What are the Societal Impacts of Fraud?
One of the most expensive
crimes endured by millions of U.S. consumers every year is fraud. These days, it's hard to escape as scams will
find you anywhere - on internet, at the car dealership and certainly in the
streets. Collectively, criminals who
commit fraud have no personal preference.
They look to victimize the youth, senior citizens, home computers and
large corporations alike. It is crucial
to understand why even you can be negatively impacted by this rapid moving
crime wave.
Common Types of Fraud
Scam artists will employ
a wide variety of techniques, programs and devices to commit fraud. For this reason, it is very important to
remain aware of the probability and keep your confidential information
safe.
Some of the most common
types of fraud involve:
• automobile insurance
• homeowners' insurance
• medical insurance
• the welfare system
• government contracts
• used cars
• prize drawings
• social engineering
Lasting Impact of Fraud
It
is often stated that many of these crimes such as insurance and welfare fraud
have no direct victims. In truth, the "victimless"
approach is the wrong way to view the situation. Fraud has a negative effect on everyone. Here are few consequences we all endure:
• economic decline due to direct physical
damage
• economic decline due to losses suffered by
publicly used services such as transportation, police and fire departments
• indirect economic losses endured by
prominent corporations due to losses suffered by their clients
• physical injury or death to innocent
victims caught in the middle of a scam gone wrong
• emotional and psychological burdens placed
on the fraud victims
Psychological unrest among victims
The
emotional effects fraud can have on a victim are perhaps the most
troubling. In comparison to victims of
violent crimes, they're susceptible to many stress-related complications and
psychological problems. When fraud
evolves into an even more damaging crime such as identity theft, many victims
find it difficult to recover from the financial loss. If they were baited into a scam, they may
feel as if they not only lost their money, but their sense of security,
self-esteem and dignity as well. For
some, this may be an ordeal that takes years to resolve.
A
fraud victim may feel lonely or embarrassed because of a change in social
status. The incident may cause marital
problems and prevent someone from providing adequate support for their family.
Sadly,
the social indifference behind this type of crime can be reflected on the law
to some extent. Too often, white collar
crimes are thought of as low-priority and do not receive the proper
attention. The victim may be received
with skepticism and contempt when attempting to report the violation. When members of law enforcement aren't
backing the claim, it becomes very difficult for a victim prove a case to the
court. Even with physical evidence, a
suspect may find away to elude the system or are given a mere slap on the
wrist. Many of them resort to the
liquidation of assets or file bankruptcy when ordered to pay restitution.
By
protecting yourself against fraud, you are also preserving your well
being. If you feel that you have been
victimized by this crime, make a detailed log of all related events and present
the case to your local authorities.
Additionally, you can take this one step further by inquiring within the
U.S. Federal Trade Commission: www.ftc.gov
Their website will provide detailed information on the latest scams and
allow you to submit complaints for numerous types of fraud.
