Consumer fraud occurs when a business or individual deceives a buyer to gain an unfair advantage, often involving false claims about products or services. This can include misleading advertisements, counterfeit goods, or hidden fees that trick consumers into spending more than they intended. Common types of consumer fraud include identity theft, where personal information is stolen to make unauthorized purchases, and pyramid schemes, which promise high returns for recruiting others rather than selling products. Victims of consumer fraud may suffer financial losses and emotional distress, making it essential to stay informed and vigilant.