Some of the types of Frauds are:
a. Advance fee fraud: Advance fee fraud is when fraudsters target victims to make advance or upfront payments for availing of financial services from a bank. Example, a fraudster will call the target customer who is in need of a loan and make the target believe that the fraudster is actually a bank employee and can help. The fraudster uses good banking jargon to convince the target. Once the target is convinced, the target is told that before he/she receives a loan, he/she must pay an upfront fee to cover insurance for the loan. Once this fee is paid, the victim does not hear from the fraudster again and the loan is never received. Fraud has been committed and the money has been lost.
b. Debt Elimination Fraud: For an up-front fee, the organizers of these schemes create phony legal documents based on the type of a banking customer’s loan. Banking Customers present these documents to their bank, in an attempt to satisfy the elimination of debts. The documents used in these frauds include fake financial instruments that claim to eliminate the borrower's loan(s) obligation. For example, the literature may selectively cite passages of government publications, statements by politicians, constitutional provisions, court decisions, various statutes, and private newsletters to support claims and to ultimately conclude that a specific government agency supports these debt elimination programs. The bank borrowers usually pay substantial up-front fees and commissions based on the total amount of the loan that can be forgiven. However, these customers do not understand the risk of foreclosure or other legal action from the bank side.
c. Nigerian Fraud: This fraud combines identify theft and advance fee fraud (also called Section 419 schemes named for the violation of Section 419 of the Nigerian Criminal Code). Fraudsters pose as assistants to a foreign government official needing assistance to move money from their country. The banking account holders contacted are asked for payments for money transfer fees. Documents are created to explain these costs, along with guarantees that these fees paid in advance will be reimbursed and appropriate commissions will be paid once the funds are released successfully. Banking customers are also asked to provide personal and banking information to facilitate the transfer of monies which lead to identity theft.
d. Cashier's Check:
There are people who are selling merchandise through classified ads on the internet, newspapers, flyers, etc. The fraudster sends a check or draft that is well above the amount of the merchandise to the seller. The fraudster then says that the additional amount has been sent across for shipping and handling charges. By the time the check comes back as fraudulent, sellers have shipped the merchandise and sent back the excess funds too to the fraudster. In some cases, fraudsters may try to cancel the order and request that the victims return the full amount of the funds, including the excess for shipping.
e. Fictitious/Unauthorized Banking: Fraudsters create fake banks to lead a banking customer into believing they are working with a trustworthy bank in an online or mobile transaction. Fraudsters would wait for a bank customer to log in to their bank account online. Then, they would immediately change what the customer was viewing on the main page to a message advising of an upgraded security system that required a quick training session. That training would include requiring the customer to “practice” making a transfer to another account. The customer would be advised that no money would be transferred, nor would any account be debited. The consumer would then go through the process, only to find out at a later time that money had actually been transferred to a fictitious bank account.
f. High yield investment fraud: High yield investment fraud, also called prime bank fraud, involves issuing or trading prime bank, prime European bank, or prime world bank financial instruments that do not, in fact, exist. Fraudulent individuals or companies promise their victims huge profits with little risk if they invest in these instruments. Promoters use fake documents that appear legitimate and often claim to have special access to investment programs that ordinarily are available only to top financiers in the world's financial centers. Fraudsters claim to have secret or insider knowledge to share with a select few and use that premise to cloak their operations in secrecy.
g. Identity Theft: Identity theft a serious crime where a fraudster uses a banking customer's personal information, such as name, Social Security number, or credit card number, to commit fraud or other crimes.
h. Phishing: Fraudsters send an email or pop-up messages that might alert a banking customer to a problem with their account or state that they have a refund waiting. Post the customer provide all the details including details of cards, pins, and security questions, the fraudster easily uses this information to loot customers’ account.