New Law Could Prevent Crypto-Currency Fraud

The word “fraud” usually conjures up ideas of identity theft, writing bad checks, or selling a misrepresented item. However the reality is new types of fraud are constantly occurring in inventive ways. One of the most recent types of fraud is crypto-currency fraud; with the increasing interest in crypto-currencies, fraud is rising in this area. A new law aims to prevent crypto-currency fraud in Texas.

House Bill No. 4371 is relatively brief compared to other bills, but it could have huge implications for Texans. The bill, which was recently introduced to the Texas Legislature, would create new regulations for crypto-currency transactions. Specifically, the bill would require the identification of any individuals looking to send crypto-currency payment. This means anyone receiving crypto-currency would be responsible for verifying the identity of the sender.

This requirement might not seem like much, but it’s actually incredibly powerful. Imagine the login credentials for your bank account get stolen and the thief uses it to transfer money out of your account to another account. Sounds like a nightmare, but there are laws and procedures in place to identify, investigate and prosecute this crime. The same cannot currently be said of crypto-currency. Because it’s an extremely young form of currency, lawmakers have yet to catch up with the protections necessary to keep users safe from fraud when using crypto-currency as a payment option.

Getting Help After Fraud

While the new bill could help make crypto-currency safer, the reality is fraud still occurs. Businesses can be particularly susceptible to fraud, which can have monumental consequences. Business fraud occurs anytime an individual or company intentionally falsifies records or perpetrates lies with the intent to deceive. What makes fraud particularly devastating is the volume of victims involved. While victims of fraud might feel helpless, they can seek to protect themselves and pursue justice by filing a lawsuit.

Houston Fraud Attorneys

Many victims of fraud do not come forward because they are embarrassed, but there is no reason to put any blame on yourself. The Houston fraud attorneys at Feldman & Feldman can work with you to investigate the situation and file a lawsuit against the deceptive party to obtain compensation for the money lost and damages caused by the fraud. If you’ve been a victim of fraud, no matter what type, the Houston fraud attorneys at Feldman & Feldman are equipped to investigate your claim and pursue compensation. Contact us today to schedule a consultation.

Most Common Types of Fraud

Most people do things to protect themselves and their property. Homeowners lock their doors at night and insure their valuables. Unfortunately, very few people protect themselves from fraud, and with the rise of the Internet and digital software, fraud is getting easier to commit. Some of the most common types of fraud that the experienced fraud lawyers at Feldman & Feldman handle include:

  • Real Estate Fraud – While most real estate transactions are legitimate, there a number of types of fraud that can be associated with real estate. Both the purchaser and the seller can commit fraud, so it’s important for anyone entering into a real estate contract to completely understand the terms of the transaction. If one or more parties isn’t being transparent, it could be a sign of fraud.
  • Investment Fraud – More commonly known as a ponzi scheme or pyramid scheme, investment fraud occurs when an individual uses the funds from new investors to pay returns to previous investors. Perpetrators of this type of fraud use the financial investments of others as their own personal finances, without any intention of using the funds in a business that could generate returns.
  • Payroll Fraud – Small businesses are much more susceptible to payroll fraud than larger businesses. Payroll fraud occurs when a person is stealing money under the guise of the legitimate expense of paying employees. It is important for small business owners to always have access to their finances in order to prevent bookkeepers, accountants, and other individuals from wielding too much control over the company’s money without meaningful oversight.
  • Healthcare Fraud – Healthcare frauds can be perpetrated by pharmaceutical or medical devices companies, doctors, hospitals, and insurance companies, among others. Oftentimes one party will be billed for services or equipment that was unnecessary or never performed.
  • Fake Charities – Some people will solicit donations under the guise of a fake nonprofit organization or charity in order to commit fraud. It is always important for potential donors to make sure charities are IRS-approved nonprofits. Fake charities can be more prevalent after a natural disaster, when individuals are seeking to profit off of others looking to be helpful.

The Realities of Fraud

Although there are many types of fraud, fraud is defined as the misrepresentation of facts made to another party, with knowledge of the falsehood, for the purpose of inducing the other party to act. To put simply, fraud occurs when someone lies in order to entice another party to perform an act or consent to an agreement. Fraud can happen anytime and victims often suffer huge financial losses.

Experienced Fraud Lawyers

At Feldman & Feldman, our experienced fraud lawyers help fraud victims protect their rights and pursue compensation. If you believe you were a victim of fraud, contact us today. We can investigate your situation and help you protect your best interests.