Ways Criminals Make Money Illegally Beyond Drugs and Robberies
Contrary to popular belief, criminals use a variety of strategies to make money illegally. Besides selling drugs and committing robberies, there are numerous other methods, including fraud, embezzlement, counterfeit activities, and more. This article delves into some of the ways that criminals generate illicit income and rise above the typical perceptions of crime.
Fraud
Fraud comes in many forms, such as credit card fraud, identity theft, insurance fraud, and bank fraud. Imagine using someone else’s identity to apply for loans, credit cards, or even commit a crime. Criminals can rent out real estate that they have no claims to, which involves lying about the property's conditions. Car repair scams, where mechanics inflate the list of necessary repairs, are also prevalent. Even businesses like asphalt and roofing companies might be involved in scams. Not all business activities are honest. Criminals can also commit insurance fraud, selling fake goods, and even run protection rackets.
Fraud and Credit Schemes
Credit fraud is another popular method. Criminals can forge checks, scam people into wiring money, and apply for loans or credit cards under false identities. These schemes require a certain level of intelligence and sometimes physical manipulation, such as driving to North Carolina to buy cigarettes and reselling them in New York without tax stamps.
Blackmail and Identity Theft
Blackmail is also a common tool used by criminals. Identity theft involves stealing someone's identity to perform several fraudulent activities. For instance, a criminal might take photos of escort service clients and threaten them for payment. Online, phishing and vishing scams are rampant, where criminals impersonate bank security teams to steal customer data. Often, these scammers use spoofing techniques to make their claims more credible. At a more sophisticated level, they might engage in hacking, malware, and spyware activities sold on the dark web. Skimming and credit card dumps involve attaching devices to read credit card information, including cameras to gather PINs, and purchasing stolen credit card data.
Other Methods of Making Illicit Money
Individuals can also engage in more opportunistic crimes, such as credit card dumps, which can lead to significant rewards with relatively low risk. For instance, robbing a jewelry store can result in long prison sentences but also yields high rewards.
Case Study: Rogue Businesses and Scams
A notable case is the public parking area across the street from a zoo. An individual may set up a small gate building to collect money without legitimate ownership or permission. This example highlights the role of any business in facilitating illegal activities. Car repair shops are particularly vulnerable, as they can falsely inflate the cost of repairs to extract more money from unsuspecting customers. In the asphalt and roofing industries, scams can involve embezzlement and other forms of dishonesty.
In conclusion, the methods by which criminals make illicit money are diverse and often more complex than simple drug dealing or robberies. From credit card fraud to blackmail and identity theft, these activities require a combination of technical skill and opportunistic behavior. Understanding these methods is crucial for both law enforcement and the public in developing strategies to combat these illegal activities.