May 2000

 

Buyer Beware
Wilma Schuh

As consumers we tend to trust the people we deal with in the marketplace. If we listen to others almost every one has a story of being "taken" or "ripped off." Consumer fraud occurs when a seller lies about an important fact or fails to tell the consumer about an important fact.

It is difficult to prove fraud in court. One must show several proofs:

1. False representation
2. Knowledge that the facts stated were untrue
3. Intent to deceive the victim
4. Actual belief by the victim, who is ignorant of the falsity of the representation, that the false representation are true
5. Actual damages were suffered by the consumer by reliance on the untruths.

Because fraud is so difficult to prove after the fact, prevention is particularly important.

Many scams are aimed at consumers in general, but some con artists target certain particularly vulnerable groups:

1. Elderly
2. Widows
3. People who have recently suffered a death in their family
4. Parents with new babies
5. Recently unemployed persons
6. Students
7. Military personnel
8. Recent immigrants.

Even the strongest family sometimes goes through periods of difficulty and vulnerability. It is at such times that any of us could become a victim of consumer fraud or make decisions that are not in our family's best interests. If families recognize the warning signs of frauds and scams, and gain skills needed for detecting fraud, then they can avoid becoming victims.

Reasons fraud happens:

1. Being greedy, thinking it is our turn to "get something for nothing."
2. We forget to ask questions
3. Our lives are so fast paced that we opt for convenience and speed. We act too soon and don't check out the information we need to make a wise choice.
4. Today's marketplace is so complex and impersonal we have become dependent on government to regulate products and services.
5. Scam artists are very good at staying one step ahead of the regulations and just inside the law.
6. Too much information at one time, "information overload," makes it difficult for consumers to gather information needed to make wise choices. The lack of understanding and accessible information creates problems for consumers.
7. Many schemes last less than 90 days, with con artist moving quickly between states and scams without being discovered.
8. Consumers feel embarrassed and foolish and tend to not complain when they have been victims.
9. It is important to register complaints to keep others from being swindled, also.

To register a complaint, contact the Missouri Attorney General's hotline (800) 392-8222.

 

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