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A number of fraudulent activities are categorized
as criminal. Our society views deception as a
reprehensible crime, and almost every conceivable use
of deception has been drafted into a criminal statute.
Additionally, in the civil context, fraud will often
undo a contract and allow an innocent party to walk
away from the contract, and to sometimes even recover
damages.
Types of Fraud
Of the many types of fraud in the criminal context,
the most common are:
- Medical insurance fraud – Bringing false
claims to receive payment under an insurance
policy
- Welfare fraud – Submitting inaccurate
information to increase, or obtain, payments
- Car insurance fraud – Bringing multiple claims
for the same injury, or purposely crashing a
vehicle to obtain payments under an insurance
policy
Detection
The 3 types of fraudulent activities mentioned above
have been made crimes to stem the increasing use of
these methods to defraud companies and people.
While it may be tempting to crash your car to get a
new one, insurance companies have investigators who
will usually discover the ploy. And, defrauding
companies and the government ultimately hurts everyone
by increasing insurance rates and eliminating or
reducing government aid.
Penalties
Penalties for fraud can include long prison sentences
and/or huge fines.
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