money mules will find it difficult to open new bank accounts and it will be flagged on all future accounts, including loans and credit cards.

  1. Friendly Fraud

Friendly fraud, also known as chargeback fraud, happens when consumers make an online purchase and then call their card issuer to request a refund, citing fraud as the reason. The credit card provider refunds the money and the consumer gets to keep the goods, leaving the seller out of pocket. In order to avoid committing friendly fraud, try to remember what purchases you have used your card for.

The challenge with friendly fraud is that there is no way to verify the authenticity of the actual transaction, which is in fact legitimate.

  1. Opportunistic Fraud

Opportunistic fraud is a type of insurance fraud, however, unlike ‘crash for cash’ or ‘ghost broking’ schemes, opportunistic fraud isn’t premeditated and doesn’t involve a huge amount of planning.

It occurs when someone is in a genuine incident, but they then exaggerate the damage in order to get pre-existing damage fixed in the repair process. While most people see this as ‘harmless’, the dishonest action impacts the cost of insurance premiums, making them higher for everyone.

John Dobson, CEO at SmartSearch, comments: “It is surprising how many UK adults have committed fraud without knowing, or think that some forms of fraud are acceptable. The impact these crimes have on the economy and UK businesses is extraordinary, and it should be at the forefront of your mind if you’re about to undertake any of the activities listed.

“We hope that by explaining these types of fraud, Brits can become more diligent on the types of fraud and their implications.”