National survey determining level of consumer fraud in America released

August 23, 2004

In 2003, the Federal Trade Commission (FTC) conducted a national survey of 2,500 adults to better determine the level of consumer fraud in America. The figures of that survey were just released in early August 2004, showing that more than one in 10 Americans were victims of consumer fraud during the year studied, or nearly 25 million adults.

Of the top four consumer fraud categories from the survey data, three of them were related to credit. The number one most reported consumer fraud was advance fee loan scams, followed by consumers billed for memberships in buyers' clubs that they did not authorize or for unordered buyers' guide publications. Consumer frauds related to credit were the third and fourth most commonly reported scams, according to the FTC.

The group of consumers with high levels of debt was more likely to be the victims of consumer fraud. Consumers with debt categorized as being greater than they could comfortably handle had more than seven times the risk of falling victim to consumer fraud than those without any current debt.

If you would like more information regarding this case, please contact Emily Madoff, Esq., at Wolf Popper LLP (877-370-7703) or click here.