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Does The Fact That Frauds Is A Hidden Crime Have Even More Impact On The Economy?

Fraud is happening all the time on a very large scale

. This does not mean that many people worry about it during their everyday lives. The crime is a hidden one and most people do not think it affects them, but it can impact their lives on several levels.

The trouble starts with the fact that whenever anybody wants to steal money, they will try to do so without getting caught. This may seem obvious, but their efforts will lead to some sophisticated frauds intended to deceive victims into parting with their wealth. They will keep going, hidden from view, for a very long time and sometimes never be discovered. Therefore, as a hidden crime nobody knows how much is going on or in what way it is affecting them.

Those that think fraud is a problem for businesses are mistaken. Businesses keep society and the economy running. They provide jobs and wealth for many people. When a business fails the employees lose their jobs and often may have difficulty finding new employment. When a director runs a company fraudulently, burdening its trading activity by diverting profits to his own pocket, so that it eventually fails, it is not just the creditors and suppliers that lose out but many others as well.

It is interesting to note the converse of this where businesses are set up as scams in the first place, and the workers are willing participants. For example, support publishing companies that prey on small businesses and individuals providing worthless advertisements in useless publications rely on the willing participation of their workforce. The workforce is rewarded by their remuneration which is usually paid gross. They should make arrangements themselves to pay the correct tax but often they never do. The business is a shell for tax fraud as well as deceiving its customers.

Many such companies approach individuals who find themselves in a position where they are repeatedly asked for payments for products that they do not really want, often believing they are supporting a good cause or charity and are reluctant to back out. The reality is that though they think they are paying for something real, they are being defrauded.

Many frauds exist in everyday life that people are ignorant to, yet they can have a huge impact on them. Some companies make it very hard for people to cancel payments for services they no longer want. By the time an individual has managed to find the correct department and adjust their arrangement, another months payment has been taken. Some companies will take an additional payment after a contract has been terminated and wait for the customer to complain. Apathy often means that customers will not bother trying to get a small payment back, but if thousands suffer the same problem the business might profit substantially.

Sharp business practice is all around us. Companies fail all the time causing hardship for many and then the fraudster will also attempt that direct attack. You do not want to become obsessive about the problem, but there are some simple precautions you can take to protect your hard earned money. There are some obvious examples such as spread your investments around and check the credentials of companies you deal with, being alert to the possibility that seemingly genuine people will try to scam you!

by: Mark Jenner

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Does The Fact That Frauds Is A Hidden Crime Have Even More Impact On The Economy?