The Federal Trade Commission on Friday released a statistical survey of fraud in the U.S. during 2011, which showed that an estimated 25.6 million adults – 10.8% of the adult population – were fraud victims. Several categories in the accounts receivable management realm ranked among the top.
The survey asked consumers about 15 specific areas of fraud. The ranked as follows:
• Weight-loss Products (5.1 million estimated)
• Prize Promotions (2.4 million est.)
• Unauthorized Billing for Buyers’ Club Memberships (1.9 million est.)
• Unauthorized Billing for Internet Services (1.9 million est.)
• Work-at-Home Programs (1.8 million est.)
• Credit Repair Scams (1.7 million est.)
• Debt Relief (1.5 million est.)
• Credit Card Insurance (1.3 million est.)
• Business Opportunities (1.1 million est.)
• Mortgage Relief Scams (800,000 est.)
While fast-growing online commerce has helped consumers with more choices and convenience, the survey indicates that as of 2011 the Internet also was the place where consumers most often learned about fraudulent offers.
The Internet category, which included email, social media, auction sites and classified ads, was followed by print advertising, and TV and radio. Most consumers bought fraudulent items via the Internet; telephone purchases ranked second.
“The FTC fights fraud every day by taking scammers to court and telling consumers how to avoid being scammed. Studies like this one help us fine-tune both our enforcement and education efforts,” said Charles Harwood, Acting Director of the FTC’s Bureau of Consumer Protection.
An estimated 17.3% of African Americans and 13.4% of Hispanics were victims; the rate for non- Hispanic whites was 9%. The survey found that high school graduates were the least likely to have been fraud victims; those who did not complete high school were the most likely to have been victims.
Consumers who were more willing to take risks and those who had recently experienced a negative life event (such as a divorce, death of a family member or close friend, serious injury or illness in their family, or the loss of a job) were much more likely to have been victims.
Consumers who indicated they had more debt than they could handle were significantly more likely to have been fraud victims than those who were more comfortable with the amount of debt they had.