fraud

How to Recognize Bankruptcy Fraud

What is bankruptcy fraud and how do you know when it is happening? The understanding of fraud may differ under each of the varied jurisdictions. Below are basic ways in how to recognize bankruptcy fraud and how to avoid it if you find yourself in an uneasy situation:

Incomplete forms can be an honest mistake but can also be an indication of fraud.

• When Forms are Incomplete or Misrepresented and False
Incomplete forms can be an honest mistake but can also be an indication of fraud especially when the forms are missing vital information that determines status. Misleading and falsely filled in forms are always seen as an indication of fraud and is considered a white collar crime. What does it mean be providing misrepresented and misleading or false information? By intentionally providing documents with a fake identity, wrong address, or by not providing all background information about finances and assets, is considered against the law and one of the ways to determine bankruptcy fraud.

• Filing Multiple Forms in Different States
Intentionally filing bankruptcy claims in multiple states and perhaps under different names is also a sign of fraud. As information is often kept in a computer database, those who file forms in different states risk being charged. Always be aware of when and where you filed and follow up on that claim rather than filing again in another state to avoid the mess and drama.

• Hiding Assets
One of the most common ways of bankruptcy fraud is the hiding of assets, especially liquid assets in other accounts. When applying for bankruptcy it is important to have all assets- liquid and money assets, homes, cars, etc. listed on in the paperwork to avoid being accused of fraud.

• Conflict of Interest
Usually existing wherever a person holds some form of power, filing a bankruptcy claim can become a play of power. Know when conflict of interest exists whether it is with ex-employers, etc. and make sure you make note of this if you yourself find that you are in a position where this may occur.

• Destruction of Documents
Lastly, the destruction of documents can also be considered fraud. From destroying evidence needed to file claims to intentionally destroying knowledge of assets and previous claims, can leave one in an even bigger and worse situation.

Gather the facts and know how to recognize bankruptcy fraud. If you are aware that this type of fraud is occurring, make sure you contact the United States Trustee Program under the Department of Justice for further investigation or the FBI. While many people who face bankruptcy may be honest individuals who are dealing with a major change in their lives and status of finances, a limited few may take advantage of bankruptcy proceedings in order to hide assets and get out of paying debt. Know these signs and how to report dishonest behavior before it becomes out of control.

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Protect Credit Report

by Kylee Sanders

Credit Report is a report card that is prepared to let the lenders determine whether lending to an individual would be a wise decision or not.

It is compiled to let the lenders know the credit history of the borrowers: how much has the person borrowed? How many times borrower has applied for the loan? What is the status of his loans? Etc. The credit report lets the lenders assess the borrower’s risk and that is helpful in determining the interest that they might be charging from him.

Credit Report is a report card that is prepared to let the lenders determine whether lending to an individual would be a wise decision or not.

Credit report fraud is very common and people tend to be victims of it. To protect credit report, one must take the following steps. These steps help in fixing the credit report which may affect a person’s ability to take loans in future due to identity theft, etc:

Asking for frequent credit reports is important. Although, everyone is entitled to one free credit report every year from each of three national credit reporting bureaus, but having more frequent access to the credit history is not a bad idea. It helps one to protect the credit report. A complimentary copy of all three credit reports is a good idea.

Contacting the local law enforcement body to file a police report stating your plea regarding identity theft is one of the first steps that should be taken in such cases of identity theft. Taking the highlighted credit report with all fraudulent accounts and incorrect information to the police helps a lot. A report for the police is required to clear any fraudulent activity from the account.

All the companies where the fraudulent accounts have been accessed or have been opened should be contacted immediately after obtaining the reports from the police with their attestation. The collection agencies, insurance agencies as well as the companies with any pending applications, all must be contacted in any cases regarding credit report. The fraud department of the companies looks into the matter and is always ready to help the victims. The fraud department helps in clearing all the mess that has been created due to the problem of identity theft and it clears the history from the credit report. Removing the history of credit fraud from the credit report is very important and must be taken care of.

Image credit: free-credit-report-gov.net

Beware of the debit card fraud

by Kylee Sanders

Be aware of the thieves are out there

Debit card usage is on the increase and to match that debit card fraud is also. As companies look for new technology solutions to protect the clients, in consequence the criminals develop more ways to scam them. Identity theft is all around and a huge cause of disruption in people’s lives and businesses.

Invest in a shredder and use it to destroy any mail with pre-labeled information on you and your home. Regularly check your accounts for any discrepancies and not just once a month! Do not use personal information on public accessible computers. Frequently change passwords and do not store them.

Be aware of scams and frauds regarding both debit card fraud and credit cards.

Identity theft is all around and a huge cause of disruption in people’s lives and businesses

Skimming

This is where the criminals use technology to help themselves to your money. The most popular venues for this type of fraud are; grocery stores, ATMs and automated fuel dispensers. This is where the criminals place an electronic box, known as a skimmer near the cash register or point of payment. The skimmer steals the information encoded in the debit card.

To try and alleviate this type of scam do not let your card out of your sight – be seen to be watching.

Card Switch

You give your card to pay, often in a restaurant but the card that comes back is not yours. Unscrupulous restaurant and criminal staff often keep stolen cards for this very purpose replacing yours with a similar one and then they go shopping.

Check your card carefully before you put it back into your wallet or purse.

Cell phone Scammers

This where you are using your card to pay and someone close by is using their smart phone to take pictures or videos of your card and PIN as you do so.

Be aware of your surroundings, and this goes especially for cell phone users, conceal your card as much as possible and cover the PIN keyboard when you use it.

Stuck key fraud

Thieves glue down certain keys on the ATM keyboard to halt a transaction after the card and PIN have been inserted, not allowing the card to be returned. When the user goes for assistance the thieves either release the glued keys on use the touch screen (that many do not realize the ATMs have) to help themselves to your money.

Any problems at an ATM try not to leave the machine unless you have contacted your bank to cancel your card. Check if the screen is a touch screen; use your cell phone to contact for assistance, most ATM’s have a contact number in view.

Image credit: merlinsoft.co.uk