The most common type of security fraud is known as insider trading. When an individual receives classified information about a company or organization and uses it to make investments or buy stock in the company, they can be charged with insider trading. The classified information involved usually relates to the financial health of the company, but it can be anything that gives the employee a financial advantage. Individuals can also be accused of securities fraud if they are believed to have knowingly misrepresented the financial health of a company to manipulate investors.