New Jersey Consumer Protection Lawyers
Common Types of Consumer Fraud
Consumer fraud is defined as purposeful deception during the course of regular business transactions resulting in consumer loss (financial or other). Victims of fraud purchase, invest or lend through companies or individuals that seem legitimate but are deliberately attempting to scam their victims. Fraud can occur in almost any industry, however, some industries are more prone to consumer fraud than others. Common types of fraud include:\
Accountant or Investment Fraud
Investing in stocks is a great way to build one’s financial portfolio. However, shady investors or accountants will deliberately mismanage their client’s finances for their own gain. Types of investment fraud include misrepresenting or omitting financial information, trading without authorization or pushing clients to make unadvisable investments.
Automobile or Car Dealer Fraud
Dishonest car dealers use several methods to scam their customers. A dealer may cover up defects or damage to a vehicle, adjust the speedometer or push customers into purchasing vehicles priced higher than they are worth. Other scam tactics include billing customers for more than agreed upon monthly payments or encouraging customers to sign a loan without disclosing all the terms and conditions. Typically in these cases Lemon Laws are applicable.
Some banks operate without federal licenses. These banks attempt to scam money from their customers by posing as legitimate businesses. Prime bank fraud occurs when customers are presented with investment options through banks that do not exist.
Manufacturers who market and misrepresent defective products in order to encourage consumers to purchase said products are guilty of fraud and will be held liable for any damage or loss associated with a defective product.
Home improvement Contractor Fraud
Privately hired contractors commit fraud when they start projects then break contracted agreements when they accept payment for work they do not complete, or when they use a lower quality materials than originally agreed upon. All of these examples would be considered a breach of contract. Contractors who misrepresent their certifications, licensing, insurance or bonding status are also guilty of fraud and can be held accountable for civil and punitive damages.
Identity Theft and Credit Card Fraud
Identity theft, or data breach occurs when someone steals another individual’s personal information for their own financial benefit. Identity thieves will often use their victims’ names, birthdays, addresses and Social Security numbers to apply for credit cards. Victims are left with thousands of dollars in credit card debt associated with their names and poor credit ratings.
Insurance companies commit fraud when they refuse to cover legitimate insurance claims made by their customers. An insurance company that does not issue agreed upon payments after a catastrophe are guilty of fraud and can be taken to court to recoup damages.
This type of fraud occurs via phone calls or over the Internet. Scammers contact individuals directly and pose as someone else such as a bank or government employee. They claim they need an individual’s personal information, then use that information to steal their victims’ identities.
New Jersey Consumer Fraud Lawyers at Eichen Crutchlow Zaslow & McElroy, LLP Represent Victims of Consumer Fraud
Fraud is committed by individuals, businesses and corporations around the world. If you are a New Jersey resident who is the victim of consumer fraud, review your case with our qualified New Jersey fraud lawyers. At Eichen Crutchlow Zaslow & McElroy, LLP, we believe that fraud victims shouldn’t have to pay for someone else’s dishonesty. We help clients in filing consumer fraud or class action lawsuits against the guilty parties. Our team will help you hold defrauders accountable for their actions and get you the compensation and justice you deserve. Please call us today at or 1-732-777-0100 or contact us online to schedule your free case review at our offices in Red Bank, Toms River or Edison, New Jersey.