Money fraud is a very general term to denote scams involving cash. You must know that there are several types of this fraud classification and each type has its own nature and telltale signs. If you do not have appropriate and sufficient awareness about these scams, you might become the next victim of the numerous fraudsters today. It will be for your own good, if you know at least the basic difference between each type of money fraud, so that you can take proper action to avoid it, or to deal with it in case you become a victim.

Various Types of Money Fraud and How It Is Done by Fraudsters

Many people are susceptible to money fraud these days, because of the increased need for financial stability. More fraudsters are taking advantage of your thirst for more money, thus using all the means to make you believe that they can actually help you get what you want for a little consideration only. At first, the offers might sound interesting and convincing, but you will realize how fake they are later.

Here is a list of the most common money fraud incidents reported by the victims to the authorities:

  1. Insurance Fraud

Living in today’s society has become very difficult for many people. There are a lot of nations that are suffering from diseases that seem to decrease the lifespan of the population.  Governments can only do so much to provide proper health care services to the needy, basically because of the growing population. As you may have noticed, privately-owned hospitals and health care centers have significantly higher service fees. This is why many insurance companies have started popping out of the blue. Many people are wise enough to get health insurance so they won’t be burdened by their medication cost in the future. However, even health care insurance services are not exempt from the cruelty of fraudsters. Many fraudsters are posing as insurance companies, trying to entice you to get their health care insurance policy, which is usually a long-term investment. These fraudsters will ask you to make monthly deposits to cover your insurance expense, even if you have not used it for the period. Usually, these fraudsters will keep in touch with you, until the time you want to use your health care insurance. When you claim the benefits of your insurance, all you get from these fraudsters is an unreachable contact number.

  1. Charity Fraud

This is a scam involving money that is hard to uncover. In this money fraud, the fraudsters will take advantage of the fact that many people’s heart melt at the sole mention of charity. For humanitarian reasons, many people want to help out by giving donations to charity. But guess what? Not all the charities you see are legit. Some are fraudsters posing as one. So the next time you make a donation, be sure that your help will go to the needy, not to the pockets of ruthless fraudsters. Do not help them stuff their wallets with your hard-earned money.