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Understanding business fraud

Unfortunately, some Florida businesses are participating in various types of business fraud. This type of behavior can be harmful to both employees and citizens throughout the state. Understanding what business fraud is and the different types can help to better prevent you from being defrauded by a business in the future.

What is business fraud?

Business fraud is simply defined as illegal and dishonest activities that a company or individual uses for personal financial gain. You may hear business fraud referred to as corporate fraud. Many times, these illegal activities are under the disguise of legitimate business practices. This makes the instances of fraud much more difficult for the average citizen to identify.

A look at different types of business fraud

There are six main types of business fraud that people use for their own financial gain. These include charity fraud, internet auction fraud, non-delivery of merchandise, non-payment of funds, overpayment schemes, and reshipping schemes. In many of these cases, the business or individual will end up in business litigation with the victim of the fraud.

When it comes to charity fraud, the criminal will falsely deceive individuals into believing that they’re donating to a legitimate charity. In reality, the criminal will pocket the cash. In a non-payment of funds scheme, the criminals will receive goods or services that were shipped, but they will never pay for them. Similarly, a non-delivery of merchandise scheme happens when a customer pays for the merchandise but never receives it from the company. These are just a few of the many different types of schemes that people being charged with business fraud use.

While it might seem despicable that some companies and individuals will be willing to defraud other people out of money, it does happen. Business fraud can be classified in many different categories based on the specific actions of the criminal. If you believe that you’ve been a victim of business fraud, it’s a good idea to seek assistance from an attorney.