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Running Head: Fraud e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e
Fraud Scheme: Telemarketing Fraud
Fraud e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e 2
Assessment of fraud
Telemarketing fraud is one of the most common kinds of fraud schemes that have been identified
by the Federal Bureau of Investigation (FBI) that can increase the vulnerability of individuals. In
telemarketing fraud, a fraudster gets in touch with the potential victim and pretends to be the
representative of a legitimate business (FBI - Common fraud schemes). He may use a diverse
range of tactics in order to manipulate the victim to make a payment. In contemporary times,
instances involving telemarketing fraud have become extremely common. It can have an adverse
impact on businesses as well as customers (Xiao, 2015). e
Evaluation of the fraud using the fraud triangle
The fraud triangle that encompasses opportunity, rationalization and motivation has been used to
evaluate telemarketing fraud. By using the framework, it is possible to get a comprehensive
insight into the actions of the fraudster (Kagias, et al. 2021).
Opportunity – The opportunity to conduct telemarketing fraud arises due to the lack of personal
connection between a business and a customer. As interaction takes place digitally, fraudsters get
the opportunity to trick their victims into believing that they are contacting them on behalf of a
company.
Rationalization – Realization revolves around how fraudsters justify their actions while
committing fraud. Some of the common justifications include their financial obligations, which
they might be unable to fulfil, the gullible nature of the victims and viewing victims as wealthy
who can afford to lose money.
Fraud e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e 3
Motivation – A broad range of variables may come into play and motivate a fraudster to indulge
in telemarketing fraud. He may be motivated due to unemployment or lack of ability to secure a
job, desperate need for money and addiction to deceive people.
Description of fraudster
The chief characteristics of a fraudster that executes a telemarketing fraud include:
• Adoption of deceptive practices – A telemarketing fraudster typically uses deceptive
practices by sharing misleading or farce information with individuals.
• Use of high-pressure tactics – The fraudster is likely to use high-pressure tactics so that
he can force potential victims to make quick decisions.
• Requesting for personal and sensitive information – The fraudster asks for sensitive
and personal information which is commonly not asked by legitimate businesses.
• Making demands to make urgent payments – As these fraudsters are usually driven by
financial motives, they are likely to ask the victims to make urgent payments to specific
accounts. Their intention is to con the victims out of their money (Barnes, 2017).
Tips to prevent fraud from occurring
The FBI has shared several tips that can be followed so that the high prevalence of telemarketing
fraud can be prevented. Some of the main tips are as follows:
• Customers should not make purchases from unfamiliar firms.
• Customers must ask for details and wait to obtain written information about any kind of
offer.
Fraud e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e 4
• The local consumer protection agency must be approached in order to check about
unfamiliar business entities.
• It is crucial to obtain the details of a salesperson, such as the name, telephone number,
business identity address and other details (FBI - Common fraud schemes).
• It is essential to take time and make vital decisions involving money.
Fraud e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e 5
Reference
Barnes, P. (2017). Stock market scams, shell companies, Penny shares, boiler rooms and Cold
calling: The UK experience. International Journal of Law, Crime and Justice, 48, 50–64.
https://doi.org/10.1016/j.ijlcj.2016.11.001
Common fraud schemes. FBI. (n.d.). Retrieved February 8, 2023, from
https://web.archive.org/web/20160712005927/https://www.fbi.gov/scamssafety/fraud/frau
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Kagias, P., Cheliatsidou, A., Garefalakis, A., Azibi, J., & Sariannidis, N. (2021). The fraud
triangle–an alternative approach. Journal of Financial Crime, 29(3), 908-924.
Xiao, J. J. (2015). Business and consumer economic wellbeing. Consumer Economic Wellbeing,
81–94. https://doi.org/10.1007/978-1-4939-2821-7_5
