Consumer fraud occurs when businesses or individuals deceive consumers to gain an unfair advantage, often resulting in financial loss. This can include false advertising, misleading product claims, or selling counterfeit goods. Victims may unknowingly purchase items that do not meet the promised quality or value. 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. Awareness and vigilance are essential for consumers to protect themselves from these deceptive practices.