The Top 10 Types of Fraud and How to Avoid Them

Types Of Fraud

There are many types of fraud that can occur in business, and it is vital to be aware of them to avoid them. This blog post will go over the eleven most common types of fraud.

We will discuss what these scams look like, how they work, and how you can protect yourself from them. Hopefully, by reading this article, you will be able to save your business from these harmful scams!

Identity Theft

The first type of fraud is identity theft. This is when someone uses your personal information, such as your name, Social Security number, or credit card number, without your permission.

They may use this information to open new accounts in your name, change your existing accounts, or even apply for loans. Identity theft can be very damaging to your financial health, so it is essential to be aware of it and take steps to protect yourself.

If you are a victim of identity theft, you should immediately contact the three major credit reporting agencies (Equifax, Experian, and TransUnion) and place a fraud alert on your file.

You should also close any accounts that have been tampered with or opened illegally in your name. Finally, you should file a report with the Federal Trade Commission and your local police department.


Another common type of fraud is phishing. This is when someone tries to trick you into giving them your personal information by sending you an email or pop-up message that looks like it’s from a legitimate company.

They may say that there is a problem with your account or that you need to update your information, and they will provide a link for you to click on. If you click on the link, it will take you to a fake website that looks real but is just a way for the scammer to steal your information.

To protect yourself from phishing scams, never click on links in emails or pop-up messages from companies you do not know. If you are unsure if an email is legitimate, you can always contact the company directly to inquire about it.

You should also never enter your personal information on a website unless you are sure it is a legitimate site.


Another type of fraud is called pretexting. This is when someone pretends to be someone else to get your personal information from you. They may say that they are from a research company and need your Social Security number for a study, or they may say they are from your bank and need to verify some account information.

Pretexters often use high-pressure tactics to get you to give them the information they want, so it is vital to be aware of this scam and know how to handle it.

If you are ever contacted by someone pretexting, do not give them any information. Hang up the phone or delete the email immediately. You can also report the incident to the Federal Trade Commission or your local police department.


Yet another type of fraud that business owners need to be aware of is skimming. This is when someone steals your credit card information by swiping your card through a unique device that captures the data on the magnetic stripe.

They may then use this information to make unauthorized charges on your account.

Skimming can happen anywhere that credit cards are accepted, so it is essential to be vigilant when using your card and closely monitor your account activity.

If you think your credit card information has been stolen, you should immediately contact your credit card issuer and report the incident. You should also change your PIN and monitor your account activity closely for any unauthorized charges.

More Common Types Of Fraud

– Credit card fraud

Credit card fraud is a type of fraud that involves using a credit card to make unauthorized purchases or withdraw cash.

– Insurance fraud

Insurance fraud is a type of fraud that involves making false claims to an insurance company to receive money or benefits.

– Healthcare fraud

Healthcare fraud is a type of fraud that involves making false claims to a healthcare provider to receive money or benefits.

– Securities fraud

Securities fraud involves making false claims about security, such as a stock or bond, to sell it at an inflated price.

– Mortgage fraud

Mortgage fraud is a type of fraud that involves making false claims about a mortgage to obtain a loan or receive a lower interest rate.

– Bank fraud

Bank fraud is a type of fraud that involves making false claims to a bank to obtain money or benefits.


Fraud is a serious issue that can take many different forms. In this post, we’ve outlined the most common types of fraud so you can be better informed and protect yourself from becoming a victim.

Remember, if something seems too good to be true, it probably is! Be vigilant about checking for red flags and always report any suspicious activity to the authorities.


Viable Outreach

© Viable Media, LLC