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Types of Mortgage Frauds in India



types of mortgage frauds in India

Hello friends, are you all right? Today we bring you some very important information. Today we are going to learn the right information about types of mortgage frauds in India. Such frauds are very important in India. Personal loan frauds are also on the rise in India, as are home loan frauds in India. Today we are going to learn in great detail about the types of mortgage frauds in India. Let’s learn without wasting time about the types of mortgage frauds in India.

what are the different types of frauds?

1. Mortgage Fraud

The FBI deals with thousands of mortgage fraud cases each year. Today’s mortgage scams are often aimed at distressed homeowners, according to the FBI’s Financial Institution Fraud Unit. These scams include foreclosure rescue schemes, loan modification schemes, and equity skimming, among others. They are often carried out by real estate and mortgage professionals who misuse their specialized knowledge and authority.

Signs of Mortgage Fraud

The National Crime Prevention Council advises that you may be a victim of mortgage fraud if one or more of the following are true

You were promised a loan modification or that foreclosure would not happen.
Payment of fees as required in advance of services provided.
You were offered a money-back guarantee, advised to stop making mortgage payments, told not to contact your mortgage servicer, or instructed to begin making payments to someone other than your servicer.
The process to buy the home seemed much slower than normal.
Your questions were not answered or were answered incompletely.
You were asked to sign papers you did not have a chance to read or did not fully understand.

2. Fake Charities

Fake charities use the same techniques to steal your money that legitimate charities use to raise funds, according to the Federal Trade Commission (FTC). Before you donate, make sure you know where your money is going.

Signs of a Fake Charity

Several telltale warning signs suggest you are dealing with a fake charity:

You are pressured to give now even to the point a courier will come to your door to collect your contribution.

The charity only accepts cash, gift cards, or wire transfers.

You receive a thank you for a donation you didn’t make—an attempt to make you think you already support the organization.

The group goes by a familiar-sounding name that doesn’t quite match the organization it reminds you of.

The caller or solicitor won’t (or can’t) provide detailed information about the organization.

You are told you must donate to be included in sweepstakes.

3. Credit and Debit Card Fraud

Credit or debit card fraud can occur when someone steals or finds your card or manages to obtain the information from the card to purchase goods, withdraw cash, or otherwise use your card in a fraudulent manner. You should know that the Fair Credit Billing Act limits your liability to $50, and oftentimes, there’s no cost at all depending on the bank or credit card issuer

Credit and Debit Card Fraud

Signs of Credit and Debit Card Fraud

Although credit and debit card fraud is among the most common types of consumer fraud, any of the following signs should set off red flags for you

Your statement contains charges you don’t recognize.

You notice several small dollar amount charges from your account—a signal someone could be testing your card in advance of a major purchase.

You don’t recognize the name of the company attached to the charge.

Charges appear from unfamiliar or distant locations you haven’t visited.

You experience a significant and unexpected drop in your available credit balance.

You receive phone calls requesting credit or debit card information.

4. Prize and Lottery Fraud

Prize and lottery fraud come under many names—sweepstakes, drawings, foreign lotteries, and more. This type of fraud often targets the elderly and originates with a phone call or postcard. The FTC receives tens of thousands of complaints about prize and lottery fraud each year. Because many victims don’t report being scammed, officials estimate the problem’s scope is far greater.

Signs of a Fake Lottery or Sweepstakes

Fake lottery scams, many of which are foreign, exhibit well-known signs that something is wrong

You receive notification that you are a “winner” but need to send money to the lottery or sweepstakes office to cover taxes or administrative costs.

Your winner notification arrives by bulk mail.

You are required to attend a meeting to collect your prize.

You don’t remember entering the lottery or sweepstakes.

Any payments you make are followed by more requests for cash or you are contacted by other organizations claiming you won their lottery as well.

