Financial fraud is deliberate deception used to obtain money, credit, investments or other financial advantage, or to cause someone a financial loss. It is the part of fraud that targets banks, payment systems, investors, insurers and their customers, and the legal elements, main types and responses are explained in full in the Fraud entry.
The term covers a wide range of schemes. Some target consumers, such as authorized push payment fraud, in which victims are tricked into sending money themselves, or phishing to steal login details. Others rely on stolen data, such as identity theft used to open accounts or take out loans. Investment frauds include the Ponzi scheme, which pays earlier investors with later investors' money, while corporate frauds include false accounts and embezzlement by insiders.
Financial fraud is usually both a crime and a civil wrong. Banks and payment firms are expected to detect it, and in some countries, including the UK, they must now reimburse many victims of certain scams.