Which Industries are Most Vulnerable to Frauds?

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Every industry suffers a substantial amount of revenue loss every year due to scams and frauds. Some industries have been listed to be more prone to such incidences than others. We have discussed below a few of the industries which are most affected by such frauds.

Banking and Financial:

This is one industry which is prone to the maximum reporting of fraud. From simple cash laundering to loan deficiencies by big businessmen, identity theft, check tampering, credit card fraud, etc have become quite common nowadays. The main reason could be the provision of online and automated banks which makes the bank accounts of people more prone to frauds and theft.

Government Sector:

The government sector is really wide, and many disciplines come under it. But this agency has also fallen as a victim of a number of scams like billing frauds, reimbursement frauds and extracting higher value from the government but delivering a substandard quality of the product or work by sub-contractors.

Healthcare:

Healthcare fraud is something you hear about now and then. Insurance fraud is the most common issue where claims are made for procedures which were never done. Billing for un-rendered services is another type of common fraud in this industry. Creating expensive bills for cheap procedures and misrepresenting procedures which are not covered under insurance just to get money from the insurance company is also common. Such frauds by a small group of healthcare providers bring the entire industry under the bad light.

Educational Institutions:

Educational Institutes are highly prone to frauds and corruptions. Individual benefiting from people in the name of big institutes is common. Skimming exorbitant money from parents of students who are desperate to get their kids into a reputed educational institute in on the rise. Also, fraudsters and imposters who may tend to take financial advantage by faking emails and phones from an Ivy league school is on the rise.

Art Industry:

Fraud in the art industry is the easiest as this is considered as one of the biggest unregulated markets in the world. The global market of art is not transparent which attracts the maximum number of frauds. Existence of easy art storage facilities like freeports which is outside of territorial jurisdiction of a country aids in hiding the identity hence is beneficial for someone who is looking to launder money. The claim of Dmitry Rybolovlev against his art dealer Yves Bouvier that he had cheated him by charging an enormous mark-up fees for the purchase of the famous Da-Vinci painting ‘Salvator Mundi’ is not hidden from you. Global trading has added more to the issue of fraud in art dealings.

With cases of frauds on an increase in various industries, the companies and individuals are becoming more vigilant. Insurance companies have updated their auditing system to spot fraud claims and encourage whistle-blowers to minimize loss due to frauds. But even after all these measures, fraudsters are so smart that they will manage to penetrate through the system. Every company and individual need to put a review process in its place to eliminate such scammers.

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