It has been reported by Gallup poll that about 8% of adult Americans, which is roughly 21 million people, have personally been scammed. Fraud is a widespread problem that can take several forms, each with its own unique characteristics and consequences. It is crucial for individuals and organizations to understand the various types of fraud to stay alert and implement effective preventive measures.
- Identity Theft involves the unauthorized acquisition and use of someone's personal information, such as their name, Social Security number, or credit card details, for illegal financial gain. According to the Federal Trade Commission, identity theft was the second-most reported category of fraud in 2022, accounting for 25% of all reported cases.
- Credit Card Fraud is a type of fraud that occurs when someone illegally obtains and uses another person's credit card information for unauthorized purchases or cash advances. The Nilson Report estimates that global credit card fraud losses amounted to $28.58 billion in 2021, with the United States accounting for a staggering 33.9% of those losses.
- Investment Fraud also known as securities fraud, this involves the intentional misrepresentation or omission of material facts related to investments, such as stocks, bonds, or cryptocurrency. According to the Securities and Exchange Commission (SEC), investment fraud cases in the U.S. resulted in monetary sanctions exceeding $6.4 billion in 2022.
- Insurance Fraud can occur when individuals or organizations deliberately provide false information or misrepresent facts to obtain insurance benefits or payouts they are not entitled to. The Coalition Against Insurance Fraud estimates that insurance fraud costs American consumers approximately $308.6 billion annually.
- Healthcare Fraud involves the submission of false claims for medical services or products that were never rendered or provided. The National Health Care Anti-Fraud Association (NHCAA) estimates that healthcare fraud costs the U.S. healthcare system around $68 billion annually.
- Tax Fraud involves the intentional misrepresentation or evasion of tax obligations, such as underreporting income, claiming false deductions, or failing to file tax returns. The Internal Revenue Service (IRS) estimates that the annual tax gap (the difference between taxes owed and taxes paid) in the U.S. is approximately $381 billion.
- Mortgage Fraud is the type of fraud that involves the misrepresentation or omission of information during the mortgage loan application process, such as inflating income or assets, or misrepresenting the intended use of the property. According to the FBI, mortgage fraud remains a persistent problem, with hundreds of millions of dollars in losses reported annually.
These are just a few examples of the various types of fraud that can have far-reaching consequences for individuals, businesses, and society as a whole. Combating fraud requires a multifaceted approach involving education, regulatory measures, and collaboration among law enforcement agencies, financial institutions, and the public.
As a business owner, what can you do to protect your business?
Tap into Integro Bank's suite of Fraud Deterrent Tools.
As the number and complexity of fraud schemes continue to grow, it's vital for you to have tools in place to help mitigate your exposure to these types of activities. Monitoring your accounts within Online Banking is a good first step, but you can do even more.
Integro Bank offers a variety of options to help you mitigate the risk associated with paper and electronic financial activity and can be tailored to support a wide range of accounting and reporting systems. For example, when your business has these products, all working together, you will be in a better position to identify and thwart attempts to compromise your financial accounts.
Integro Bank offers a full suite of Positive Pay Services:
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Positive Pay – An automated fraud detection service that matches a company’s issued checks with those presented for payment. The dollar amount, check number, and account number must all match, or the check is flagged and sent back to the issuer for review.
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Payee Positive Pay – This provides another layer of protection where Integro bank will also confirm the payee's name as a part of matching process. The dollar amount, check number, payee and account number must all match, or the check is flagged and sent back to the issuer for review.
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Reverse Positive Pay - Best for micro small business who do not write too many checks. With this tool, you review a list all the checks that have been presented for payments. You then notify Integro Bank which checks are approved to pay or return.
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ACH Positive Pay -Simply allows you to set customized payment rules for each account where you can create a list of authorized ACH Transactions, or a list of unauthorized transactions; Exception notifications are presented to you for "pay or return.“
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ACH Debit Block – This feature blocks all ACH debit transactions. Any incoming ACH is automatically returned to the originating bank.
Learn more about mitigating fraud:
https://www.integro.bank/Business/Treasury-Management/Mitigate-Fraud
Contact us to speak with a representative about what Integro Bank offers businesses to help mitigate fraud:
https://www.integro.bank/Contact-Us