The number of reported cases of financial frauds is increasing every year due to unawareness, ignorance of common public and also due to the fact that the fraudsters are getting equipped with advanced technology.  An ultimate method of fraud protection cannot be achieved since the technology the fraudsters use is always in an evolving state getting better and better each day.

To prevent being a victim of a financial fraud, you need to be aware of the type of frauds that are happening these days. Basically there are three broad types with many sub divisions:

1. Identity theft: In this type of fraud, the thief gets hold of personal identification numbers of a person like Social Security Number, Bank account number, Credit card number and others to open new bank account or credit card account or apply for a loan or apply for a new mobile device using your identity read more. Needless to say that you become liable to pay whatever expenses he makes. It is difficult to prove innocence to the bank or the law sometimes. Arrest might occur or you might suffer from bankruptcy or lose your good credit score. Extreme cases have been reported where an innocent and an unaware citizen has ended up funding terrorist activities. It can occur by several possible ways like online via your email being compromised. Our emails contain several confidential informations like bank passwords, log in id of many websites. Always protect your email from being hacked. There are several simple and easy methods by which this can be done. Phone phishing is also a common practice. This is popularly called Vishing. Frauds may call you up pretending to be form the bank and asking for personal details. Medical identity theft often is found to occur by this method.
2. Credit card fraud: this is also a type of identity theft but in this case the credit card is physically stolen or lost. Sometimes skimming machines are inserted within the ATM machine so that when you punch your card this machine will read the magnetic strip and record informations like the credit card number and the passwords click here. This can then be used to make purchases. Usually with a stolen card, a fraudster makes a one-time purchase of a large amount before the client discovers the theft and places a security freeze on the particular card or account.