Consumer Fraud
Consumer Fraud
Yolanda Garnett
Wilmington University
Consumer Fraud
Introduction
Consumer fraud is a purposeful, unlawful act that deceives, manipulates, or provides false statements to damage others. Fraud is described in the dictionary as “deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage (fraud). Consumer fraud is usually associated with a person or group of people manipulating something to deceive others for his/her or their personal gain. In 2005 fraud cost U.S organizations more than $600 billion annually, and consumers lost more than $30 billion annually (Statistics). This paper will review how consumer fraud occurs, the victims of consumer fraud, the people who commit consumer fraud, and how consumer fraud relates to the Differential Association Theory.
Identity Theft Consumer Fraud
Consumer fraud can occur many different ways. The three major categories of consumer fraud described by the U.S Department of Justice are identity theft, bank fraud, and internet fraud (Statistics). According to the 2010 Identity Fraud Survey Report, from javelin Strategy & Research, the number of identity theft fraud victims in the United States increased 12% to 11.1 million adults in 2009, with the total annual fraud amount increasing by 12.5% to $54 billion (Javelin Strategy & Research). The people who have learned who the person was that stole their identity reported that they gained their information from lost or stolen wallets, stolen mail, online or the suspect was a family member or friend. Once the suspect gains the true person’s personal information they obtain credit in his/her name, which usually becomes bad debit and ruins the true person’s credit history.
Bank Fraud
Another popular form of consumer fraud is bank fraud. Bank fraud is usually perpetrated by the true customer. Bank fraud consists of worthless checks, credit card bust out schemes, credit
Yolanda Garnett
Wilmington University
Consumer Fraud
Introduction
Consumer fraud is a purposeful, unlawful act that deceives, manipulates, or provides false statements to damage others. Fraud is described in the dictionary as “deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage (fraud). Consumer fraud is usually associated with a person or group of people manipulating something to deceive others for his/her or their personal gain. In 2005 fraud cost U.S organizations more than $600 billion annually, and consumers lost more than $30 billion annually (Statistics). This paper will review how consumer fraud occurs, the victims of consumer fraud, the people who commit consumer fraud, and how consumer fraud relates to the Differential Association Theory.
Identity Theft Consumer Fraud
Consumer fraud can occur many different ways. The three major categories of consumer fraud described by the U.S Department of Justice are identity theft, bank fraud, and internet fraud (Statistics). According to the 2010 Identity Fraud Survey Report, from javelin Strategy & Research, the number of identity theft fraud victims in the United States increased 12% to 11.1 million adults in 2009, with the total annual fraud amount increasing by 12.5% to $54 billion (Javelin Strategy & Research). The people who have learned who the person was that stole their identity reported that they gained their information from lost or stolen wallets, stolen mail, online or the suspect was a family member or friend. Once the suspect gains the true person’s personal information they obtain credit in his/her name, which usually becomes bad debit and ruins the true person’s credit history.
Bank Fraud
Another popular form of consumer fraud is bank fraud. Bank fraud is usually perpetrated by the true customer. Bank fraud consists of worthless checks, credit card bust out schemes, credit
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