Having an understanding of Bonds Fraud Types can help you protect yourself and your assets. It will also help you to avoid getting ripped off by a dishonest agent. It is also important to know that not all bonds are fraudulent. In fact, there are a number of different types of bonds, including Banker’s Blanket Bonds, Mortgage Bonds and Surety Bonds.
Banker’s Blanket Bond
Whether it’s employee fraud or criminal activity on the inside of the bank, bankers blanket bond is a type of insurance that protects banks against many types of risks. Depending on the policy, blanket bond insurance may protect the bank against losses resulting from burglary, theft, and damage to office and contents.
Insurers use an analysis of the average amount of cash that is held in the bank. They also look at the number of employees and turnover rates. This allows the insurer to determine how much risk the bank is exposed to on a daily basis. The insurer may also adjust the premium, depending on the current circumstances.
Bankers blanket insurance policy provides coverage against theft, damage to strong rooms, safes, and attempted robbery. The policy also covers the risk of fire and damage caused by quakes.
Surety bond
Luckily, there are several things you can do to protect yourself from becoming a victim of surety bond fraud. The main one is to ensure that you are working with a company that is certified by the Treasury Department.
The other thing is to keep an eye out for warning signs. For example, a company that uses the same name as an authorized surety is a good warning sign.
The National Association of Surety Bond Producers (NASBP) has also implemented actionable programs to counter common scams in the industry. These include educational programs and insightful lobbying activities.
Another way to keep your wits about you is to check your credit score. The Colonial Surety Company website offers a free credit score analysis for small businesses.
Dishonesty bond
Using dishonesty bonds to protect your business is a smart move. Employee theft is a major concern for employers, and if you don’t take steps to protect your assets, your business is at risk.
The business services bond and the employee dishonesty bond are two types of bonds that may be available to your business. The business services bond provides insurance for your business against employee theft, while the employee dishonesty bond will protect your company against employee fraud.
Employee dishonesty bonds can be customized to fit your business. The amount of coverage is dependent on your business size, number of employees, and your specific risk factors. Some dishonesty bonds are available with multi-year or annual payment options.
Insurers may offer monthly payment options. Most dishonesty bonds are pre-approved, so the application process is relatively painless.
Pump-and-dump scheme
Investing in pump and dump schemes can leave you with serious losses. In fact, some people have even lost significant loan amounts or retirement funds. If you believe you are a victim, you should contact a lawyer as soon as possible. A lawyer can help you get back your hard-earned money.
Pump and dump schemes are scams that involve promoting a stock or buying and selling shares at a inflated price. They are often done by unregistered individuals or groups. This is illegal. The Securities and Exchange Commission has imposed penalties for these types of scams.
Pump and dump schemes are generally found in penny stocks, which are considered thinly traded companies. These companies are often highly marketed, making them vulnerable to manipulation. If you are interested in investing in a stock, you should do your research to ensure that the company has a good history. You can also consult with a financial advisor to help you determine whether an investment is sound or a scam.
Mortgage bonds fraud
During the financial crisis, fraud in residential mortgages and commercial properties was prevalent. The fraud for profit typically involves schemes to inflate property values. These schemes are often facilitated by industry insiders. The biggest potential for fraud in the mortgage market is in commercial mortgages.
The financial crisis has left trillions of dollars in losses. These losses have been disproportionately borne by poor communities.
The financial crisis has also led to a massive recession. The recession is a result of defaults on sub-prime mortgages. These mortgages were packaged into mortgage bonds, which were sold to investors. Credit rating agencies inflated the ratings of mortgage-backed securities, which made them appear to be safe. Without these adjustments, the AAA quality security would have been worth barely investment-grade BBB.