What is a Sham?
A sham is a deceptive or false act or appearance, often created to deceive others or manipulate a situation for personal gain. It is essentially a form of fraud or trickery that misleads people into believing something that is not true.
Types of Shams
- Legal Shams: Legal shams are actions or transactions that appear to be legitimate on the surface but are actually designed to deceive the law or exploit legal loopholes.
- Financial Shams: Financial shams involve deceptive practices in financial transactions, investments, or accounting to mislead investors, regulators, or the public.
- Personal Shams: Personal shams are deceptive acts or behaviors that individuals engage in to manipulate or deceive others for personal gain or advantage.
Examples of Shams
One common example of a sham is a fake company set up to funnel money illegally. Another example is a sham marriage entered into solely for immigration purposes.
Case Studies
In 2015, Volkswagen was found to have engaged in a sham by installing software in their diesel cars to cheat on emissions tests. This scandal cost the company billions of dollars in fines and damages.
Statistics
According to a report by the Association of Certified Fraud Examiners, occupational fraud cases involving shams accounted for nearly 30% of all fraud cases reported, resulting in an average loss of $125,000 per case.
