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Ground floor opportunity

A classic marketing scheme that makes people believe that they will make money simply because they are one of the early investors in a new venture.

Nigerian money offers

A form of foreign advance-fee scams where individuals from Nigeria or another underdeveloped country contact victims and offer millions of dollars.

Dumpster diving

A form of identity theft where fraudsters go through a person's trash to secure personal identifying information.

Front loading

A fraudulent process whereby representatives of legitimate or fraudulent MLMs are required to buy large, expensive amounts of inventory.

Opportunity meeting

A high-pressure meeting where fraudsters pressure individuals to invest money in fraudulent organizations.

Phishing

A high-tech scam that uses spam or pop-up messages to deceive consumers into disclosing credit card numbers, bank account information, Social Security number, passwords, or other sensitive information.

Shoulder surfing

A process where criminals watch consumers from a nearby location as they enter credit card pin numbers, garage codes, computer passwords, or other valuable information.

Skimming

A process where fraudsters use information storage devices to capture valuable information from victims' credit cards or other bar-encoded documents.

Intent

A required factor when prosecuting individuals for fraud. Not only must confessors have committed the act, they must also have intended to commit it.

Mail stuffing

A scam that promises income simply for stuffing envelopes. Victims are required to pay considerable up-front costs for information about the opportunity.

Identity theft

A term used to describe those circumstances when someone uses another person's name, address, Social Security number, bank or credit card account number, or other identifying information to commit fraud or other crimes.

Multilevel marketing (MLM) company

A well-established, legitimate form of business. In most multilevel marketing programs, company representatives act as sellers of real products. These individuals are independent distributors of a legitimate business.

Investment fraud (scam)

Any fraud that is related to stocks, bonds, commodities, limited partnerships, real estate, or other types of investments such as the selling of fraudulent and worthless investments to unsuspecting investors.

Consumer fraud

Any fraud that targets a consumer or an individual as its victim.

Telemarketing fraud

Any fraud where the perpetrator communicates with the victim via telephone.

Foreign advance-fee scam

Any scam where the perpetrator claims to be a foreigner, and the victim is required to pay "up-front" fees or taxes in order to receive a substantial amount of money.

Headhunter fees

Fees paid to consultants to help fill executive and other positions in an organization; also the paying of commissions for signing additional recruiters of multilevel marketing organizations.

Chain letter scams

Fraudsters promise to pay victims to make copies of a letter and send them to consumers. In order to get the letter, the victims must pay an advance fee.

Phishers

Fraudsters who engage in phishing.

Ponzi scheme

Fraudulent pyramid schemes where old investors are paid their gains out of new investors' funds so as to make the appearance that the scheme is generating an unusually large return; named after Charles Ponzi.

Pyramid scheme

Illegal fraud schemes where fraudsters— instead of selling real, legitimate products—sell only illusionary products and profits; the investments of subsequent investors are used to pay the promised returns of earlier investors.

Purchase of real estate scam

In this advance-fee scam, perpetrators will offer to purchase property on behalf of a foreign concern for an "up-front" payment.

Clearinghouse scam

Involves a victim receiving a letter that falsely claims the writer represents a foreign bank; the foreign bank falsely acts as a clearinghouse for venture capital in a certain country; used to defraud unsuspecting victims.

Sale of crude oil at below market price

Involves a victim receiving a letter that falsely offers the opportunity to purchase crude oil at prices well below market price.

Disbursement of money from wills

Organizations receive letters from mysterious "benefactors" interested in contributing a large sum of money. However, to get the money, the charity is required to pay inheritance taxes or government fees.

Gramm-Leach-Bliley Act

Passed in 1999, this law prohibits the use of false pretenses to access the personal information of others. It does allow banks and other financial institutions to share or sell customer information, unless customers proactively "opt out" and ask that their information not be shared.

Product testing

Perpetrators falsely promise consumers the opportunity to review products and send their commentaries to suppliers for substantial income. Victims are required to pay enrollment fees ranging from $10 to $25.

Craft assembly

Perpetrators falsely promise high pay for working on different projects. Victims are usually required to purchase costly materials, equipment, and training.

Bogus mystery shopping scam

Perpetrators falsely promise victims jobs that involve shopping for merchandise and filing reports on the experiences they have had for substantial compensation.

Snake oil plans

Plans that promise enormous earnings or claim to sell miracle products. Sniffing Illegal or unauthorized viewing of information as it passes along a network communication channel.

Evidential matter

The underlying data and all corroborating information available about a fraud.

Clawbacks

involve the recovery of assets from Ponzi scheme participants who were net winners (i.e. they received more assets than they gave as participants in a Ponzi scheme) for the purpose of distributing the assets to those who were net losers in the scheme.