Mass marketed scams:

An exploration of how scams work, why people fall for it and what can be done

by

Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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Abstract

In this study we try to explore the concept of “Mass Marketed Scams” in a holistic context. The main focus of the research is on “Scams” and its impact. The research also analyzes many aspects of “mass marketed scams” and tries to gauge its difficulties and challenges for the people in future. The study follows both the primary and the secondary research methodology. Finally the research describes various factors which are responsible for “mass-marketed nature of scams” and tries to describe the overall impact different factors have on the victims.

Table of Contents

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

1.1 Outline of the Study1

1.2 Background of the research1

1.3 Research Question2

1.4 Theoretical Framework2

1.5 Limitation of the Study3

1.6 Ethical Concern3

1.7 Aims and Objectives4

1.8 Timeline4

Gantt chart6

CHAPTER 2: LITERATURE REVIEW7

2.1 Scams7

2.2 Offenders and Victims8

2.3 Types of Scams8

2.4 Current Trends10

2.5 Exploitation by Scams10

2.6 Historical Background11

2.7 Smart Regulation11

2.8 The Regulatory Gap13

CHAPTER 3: METHODOLOGY15

3.1 Research Design15

3.2 Mixed Method Research15

3.2.1 Positivism16

3.2.2 Interpretivism17

3.3 Research Method17

3.4 Qualitative ResearchMethod17

3.5 Quantitative Research Method18

3.6 Reliability and Validity18

3.7.1 Deductive research approach19

3.7.2 Inductive approach19

3.8 Generalizability20

CHAPTER 4: FINDINGS, DISCUSSION, AND ANALYSIS21

4.1 Findings21

4.2 Discussions and Analysis23

4.2.1 Internet business opportunities and risks23

4.2.2 How to avoid fraudulent business opportunities24

4.2.3 Telephone scam25

4.2.4 Pyramid selling26

4.2.5 Phishing26

4.2.6 Dial toll on internet resources26

4.2.7 Hype27

4.2.8 Internet Scams27

4.2.8.1 The Nature of Internet Scams29

4.2.8.2 Credit card fraud30

4.2.8.3 Fake check scams30

4.2.8.4 Identity theft31

4.2.8.5 Investment scams/Ponzi schemes31

4.2.8.6 Multilevel marketing/pyramid schemes31

4.2.8.7 Phishing scams31

4.2.8.8 Online sales or auction fraud32

4.2.8.9 Travel/vacation fraud32

4.2.9 Extent and Cost of Internet Fraud33

4.2.10 Prevention of Internet Fraud34

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS36

Conclusion36

Recommendations for further research37

REFERENCES38

CHAPTER 1: INTRODUCTION

For more than a decade, people have been actively combating the problem of mass marketed scams. Although it originally encompassed only cross-border telemarketing fraud, mass-marketing fraud affecting people has since expanded into a multifaceted problem that includes traditional telemarketing fraud, Internet fraud. Moreover, newer developments - including the dramatically increased use of counterfeit checks and money orders, and the substantial use of various payment mechanisms such as payment processors and money transfer businesses in connection with mass-marketing fraud schemes - have further complicated the tasks of law enforcement in mounting effective responses to cross-border mass-marketing fraud. This research discusses the various factors which are responsible for mass-marketed nature of scams and tries to describe the overall impact different factors have on the victims (Ehlen, 2005, pp: 61).

1.1 Outline of the Study

This research focuses on the various aspects of mass marketed scams and comprises of the following chapters:

Introduction

Literature Review

Methodology

Discussion and Analysis

Conclusion

1.2 Background of the research

Mass marketing means the sale of products or services of ...