While common white-collar crimes such as embezzlement and bribery are no stranger to business operations, there are other threats that exist that don’t receive as much publicity. These lesser known crimes pose severe threats to the corporate world and should be taken seriously to avoid harsh consequences and even business interruption. In order to protect the company, your clients should invest in a Commercial Crime Insurance Program.
Environmental Schemes- According to Small Business Trends, these involve fraudulent practices by individuals, corporations, organizations, and even governments which concern the protection or management of the environment. For example, a common offender is misreporting emissions from particular ecofriendly products.
Kickbacks- This type of bribery is usually negotiated between two or more parties. In a kickback, one person accepts to be paid for a service on a quid pro quo basis, where the money is discussed ahead of time, states Small Business Trends.
Telemarketing Fraud- These schemes include selling fraudulent items over the phone including advancement fees, charity fraud, or even fraudulent timeshare sales, which has become popular as of lately.
Pigeon Drop- This trick occurs when a “mark” or “pigeon” is persuaded to give money in exchange for a larger sum. However, once the pigeon hands over the cash and assets, they are left with nothing as the con artist has already escaped with their goods.
Jury Duty Fraud- Scammers have been known to call victims and claim they failed to report to their jury duty appointment. When the victim states they never received a notice, they are asked to provide confidential information such as social security number and credit card numbers for ‘verification purposes.” In turn, their identity is unexpectedly stolen.
These common, lesser known schemes can still devastate both individuals and businesses alike. However, by maintaining legal and transparent operations, these crimes can be avoided. In addition to bringing you the latest news from the insurance industry, PL Risk provides Resources for Agents and Brokers nationwide. We’ve recently implemented Hiscox Now, which allows agents their own access to Hiscox and instant quoting. To learn more about our operations, contact us today at (855) 403-5982.
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