Chapter 4 notes
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This 4 page Class Notes was uploaded by Jocelyn Norfleet on Sunday September 13, 2015. The Class Notes belongs to FCS 103 at Illinois State University taught by Donald Meyer in Fall 2015. Since its upload, it has received 37 views.
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Date Created: 09/13/15
Management For Consumers FCS 103 Chapter 4 Fraud Making a false statement with knowledge of its falsity or with reckless disregard as to its truth with the intent to cause someone to rely on the statement and give something of value misrepresentation deliberate deceit Usually shortlived why Consumer Products Fraud 0 Food quotcuresquot aBeauty product scams 0 Weight loss products 0 Health insurance fraud 0 Fraudulent repairs 0 Computers 0 Autos 0 Service Contracts 0 government response 0 land sales Pvramid Scheme 0 Illegal sales plan people collect fees and share of income earned by others recruited Turner quotDare to be Greatquot sell the self improvement courses keep some of the money and forward a portion to the person who recruited you Fortuna Alliance Guaranteed income of 5000 to join you pay 250 for right to recruit others No product furnished Pyramids work great for the founders until they get caught Tax Service Fraud 0 Offer scheme to quotreduce taxesquot IF you sign up 0 IRS quotDirty Dozenquot 0 African americans qualify for special refund to forgive slavery Don t work enough to pay taxes employers le even if no tax owed I don39t pay taxes Why do you Pay the tax owed to win money Paying Taxes is voluntary register with IRS for 150 Avoid social security taxes Pay 100 fee Big tax refund if you pay quotup from feequot Pay a fee to learn how to quotsharequot children to receive Earned Income Credits IRS agents make tax calls to collect taxes Put savings in a trust to avoid taxes Claim your home for business deductions Claim to be disabled to get deductions Protecting Yourself 0 Be an assertive consumer high pressure tactics Do your homework Make a list of questions to be answered 0000000 0000 0 Talk to familv and friend CoolingOff Period 0 Some states have laws requiring this 0 Often 3 business davs Especially important for quotinhomequot sales FTC 1973 adopted cooling off rule for door to door sales FTC Mail Order quotRulesquot o If shipping within a time period promoted must be done within that period If none days If item cannot be shipped in promised period consumer must be noti ed and provided a tollfree or postage paid response 0 Customer may cancel or agree to new ship date If cancelled reimbursement within 7 days If gt 30days refund offered Internet Fraud 0 Need to be on lookout for quotlook alikequot web sites 0 Watch for o Promises too good to be true Tells you may have won prize but must pay somehow Asks for SS account numbers passwords etc Sets unreasonable time for response Promises you will earn large income for purchase Secure sites now have you choose an icon that provides proof you are at correct site Internet Fraud Situations Internet auctions Frauds airline tickets Super Bowl tickets concert tickets Work at home Offers BUT you need to pay a fee or buy something Advance Loans beware of quottoo good to be true Credit Repair Scams quotWe can x your creditquot just give us your SS and account number ldentitv Theft 0 Most important piece to protect SS number 0 Others to consider protecting 0 Drivers license 0 Date and place of Birth 0 CC Numbers 0 Bank account Numbers Scammers opening new accounts IF they have enough of the above pieces of information ldentitv Theft 0 Free Credit Report onceyear go to right place beware quotfree credit reportcomquot type sites 0 3 places to go for ONE free report12 months 0 equifax see book for contact 0 experian o trans union 0 Get a report to be sure YOUR information is correct amp no unauthorized account in your name Identity Theft 0 What to do OOOOO 0 Report the theft to the 3 credit agencies 0 Report the theft to law enforcement 0 Contact banks involved Contact L 0 Identity Theft insurance available 25 to 70 0 More information about lT from ssagov
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