The Consumer Game

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Fraud

Challenge:

Fraud is the act of intentionally misleading a consumer in order to get something of value from the consumer or have her/him surrender a legal right. Education is the best (maybe the only) way to protect yourself from unscrupulous people: if you know their game you won't play it. You've already encountered the complaint process when you took your car in for repairs. As you will see, there are some similarities in the complaint process and taking action against fraud. The biggest difference is intent. The repair shop may not have intended to defraud you from the start.

Your challenge is to investigate a common fraudulent practice and develop a strategy for eliminating any chance that you will ever be "taken-in."

Getting Organized:

STEP 1 When you select a form of fraud to investigate try to chose one that somehow has effected or will effect your life. Maybe you or someone you know has already had an unfortunate experience with a swindler. Maybe you've had countless phone calls that make you suspicious and you'd like to know more about telemarketing fraud. Maybe you have an interest in computers and spend considerable time on the internet. You may wish to learn about more about internet fraud.

Gathering Information:


STEP 2 Read "Fraud: A Primer Lesson ." Do the activity and turn it into your instructor.

STEP 3 The following sites have information about various fraudulent practices. You are required to select a fraudulent practice mentioned in one these sites (unless there is one specific fraud that you have experienced and would like to investigate). Check with your instructor before selecting a fraudulent practice other than the ones mentioned in these sites.

Teen Consumer Scrapbook - High school students made this site. It is a collection of reports about scams commonly targeted toward teenagers.

Attorney General's Office - The A.G.'s Office has information about recentincidences of fraud in the state of Washington including telemarketing and internet scams. This sight also has plenty of information about the complaint process.

National Fraud Information Center - As well as having good information about the complaint process this sight has information about telemarketing, internet and fraud against the elderly.

Creating the Final Answer:

STEP 4 Write a report that includes all of the following.

  1. Introduction
    1. The name of the scam
    2. Who perpetrates the scam?
    3. What, if any, experience do you have with the scam?
  2. Body
    1. Explain step by step how the scam works.
    2. What vulnerability are the scam artists seeking in their victims?
    3. What do the victims lose?
    4. How common or pervasive is the scam?
    5. What recourse do the victim's have
  3. Conclusion: How will you avoid becoming a victim?

Evaluation:

STEP 5 Let your instructor read your report as well as your completed table.

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