Cash Course: Scams and Fraud | PragerU Kids

hey cash course fans before we start the show remember that you can get hundreds of free educational videos for all ages at pregn kids.com subscribe today and never miss an episode well Bob we're back and it looks like Joanie is still on the phone with a blinker fluid salesman now Tim we're watching a classic marketing scam play out right now when the caller ID on the phone said unknown it was the first clue that something wasn't right oh and now she's giving her personal information what are you doing oh and now she's looking for her wallet wow unless she hangs up and pulls out the victory right now things could get ugly real fast well before it does let's cut away and remind our viewers what consumer scams are on another episode of a consumer scam is when someone tries to trick you into getting your money or personal information it's a sneaky plan where people pretend to offer something cool or helpful but it's not what it seems now stashi says in 2022 that these scams C am over 8 billion ouch that's a lot of money Bob that's a lot of gravy one major type of consumer scam is marketing fraud where companies make false or misleading claims for financial gain like intentionally misrepresenting the qualities of a product or service selling imitations as genuine articles or hiding the potential harms of a product marketing fraud can happen in various ways including emails online shopping scams phone calls and even the mailbox now the scammer's Playbook includes bait and switch tactics bait and switch is a deceptive marketing tactic where a business starts by attracting customers with an appealing offer when the customer expresses interest the business reveals the advertised product or service is an available and tries to switch them to a less desirable or more expensive item let's say your local electronics store sends a flyer saying one day only the new Prager station for 50% off when you show up however they say they sold out instead they pressure you to buy a different or inferior gaming device at a higher price ah the old bait and switch r a classic trick play Bob another type of marketing fraud involves financial investments the most infamous of which is called a Ponzi scheme named after Charles Ponzi a scammer from the 1920s in this fraud potential investors are promised High returns with little or no risk the fraudster uses funds from new investors to pay returns to existing ones creating the appearance of a successful and profitable investment the scheme typically collapses when there aren't enough new investors to pay returns to earlier participants and the schemes don't end there Bob oh not buy a long shot Tim now other tactics include fake Online Auctions and Charities not the online auctions in fake Online Auctions scammers May list counterfeit or non-existent items for bidding the scammer may use fake profiles provide false info to make the auction appear legitimate or manipulate the bidding process to attract participants to place bids and make payments victims may end up losing money without receiving any actual goods or services in return what fake Charities pose as legitimate ones exploiting people's Goodwill by soliciting donations for phony causes frauders May create names logos and websites that resemble those of well-known and reputable Charities scammers may use High Press tactics such as urgent and persistent requests for donations to create a sense of emergency or crisis well now that we know something about consumer scams and marketing fraud let's learn a few things our viewers can do to avoid becoming victims Bob let's go Tim one be cautious about suspicious emails phone calls or messages especially if they ask for personal or financial information and don't click on links or download attachments from unknown sources if something doesn't look right sound right or make sense it might be a scam two always do your research before handing over your money a simple internet search on a charity service or offer will often uncover articles from people who have fallen for the same trick and are trying to warn others scammers are also always updating the tactics in their playbook so make sure to evaluate every situation closely third if you've been a victim of a scam there are resources to help fight back these include contacting your bank or credit card card company to proactively protect your accounts and dispute any fraudulent charges placing fraud alerts on your credit reports which make it harder for frauders to borrow money in your name and contacting your local law enforcement and the Federal Trade Commission FTC to file a report there are also consumer protection laws regarding truth and advertising contractual fairness and unfair business practices these laws aim to create a fair and transparent Marketplace promoting trust between consumers and businesses these laws can help you get your money back and help prevent the same thing from happening to others well Bob although no one wants to get scammed it happens and if it does happen it's good to know that consumers have legal resources to get back on track that's right Tim but remember the first line of defense when it comes to protecting consumers like you is you okay okay here we are it's the moment of truth and Joanie hangs up on the scammer incredible what let's go knew she had an inner watch more at Prager kids.com and parents don't forget to subscribe