The first mention of fraud dates back to around 300 BC
Translation for Mixstuff – Igor Abramov
People have always tried to cheat each other. In any case, the first mention of fraud is around 300 BCE.
Fraud is commonly understood as an act of criminal misrepresentation, intended to gain financial or other personal benefits. In 1792, a few years after America gained independence, the first case of fraud occurred in the country.
It is perhaps not surprising that some old tricks still work. In addition, they still cause serious financial and psychological harm to people around the world.
- Internet fraud
The modern Internet, as we know it today, was developed in 1971, however, consumers got access to the World Wide Web only twelve years later. Since then, for almost half a century, people have been using the Internet to chat with friends and gain new knowledge. Unfortunately, scammers also mastered virtual space to deceive people. In 2017 the FBI received more than 300 thousand complaints regarding acts of fraud. The total amount of damages from these crimes was 1.4 billion dollars.
- The mortgage
Often the family’s most valuable asset is the home. Of course, cheaters keep this in mind when they quickly come up with ways to enrich themselves. Over the past few decades, thousands of homeowners across the country have reported receiving official letters, allegedly from genuine mortgage companies. These fake companies force homeowners to buy shares to pay for repairs or other housing expenses.
The death of loved ones is a painful moment when people become more emotional and defenseless. Most simply do not think that a person can try to trample a family in mourning. Unfortunately, there have been many such cases. Often, fraudsters claim that the deceased had an unpaid debt, which must be repaid immediately. In other cases, they unnecessarily increase the cost of the funeral ceremony or sell unnecessary services.
- Retirement investment
It is known that most people plan to retire, but many do not know how to properly manage their savings after work is completed. The majority of older people in the United States depend on monthly checks from the State Pension Service.
Counterfeiters receive benefits from their victims, posing as financial advisors to gain access to pension funds and savings, and after receiving the funds, they immediately hide.
- Anti age care
In the last decades, people have been paying more and more attention to their appearance, and some people care so much about the issue that they are ready to sink into debt in their efforts to maintain youthfulness. The fraudsters take advantage of this weakness of the elderly, selling them various products that help hide their real age. These anti-aging care products are often completely useless, and sometimes contain harmful chemical compounds.
- Real estate fraud
People spend most of their lives saving to buy their homes. This is why real estate fraud is especially wasted for victims. Fake real estate agents cheat on payments or deposits of people trying to buy a home. By agreement, they have to keep the money until the transaction is completed. However, when the long-awaited day of signing the documents arrives, the real estate agent cannot be found, and with this the crime victim’s money disappears.
- Personal data fraud
Every year, more than nine million Americans become victims of identity theft. It is known that fake collection agencies purchase personal data of victims from scammers. Criminals gain access to this information in various ways. Often they pretend to be short-term lending companies to obtain valuable data. Phone calls and work are also common at your home. They employ internal taxation service employees and then request bank account information and a bank code.
- Dry cleaning account fraud
Dry cleaning services gained popularity in the early thirties of the last century. Fraudsters took profits from various companies, took an account from legal dry-cleaners, and then made a thousand copies. They sent these fake bills to expensive restaurants and hotels, claiming that their employees had siphoned food, coffee or wine over expensive guest attire. As it was usually about nominal sums, restaurants and hotels paid these fake bills without question.
- Telling fate as a fraud
Some may reasonably say that all kinds of fortune-tellers are sheer frauds. Modern scammers specializing in this field often use the skills of so-called “cold reading” to identify their client’s most acute problems. And then, instead of helping a person, they use the knowledge acquired to earn money. Usually, Fortuneteller tells the client that it is cursed, and that this curse can only be removed with a large amount. After receiving the money, the Fortuneteller usually “fraudulently” casts his fraudulent “spell” on the victim, freeing him from the curse.
10 “Mineralization of the mine”
This scam was popular during the gold rush. Forgers threw a gem or gold-bearing rock into a mine or gold mine to convince others to buy shares in a worthless or un-mined company.
This technique helped create the impression that the quarry or site is rich in natural minerals. One of the most well-known cases of fraud with “mine salting” is called the “diamond scandal” of 1872, when a pair of rogue miners deposited false diamonds to large merchants in San Francisco and New York, as well as large scale ” Gold fraud “. Canadian company Bre-X, which fraudulently raised its shares.
- Financial Legal Services
Legal fraud in the financial sector often goes unnoticed, and sometimes victims do not report them. It is difficult to hold criminals accountable, so this type of fraud is considered the least risky. However, this does not mean that it is not a disaster for the victims.
Typically, such a fraudster pretends to be a lawyer and advertises the services he can offer. Furthermore, the victim, of course, does not understand the nuances or does not read what is written in small print. Once the agreement is signed, this client will have to pay as much as the fraud lawyer would need.
- Romantic fraud
Romantic scams not only cause financial harm to a person, but also cause emotional trauma. The victim is made to believe that the person who talks with him or her truly loves and is sincerely in love. Typically, criminals find their victims on dating apps or social networks. After establishing a relationship, namely, penetrating the soul of a naïve person, they usually start asking for money for a medical operation or to get out of a difficult situation.
- Fake jobs
People who are looking for work are often hopeful and extremely naive. Currently, there are almost as many fake jobs online as real ones. However, before the advent of the Internet, scammers used the newspaper’s hiring section to withdraw money from people.
Some of them offer victims to pay for special training or preparation of documents or other formalities for testing, while others simply withdraw money or steal credit information.
- Inheritance notice
It rarely happens that someone’s distant relative, about whom a person knows nothing, leaves him a large sum of money. A legacy scam usually begins with a notification by email or post.
As a rule, the recipient is informed that they own a large inheritance, but must first send some amount to cover administrative expenses. The victim considers these expenses to be insignificant compared to the large amount of money he is about to receive. Thousands of people become victims of this type of fraud every year.
- To cheat
In the twentieth century, criminals often pretended to be another person for profit. For example, many times robbers dressed as bank managers to steal money.
In 1888, a man introduced himself as the chief priest of Washington to McCarthy’s father from Montreal. Later that day, McCarthy went to a local jewelry store to find a decent gift for the cardinal. There he told the merchant that where he was staying, he brought some diamonds. When the merchant showed up with his merchandise, McCarthy asked if he could take the diamond with him to the next room to show the other priests. Of course, he was never seen again.