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Types of Consumer Fraud

Personal Finance Quiz / Fraud 10 Questions

AB
bait and switchAdvertising a bargain product intending to persuade the customer to buy more expensive products
deceptionFalse claims about a product
infomercialLengthy paid TV ad w/testmonial and demonstrations
low-ballingAdvertising a basic service at an unusually low price, then claiming more repairs are needed
Ponzi schemeFraudulent investment operation where money from new investors is used to pay off earlier investors
Pyramid schemeIllegal multilevel gimmick that promises commissions on one's own sales as well as on the sales of recruits
space-shiftingCopying the contents from one form of media to another-personal use
time-shiftingRecording video or audio for later viewing or listening
warning labelInformation on products advising consumers about risks and safety issues


Social Studies Teacher
Blandford Academy
Petersburg, VA

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