The carousel scam is a typical example of tax fraud whose objective is to evade taxes through the use of false invoices. Sales transactions take place between different companies without actual activity, through the creation of a fictitious round of invoices that simulates the normal cycle of purchases and sales. In this way, fraudulent subjects are able to disguise their real revenues and lower the taxable amount. The carousel scam represents serious damage to the economic system and the state, characterized by the loss of revenues deriving from evaded taxes, but also by the damage caused to companies that have acted correctly, which then contribute to financing the “social fraud” of those who evade their tax obligations.
It is important to underline that the carousel scam is considered a criminal offence, which involves prison sentences and very high fines. The fight against tax fraud is therefore a fundamental objective for the protection of the economic system as a whole
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How to defend yourself from carousel scams
The carousel scam is a method used by fraudsters to defraud people who walk away from the ATM without taking their money. The fraudsters try to convince the victims to pay a sum to recover the money, offering their help, since in their opinion they cannot make the withdrawal without their help. In some cases, the fraudsters claim that they are employees of the bank and that they are there to help the customer. Do not fall into the trap of these opportunistic increases, but remain vigilant and alert to suspicious gestures. If in doubt, contact the bank or the relevant authorities in order to safeguard your interests and protect your money. Always be cautious at the bank and don’t accept help from strangers when it comes to your money. Your prudence and attention are the best weapon to defend yourself from
this scam.
Examples of carousel scams
Carousel scams represent a widespread form of crime that often involves criminal organizations that specialize in money laundering. This scam is based on the buying and selling of assets through a series of fictitious companies. The goods, often very expensive, are bought by company ‘A’ at inflated prices, and then resold to a company ‘B’ at an even higher price. This process is repeated several times, creating a virtuous cycle of invoicing and fictitious profits that serve to cover up dirty money and to disguise the criminal origin of the money. The victims of this scam are often unaware of their participation in a dangerous game that can lead to serious legal and financial consequences. For this reason, it is important to pay attention to the warning signs and consult an expert if there are any suspicions. The carousel scam represents a significant risk to the security and financial stability of many businesses and consumers
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Car carousel scam
The carousel car scam represents a serious problem for the automotive industry. This scam consists of buying a car with financing or leasing, and then selling it to another person at a higher price than what you paid. The fraudster thus earns a sum of money without ever paying the loan or lease. This fraudulent practice damages both the financial institution that granted the loan or lease, and the final purchaser of the car, who risks buying a car with a dark past. To avoid this scam, it is important to pay attention to the car’s documentation and its history before buying it and, if in doubt, consult an expert in the field
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