Top 5 Most Common Frauds in 2019
Being a responsible consumer in the year 2019 means educating yourself—not just on the products and services—but of the ways scammers and thieves exploit consumer behavior for their own financial gain. As technology advances with the convenience of SMS text messaging as a security feature, financial applications that put your finances at your fingertips, and the tangled world wide web, consumer fraud scams will only continue to mutate and evolve. Here are five of the most common types of consumer fraud scams to avoid in 2019.
According to the Federal Bureau of Investigation’s Financial Fraud Unit, mortgage fraud exploits a consumer’s fear of losing their home to make a quick buck. Mortgage fraud schemes come in many forms, including but not limited to equity skimming, loan modifications, and foreclosure rescue schemes. The perpetrators behind these schemes are often former real estate professionals who use their intimate knowledge of mortgages to swindle homeowners in distress. Real estate agents who are currently employed can exploit their authority to bolster the validity of their scheme. The FBI and FTC advise that consumers should be wary of any unsolicited phone calls, emails, regarding their home finances, and never sign any paperwork or documentation that they do not fully comprehend.
Debit Card Fraud
Debit card fraud occurs when an individual’s debit card information is obtained to make fraudulent purchases. Debit card fraud is one of the most difficult schemes to avoid in day-to-day life, because so many Americans have gradually transitioned from carrying cash to carrying only their debit card as means of legal tender. Anyone with access to the debit card’s information—including the businesses and vendors we trust every day—can pull this information to commit a fraud. Unfortunately, the only recourse consumers have in protecting themselves is to avoid letting their card ever leave their sight, and to keep a watchful eye on their accounts and report any suspicious activity.
Perhaps one of the most despicable types of consumer fraud is charity fraud. Scammers set up shell organizations to receive donations that do not go to those in need, but rather line the scammer’s pockets. Frauds of these type spike significantly during the holidays and in the wake of natural disasters in order to exploit humankind’s benevolence. The name of the game with charities is research. Any charity worth its salt is going to stand up to a great deal of due-diligence and fact-finding. Part of being a responsible consumer is knowing where your money is going.
Winning the lottery is a dream of many Americans, with fantasies of kicking back and never having to put in another hard day’s work for the rest of their lives. Despite the wide range of demographics with these dreams, lottery fraud scams usually effect senior citizens in the United States. The scam usually begins with a letter or email letting the individual know they have won. The correspondence usually includes details about fees that are involved with receiving their winnings. The FTC warns that individuals who have won a legitimate lottery prize of any kind should never have to pay a fee to collect their winnings, and consumers should be suspect of any unsolicited correspondence stating as such. Consumers should also be advised that United States law does not support the sale and transference of international lottery tickets, so any correspondence from international lotteries is most certainly a scam.
Studies by Javelin Strategy & Research conducted over the last seven years indicate that in 2017, there were as many as 16.7 million Americans impacted by identity fraud, with $16.8 million in stolen funds and assets. Identity theft can be committed for a number of reasons. Perpetrators can steal an individual’s information with the purpose of starting over again under a different name, or to escape their creditors. Most commonly, however, identity fraud is simply committed with the explicit purpose of stealing money from American consumers. Once a scammer has an individual’s identifying information, like dates of birth, Social Security numbers, and their mother’s maiden name, they can use that data to make fraudulent purchases in the victim’s name, withdraw funds from their bank accounts, and destroy their credit, leaving them financially arrested. The aftermath of identity fraud is devastating and can cause shockwaves across decades with exponential consequences.
If you have been the victim of a consumer fraud scam, contact a private investigator today to learn how their unique set of skills and professional autonomy can help you locate the scammer in your midst. Call Lauth Investigations International today for a free consultation (317-951-1100) and a simple solution to your consumer crisis.
Carie McMichael is the Media and Communications Specialist for Lauth Investigations International. She regularly writes on investigation, fraud, and missing persons topics. For more information, please visit our website.