NCJ Number
52673
Date Published
1977
Length
179 pages
Annotation
THIS, THE FIRST PART OF A THREE-PHASE STUDY, DESCRIBES THE NATURE, SCOPE, AND CHARACTERISTICS OF CONSUMER FRAUD BASED ON A SAMPLE OF 400 CASES OBTAINED FROM A TOTAL OF 19 DATA SOURCES.
Abstract
THE FIRST SECTION OF THIS REPORT DESCRIBES THE COLLECTION OF CASE EXAMPLES FROM CONSUMER PROTECTION AGENCIES, RADIO STATIONS WITH A 'CALL FOR ACTION' PROGRAM, STATE OFFICES OF CONSUMER AFFAIRS, LEGAL AID SERVICES, THE UNITED STATES POSTAL SERVICE, AND THE FEDERAL TRADE COMMISSION. THE PROBLEM OF GETTING 400 CASES WITH ENOUGH INFORMATION FOR ANALYSIS IS DISCUSSED. THE SECOND SECTION PRESENTS THE ACTUAL ANALYSIS, COMPLETE WITH CHARTS, TABLES, STATISTICS, AND COMMENTARY. THE STUDY COVERED TYPE OF PRODUCT OR SERVICE INVOLVED, CHARACTERISTICS OF THE CONSUMER WHO WAS DEFRAUDED, MERCHANT CHARACTERISTICS, INVOLVEMENT OF OTHER PARTIES, NATURE OF THE INITIAL CONTACT BETWEEN CONSUMER AND MERCHANT, NATURE OF THE COMPLAINT, NATURE OF THE ALLEGED FRAUD, PRIMARY MEDIUM USED TO PERPETRATE THE FRAUD, POINT AT WHICH THE FRAUD WAS PERPETRATED AND AT WHICH IT BECAME APPARENT TO THE COMPLAINANT, DOLLARS INVOLVED IN THE INDIVIDUAL TRANSACTION AND IN THE OVERALL SCHEME, AND DOLLAR LOSS TO BOTH THE INDIVIDUAL AND IN THE OVERALL SCHEME. AGENCY ACTION UPON RECEIPT OF THE COMPLAINT WAS ALSO ANALYZED. IT WAS FOUND THAT MOST CONSUMER FRAUD IS RATHER SIMPLE IN PLAN AND EXECUTION AND MOST CASES WERE, AT THE BEGINNING, RELATIVELY INDISTINGUISHABLE FROM EVERYDAY HONEST TRANSACTIONS. THE GREED AND CARELESSNESS OF THE MERCHANTS INVOLVED AS WELL AS THE FRUSTRATION OF THE CONSUMER TRYING TO OBTAIN REDRESS ARE COMMENTED UPON. FEW OF THE FRAUDS INVOLVED LARGE SUMS OF MONEY. THE PROCESS WHICH WILL BE USED TO DEVELOP TYPOLOGIES OF CONSUMER FRAUD FOR THE SECOND PHASE OF THE STUDY ARE DESCRIBED. APPENDIXES CONTAIN MATERIALS RELATED TO THE STUDY: SAMPLE CASES, CHARACTERISTICS OF PARTICIPATING AGENCIES, ADDITIONAL STATISTICS, DEFINITIONS, AND REFERENCES.