List and define three types of financial crimes

What will be an ideal response?


Answer: The FBI classifies the following types of activities as financial crimes: corporate fraud, securities and commodities fraud, health care fraud, mortgage fraud, insurance fraud, mass-marketing fraud, and money laundering.


  • Corporate fraud refers to accounting schemes, self-dealing by corporate executives, and obstruction of justice as well as insider trading, kickbacks, and misuse of corporate property for personal gain.

  • Securities and commodities fraud includes crimes such as stock market manipulation, high-yield investment fraud (Ponzi schemes, pyramid schemes, and prime bank schemes), advance fee fraud, hedge fund fraud, commodities fraud, foreign exchange fraud, and broker embezzlement.

  • Health care fraud includes fraud directed at health care programs, particularly Medicare and Medicaid.

  • Mortgage fraud includes corporate fraud involving subprime mortgage-lending companies, such as equity skimming, property flipping, and mortgage debt elimination.

  • Insurance fraud is fraud targeting the insurance industry, such as insurance fraud involving arson and workers’ compensation fraud.

  • Mass-marketing fraud is a general term for any fraud connected with communications media such as telemarketing, mass mailings, and the Internet. Mass-marketing fraud takes a variety of forms that share a common theme: use of false and/or deceptive representations to induce potential victims to make advance fee-type payments to fraud perpetrators.

  • Money laundering is the process by which illegal gains are discussed as legal income.

Criminal Justice

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