Investopedia defines fraud as a willful act intended to deceive a potential victim while granting an opportunity, leverage, or additional type of gain. Scams, in contrast, are often the vehicle by which con artists perform their fraud. They are thus the intricate schemes perpetrated by illegal conmen, often to the serious detriment of honest investors, workers, and citizens.
At Global Asset Management in Korea, our team works diligently to tamp down investment risk and protect the assets of our clients. As such, an important element is learning which industries are the most vulnerable to potential financial exploitation.
For more information on asset management and sound investment strategy, consider contacting our firm. Based in Korea, we handle assets worldwide.
There are a group of six industries and segments of the economy that are prone to schemes designed to inflict financial exploitation. Hardest-hit industries tend to be those that directly involve money or those from which simple theft is relatively easy to perform.
The highest rate occurs in the banking industry. Commerce is inherently prone to financial crimes largely because it relates immediately and specifically to funds themselves rather than the medium of a product. Examples of schemes that are commonly seen in financial institutions include:
● online banking identity theft
● check kiting (i.e. purposefully writing a bad check with the knowledge that it takes several days to discover that a checking account does not have adequate funds)
● check tampering
● credit card theft
Due to the bureaucratic nature of the government and its relative size compared to certain other industries, it should come as little surprise that it is a key contender for an industry heavily affected by exploitative behavior. Instances in these cases can include fudging eligibility requirements for government assistance, improper billing for services, and tax avoidance.
The education sector is also susceptible to sophisticated financial schemes. Much of these types of exploitation schemes involve scholarship misappropriation, student loan debt scams, and even cheating related to a potential student’s eligibility to enter the educational institution.
Many consumers may have seen signs for Loss Prevention offices in local retail outlets. That is because theft, fraud, and other financial crimes are all common ways that retail stores consistently lose money. Assets such as goods, clothing, food, and other products can be easily concealed by con artists and thieves. Additionally, this type of crime is often committed by perpetrators who return items under false pretenses, wanting their money “back” when they have not actually made a purchase.
Particularly seen in the United States, the healthcare industry also experiences a high rate of fraud. The vast majority of healthcare cheating schemes involve billing or payment for services rendered. Why does the United States see such high rates of these cons? Largely, it is due to its high prices for healthcare services, leading many injured or ill people into potentially lifelong debt. Some con artists use these techniques out of desperation.
Global Asset Management in Korea helps our clients make sound investments that avoid unnecessary risk. Below are a few tips that may help you make good decisions when considering which industries to invest in and how to stay away from scam artists.
● Research: make sure you use online searches to learn more about potential investment opportunities and businesses before committing money.
● Internal Protections: just because an entity you wish to invest in is in one of the above-listed industries, that does not mean they are a bad investment necessarily. Look for ways that the business protects itself, such as loss prevention methods or internal auditing to expose scams.
● Get an Advisor: finally, it is best to speak to a skilled asset and risk management professional before making any serious or potentially wealth-altering decisions. Get an advisor and avoid any investment that places a strict deadline that does not give you enough time to sufficiently research it.
Interested investors should contact Global Asset Management, based in Korea, for more information as well as personal investment and asset management guidance. Our firm has a track record that has proven to consistently produce above-average results for our clients.