Securities Fraud & Bank Fraud Explained
Securities Fraud & Bank Fraud Explained
Securities fraud refers to the action of convincing investors to buy stocks based on imprecise facts. It is often referred to as stock or investment fraud.
These purchases frequently result in a significant monetary loss for the purchaser. Securities fraud is often committed using one of many techniques, including insider trading, stockbroker fraud, fake information in dealings with corporate auditors and printing false information on a company's financial statements.
Categories of securities fraud include corporate fraud, Internet fraud, insider trading, accountant fraud, mutual fund fraud as well as short selling abuses.
Common methods used to commit securities fraud include:
- Manipulating stock options
- Misleading and misrepresentation to investors
- Stock misappropriation
- Illegal trading
- Not revealing conflicts of interest
- Using offshore accounts to boost reported assets
- Filing fake quarterly or annual reports
- Insider trading
- Stockbroker fraud
- Investment advisor misconduct
- Issuing press releases with false information
- Promising unlikely ROIs
- False timing of stock option grants
- Recommending inappropriate investments
What is Bank Account Fraud?
Bank account fraud refers to an individual or organization intentionally acquiring money or property from financial institution using illegal strategies. Bank account fraud could happen as a result of identity theft when cards or bank account information has been stolen.
What are the categories of Bank Fraud?
There are many techniques in which fraudsters can be able to practice bank fraud. Major categories of bank con include:
- Bank impersonation. This is a situation where a company pretends to be a financial institution with the aim of creating false companies, or making websites, in order to to convince individuals to deposit money.
- Stolen checks. This occurs when individuals secure employment that gives them access to mail. Once they steal the checks, they usually unlock accounts using an unspecified name.
- Forgery. "Forgery happens when fraudsters modify a check by altering the person's name or any other details on the face," said Mark Herman, owner of Expungement Lawyer MN. "For example, they might include a zero to the ending of a figure, turning a $20 check into a $200 check. Faking an individual's signature before you cash or deposit a check also related to this type of fraud."
- Fraudulent loans. This applies when a borrower uses a fake identity to acquire loans, or falsifies details when requesting a loan.
- Internet fraud. Internet fraud takes place when someone makes a website while pretending to be a financial institution, or rather a bank, to falsely get funds deposited by other people.