Reviewed by May 18, 2021| Updated on
Financial fraud happens when someone deprives you of your money or otherwise harms your financial health through misleading, deceptive, or other illegal practices. This can be done through a variety of methods such as identity theft or investment fraud.
Most victim compensation programs do not cover the money lost to fraud or fraudulent schemes. You must check for your specific state laws regarding victim compensation. Civil justice may be the only legal option to recover lost money.
It is important to report the crimes to the appropriate agencies and law enforcement as soon as possible irrespective of the type of financial fraud. Fraudulent charges should also be disputed or cancelled as soon as they are discovered as well. Furthermore, victims should collect documentation related to the crime, such as bank statements, credit reports, tax form from current and previous years, and continue to file important information throughout the reporting process.