Mass marketing fraud is a type of fraud scheme that uses more than one kind of mass-communication technique. The techniques could include the Internet, mail, telephone, email or even meetings with large groups of people.
There are two general categories of mass marketing fraud schemes. The first kind targets large numbers of victims for losses that are relatively small for each person. The second kind targets many victims for losses that are much higher.
The Federal Trade Commission and the Internet Crime Complaint Center provides data that puts mass-marketing fraud schemes into three main categories. Those categories are:
— Bank and financial account schemes. The main goal of this type of scheme is to trick victims into providing their bank account information. This type of fraud also involves identity theft.
— Investment opportunities: Two types of investment opportunity fraud schemes are used. “Pump and dump” schemes and Short-selling schemes, which are also known as “scalping” schemes.
— Advance-fee fraud schemes. Common examples of advance-fee fraud schemes include lottery winnings, prizes or inheritances that have allegedly are due the victim, but a fee is needed in order for the victim to receive the funds. The types of variations to this scheme are almost endless. The schemes can also include retail and auction schemes, work-at-home opportunities, credit-card interest reduction schemes, online sales schemes and more.
The Department of Justice works closely with other federal agencies to investigate and prevent mass-marketing fraud.
Facing federal charges for mass-marketing schemes is not something that should be taken lightly. At Goldberg Dowell & Associates, we are experienced criminal defense attorneys who understand the federal court system. We invite you to learn more about our firm by visiting our webpages on federal crimes.