Credit fraud is a criminal offense. Incorrect information about your own economic situation is given to get the loan application approved. According to lawmakers, credit fraud is also an abstract risk offense, because the fraud is planned and will be accomplished with anticipation of the crime. In principle, three different variants of credit fraud are distinguished: the falsification or submission of an incomplete balance sheet, written false information and the concealment of changes that have occurred, the so-called omission. More information on credit fraud is available in the article below.
What is characteristic of a credit fraud?
In the case of a credit fraud, the respective act relates to the economic situation of the borrower and is decisive for the decision on the loan application. This is not a private loan, but a loan application from a company. Nevertheless, the perpetrator can also be a private person who acts as an intermediary or representative for the company. Penalties related to credit fraud include imprisonment of up to three years or a fine. In principle, a loan is always about borrowing money and then paying it back again, whereas a credit fraud aims to get a loan application through incorrect or incomplete information. A credit fraud also exists if the borrower does not disclose when submitting the loan application that the submitted documents are no longer up to date. The facts of a credit fraud are not based on whether the lender has suffered economic damage, but whether the act of fraud has been carried out.
If the fraudster subsequently reveals his credit fraud in good time and no damage has occurred, he can remain unpunished. As a rule, credit fraud consists in deliberately deceiving in the context of the credit negotiations. These negotiations can involve either leaving a loan, negotiating the respective conditions, deferring a claim or providing the lender with a guarantee. In any case, the lender risks part of his assets in the case of a credit fraud. Fake documents for a credit fraud can be, for example, balance sheets, trading books or the completed credit application. There is also credit fraud if the borrower does not notify the lender that his own credit rating has deteriorated. The deceived lender does not always have to be a bank, it can also be a company that has a trade. The term trade is meant to mean any open, independent, scheduled and legal activity that involves making a profit and that is not part of a freelance profession.
What other types of credit fraud are there?
It is also a credit fraud if a fraudster pretends to be a credit broker and wants to make money with someone else’s misery. Most credit intermediaries, including those on the Internet, work seriously, but there are some black sheep here too. Over-indebted people in particular, or those who have little equity, often engage in fraudulent offers without thinking. But customers will never get money because the fraudulent brokers do not pay out money, but collect it themselves, for example by charging excessive fees for brokering and advice. You can recognize dubious mediators, who therefore also damage the entire industry, by the fact that, in combination, they already charge impermissible upfront fees, submit dubious or non-transparent contracts, combine lending with membership in an association or urge the conclusion of unnecessary insurance. Subsequently, those affected often have to take out another loan in order to pay off these payment obligations.
It is therefore advisable to check the offers for their transparency and possible impermissible upfront fees and, if necessary, not to accept any loan offers in order not to get even further into a debt trap. In these cases, it would be better to go to a debt counselor and find a solution together with their help. Especially on the Internet you have to be careful and take a closer look at the loan offers. There are some pitfalls and dubious offers here. Therefore, every offer should be carefully checked in advance. Many credit fraudsters take a targeted approach and look for specific target groups. Help centers offer help.
What is the term phishing?
Phishing is fraud on the Internet that attempts to access user data via incorrect websites or e-mails and ultimately loot the account or commit fraud with this data. The special thing about phishing is that the fake websites look almost real. A button is characteristic of phishing websites – when you click on it, you are asked to disclose personal data, which are then intercepted by the phisher. Phishing websites also try to emulate the design of well-known pages so that the website appears trustworthy. The access data is usually intercepted by what is known as malware without the user taking part or noticing it.
Phishing is a criminal act, using techniques from social engineering. It is therefore important to always take a close look at the website and if anything is suspicious, you should leave the website again without clicking on anything or disclosing your own data. Phishing is not a new release. Even before the Internet existed, similar scams were known, such as by telephone. By telephone, the fraudsters try to gain the trust of the victims and in this way to obtain personal data in order to carry out a credit fraud with incorrect data, such as the grandchildren trick.