This study was based on questionnaires to all State attorneys general and departments of consumer affairs as well as detailed analysis of thousands of cases in the offices of the Federal Trade Commission, the Commodities Futures Trading Commission, and the Securities and Exchange Commission. The study found that among the victims of increasing fraud in the United States, the elderly and poor are disproportionately represented. Business and investment frauds are particularly prevalent because of the large amount of money involved, and it is often impossible to tell a fraud from legitimate business and investment opportunities. The primary forms of business and investment frauds are work-at-home schemes, securities frauds, franchise frauds, distributorship frauds, and commodities frauds. Almost all of the schemes use the mail. While the U.S. Postal Service does an excellent job in countering the perpetration of fraud through the mail, it has limited authority and resources to deal with the problem. Further, penalties imposed in false representation cases are too light, and recidivism is high. Reform should include (1) educating the public about the kinds of schemes so persons can take preventative action, (2) improving communication between State and Federal law enforcement agencies, (3) enacting new, tough laws that give State attorneys general and departments of consumer affairs the tools needed to deal with such frauds, and (4) increasing the resources necessary to increase fraud prosecutions. Further, Congress should enact H.R. 3973/H.R. 7044 to strengthen the authority of the Postal Service to deal with mail frauds. (Author summary modified)