The document provides an overview of various types of fraud including definitions, examples, and key details. It discusses basics of fraud such as the necessary elements and intentional misrepresentation. Different fraud schemes are explained such as identity theft, phishing, vishing, lottery frauds, and money laundering. Cybercrimes involving social media like cyberbullying, cyber grooming, and online extortion are summarized. The roles of key players in corruption like politicians, government officials, and businesses are mentioned. Details on organizations working to combat fraud like the ACFE and Transparency International are also provided.

1. Basics, types of frauds, and fraud
schemes
Dr. Suchita Rawat (MSc. MPhil, PhD)

2. ● Fraud: Key Takeaways
● Intentional use of false or misleading
information in an attempt to illegally
deprive another person or entity of
money, property, or legal rights.
● Fraud is a deliberate act (or failure to
act) with the intention of obtaining an
unauthorized benefit, either for
oneself or for the institution, by using
deception or false suggestions or
suppression of truth or other
unethical means, which are believed
and relied upon by others.

3. Necessary Elements of Fraud
● A misrepresentation of a material
fact
● Knowledge of falsehood
● Intent to deceive
● Reasonable reliance by the victim
● Actual loss or injury suffered

4. https://www.acfe.com/about-the-acfe

14. Corruption
Corruption can take many forms, and can
include behaviours like:
•public servants demanding or taking money or favours
in exchange for services,
•politicians misusing public money or granting public
jobs or contracts to their sponsors, friends and families,
•corporations bribing officials to get lucrative deals

16. Key players
Politician
Government officials
Public servants
Business people

18. Formation 1993
Type International non-governmental
organization
Legal status Eingetragener Verein (German
registered voluntary association)
Purpose Combat corruption, crime
prevention
Headquarter
s
Berlin, Germany
Location •Alt-Moabit 96
10559 Berlin, Germany
Managing
Director
Daniel Eriksson
Chairman Delia Ferreira Rubio
https://www.transparency.org/

23. ● 21-08-2022 : CBI ARRESTS A SENIOR BARRACKS STORE OFFICER (Lt. Col.) OF MES & THREE
OTHERS INCLUDING PRIVATE PERSONS IN AN ALLEGED BRIBERY OF RS.22.48 LAKH AND
RECOVERS RS.48.50 LAKH (APPROX) DURING SEARCHES
● 13-08-2022 : CBI ARRESTS AN OFFICIAL OF REVENUE DEPARTMENT FOR ACCEPTING BRIBE
OF Rs. 25,000/-
● 10-08-2022: CBI ARRESTS AN ENGINEER OF UTILITY POWERTECH LTD FOR ACCEPTING
BRIBE OF Rs. ONE LAKH
● 05-08-2022: CBI ARRESTS CHIEF MECHANICAL ENGINEER, PARADIP PORT TRUST & THREE
PRIVATE PERSONS ON THE ALLEGATIONS OF BRIBERY AND RECOVERS Rs. 84.5 LAKH
(APPROX.) DURING SEARCHES AT VARIOUS LOCATIONS
● 16-07-2022: CBI ARRESTS PLANT PROTECTION OFFICER OF MINISTRY OF AGRICULTURE &
THREE PRIVATE PERSONS IN A BRIBERY CASE AND RECOVERS Rs. 1.86 CRORE (APPROX.)
DURING SEARCHES
● 26-07-2022: CBI ARRESTS A LICENSING OFFICER & REGIONAL LABOUR COMMISSIONER FOR
ACCEPTING BRIBE OF RS. 25,000/-
● 01-08-2022 :CBI ARRESTS A CHIEF FREIGHT TRANSPORTATION MANAGER (IRTS-1996) OF
EAST CENTRAL RAILWAY & FOUR OTHERS INCLUDING TWO SENIOR DOMs OF ECR IN A
BRIBERY OF Rs. SIX LAKH AND RECOVERS RS. 46.50 LAKH (APPROX.) DURING SEARCHES
https://cbi.gov.in/press-releases

