How to smell a rat? A timely guide to uncovering international financial fraud during the height of the credit crunch and a worldwide credit crunch will forever be remembered for the global credit crisis, bear markets, and some of the biggest financial scams ever perpetrated. However, these scams aren’t anything new, they have been around throughout history, and unfortunately, there probably will be more to follow. If you want to know how to smell a rat in the financial world, then keep reading.
In order to help you learn how to identify financial fraud, here are the five signs you will usually spot: Huge holes in the company’s financial statements. If a company has suddenly stopped publishing its financial statements, then this is a strong indication that something is wrong. Also, if the statements are very inconsistent, then this could also mean fraud. Finally, if the statement contains a large number of inconsistent transactions, then it is probably a sign of corruption, something the government wants to get rid of.
The second step to how to smell a rat in the financial world is to find out what previous generations of criminals who were convicted of committing financial crimes used to do. This informative look at recent and historic examples of financial fraudsters, how they operated, and how they can easily be avoided. There are plenty of books on the topic. Also, you may want to watch any documentaries about these types of cases, which can be viewed online. Finally, listen to any discussions on the subject in business circles or in political forums.
Of course, when looking into how to smell a rat in the financial world, one must also consider the possibility of foul odor coming from other sources. For example, many criminals prey upon small businesses using a variety of scams. For instance, they might pretend to have a shortage of certain kinds of merchandise, such as computers. When the business owner tries to contact them, they might offer to pay a reduced price or not charge taxes on purchases. This is considered less than ethical, but since there are always crooks in every group, the business owner may just be too trusting.
This leads into another important part of how to smell a rat in the financial world: research. There are plenty of case studies, articles, news stories, and investigations that can provide helpful information on how to smell a rat. Keep reading and keep thinking. Look up previous cases of financial fraud and how they were handled. Find out how victims were able to fight back against the criminals and how they felt about the charges against them. The more you know, the better prepared you will be to handle the same situation in the future.
How to smell a rat in how to avoid scams: keep looking at recent and historic examples of fraudsters, how they operated, and how they were able to get away with their crimes. You might want to avoid going after an individual directly if you don’t have any solid proof that they committed the crime. If you suspect that you will need to go after an individual directly, learn how to avoid scams first. Then, choose a business that you feel comfortable going after based on the individual’s history of scams. Never choose a business without the most thorough research, which should include looking up how they operate, researching any customer reviews, and reading up on their company history.