Most people are familiar with what fraud, in a basic sense, involves.
Indeed, most consider fraud to be related to taking out credit cards in someone else’s name or committing fraud to obtain money via some other means.
But, under UK law, there are many different types of fraud, all with different legal definitions and legal penalties; as you can imagine, these are all things you would want to avoid if you can!
In this article, a fraud solicitor aims to explain the different types of fraud in layman’s terms. So, read on to learn more about how not to get into trouble concerning fraud under UK law.
Identity fraud occurs when someone uses another person’s personal information, such as their name, date of birth, and address, to commit a crime or obtain goods or services.
Identity fraud usually revolves around getting access to money but can be used to set up businesses or take out phone contracts.
Credit card fraud
This occurs when someone uses a stolen or compromised credit card to make purchases or withdraw cash.
Credit card fraud can also be committed if someone uses another person’s details to take out a credit card and then run up debt under this alias.
This can include scams such as phishing, where criminals send fake emails or texts pretending to be from banks or other legitimate organisations in an attempt to trick people into revealing personal or financial information.
Investment fraud occurs when someone is tricked into investing money in a fake or fraudulent scheme. Investors who convince people to invest in a stock that has ‘no risks’ is another way investment fraud can occur, so if you hear these words from a stock broker, you should probably seek help from a legal third party, as they are probably trying to scam you.
This occurs when someone pretends to be collecting money for a legitimate charity but keeps the funds for themselves. Many people find this to be a type of fraud that is difficult to digest, as it relies solely on the goodwill of others donating to a cause they believe in.
This occurs when someone makes a false or exaggerated insurance claim in order to receive a payout. This can be related to health, property or car insurance, and the penalties will vary based on which type of insurance fraud has been committed, the amount and the policy of the insurance company.
This can include resume fraud, where someone lies on their resume to get a job, or payroll fraud, where an employee claims payment for work they have not actually done. This is more commonly seen in roles that are related to zero-hour contracts and part-time work. So, be sure to fill out your payroll correctly!
So, there you have it. If you find yourself accused of committing fraud, you will need to seek legal help from a solicitor who specialises in this area.