12_Fraud Methods

Question 1

Ordinary Fraud

Answer 1

• Definition: General scams targeting the public, including white-collar crimes.
• Samples: Investment scams, identity theft, Ponzi schemes.
• Importance: Often underestimated but can cause significant financial harm.

Question 2

VAT Carousel (MTIC)

Answer 2

• Definition: Complex fraud involving VAT manipulation in multi-country transactions.
• Mechanism: Involves creating a loop of transactions to claim VAT refunds without paying.
• Key Players: Missing trader, broker, buffer traders.
• Impact: Massive tax losses for governments, funding for other criminal activities.

Question 3

White Collar Crime

Answer 3

• Definition: Non-violent financial crimes typically committed by professionals.
• Examples: Embezzlement, insider trading, bribery.
• Consequences: Causes significant economic damage, often hard to prosecute.

Question 4

Money Laundering

Answer 4

• Definition: Process of disguising the origins of illegally obtained money.
• Methods: Layering, integration, placement.
• Connection to Fraud: Often intertwined with various fraud schemes to legitimize proceeds.

Question 5

Bank Guarantee Scam

Answer 5

• Definition: Fraudulent scheme promising high returns on bank guarantees.
• Characteristics: Unrealistic returns, non-disclosure agreements, complex financial jargon.
• Targets: High-net-worth individuals, professionals in finance.

Question 6

Conveyancing Fraud

Answer 6

• Definition: Scam targeting property transactions involving fake solicitors.
• Methods: Impersonation of legitimate solicitors, redirection of funds.
• Victims: Homebuyers, businesses involved in property transactions.

Question 7

Business Email Compromise (BEC)

Answer 7

• Definition: Fraud involving compromised business email accounts to initiate fraudulent transactions.
• Variations: Invoice redirection fraud, CEO impersonation.
• Techniques: Urgency, fake invoices, spoofed email addresses.

Question 8

Credit Card Fraud

Answer 8

• Definition: Unauthorized use of credit card information for financial gain.
• Techniques: Card skimming, phishing, FULZ acquisition.
• Impacts: Financial losses for cardholders, reputational damage for businesses.

Question 9

Key Indicators of Fraud

Answer 9

• Unusual trading patterns.
• High-profit margins solely from VAT refunds.
• Complex network of interconnected entities with missing or fake documentation.

Question 10

Investigative Approaches

Answer 10

• Follow the money: Identify financial trails, track transactions.
• Focus on key players: Broker, buffer traders, third-party financiers.
• Analyze documentation: Look for inconsistencies, suspicious patterns.