Deception and Fraud

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Deception and Fraud
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Deception vs. Fraud

• Deception
• Exaggeration
• Legal
• Misleading
• Fraud
• Deliberate
• Unlawful extremes

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Deception

• Trading Up
• Sale Price
• Suggested Retail Price
• Loss Leader

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Fraud

• Statement is fraudulent if
• Person making statement KNOWS its false
• Purpose of statement causes others to give up
  some value
• Proving fraud is difficult
• Was it a mistake?
• Was there intent?
• Best advice is to avoid fraud

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When it seems too good to be true
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it probably is!!
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Types of Fraud

• Bait and Switch
• Pyramid Schemes
• Chain letters
• Memberships, not products
• Airport scheme
• Telephone ( Internet) Fraud

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Pyramid Schemes
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Telephone Fraud

• Too good to be true
• Request for credit card or ss
• Buy for something free
• Refusal to send written confirmation or
  information

• Pressure to act now or offer expires
• Refusal to identify themselves or company
• Refusal to provide company info (phone, address)

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More Faces of Fraud

• Health-care products that cure
• Home improvement charging fees up front
• Vacation clubs promising cheap vacations
• REALLY inexpensive repair work
• Weight loss programs appearing unrealistic
• Piggyback scams

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Protect Yourself

• Be skeptical!
• Ask questions!
• Research companies
• Research products
• Use your head, not your heart