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Deception and FraudDeception and Fraud
Section 3.3Section 3.3
Deception vs. FraudDeception vs. Fraud
DeceptionDeception ExaggerationExaggeration LegalLegal MisleadingMisleading
FraudFraud DeliberateDeliberate Unlawful extremesUnlawful extremes
DeceptionDeception
Trading UpTrading Up Sale PriceSale Price Suggested Retail PriceSuggested Retail Price Loss LeaderLoss Leader
FraudFraud
Statement is fraudulent if:Statement is fraudulent if: Person making statement KNOWS it’s Person making statement KNOWS it’s
falsefalse Purpose of statement causes others to Purpose of statement causes others to
give up some value give up some value Proving fraud is difficultProving fraud is difficult
Was it a mistake?Was it a mistake? Was there intent?Was there intent?
Best advice is to avoid fraudBest advice is to avoid fraud
When it seems too good When it seems too good to be true…to be true…
……it probably is!!it probably is!!
Types of FraudTypes of Fraud
Bait and SwitchBait and Switch Pyramid SchemesPyramid Schemes
Chain lettersChain letters Memberships, not productsMemberships, not products Airport schemeAirport scheme
Telephone (& Internet) FraudTelephone (& Internet) Fraud
Pyramid SchemesPyramid Schemes
Telephone FraudTelephone Fraud
Too good to be Too good to be truetrue
Request for credit Request for credit card or ss#card or ss#
Buy for something Buy for something freefree
Refusal to send Refusal to send written written confirmation or confirmation or informationinformation
Pressure to act Pressure to act now or offer now or offer expiresexpires
Refusal to identify Refusal to identify themselves or themselves or companycompany
Refusal to provide Refusal to provide company info company info (phone, address)(phone, address)
Telephone TechniquesTelephone Techniques
Drop famous namesDrop famous names““Having lunch with Michael Jordan was Having lunch with Michael Jordan was
great…”great…” Use terms of endearment, emotionsUse terms of endearment, emotions
““I lost my mother and you remind me of her.”I lost my mother and you remind me of her.” Suggest lack of powerSuggest lack of power
““May I talk to the decision maker?”May I talk to the decision maker?” Use guilt tripsUse guilt trips
““I’ve already spent an hour with you…”I’ve already spent an hour with you…” Pressure to make quick decisionsPressure to make quick decisions
““We only have two left…”We only have two left…”
Telephone AdviceTelephone Advice
Ask for time to think about itAsk for time to think about it Ask for information be sent to youAsk for information be sent to you Ask for their number and call backAsk for their number and call back Ask for referralsAsk for referrals
More Faces of FraudMore Faces of Fraud
Health-care products that cureHealth-care products that cure Home improvement charging fees up Home improvement charging fees up
frontfront Vacation clubs promising cheap Vacation clubs promising cheap
vacationsvacations REALLY inexpensive repair workREALLY inexpensive repair work Weight loss programs appearing Weight loss programs appearing
unrealisticunrealistic Piggyback scamsPiggyback scams
Protect YourselfProtect Yourself
Be skeptical!Be skeptical! Ask questions!Ask questions! Research companiesResearch companies Research productsResearch products Use your head, not your “heart”Use your head, not your “heart”
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