24. ASSET MISAPPROPRIATION

27. https://cybercrime.gov.in/pdf/Cyber%20Security%20Awareness%20Booklet%20for%20Citizens.pdf

28.  act of wrongfully obtaining
someone’s personal information
(name, phone number, address,
bank account number, Aadhaar
number or credit/debit card number
etc ) without their permission.
 bank accounts /file a tax
refund/obtain a driver’s license,
passport or immigration papers/
medical treatment/assume your
identity on social media
This Photo by Unknown Author is licensed under CC BY-ND
IDENTITY THEFT

29. VISHING
 Fraudsters try to seek personal
information like Customer ID, Net
Banking password, ATM PIN, OTP,
Card expiry date, CVV etc. through
a phone call.
PHISHING
 involves stealing personal
information such as Customer ID,
IPIN, Credit/Debit Card number,
Card expiry date, CVV number, etc.
through emails that appear to be
from a legitimate source.
This Photo by Unknown Author is licensed under CC BY-
NC-ND
PSYCHOLOGICAL TRICKS

30. SMSHING
 type of fraud that uses mobile
phone text messages to lure
victims into calling back on a
fraudulent phone number, visiting
fraudulent websites or downloading
malicious content via phone or web
ONLINE JOB FRAUD
 An attempt to fraud people who are
in need of employment by giving
them a false hope/ promise of
better employment with higher
wages.
This Photo by Unknown Author is licensed under CC BY-NC-ND
PSYCHOLOGICAL TRICKS

31. DEBIT/CREDIT CARD FRAUD
 an unauthorized use of another's
credit or debit card information for
the purpose of purchases or
withdrawing funds from it.
LOTTERY FRAUD
 The fraudster congratulates the
victim for winning a handsome
lottery via e-mail/call/SMS and
asks to transfer a token amount
and share vital personal
information to get the lottery
money.
PSYCHOLOGICAL TRICKS
This Photo by Unknown Author is licensed under CC BY-
SA

32. SPAMMING
 Spamming occurs when someone
receives an unsolicited commercial
try to persuade recepient to buy a
product or service, or visit a website
where he can make purchases; or
they may attempt to trick him/ her
into divulging bank account or credit
card details. This Photo by Unknown
Author is licensed under
CC BY-NC-ND
PSYCHOLOGICAL TRICKS

33. CYBER BULLYING
 harassment or bullying inflicted through
the use of electronic or communication
devices
CYBER STALKING
 use of electronic communication by a
person to follow a person, or attempts
to contact a person
 monitors the internet, email or any other
form of electronic communication
commits the offence of stalking
This Photo by Unknown Author is licensed under CC BY-
NC-ND
SOCIAL MEDIA FRAUDS

34. CYBER GROOMING
 a person builds an online
relationship with a young person
and tricks or pressures him/ her
into doing sexual act.
ONLINE SEXTORTION
 When someone threatens to
distribute private and sensitive
material using an electronic
medium if he/ she doesn’t provide
images of a sexual nature, sexual
favours, or money.
SOCIAL MEDIA FRAUDS
This Photo by Unknown Author is licensed
under CC BY-SA-NC

35. MOBILE APPLICATION FRAUDS
SIM SWAP SCAM
 fraudsters manage to get a new
SIM card issued against a
registered mobile number
fraudulently through the mobile
service provider.
 With the help of this new SIM card,
they get One Time Password
(OTP) and alerts, required for
making financial transactions
through victim's bank account.
This Photo by Unknown
Author is licensed under
CC BY-SA

36. ONLINE BANKING FRAUDS
 Digital Payments Applications related
attacks
 Hacking of Bank Account due to
Weak Password
 Hacking of Multiple Accounts due to
same password
This Photo by Unknown Author is licensed under CC BY-
NC

