Are you committing fraud and you’re not even aware of it? Some of our everyday financial decisions could be seen as fraudulent. Save yourself the headache of legal and financial trouble. Here are 7 behaviors that you need to reconsider before you get accused of fraud.
1. Claiming Too Many Business Deductions
Sometimes business deductions can be a gray area on your taxes. Especially if you work remotely, you may feel that many of your home expenses are tax deductible. However, only self-employed individuals can claim these deductions since the 2018 tax reform. If you are self-employed, you generally can claim your home office, phone, and internet expenses if they are used exclusively for business.
2. Inflating Income on Loans or Credit Cards
You should always be truthful about your income when taking out a loan or applying for a credit card. Inflating your income to get a higher limit can be considered fraudulent. Not only can you face legal implications, but you may also lose your loan funds and have to pay them back immediately.
3. Collecting Benefits That You Aren’t Eligible for
If your financial situation has changed and you don’t report it you may be collecting benefits from programs that you’re no longer qualified for. Even if this is an oversight or accident, it’s still considered fraud. This applies to programs like SNAP or housing benefits. It may lead to criminal charges as well.
4. Not Reporting Secondary Income
Do you have a side hustle? Make sure to report that income even if you think that it isn’t substantial. Currently, if you make as little as $600 on e-commerce sites, you are obligated to report the income. This means that even if you sold personal items on Poshmark, you have to report it. Not doing so could result in an audit or fines and is considered tax evasion.
5. Sharing Subscription Accounts
While this may be a touchy subject, especially since many streaming services have cracked down on users, sharing your account information can be considered fraud. While we’ve all done it, this can actually violate terms of service and cross into what’s legally considered digital piracy or service fraud. Although it’s hard to enforce, it’s better to err on the side of caution.
6. Manipulating Chargebacks
Have you filed for a chargeback on your credit card? If you do so without cause, you may be committing credit card fraud. Even returning an item claiming it’s faulty when it isn’t is considered fraud. This behavior will often get you flagged by credit cards and retailers, so beware.
7. Identity Theft of Any Kind
Signing up for a service under someone else’s name is identity theft. Even if you have the individual’s permission, it is still illegal and considered fraud. This can include signing up for utilities in someone else’s name or using their credit card for purchases. This type of fraud can get you in trouble with the law.
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Teri Monroe started her career in communications working for local government and nonprofits. Today, she is a freelance finance and lifestyle writer and small business owner. In her spare time, she loves golfing with her husband, taking her dog Milo on long walks, and playing pickleball with friends.
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