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Common money laundering scams

| Dec 22, 2020 | White Collar Crimes |

White-collar crimes are non-violent criminal acts commonly committed by business and government officials for financial profit. White-collar crimes involve hiding the source of illegal profits, and they can include many different scams. Money laundering is a common white-collar crime in Michigan and other states. The following covers additional crimes that fall under this category.

Fake prize winnings

Fake lottery winnings can originate from American scammers or from another country. The “winner” commonly gets an email notification saying that they have won a large sum of money or another prize, even though they haven’t entered a contest.

The winner must pay a tax, processing fee or shipping and handling costs to get the prize. No legitimate contest would ask for financial information, so that alone could be a red flag.

Ponzi schemes

Named for Charles Ponzi, a Ponzi scheme involves investing money in a product or service with promises of high returns and low risk. In most cases, the product or service doesn’t exist, and the profits come from other investors.

Early recruiters and the creator will often make the most profits, and the scam can continue as long as new investors get recruited. According to securities law, any investment opportunity must be registered and the seller licensed. If the seller refuses to disclose information and records, it could point to a Ponzi scheme.

Fake job scams

Scammers commonly post fraudulent jobs online, making it look easy to earn money. Many of these listings come from foreigners who say they can’t transfer American funds into their account. They promise the employee a percentage of the transfer.

A job scam may involve ads calling for the need of employees to repackage and ship parcels. The employee must pay the postage with the promise of reimbursement usually for more than the postage amount.

The FBI takes white-collar crimes seriously because they can have a negative impact on the economy and the individual investor. The accused party needs a strong defense to represent them.