Fraud is an omnipresent reality in many areas, whether it is health systems, taxation, insurance, or even businesses. Understanding the profiles of fraudsters, their motivations and their methods is essential to develop effective prevention mechanisms. What are the different types of fraudsters? What are their characteristics? How do you identify them? We answer you in this article.
Professional fraudsters are individuals or groups who have a in-depth knowledge of the system that they exploit.
Their expertise allows them to identify and take advantage of loopholes in processes or regulations. These profiles are particularly found in complex sectors such as health, finance or even insurance.
These are, for example, the health professionals : doctors, pharmacists, physiotherapists. They can charge fictitious services, i.e. declare medical procedures or treatments that were never provided. Some also choose to overcharge services, by increasing the costs of the actions performed.
These practices, while illegal, sometimes go unnoticed due to the large number of transactions to be verified.
To find out more, read on: Health insurance fraud
Opportunistic fraudsters do not necessarily plan their actions in advance. They are taking advantage of an opportunity that arises, often due to weaknesses in control systems or a lack of supervision.
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Opportunism is often linked to immediate needs or wants. These fraudsters frequently justify their actions by a perception that “everyone is doing it” or by the idea that the risk of being caught is low.
It is, for example, a Employee who embezzls funds from a credit union due to unrestricted access.
For more information on this subject: Documentary fraud: at the heart of the Kerviel case
Another category of fraudsters acts under the pressure of circumstances.
These people, often in precarious situation, see fraud as a solution to their financial difficulties. Their profile is particularly visible in social fraud (benefits, unemployment insurance, etc.) or Real estate.
Fraudsters out of necessity adopt practices that are often rudimentary, such as falsifying documents or omitting information. Their scams are generally limited in time.
This is the case of an unemployed person who continues to receive benefits while working illegally or an individual who changes his rental file to obtain housing more easily.
Want to know more? Keep on reading: rental file fraud, 3 tips to remedy it
Ideological fraudsters don't just take advantage of a system; they also act through personal conviction. For them, fraud is a form of contestation or revenge against a system that they deem unfair or oppressive.
These are, for example, activists who refuse to pay taxes that they consider illegitimate or companies that hide their income to denounce excessive taxation.
Some fraudsters operate in groups, often in a structured and organized manner.
These networks combine the skills of different actors to maximize their gains. They are looking to maximize their profits on a large scale. Fraud is here a real economic model.
In this category, you will find in particular bank card fraud networks Or groups specializing in the embezzlement of public subsidies.
In our Fraud Hunters podcast, we talk about Marco Mouly and Grégory Zaoui: the masterminds behind one of the biggest VAT frauds in Europe.
It is a collective organization!
Listen to it right here: An Almost Perfect Fraud: Marco Mouly and Grégory Zaoui
The diversity of fraudster profiles makes their detection complex. To fight against it, we have listed three essential tips:
And finally, don't forget that it is necessary to combining new technologies, especially artificial intelligence, with human controls.
Moreover, specialized solutions exist to quickly detect fraud. The Finovox software offers rapid and accurate detection of anomalies, which makes it possible to reinforce security and reduce risks.
Want to know more? Ask for a demo!
