If people work with dirty money, there is a good chance that they will be involved in money laundering at some stage. Sometimes it does not even matter if the person knew they were dealing with a criminal organization or if the funds were generated through illegal activities (Karpoff, 2021). Criminals use several ways to merit this goal, but the more lucrative one is white-collar money laundering. In this way, fraud moves into the public sphere, where people are required to monitor transactions, commit customers and steal money. At the same time, public fraud concerns those cases where employees of companies do not receive proper salaries and investors are not paid (FBI, 2015). This is due to criminal schemes by company owners aimed at enriching themselves at the expense of others. Thus, public financial fraud can occur in large corporations and banks.
Banks can use phone calls to charge money from accounts. However, customers cannot always distinguish between bank employees and fraudsters, which is why they often confirm such transactions. Fraudsters send SMS messages to bank clients about the alleged receipt of payment to the account; such SMS messages contain phishing links (Karpoff, 2021). Thus, individuals lose finances that have been accumulated over the years.
References
FBI. (2015). Financial fraud public service announcement. [Video]. YouTube.
Karpoff, J. M. (2021). The future of financial fraud.Journal of Corporate Finance, 66, 101694.