Why frauds happen

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Payment fraud can hurt both you and your customers. By aggressively protecting your ecommerce store against fraud , you can improve your reputation and your bottom line. Start your free trial High-volume or established business? Request a demo. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights.

Measure content performance. Develop and improve products. List of Partners vendors. Consumer fraud occurs when a person suffers from a financial or personal loss. The fraud can involve the use of deceptive, unfair, misleading, or false business practices. Fraudsters typically target senior citizens and college students, but all consumers are at risk of fraud. The Consumer Financial Protection Bureau CFPB is a government agency that protects consumers from financial fraud and scams by making sure banks and financial companies treat consumers fairly.

Scammers are constantly finding new ways to steal your money. You can protect yourself by knowing what to look out for," according to the CFPB. Here are some of the most common frauds that victimize consumers and tips on how to protect yourself from becoming affected.

Identity theft occurs when someone steals your personal information—which can include your name, Social Security number, bank account number, and credit card information—often through data mining. The goal of the thieves is to use your personal information to assume your identity to access your bank account and drain funds, open and use credit cards in your name, take out loans, use your health insurance to pay medical bills, and file a tax return to collect your refund.

If you believe you are a victim of identity theft, start by going to IdentityTheft. The site provides directions on how to help you recover your identity and repair any damage you have experienced.

The FBI deals with thousands of mortgage fraud cases each year. These scams include foreclosure rescue schemes, loan modification schemes, and equity skimming , among others. They are often carried out by real estate and mortgage professionals who misuse their specialized knowledge and authority. Credit or debit card fraud can occur when someone steals or finds your card or manages to obtain the information from the card to purchase goods, withdraw cash, or otherwise use your card in a fraudulent manner.

A relatively new twist on credit card fraud, according to the FTC, comes in the form of robocalls that "guarantee to reduce your credit card interest rate" for a fee. These types of offers are usually scams and no more effective at getting credit card companies to lower your interest rate than if you called the company yourself for free. In addition to paying a fee for no service, some of these fraudsters ask for personal information which they then use to commit identity theft.