​8. Debit Card and Credit Card FraudIt is very easy to be scammed with your debit card. According to Investopedia, a Certified Fraud Examiner (CFE) named was a victim of this fraud. It happened a few years ago when the agent used his debit card to pay for a restaurant meal.
He stated that the server took his card and went to the register. She came back with the card and the receipt as he expected.
What he did not expect was two days later his bank called him to inform him that they were locking down his bank account and debit card. They suspected that it had been compromised. His card was used to buy goods more than 600 miles away.
The agent believes that the server stole his debit card information and either sold it or used it herself.
In this case, the fraud quickly was shut down. But it is strongly recommended that consumers never let their debit card out of sight during a transaction. Also, know that the liability limits for debit cards are less restrictive than credit cards. If you report the debit card lost, stolen or misused within two business days, the maximum liability under federal law is $50. If you report it within 60 days, the maximum liability is $500. But after 60 days, there is no maximum liability.
Many people also are victimized by credit card fraud every year. It is estimated that debit card and credit card losses could exceed $12 billion by 2020.
But you should know that there are strong credit card protections in place, if you discover the fraud in time. Under federal law, you should only have to pay $50 if the credit card is lost or stolen and used illegitimately. If you report the card lost or stolen before it is used, you have zero liability under federal law. Thus, it is important to regularly review your credit card and bank statements to ensure that no fraudulent activity has occurred.
National statistics show that financial institutions and merchants assume a lion’s share of the responsibility for most of the money that is lost through debit card and credit card fraud. Card issuers shouldered 72% of fraudulent losses in 2015.
9. Lottery FraudMost lottery fraud scams target the elderly. They typically originate with a telephone call or possibly a postcard that is sent from Jamaica. In 2011, the FTC received in excess of 30,000 complaints about lottery fraud.
A common fake lottery scam requests that the supposed winner send funds to cover taxes and fees on the prize. Victims who pay the fee are then requested to send more money to claim the prize. It is very rare for the stolen money to get recovered. Also, it is common for the names and contact information for the victims to be put on a ‘suckers list’ that is shared with other fraudsters.
The FTC warns consumers that they should never pay anything to collect a lottery prize. You should be very skeptical if you are informed you won a lottery that you never entered. Never share your credit card or bank account details. Never send money, even if the organization sends you a check first. Also remember that current US law does not allow for international sale or purchase of lottery tickets. So any communication regarding an international lottery is a scam.
According to international statistics compiled in 2014, losses from Nigerian lottery scams totaled $12.7 billion that year. Losses for lottery scams account for a massive $82 billion through 2014 around the world.
10. Charity FraudA phony charity can use the same techniques to steal money as real charities use to raise money. Before you give a donation, you should be certain of where your money is going. Do not pay attention to high pressure sales pitches. Never give cash, and always be on guard after a natural disaster. This is when con artists know that people are likely to be generous and sympathetic as they open their wallets. You should obtain the contact information for the charity and examine the organization before you provide funds. The organization also should be an IRS-approved nonprofit organization.
There are many examples of fraudulent charities. One of the worst is located in Florida called Kids Wish Network. Each year, the charity has raised millions of dollars in the names of dying children and their loved ones. It has been reported that the charity spends less than three cents of every dollar helping families and children. Most of the rest is used to enrich the owners of the charity. On average, the worst charities in America devote less than 4% of their donations to their causes.
11. Investment FraudThe most common type of investment fraud is a Ponzi scheme. This refers to a scam where new investors are used to pay the ‘returns’ for the previous investors. A Ponzi scheme scammer will usually promise to invest your capital with very high returns and little risk. But most of the time, the scammer is using your money to pay off earlier investors. They also often keep money for themselves to spend on personal extravagances, or to pay off debt.
Ponzi schemes usually have little legitimate earnings, so the fraudster needs a constant stream of new money to keep things rolling. Some of the warning signs of a Ponzi scheme are:

• Very high return with little risk. Any investment with a high guaranteed rate of return is a fraud.
• Returns that are too consistent. Most investments go up and down. Be on alert if an investment generates a constant high rate of return, year after year.
• Paperwork irregularities. Account statement mistakes are a common sign that something is not on the up and up.
• Slow delivery of redemptions. Be very suspicious if you do not receive a payment on time or are delayed in cashing out.
• Investment is unregistered. A Ponzi scheme usually involves investing in something that is not registered with the SEC. Registration is vital because it gives investors access to critical information about how the company is managed as well as its finances.
• Complex strategies. You should be able to understand from your documentation exactly how your money is invested and where the returns come from. If you don’t understand or cannot get documentation, walk away.

Ponzi schemes also are uncovered on average once every four days, according to data from 2008-2013. These schemes are uncovered in almost every state every year.
Ponzi schemes are quite common. Even excluding the largest schemes, including the massive fraud by Bernie Madoff, the average Ponzi scheme size is a sizable $43.3 million.
12. Payroll FraudDid you know that payroll fraud happens in 27% of all US businesses? It occurs twice as often in small businesses with under 100 employees than big ones. It is important for business owners to have a good understanding of their payroll system. Enforce accountability with bookkeepers in monthly payroll reports. Payroll complexities increase as a company gets bigger, so it is vital that owners constantly scrutinize their books. Your bookkeeper should be able to clearly explain any discrepancies. If not, fraud is possible. At the very least, you should consider getting another bookkeeper.
Payroll fraud has been reported to occur twice as often – 14.2% – in small businesses than in ones with more than 100 employees – 7.6%.
Other Forms of FraudAs previously mentioned, the number of types of fraud is almost endless. The six above are the most common types of fraud that exist today. However, the FBI is also on the lookout for:

• Letter of credit fraud
• Prime bank note fraud
• Pyramid schemes
• Pump and dump fraud, or market manipulation

SummaryThis list makes it obvious that there are many types of fraud that consumers can experience. If you ever think you were the victim of any of these frauds or anything else, you should contact the police in your area.