Fraud
Group 4
De nition
The crime of obtaining money or property
by deceiving people.
US-any intentional deception or
misrepresentation used to bene t yourself or
someone else
fi
fi
UK-making a dishonest representation for
your own advantage or to cause another a
loss
Elements
False statement
Scienter
Reliance
Damage
Common Types of Fraud
Identify theft
Embezzlement
Tax fraud
Credit card fraud
Insurance fraud
Ponzi Fraud Origin:
Charles Ponzi
An Idea to Trade IRCs
In January 1920, Ponzi
started his own company,
the Securities Exchange
Company.
Suspicion
Clarence Barron
William McMasters
Collapse of The Scheme
On August 12th, Ponzi surrendered
himself to authorities and was charged
with mail fraud.
Magnitude of Losses
They lost about $20 million in 1920
dollars (approximately $196 million in
2020 dollars)
Luckin Coffee Fraud
China’s Luckin Coffee
to pay $180 million
penalty to settle
accounting fraud
charges
Luckin Coffee Fraud
The origin
Process
Scandal
Revival
How to Protect Yourself
Against Financial Frauds
Don’t put your personal information online.
Shred your trash.
How to Protect Yourself
Against Financial Frauds
Check your credit
report frequently.
Put spending alert
on your credit
cards.
Check your bill.
How to Protect Yourself
Against Financial Frauds
Think twice before sharing private
information of any kind.
Don’t click on unknown links online.
Avoid low-risk high-return investment.
Thank you!