Consumer fraud occurs when a person suffers from a financial or personal loss. The fraud can involve the use of deceptive, unfair, misleading, or false business practices. Here are some of the most common frauds that victimise consumers.
Identity Theft – Identity theft occurs when someone steals your personal information which can include your name, ID number, bank account number, and credit card information often through data mining. The goal of the thieves is to use your personal information to assume your identity to access your bank account and drain funds, open and use credit cards in your name, take out loans, etc.
Credit and Debit Card Fraud – Credit or debit card fraud can occur when someone steals or finds your card or manages to obtain the information from the card to purchase goods, withdraw money, or otherwise use your card in a fraudulent manner.
Prize and Lottery Fraud – Prize and lottery fraud comes under many names—sweepstakes, drawings, foreign lotteries, and more. This type of fraud often targets the elderly and originates with a phone call or email.
Debt Collection Fraud – Some scammers, posing as debt collection agencies, call consumers demanding payment of fake outstanding debt. These are not legitimate debt collectors. If you have actual unpaid debt, subject to collection, know who you are talking to.