What are Fraudulent Practices in the Financial Industry and How to Detect Them? | Credit | False advertisement: | | Your money

In an increasingly digitized world, it is important to be aware and knowledgeable about fraudulent practices that target people. Financial industry. “Identifying practices is one of the biggest challenges consumers face Fraudulent Among the many financing options, said Diego Mercado, Cash's CFO.

Therefore, he pointed out, it is important for consumers to thoroughly research any financial offer before committing to it. “This includes reviewing the background of the companies and financial professionals they interact with, carefully reading the terms and conditions of any financing agreement, and seeking professional advice when necessary,” added Mercado.

In this context, the financial expert described the most frequent fraudulent practices in the financial sector and how to identify them:

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● debt Fraud: In this type of fraud, companies send money to people without claiming credit, the person accepts the money, and then they are forced to return it with interest or excessive fees. Also, not all companies are regulated or registered, so it is better to check if they are listed among qualified companies.

● Hidden costs: These are additional charges or fees that may not be clearly stated in the terms and conditions of the financial product or service or may be difficult for the average consumer to identify. Some examples are: transaction commissions, additional service charges etc. “It's important to carefully read the terms and conditions of any financial product or service that fits your needs and budget,” Mercado said.

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● False advertising: Any advertisement or communication that provides false or misleading information about financial products or services with the intent of attracting consumers and persuading them to make financial decisions based on false information.

● Identity Fraud: It is an offense for an individual or organization to unlawfully obtain and use another person's personal information to commit financial fraud. Many times people or criminal gangs pose as financial institutions to collect debts from customers.