FTC notes rise in fraud

Northwestern Financial Review, Sep 1-Sep 14, 2004

More than 10 percent of the adults in the United States were victims of fraud in 2003, according to a survey released by the Federal Trade Commission. The study found that nearly 25 million people were victims with the most popular fraud involving advancefee loan scams and fees for so-called guaranteed loans or credit cards.

Four and a half million consumers paid advance fees but did not receive the promised loans or cards, FTC said. Consumers who have high debt levels were more likely to be victims of fraud. Buyers' club memberships or bills for unordered publications were the second most commonly reported fraud category in the survey. Credit card insurance scams and credit repair were the third and fourth most frequent frauds.