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Scams
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It's not always easy
to spot con artists. They're smart, extremely persuasive, and
aggressive. They invade your home by telephone and mail,
advertise in well-known newspapers and magazines, and come to
your door.
Most people think they're too smart to fall for a scam. But
con artists rob all kinds of people, from investment counselors
and doctors to teenagers and elderly widows of billions of
dollars every year.
Just remember... if it sounds too good to be true, it
probably is.
You Can Protect Yourself!
 | Never give a caller your credit card, phone card, Social
Security, or bank account number over the phone. It's illegal
for telemarketers to ask for these numbers to verify a prize
or gift. |
| Beware of 900 numbers. People who call 900 numbers to
request instant credit often end up with a booklet on how to
establish credit or a list of banks offering low-interest
credit cards. Such calls can end up costing $50 or more, but
consumers rarely end up obtaining credit. |
| Listen carefully to the name of a charity requesting
money. Fraudulent charities often use names that sound like a
reputable, well-known organization such as the American Cancer
Association (instead of the American Cancer Society). |
| Ask for a financial report before you donate; a reputable
charity will always send you one. |
| Investigate before you invest. Never make an investment
with a stranger over the phone. Beware of promises that
include the terms "get rich quick," or "a once in a lifetime
opportunity." |
Be a Wise Consumer
| Don't buy health products or treatments that include: a
promise for a quick and dramatic cure, testimonials, imprecise
and nonmedical language, appeals to emotion instead of reason,
or a single product that cures many ills. Quackery can delay
an ill person from getting timely treatment. |
| Look closely at offers that come in the mail. Con artists
often use official-looking forms and bold graphics to lure
victims. If you receive items in the mail that you didn't
order, you are under no obligation to pay for them - throw
them out, return them, or keep them. |
| Be suspicious of ads that promise quick cash working from
your home. After you've paid for the supplies or a how-to book
to get started, you often find there's no market for the
product and there's no way to get your money back. |
| Beware of cheap home repair work that would otherwise be
expensive, regardless of the reason given. The con artist may
just do part of the work, use shoddy materials and untrained
workers, or simply take your deposit and never return. |
| Use common sense in dealing with auto repairs. One
mechanic convinced a woman that she needed to have the winter
air in tires replaced with summer air! Get a written estimate,
read it carefully, and never give the repair shop a blank
check to "fix everything." |
Some Classic Cons
Although con artists come up with new scams as times change,
some classic scams never go out of style.
The Bank Examiner
Someone posing as a bank official or government agent asks for
your help (in person or via the telephone) to catch a dishonest
teller. You are to withdraw money from your account and turn it
over to him or her so the serial numbers can be checked or the
money marked. You do, and never see your money again.
The Pigeon Drop
A couple of strangers tell you they've found a large sum of
money or other valuables. They say they'll split their good
fortune with you if everyone involved will put up some "good
faith" money. You turn over your cash, and you never see your
money or the strangers again.
The Pyramid Scheme
Someone offers you a chance to invest in a up-and-coming company
with a guaranteed high return. The idea is that you invest and
ask others to do the same. You get a share of each investment
you recruit. They recruit others, and so on. When the pyramid
collapses (either the pool of new investors dries up or the
swindler is caught), everyone loses - except the person at the
top.
Protect Yourself From Telemarketing Fraud
Your best protection is to just hang up the phone. If you
think that is rude, tell these callers politely that you are not
interested, don't want to waste their time, and please don't
call back - and then hang up. If you find yourself caught up in
a sales pitch, remember the federal government's Telemarketing
Sales Rule.
| You have to be told the name of the company, the fact that
it is a sales call, and what's being sold. If a prize is being
offered, you have to be told immediately that there is no
purchase necessary to win. |
| If the caller says you've won a prize, you cannot be asked
to pay anything for it. You can't even be required to pay
shipping charges. If it is a sweepstakes, the caller must tell
you how to enter without making a purchase. |
| You cannot be asked to pay in advance for services such as
cleansing your credit record, finding you a loan, acquiring a
prize they say you've won. You pay for services only if
they're actually delivered. |
| You shouldn't be called before 8 a.m. or after 9 p.m. If
you tell telemarketers not to call again, they can't. If they
do, they have broken the law. |
| If you're guaranteed a refund, the caller has to tell you
all the limitations.
And remember, don't give telemarketers your credit card
number, your bank account number, Social Security number - or
authorize bank drafts - ever. |
If Someone Rips You Off
Report con games to the police. If you suspect fraud, call
the National Fraud Information Center at 800-876-7060, 9:00 a.m.
to 5:30 p.m. EST. To find out more, visit http://www.fraud.org/.
Don't feel foolish. Reporting is vital. Very few frauds are
reported, which leaves the con artists free to rob other people
of their money - and their trust.
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