International Law

How [Not] to protect yourself against consumer fraud

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Demonstrating why the large accountant firms couldn't spot fraud if you spotted them the "f, r, a, and u", here is list of useless advice about fraud.

"There are many different types of crimes involved, including tax refund scams, fraudulent weight-loss programs, phony lottery or prize schemes, and bogus work-at-home scams.

You don't have to be a victim, however.

The Connecticut Society of CPAs recommends steps you can take to avoid being taken advantage of.

1.  Don't be fooled by appearances.

2.  Beware of high pressure tactics.

3.  Get it in writing.

4.  Request references.

5.  Don't make an upfront payment."

First, there is no checklist which will work all of the types of fraud - how to protect yourself from an biz op scam is different than falling for a phony lottery scheme.

Second, having a checklist is useless if you don't know how to stay out of those situations in which your rationality is going to be comprised and used against you.

Finally, if you recognize the appearances are deceiving, spot high pressure tactics, and request references, so what? The heart of fraud, the paradox of the con, is that the vast majority of individuals know at a gut level that something is wrong, but have their reason overwhelm their gut intuitions.

Full post as published by Misleading Advertising Law on October 28, 2008 (boomark / email).