Frauds, Scams and Schemes: How to Spot Them
Internet, Telemarketing, Email and Other Common Scams
Apr 29, 2009
Red Flags
There are hundreds of scams and schemes that are constantly devised to separate victims from their hard-earned money. Though there are Ponzi schemes and investment fraud that occur here in the U.S, many of the scams originate with international con artists. There is little that can be done to pursue these criminals. The best way to protect oneself against common scams is to be aware and maintain a healthy skepticism, as well as to educate senior citizens, who are often the prime target of scam artists.
Telemarketing Scams
The overpayment scam often comes in email form, but has also conned victims who are selling a service or product. The perpetrator requests a victim's mailing address, and immediately sends a fraudulent check that is over the amount allotted or owed to the victim. The victim is then told to immediately send the overpayment back to the scam artist, who of course, makes off with the money. This scam is enticing, especially to those who are desperate for money, because the check looks legitimate, and is usually for a large amount. Do not attempt to cash a check from an unknown foreign sender or forward them any money. If a buyer overpays for a product or service and demands the overpayment back, wait until the check clears.
The Advance Fee Scheme
Advance fee schemes are perpetrated by illegitimate companies or businesses that require an advance fee for a fake product or service. The idea is to convince the victim to send money ahead with the promise of sending a product, or providing a service. Some of these schemes not only appear to real, and are even legal. For example, a perpetrator sends a contract to be signed with the promise of "financing arrangements," usually for a very desirable product, such as an extremely high-end car. They then require a finder's fee to be paid upfront, only to report no financing services could be found. This is usually legal, unless one can prove the perpetrator had no intention of arranging finances. Do not send any advance fees or information to an unknown business.
The Pyramid Scheme
These schemes are marketed to entice people to buy into a product or business that is based upon returns earned when others buy in under the initial investor. These schemes are mathematically impossible, because anyone can and does pull out and any time, and the pyramid inevitably collapses. Do not buy into any pyramid scheme, no matter how "foolproof" or lucrative they make it seem.
International Lottery Scams
This scam usually appears in email form, and informs the victim they've won a huge sum of money in an international lottery, usually in foreign currency. Not only are these non-existent, but they are illegal. Do not respond to, send any information, or contact these con artists.
Be Vigilant
There are several scams that use telemarketing ploys, but one example that has surfaced in letters and emails to various agencies is one that calls itself "International Pay-out Services" when they call. They claim to be from Jamaica, and inform the victim that they've won a large sum of money (usually 2.5 million) and that a Western Union payment of varying amounts must be sent immediately for insurance to retrieve the prize money. They attempt to convince the victim to act immediately, and to send the Western Union payment first thing. Do not engage with these con artists. No legitimate prize monies or sweepstakes ever require payment or personal information.
International scams and con artists cannot be prosecuted or investigated by law officials due to international laws. One cannot expect justice or investigation by the F.B.I. or any other U.S. agency if they fall prey to an international scam. The best way to prevent these scams from happening is to disregard any kind of evasive, unknown, overly eager or otherwise suspicious emails, offers, or phone calls from anyone. If it is an opportunity too good to be true, it is.
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