What is a false statement about automatic debit program schemes?

A false statement about automatic debit program schemes is that they only affect businesses. This assertion overlooks the fact that automatic debit schemes primarily impact consumers, as these schemes often involve unauthorized withdrawals from individuals' bank accounts. Consumers can be particularly vulnerable to these schemes, especially if their banking information has been compromised or if they unwittingly agree to terms that allow for ongoing debits.

Automatic debit program schemes can result in significant financial losses for consumers, draining funds without their express consent, which aligns with the correct understanding of how these fraudulent activities operate. By exploiting bank account information, fraudsters can gain access to individuals’ finances, making these schemes a pervasive concern for both consumers and businesses. Additionally, while telemarketing can be a method used to promote some fraudulent activities, it’s not the sole avenue through which these schemes are executed. This reinforces that the impact and concerns surrounding automatic debit schemes are far-reaching and not limited to just one sector.