5. Debt Collection Fraud

Some scammers, posing as collection agencies, call consumers demanding payment of bogus outstanding debts. These are not legitimate debt collectors. If you have actual unpaid debt, subject to collection, you have rights there, as well. These rights are spelled out in the Fair Debt Collection Practices Act (FDCPA).

Debt Collection Fraud

Signs of Debt Collection Fraud

When it comes to discerning between a legitimate debt collector and a scam, here are some signs to look for

  1. A scammer will withhold information from you including the exact amount of the so-called debt, the name of the creditor, that you have a right to dispute the debt or information that lets you check on the legitimacy of the debt collector.
  2. They will pressure you to pay with cash, by money transfer, or with a prepaid debit card.
  3. They might threaten you with jail or even suggest they are a government official.
  4. Sometimes scammers threaten to tell family members, employers, and others that you are a deadbeat.
  5. They will try to get your personal information, such as account numbers or your Social Security number.
  6. Some scammers call early or late (before 8 a.m. or after 9 p.m.) which is forbidden by the FDCPA.

6. COVID-19 Scams

The coronavirus pandemic—and the resulting quickly passed government legislation—has created opportunities for scammers to enter the scene and use both fear and financial need to take advantage of people.

Signs of COVID-19 Scams

Fortunately, the FTC has been tracking COVID-19 scams and scammers alike and provides a list of signs that an offer is actually fraud

  1. You receive a phone call, email, or text telling you about a brand new cure, vaccine, or treatment for COVID-19 available only from this provider.
  2. A robocall offers financial assistance or to speed up the receipt of your unemployment or stimulus checks for a fee.
  3. You are contacted about obtaining a new inexpensive home test kit or contact tracing kit.
  4. Someone may call claiming to represent the World Health Organization (WHO) or Centers for Disease Control (CDC) to offer to sell access to special information, services, or medicine.

All types of mortgage frauds in India

1 Financial statement fraud

Although it’s less common, financial statement fraud can be the most damaging to a company. Overstating revenue, earnings, and assets – along with understating liabilities (or just plain concealing them) – are the most common activities found with this type of fraud.

2 Asset misappropriation

Some of the more common types of fraud fall into the category of asset misappropriation, which closely-held businesses are most susceptible to.

Skimming of cash and cash larceny

This type of asset misappropriation consists of taking cash before it even enters the company’s accounting system. It’s very hard to uncover because it requires finding evidence of something that hasn’t been recorded yet. And, it doesn’t require a lot of sophistication to execute, making it a popular choice among those that commit fraud.

Examples of asset misappropriate include, check tampering, accounts receivable skimming, fake billing schemes, payroll schemes, fake or duplicate expense reimbursement schemes, and inventory schemes.

Misuse of company assets

Another common type of asset misappropriation is the misuse of company assets. Not only is it problematic since it’s the unauthorized use of company assets, but it can also open up the company to significant liability.

3 Theft of intellectual property and trade secrets

As our world becomes increasingly driven by information and technology, an increase in the theft of intellectual property and trade secrets is on the rise.

4 Healthcare, insurance, and banking

Healthcare, insurance, and banking are all industries that have billions of dollars flowing through their systems, making them prime targets for this type of fraudulent activity. Bogus health insurance claims, business insurance claims, and fraudulent bankruptcies are all ways individuals commit this type of fraud.

5 Consumer fraud

Individuals targeted through cons, bogus telemarketing, email, Ponzi schemes, phishing, ID theft, and other schemes, are all victims of consumer fraud.

Whether it’s an organization system breach or bogus tax returns filed for large refunds, consumer fraud is on the rise. Companies can also be victims of email phishing scams – especially spear phishing, which involves sending targeted, disguised emails that contain malicious links.

Fraud can take many shapes and can impact an organization in many ways – not just financially. You should know how and where your company may be vulnerable and take the proper steps to protect against vulnerabilities.

List of Types of Mortgage Frauds in India

  • Asset Misappropriation
  • Vendor Fraud
  • Accounting Fraud
  • Payroll Fraud
  • Data Theft
  • Bribery and Corruption


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