37.  Money laundering has been addressed in the UN
Vienna 1988 Convention Article 3.1 describing
Money Laundering as:
 “the conversion or transfer of property, knowing
that such property is derived from any offense(s),
for the purpose of concealing or disguising the
illicit origin of the property or of assisting any
person who is involved in such offense(s) to evade
the legal consequences of his actions”.
 criminal proceeds to disguise their illegal origin as
it enables the criminal to enjoy these profits without
jeopardizing their source (Illegal arms sales, drug
trafficking, organized prostitution rings,
Embezzlement, insider trading, bribery and
computer fraud schemes)
 The Financial Action Task Force on money
laundering (FATF) was established by the G-7
Summit in Paris in 1989 to develop a coordinated
international response for anti-money laundering
programs.

38. 3 Stages of Money Laundering
•Placement (i.e. moving the funds from
direct association with the crime)
•Layering (i.e. disguising the trail to foil
pursuit)
•Integration (i.e. making the money
available to the criminal from what seem
to be legitimate sources)

39. How is Money Laundering done?
Smurfing
Electronic money
Offshore Accounts
Money Mules
Cryptocurrencies
This Photo by Unknown Author is licensed under CC BY-NC
Casinos

40. https://www.fbi.gov/stats-services/publications/securities-
fraud#:~:text=Definition,Pyramid%20Schemes
The term Securities Fraud covers a wide
range of illegal activities, all of which involve
the deception of investors or the
manipulation of financial markets.
Types
•Ponzi Schemes
•Pyramid Schemes

43. https://iica.nic.in/home.aspx

44. https://iica.nic.in/images/Book_on-Ponzi-Schemes%20in%20India.pdf

45.  Sanchaita scam (duped around two-lakh investors, majorly in
West Bengal, by offering, as high as, 48 % return rate on their
investment. It is said to have garnered more than INR 100 crore
from depositors/investors)
 Saradha scam (Saradha started its journey as a chit fund entity
but by 2012, the estimated collection was nearly INR 10,000
crore. Mostly the collection was done in West Bengal, Assam,
Odisha, and Tripura and it affected lakhs of gullible depositors.)
 Peerless scam (Another Kolkata-based company, Peerless
General Finance, and Investment Co Ltd, 12 million people with
total deposits of over INR 300 crore in the late 70’s. )
 Pearl Agro scam (One of the biggest chit-fund scams PACL
(Pearl Agro Corporation Limited) scam illegally collected
approximately INR 49,100 crore from about 5.5 Crore gullible
investors in the name of selling them plots of land over a period of
18 years)
 Sahara OFCD scam (Sahara India Real Estate Corporation
(SIREC) and Sahara Housing Investment Corporation (SHIC)
raised money aggregating to Rs 19,400.87 crore and Rs 6,380.50
crore respectively from around 3.07 crore

46. IMA scam
 Bike Bot scam
 Noida scam
QNet scam
Social Cause scam
Anubhav Plantation scam
Rose Valley scam
Speak Asia scam
GainBitcoin scam 5
Bitconnect scam

47. ● Common types of bankruptcy fraud
involve a bankruptcy filer:
● Hiding accounts or property, or hiding the
real value of assets (called concealment
of assets)
● Lying about money or property on your
bankruptcy petition (called false
statements or perjury)
● Transferring money to friends or family or
hiding it in cash (called money
laundering)
● Taking on debt and filing bankruptcy over
and over (sometimes called petition
mills)

48. When someone provides false information to an
insurance company in order to gain something of
value that he or she would not have received if the
truth had been told, they've committed insurance
fraud.

49. https://www.ndtv.com/topic/insurance-fraud

50. https://www.ndtv.com/topic/insurance-fraud

51. https://www.ndtv.com/topic/insurance-fraud

52. https://www.ndtv.com/topic/insurance-fraud

53. This Photo by Unknown Author is licensed under CC BY-SA