Fraud Hits More Than 1 in 10

It seems that with our current trend of wanting to get rich quick instead of making money the old fashioned way by earning it; that there is no end to rip offs schemes in sight. It's all money motivated on both the business and individual levels. We are seeing more and more rip offs of various sorts because of financial pressures placed on both. Businesses wanting more profit and are subject to cross the legal line and individuals, often head over heels in debt and mired down in poor paying jobs are prone to cross the legal line in order to make ends meet or to have the "good life," as advertised on television.

Consumer Fraud Hit More Than One Out Of Every Ten People

11/3/2007 2:10:02 PM The Federal Trade Commission reported that more than one of every ten people fell victim to fraud last year, with weight-loss scams coming out as the most likely to fool. The FTC reported that 30.2 million adults, 13.5% of the adult population, were victims of fraud during the year studied (2005).

Fraudulent foreign lottery offers and buyers' club memberships tied for second place in the survey, the FTC Stated. Lottery scams occur when consumers are told they have won a foreign lottery that they had not entered. Victims supplied either personal information such as their bank account numbers or paid money to receive their “winnings.” In the case of buyers clubs, victims are billed for a “membership” they had not agreed to buy. An estimated 3.2 million people were victims of these frauds during the period studied.

Print advertising was used to pitch fraudulent offers in nearly 27% of reported incidents. The internet was used in 22% of the fraudulent offers, while television or radio accounted for 21% of the pitches.

The FTC reported that 20% of blacks and 18% of Hispanics are estimated to have been victims, while the rate for non-Hispanic whites was 12%. Additionally, the survey found that younger consumers, those who did not complete college, and those with high levels of debt were more likely to be victims of fraud.

The FTC offers these tips for consumers on their website. The agency suggested that consumers know who they dealing with, and do business only with companies that plainly provide their name, street address, and phone number. The FTC also advised that one should protect personal information. The FTC said to share credit card and other personal information only with companies you know and trust; never share it in email, regardless who is asking for it.

Other tips included taking your time, reading the small print, and remembering that free means free. The commission also urged people to report fraud. They said that if you think you've been a victim of fraud, report it, it's one way to get even with a scam artist who cheated you. The FTC noted that one could complain online at ftc.gov or by phone at 1-877-FTC HELP.

“The FTC uses a one-two punch to fight fraud,” said Lydia Parnes, Director of the FTC's Bureau of Consumer Protection, in the press release from earlier in the week.

“Our enforcement program stops the most widespread and egregious practices, and our education program helps alert consumers to the tricks of the fraud trade,” she continued. “We encourage everyone to click on our Web site - ftc.gov - not only to find out how to recognize a scam, but also to report it. That's the best way to help end rip-offs of all kinds.”