Your browser does not support JavaScript.
Home Dictionary M Money Laundering Money laundering is the illegal process of making “dirty” money look legitimate and not ill-gotten. Criminals use a variety of money laundering methods to make illegally obtained funds look clean. Online banking and cryptocurrencies have made it easier for criminals to transfer and withdraw money without detection. The prevention of money laundering has become an international effort and now includes the financing of terrorism among its objectives. The financial industry also has its own set of stringent anti-money laundering (AML) measures. Fraud
September 25, 2022 Fraud involves deception with the intent to unlawfully or unethically gain a benefit at the expense of another person. Bait and Switch
September 25, 2022 Lure and spoofing occurs when a prospective buyer is lured into an advertised deal that appears attractive. Bernie Madoff
September 25, 2022 Bernie Madoff was a financial manager responsible for one of the biggest financial scams in modern history. Black Market
September 25, 2022 An illegal market is an economic activity carried out outside government-sanctioned channels. Black Money
September 25, 2022 Black money includes all funds earned as a result of illegal activities, as well as other legitimate income that is not taken into account for tax purposes. Boiler Room
September 25, 2022 A boiler room is a scheme in which sellers use high-pressure selling tactics to persuade investors to buy securities, including speculative and fraudulent securities. Channel Stuffing
September 25, 2022 Channel stuffing refers to the practice of a company supplying more products to distributors and retailers through a distribution channel than end users can purchase in a reasonable amount of time. Cook the Books
September 25, 2022 Prepare books - a slang term for using accounting tricks to make a company’s financial results look better than they really are. Embezzlement
September 25, 2022 Embezzlement occurs when a person deliberately misuses funds. Gun Jumping
September 25, 2022 Spasmodic actions in the financial markets are based on information that is not available to all potential investors. High-Yield Investment Program (HYIP)
September 25, 2022 A High Yield Investment Program (HYIP) is a fraudulent investment scheme that aims to generate extremely high returns in excess of 100% on investments. Kiting
September 25, 2022 Kiting involves the illegal use of financial instruments to fraudulently obtain additional credits. Lapping Scheme
September 25, 2022 A lapping scheme is a form of accounting fraud in which stolen or misappropriated cash is hidden by an employee who modifies accounts receivable. Loophole
September 25, 2022 A loophole is, in fact, a technique that allows you to avoid violating the law through any activity. Misrepresentation
September 25, 2022 Misrepresentations are false statements of truth that affect the other party’s decision regarding the contract. Nigerian Scam
September 25, 2022 A letter scam in Nigeria is a scheme in which a sender offers someone a commission - usually via email - for helping them transfer a large amount of money. Offshore Portfolio Investment Strategy (OPIS)
September 25, 2022 The Offshore Portfolio Investment Strategy (OPIS) was a tax avoidance product offered by accounting firm KPMG. Ombudsman
September 25, 2022 The Ombudsman investigates complaints against businesses and other organizations, including the government. Painting the Tape
September 25, 2022 Draw a ribbon is a type of market manipulation in which market participants try to influence the price of a security at the expense of investors. Pump-and-Dump Scheme
September 25, 2022 Pump-and-dump is an illegal scheme to increase the price of a stock or security based on false, misleading or grossly exaggerated claims. Pyramid Scheme
September 25, 2022 Pyramid scheme funnels revenues from all recruited members from lower levels of the organization to members at higher levels. Racketeering
September 25, 2022 Racketeering is the acquisition of a business through illegal activities, the conduct of a business with illegal income, or the use of a business to commit illegal activities. Redlining
September 25, 2022 Redlining is the discriminatory practice of denying services (usually financial) to residents of certain areas based on their race or ethnicity. Rogue Trader
September 25, 2022 A fraudulent trader is an employee of a financial firm who engages in unauthorized, often high-risk activities that result in large losses for the firm. Smurf
September 25, 2022 Smurfing is a money laundering technique that involves structuring large amounts of cash into multiple small transactions.