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How Americans Lose Billions To Fraud | CNBC Marathon

Generally, investors will lose all of their money, unless a small portion of their investment is redeemed through the sale of any company assets.

The dark shadows of fraudulent activities continue to loom large. From tampered odometers to credit card schemes and elaborate phone scams, unsuspecting individuals find themselves entangled in a web of deceit. In this comprehensive blog post, we delve into the intricate details of odometer fraud, credit card fraud, and the art of scamming through phone calls.

Odometer Fraud: Unraveling the Miles, Revealing the Frauds

Odometer fraud, a clandestine operation aimed at boosting profits in vehicle sales, involves rolling back odometer numbers, leaving victims with misrepresented mileage and inflated costs. The repercussions are staggering:

  1. Scope of the Problem:
    • Nearly half a million vehicles fall prey to odometer fraud annually.
    • American consumers suffer losses exceeding $1 billion each year due to this deceitful practice.
  2. Financial Impact on Victims:
    • Victims, often oblivious to the fraud, lose an average of $4,000.
    • The surge in used vehicle prices, reaching $27,000 by December 2022, compounds the financial strain on consumers.
  3. The Investigative Pursuit:
    • Kevin Porter and his team engage in investigating odometer tampering cases, an elusive crime challenging to detect.
  4. Criminal Dimensions:
    • Odometer fraud often intertwines with title fraud, bank fraud, aggravated identity theft, and wire fraud.
    • Convictions can lead to a maximum sentence of three years, with additional frauds extending prison terms significantly.

Credit Card Fraud: Navigating the Perils of a Digital Landscape

In a world where plastic rules transactions, credit card fraud emerges as a pervasive threat. The landscape is complex, and the statistics are daunting:

  1. Magnitude of Credit Card Fraud:
    • Identity theft through credit card fraud amounts to an estimated $11 billion in losses in the U.S. for the year 2020.
  2. Friendly Fraud Dynamics:
    • 80% of reported fraud cases involve friendly fraud, where consumers inadvertently contribute to losses through mistakes in online transactions.
  3. Card Not Present Challenges:
    • Card not present fraud, prevalent in online and phone exchanges, proves easier to commit than traditional card present fraud.
  4. Global Impact:
    • The U.S. accounts for over a third of global card fraud losses, with projections foreseeing losses surpassing $40 billion worldwide by 2027.
  5. Industry Dynamics:
    • Credit card companies like Visa and Mastercard, profiting from transactions, face limited financial incentives to eradicate card fraud completely.
  6. Technological Solutions and Consumer Aversion:
    • Explorations into solutions, including machine learning and the EMV chip, encounter resistance due to U.S. consumers’ aversion to transactional friction.
  7. Education and Collaboration:
    • Combatting card fraud necessitates collective efforts, involving consumer education and collaboration among merchants, issuers, and shoppers.
  8. Persistent Challenges:
    • Despite technological advancements, experts predict that card fraud will persist, attributing it to the enduring threat of data breaches.

Phone Scams: The Art of Deception in a Ringing Tone

The transcript unveils a personal encounter with a phone scam, shedding light on the insidious techniques scammers employ:

  1. Personal Narrative:
    • An individual recounts falling victim to a phone scam, where a fake call demanded $8,000 for a non-existent bail.
  2. Scam Tactics:
    • Scammers exploit urgency and prevent victims from verifying situations, employing various types of scams like impostor scams, debt relief scams, and charity scams.
  3. Statistics and Cases:
    • In 2021, 1.8 million fraud complaints were filed with the FTC, 36% involving phone calls.
    • The rise in phone scams, affecting approximately 70 million Americans, highlights losses ranging from $30 billion to $40 billion.
  4. Scam Baiting and Prevention:
    • The concept of scam baiting, engaging scammers to waste their time, is introduced as a countermeasure.
    • Safety tips, such as not answering unknown calls and independently verifying information, are provided for preventing phone scams.

Navigating the Fraudulent Landscape

In conclusion, as consumers navigate the intricate landscape of fraud, vigilance becomes paramount. Whether it’s scrutinizing a vehicle’s history, securing online transactions, or being wary of unexpected phone calls, understanding the tactics of fraudsters empowers individuals to protect themselves. The battle against fraud requires a multi-faceted approach, involving technology, education, and collaborative efforts among various stakeholders.

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