Top 10 Consumer Frauds: Watch Out!

Consumer fraud is on the rise, even though the level of consumer transactions has remained fairly stable over the last few years. A study conducted by LexisNexis Risk Solutions, demonstrated that the number of fraudulent transactions from merchants has increased from 80 per month in 2012, to 206 per month in 2016. This is a 157.5% increase in just four years! And, even though the number of prevented fraudulent transactions has spiked, the average monthly value of successful fraudulent transactions was still a staggering $146 million each month.

Experts estimate that consumer fraud costs the U.S. economy between $40 to $50 billion, every year. These figures however, only account for fraud on the retail level; there are several other categories of fraud, such as healthcare and tax fraud that can push the numbers into an astronomical range.

In 2015 alone, the Federal Trade Commission (FTC) the body charged with oversight and enforcement of consumer protections laws, collected 3,083,379 consumer complaints. Here are the Top 10 consumer complaints received by the FTC in order of volume:

NumberPercent
Debt Collection897,65529 percent
Identity Theft490,22016 percent
Imposter Scams353,77011 percent
Telephone and Mobile Services Prizes275,7549 percent
Sweepstakes and Lotteries140,1365 percent
Banks and Lenders131,8754 percent
Shop-At-Home and Catalog Sales96,3633 percent
Auto-Related Complaints93,9173 percent
Television and Electronic Media47,7282 percent
Credit Bureaus, Information Furnishersand Report Users43,9391 percent

 

 

What should you do if you are worried that you have fallen prey to false, deceptive or misleading claims by a merchant? The first step is to get informed, check out our Resources page and speak with a lawyer who understands consumer protection and fraud at Vision Legal, Inc.

Source: FTC