Consumer Fraud: How Can You Shield Your Business From It?
Table of Contents
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What is Consumer Fraud?
Types of Consumer Fraud
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How to Avoid Being a Consumer Fraud Victim?
What is Consumer Fraud?
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Consumer fraud is nothing but illicit activities that involve deceit or trickery and are carried out against an individual purchaser or group of customers, resulting in financial loss or physical harm.
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In short, all the deceptive business practices that cause consumers to suffer financial or other losses is termed as consumer fraud.
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In the act, the victims believe they are participating in a legal and valid business transaction when they are actually being defrauded by scammers.
Types of Consumer Fraud
Identity Theft ●
Identity theft occurs when someone knowingly steals your personal information, including your name, social security number, bank account details, and credit card information, via data mining.
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The thieves use the drawn-out details to assume your identity and access your bank account to drain funds.
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Often, scammers use identity theft to take out loans, use health insurance, or collect tax refunds using your name.
Credit & Debit Card Fraud
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Consider yourself trapped in credit or debit card fraud when you find a statement containing charges that you don’t recognize.
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In such fraud incidents, scammers use your credit/debit card number and PIN for financial transactions without your knowledge and consent.
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The thief either physically steals your credit card or steals your card information via phishing or credit card skimming and uses it to make payments or withdraw cash.
Mortgage Fraud
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Distressed homeowners are the main target of mortgage fraud.
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The fraud includes foreclosure rescue schemes, loan modification schemes, and equity skimming schemes.
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Mortgage fraud is often carried out by professionals who misuse their expertise and authority to rip their consumers off.
How to Avoid Being A Consumer Fraud Victim?
Here is a list of some “red flags” that you must not ignore if you don’t want to be a Consumer Fraud victim:
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High-Pressure Tactics. Steer clear of phrases like: "You will lose out if you don't act now" or "Don't discuss your sweepstakes winnings with anyone until you get your check."
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Up Front Payment. If you are told you must pay upfront to receive your prize or winnings, it's likely a scam. If you've won something, it's yours, and you should not have to pay anything in advance to take ownership of that.
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Refusal to Provide Written Information. If the person or company contacts you but refuses to give information in writing, don't do business with them; it is as simple as that!
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Unrealistic Profits. It’s healthy to check and double-check if someone tells you that you can make lots of money quickly with no risk, experience, or training.
Thank you! This presentation was prepared by: Nitika Sharma Manager, Money 2.0 Conference https://www.money2conf.com/