Which of the following is an example of consumer fraud schemes?

Advance-fee schemes are a clear example of consumer fraud schemes. In these schemes, scammers solicit consumers to pay a fee up front with the promise of a larger return, often through loans, investments, or prizes that never materialize. The essence of this fraud lies in deceiving the consumer into believing they are making a legitimate transaction or investment, only for the scammer to vanish after collecting the initial fee.

This type of fraud specifically targets individuals, as opposed to businesses or organizations, and relies on exploiting consumer trust and desire for financial gain. The structure of advance-fee schemes typically involves manipulation of information and persuasive tactics to convince victims that the upfront payment is a necessary step toward receiving larger benefits.

In contrast, identity theft primarily involves stealing an individual's personal information for malicious purposes, rather than operating on a promise of returns, which is a key characteristic of consumer fraud schemes. Embezzlement constitutes a form of occupational fraud, where an employee misappropriates funds from their employer, indicating a breach of trust that differs from the consumer-victim dynamic in advance-fee schemes. Money laundering is a process that conceals the origins of illegally obtained money, typically associated with criminal activities, rather than deceiving consumers directly. Thus, advance-fee