In recent years, the number of people affected by financial scams has been increasing. Fraud is a very serious crime that can have devastating consequences for the victims.
Fraudsters are criminals who commit fraud, and they often use elaborate schemes to steal money or other valuable items from their victims. There are many different types of fraud, including credit card fraud, insurance fraud, and investment fraud.
Fraud is a serious problem that affects many people in the United Kingdom and as revealed by Skurio’s interactive microsite, the estimated cost of fraud in 2021 is expected to be approximately £137 billion.
This estimated cost of fraud over 365 days has meant that all the following items are being missed out on bought:
- 49,818,181,818 cups of coffee
- 22,871,452,420 Netflix monthly subscriptions
- 27,400,000 round the world flight tickets
- 304,451,210 Playstation 5’s
- 2,673,692,427 full tanks of petrol
- 361,477,572 smartwatches
How Badly is Fraud Affecting Different Industries?
Fraud can occur in any industry, but it often happens in specific industries where there is an opportunity for criminals to take advantage of a situation.
Some of the most common industries that experience fraud are the banking and financial services industry, the healthcare industry, the retail industry, and the entertainment industry.
1. Banking Industries
The banking industry is one of the most lucrative industries in the world, however, there are many risks associated with it. One major risk is fraud in the banking industry.
Fraud in the banking industry can take many different forms, from employees stealing money to customers engaging in fraudulent activities.
Fraud in the banking industry is nothing new. In fact, it's been going on for centuries. In the banking and financial services industry, criminals often use sophisticated methods to commit fraud.
They may use fake identities or create shell companies to obtain loans or credit. They may also use phishing schemes to steal sensitive information from customers or employees. And despite the many advances in technology and security, bank fraud continues to be a problem.
There are many different types of bank fraud, but some of the most common are check fraud, credit card fraud, false identification fraud, wire fraud, and bank embezzlement.
2. Healthcare Industry
Digital fraud is becoming a more prevalent problem in the healthcare industry. Criminals are finding new and innovative ways to steal money and data from healthcare providers, patients, and insurers.
In the healthcare industry, criminals often use stolen identities to bill insurance companies for services that were never provided. They may also create fake prescriptions or bills for procedures that were never performed.
One of the most common types of digital fraud in the healthcare industry is identity theft. This occurs when someone steals your personal information, such as your name, Social Security number, or date of birth, and uses it for financial gain. Identity theft occurs all over the world, but it is especially prevalent in the United States.
Pharmaceutical fraud is another common form of digital fraud. It occurs when someone submits a prescription to be filled for medication that person does not need or already has.
The thief obtains medications at lower prices because prescriptions are often reimbursed by insurance companies.
Pharmacy or health insurance fraud is another common form of digital fraud in the healthcare industry that occurs when someone submits a claim to an insurer and includes false information about the illness, treatment, or services provided to obtain the money they are not owed.
3. Retail Industry
Many people have enjoyed the convenience of online shopping, however, some know-how to take advantage of this technology for their own malicious gains.
Fraudsters are exploiting payment systems in e-commerce to make purchases with counterfeit/stolen cards, resulting in huge losses every year for retailers.
As more transactions are conducted online, retailers are increasingly being targeted by cybercriminals. There are various methods fraudsters use to commit e-commerce fraud. One common tactic is to create fake accounts and make fraudulent purchases with stolen credit card information.
In the retail industry, criminals often use stolen credit card information to purchase goods online or at local stores. They may also create fake returns by scanning real products with a return barcode but returning fake ones.
4. Entertainment Industry
In the 21st century, digital fraud is a pervasive problem for all organizations.
The entertainment industry is not excluded from this. As consumers have grown accustomed to higher quality and more content comes to market every year, the piracy rate continues to increase, which harms both online and offline businesses working in the entertainment industry.
There are various types of digital fraud that can take place in the entertainment industry. For example, businesses can be scammed out of money by cybercriminals who pose as legitimate buyers or sellers.
In some cases, thieves may steal copyrighted materials such as movies, music, and books, and then sell them online without the permission of the copyright holder.
In the entertainment industry, criminals often use stolen identities to sneak into award shows or concerts by buying them from people working in that industry. They may also create fake profiles to gain popularity or receive gifts.
5. Legal and professional industries
Law firms can be impacted by the client or third-party fraud. When a client commits fraud against another party, this may result in legal fees to defend them.
When a client files a false claim, this can also lead to legal fees for the firm. Other types of fraud affecting law firms include theft by employees or third-party vendors and billing for services that were not provided.
Professional services firms are sometimes impacted by fraudulent engagements, in which individuals claim to be an expert on something they are not.
This can lead to the firm providing inaccurate or incomplete advice, which can have costly consequences for the client. In addition, professional services firms can be a target for cybercrime, such as ransomware attacks and data theft.
Conclusion
Fraud is a serious problem that affects businesses in all industries. By understanding the types of fraud that commonly occur, organizations can take steps to prevent these crimes from happening.
Fraudsters are always looking for new ways to take advantage of unsuspecting victims.
They’ve infiltrated the online world and they pose a serious threat to your data, money, and personal information. The best way to protect yourself is by being aware of how these fraudsters operate so you can spot them before they strike.