Show:
identity theft
money laundering
embezzlement
tax noncompliance
Insurance Fraud
100
How many investigations of identity theft initiated in 2011?
276
100
what is money laundering?
the act of hiding the source of illegally obtained money
100
What is Embezzlement?
The act of taking money or assets from someone else by someone who was entrusted with the assets to take care of them
100
what is tax noncompliance?
any act that is unfavorable to a states tax system
100
What is insurance fraud?
any act committed with the intent to illegally obtain payment from an insurer
200
True or false: The IRS does initiate contact with a taxpayer by e-mail.
False
200
why do criminals have their money put through the process of money laundering?
they want to "clean" their money so they can use the money without the fear of law enforcement finding the source
200
True or False: embezzlement can only be done After the asset is entrusted to the criminal
True
200
what are the 2 basic types of tax noncompliance and what are their definitions?
tax avoidance: The legal use of loopholes within the law in order to lower the taxes that must be paid tax evasion: The act of individuals or corporations to illegally evade taxes by hiding what is really happening
200
How can the size of the fraud differ?
can be as small as a slight exaggeration of damage done to extreme intentional or made up damage
300
What the percentage of people committing identity theft go to prison?
100%
300
what are the three steps that are taken to launder money?
Illegal money enters economy money is covered with many transactions or false trails money is removed from the economy in a way to avoid suspicion
300
How is the crime planned?
the crime is very organized and well thought out: premeditated
300
True or False: All tax noncompliance is illegal
False: tax avoidance is legal acceptable yet morally wrong and frowned upon
300
what are the four most common types of insurance fraud?
car insurance; medical insurance; theft insurance; and fire insurance:
400
Where does identity theft most likely to happen?
Identity theft is most likely to occur in the Questionable Refund Program (QRP) area where individual identities are stolen with the intent to file false returns claiming tax refunds.
400
define 2 out of 4: Casino laundering Structuring Cash-intensive businesses Bulk cash smuggling all 4 for double points
Structuring: cash is divided into small parts to avoid detection. These small bundles are then used to buy money orders that are deposited in other small bundles Bulk cash smuggling: cash is physically moved to a different location where it is deposited in an offshore bank with greater bank secrecy or less rigorous money laundering enforcement Cash-intensive businesses: businesses that are involved in receiving cash will use its accounts to deposit both legitimate and criminally derived cash while stating all of the money is legitimate earnings. Casino laundering: An individual will walk in to a casino with cash and buy chips, play for a while and then cash in his chips, for which he will be issued a check. The money launderer will then be able to deposit the cheque into his bank account, and claim it as gambling winnings
400
True or False: Embezzlement is the act of taking all of the money or assets that were entrusted to the criminal
False: Embezzlers never take all the money because they are trying to avoid being noticed: remember size does not mater you can embezzle a dollar as well as thousands
400
what do tax evaders lie about in order to reduce their taxes?
they declare less income then they make and/or exaggerate deductions
400
What are the effects of insurance fraud for all citizens looking for insurance?
The premiums and rates for insurance are being raised for all citizens
500
What is phishing?
Phishing is a scam typically carried out with the help of unsolicited email or a fake website that poses as a legitimate site to lure in potential victims and prompt them to provide valuable personal and financial information. Armed with this information, a criminal can commit identity theft or financial theft.
500
name the 7 methods that money laundering can be committed.
structuring; bulk cash smuggling; Cash-intensive businesses; Trade-based laundering; Shell companies and trusts; Casinos
500
How is embezzlement different than larceny?
When a criminal embezzles something the criminal was legally in the criminal and was moved in a way to MAKE it the criminals When a criminal commits larceny the criminal had no legal right to the object yet the criminal takes it anyways
500
What is the relationship between tax evasion and tax avoidance?
Tax avoidance is used to lower the amount that must be paid and the taxes that cannot be lowered are then avoided by giving the IRS false information
500
why is it so hard to say how much insurance fraud costs agencies?
the whole idea of insurance fraud is to do it without being caught so many times the crime goes unnoticed and uncounted