CONSUMER FRAUD - AN ANALYSIS OF IMPACT AND OPPORTUNITIES FOR INTERVENTION - TECHNICAL REPORT - PHASE 2

• NCJ Number: 52674
• Author(s): J G SCHUBERT; R E KRUG; A M ROSE
• Date Published: 1978
• Length: 165 pages
• Grant Number(s): 76-NI-99-0122
• Sponsoring Agency: US Dept of Justice
• Corporate Author: American Institutes for Research
• Sale Source: National Institute of Justice/
• Publication Type: Report (Study/Research)
• Language: English
• Country: United States of America

Annotation

THIS REPORT DOCUMENTS THE DATA-GATHERING PHASE OF A STUDY OF THE NATURE AND IMPACT OF CONSUMER FRAUD. THE ANALYSIS REVEALS 23 'TYPICAL' FRAUD CASE PROFILES AND FINDS MOST ARISE FROM NORMAL BUSINESS TRANSACTIONS.

Abstract

A TWO-STEP ANALYSIS TECHNIQUE WAS USED IN THIS, THE SECOND OF THREE PHASES OF A RESEARCH PROJECT. FIRST, 1,147 CASES COLLECTED FROM CITY, COUNTY, STATE, AND MULTIJURISDICTIONAL CONSUMER COMPLAINT AND FRAUD AGENCIES WERE ANALYZED TO DETERMINE THE NATURE, SCOPE, AND CHARACTERISTICS OF CONSUMER FRAUD. THEN A SAMPLE OF 383 CASES WAS EXAMINED IN DETAIL TO IDENTIFY STRATEGIES USED TO TRY TO PREVENT SUCH FRAUD. THE LARGE ANALYSIS YIELDED 23 CONSUMER FRAUD PROFILES. THESE PROFILES INCLUDE NINE DIFFERENT TRANSACTIONAL SEQUENCES EXPLORING THE INTERACTIONS BETWEEN CONSUMER, MERCHANT, AND CONSUMER COMPLAINT AGENCY. THE DATA ARE ILLUSTRATED IN A SERIES OF CHARTS AND FIGURES. IT WAS FOUND THAT MOST OF THE CASES INVOLVED COMMONPLACE BUSINESS TRANSACTIONS, NOT CAREFULLY PLANNED AND EXECUTED SCHEMES. NONDELIVERY OF MERCHANDISE, MERCHANDISE WHICH WAS LESS THAN EXPECTED, AND A MERCHANT WHO HAD INSUFFICIENT FUNDS TO MAKE GOOD ON A GUARANTEE WERE THE MOST COMMON COMPLAINTS. OVERREPRESENTATION OF GOODS OR SERVICES WAS CONSIDERED A PRIMARY FACTOR IN A MAJORITY OF THE COMPLAINTS. CHARTS AND TABLES PRESENT THE STUDY DATA. APPENDIXES INCLUDE THE DATA COLLECTION FORMS, THE STATISTICAL ANALYSES, AND OTHER SUPPORTING INFORMATION. PHASE THREE WILL EXAMINE POSSIBLE INTERVENTION STRATEGIES. (SEE ALSO NCJ 52672 AND 52673.)