Consumer Fraud is when a product or service is illegally used to deceive you, to send money or sign up for a non-existing service. Usually occur with an email, letter or phone call.
Identity theft is when someone who illegally steals information to make themselves seem like it is you for many different reasons. Consumer fraud is when someone uses your information for money. Usually by opening up credit cards, or use your bank account and ruining your credit by
Identity thieves can also use your information to signup for many services like cable or cell phones. Identity thieves also open bank accounts in your name and then transferring money or writing bad checks.This might seem a little frightening, but there are plenty of ways to protect yourself to lower the risk that this will happen to you. There are also laws and organizations to help protect you from fraud.
Why do Consumer need Protection? When something seems "too good to be true," it's almost always the case. But besides your own good judgment in staying away from things that have "fraud" written all over them, what additional protections do you have on your side?
Laws and organizations exist to protect you and help you fight back against con men - and women - who are trying to steal your identity, get your money, or fraudulently open credit cards under your name. This is where consumer protection laws come in to help protect you against unfair or misleading business practices. Individuals and companies can't just say something is true even when it isn't. Companies are also required to provide important information to consumers like you so that you can make informed decisions.
Consumer protection organizations are another barrier that stands between you and the bad guys. They help ensure that the laws are being followed, and give consumers information to help us all make better choices. Many will even help you resolve consumer complaints.
So even if you're shy or feel like you don't have much power, it's always best to pick up the phone or send an email to the right agency or organization if you suspect some kind of fraudulent activity is taking place. Knowing more about these laws and organizations will help point you in the right direction should you ever need to reach out to them.