Eight Common Scams
"By learning the eight basic scam types, you will be able to spot any
scam - no matter what new spin it's given by clever con artists," reports
Bankrate.com. According to a recent
Bankrate.com
report, the following are the eight most common scams of which consumers should
be aware:
Advance fee scams
"Advance fee scams are easy to spot," the report notes. Consumers
pay a fee in advance for receiving a credit card, loan or scholarship and
receive nothing valuable in return. Recently, the Federal Trade Commission
(FTC) recognized several fake loan ads. The ads appear to be real and even use
the logos of real financial institutions. "But the phone number in the ad
will lead you to an imposter on a cell phone who asks for your personal
information, tells you where to wire money for a fee, then disappears -
stealing your cash and identity."
The prize that will cost you
"It should go without saying that if you get an e-mail saying you won
something - and you didn't enter - you should just delete it. This is a common
scam," the report states. Often, consumers receive an e-mail indicating
that they've won something but in order to receive the winnings or the prize,
they must pay the taxes or handling fee first. "If you didn't enter
anything, you didn't win anything. And even if you did enter, taxes go to the
government, not to the organization running the contest. “Also, do not give out
personal information such as your Social Security number or account number to
anyone to claim a prize.
Online auctions
"There are several things to be careful of when bargain-shopping
online. If you find an item priced far too low, it may be a scam - a fake item,
a stolen item, an item in really bad condition or something you will pay for
and never receive." This is particularly important to remember in online
auctions, where pressure often surrounds bidding wars. "Never agree to pay
by cash or money order - these methods of payment are untraceable and offer you
no protection. You may also want to be wary of escrow companies because they
are easily faked."
Fraud jobs
According to Bankrate.com, there are several types of employment scams.
"The most notorious tricks include being recruited for an illegal job;
identity theft through job applications, and bogus employment fees." In
addition, the information you provide in your job application may cause you to
become a victim of identity theft. The scammer may then use your personal
financial information to apply for credit cards to buy more merchandise.
"While hunting for a job, you may encounter someone who promises you a
job, but only if you will pay a fee for processing, administration or uniforms.
Steer clear of these people even if they promise you a money-back guarantee.
"
Money-making schemes
"When people are down on their luck, they may turn to get-rich-quick or
money-making schemes. Somehow the scammers make old scams, such as the Nigerian
scam and pyramid schemes, seem like plausible ways for you to make a lot of
cash in a hurry. If it's an easy way to make money, it's probably illegal, a
scam or just a really bad idea."
Bogus charity
When giving to a charity, be sure to check out the charity first.
"Never give payment information to anyone calling or e-mailing you,
claiming to be with a charity," the report recommends. "Ask them to
send you paperwork on their organization. Then research the organization online
and with the Better Business Bureau to make sure it's legitimate - and that
you've got the right contact information."
Identity theft
Although identity theft is not new, cases of identity theft are rising.
"The thieves need only a few elements to victimize you - usually, your
name and Social Security number will do." Scammers obtaining this
information are often involved with other crimes such as advance fee scams and
fraudulent job offers. "The name for this scam is "phishing". Almost
any scam can be sprinkled with a smattering of identity theft - advance fee
scams, fraud jobs and online auctions included. All it takes to become a victim
of identity theft is a leak of your personal information."
Products that are too good to be true
"If it seems too good to be true, it probably
is," the report reminds consumers. "Remember that a con artist makes
a career of using excuses and explanations to lead you away from your common
sense. When dealing with your money and personal information, never allow
yourself to be rushed, threatened or persuaded against your judgment."
Consumers are warned that offers that are "too good to be true" do
not just involve Internet or telemarketer scams. They may also be found in mail
offers, magazine ads and brick and mortar stores. "Stay vigilant and trust
your g
