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Top 10 Scams: How to Avoid Being Victimized

Internet Fraud
The hottest medium for scams, as it is for conducting legitimate business and consumer purchases.  The public has to be able to spot the difference.

Tips: Tell-tale signs of fraud are high-pressure sales tactics, asking for payment by private courier or regular mail, no apparent street address on web sites and stolen on-line seals which are not clickable (unlike the BBB online seal).  For purchases, use only credit cards as a charge back is possible on phoney transactions but make sure the web site is secure.

Identity Theft
The fastest-growing fraud in North America.  More victims in the first nine months of 2003 than in all of 2002.  Identity thieves steal personal information from garbage or recycling boxes or ask victims to provide the information in order to receive a prize, steal mail or send unsolicited e-mail posing as a person’s financial institution.

Tips: It can take a long time to clean up the mess so you must report it to the police as quickly as possible and call your bank and credit card issuers.  Have a fraud alert placed on your file including a victim statement asking creditors to call before opening new accounts or changing existing accounts.

Nigerian Letter Schemes and Their Imitators
This get-rich quick scheme has been around for decades and has variously used mail, fax and now e-mail to snare victims.  The sender purports to be some company or national official who is trying to transfer millions of dollars out of a country and offers to give their victims substantial sums in exchange for using their bank account to help transfer the funds.  Victims are then asked to send large sums of money to facilitate the transfer.  The thieves will also use any personal or banking information they have received to impersonate the victim and loot bank accounts.

Tips: Kill any such e-mail such as the latest appeal apparently coming from China.

Foreign Lotteries
An extension of the identity fraud con in which victims are told they’ve won a lottery such as the Australian 645 or the Spanish El Gordo but must send money to cover taxes and other fees.  Fraudsters will ask for bank account or credit card numbers allowing them to make withdrawals or run up credit card charges.

Tips: Unless you want to lose your money and identity don’t become involved.

Work At Home Schemes
These pray on people who want to run home-based businesses and sell kits for producing some product but refuses to buy the completed work because it “is not up to company standards.”  Another variation is the envelope-stuffing scheme where people are promised high wages to stuff envelopes but must first buy the company’s book on money-making and pay for advertisements in newspapers.  The scheme is a complicated chain-letter pyramid scam.

Bogus Charities
These always come with names that sound legitimate.

Tips: Ask all fund-raisers for identification and inquire how much of a donation goes to the charity.  Check whether a charity is registered by calling 1-800-267-2384.  Don’t make donations at the door or over the phone; ask for an information package to be mailed first.

Unsolicited E-mail and Faxes
Internet users can be engulfed in unsolicited e-mail (spam) that carry dishonest messages and often contain viruses.

Tips: Be careful giving out your e-mail address and use discretion when placing posts on the internet that divulge your e-mail address on the Direct Marketing Association’s website.

Home Renovations
Persons posing as home repair experts often target elderly persons who will pay for services either not needed or not performed.

Tips: Before agreeing to home improvement work get three written estimates from contractors who have permanent addresses in your area.  Be wary of quick estimates and high-pressure tactics and seek names of two satisfied customers and call them.  Legitimate renovators don’t solicit door-to-door.

Unsolicited Invoices
These are often sent to business for goods and services that have not been ordered.  While resembling an invoice they are solicitations for advertising and are often paid by unwary accounts payable personnel.

Office Supply Scam
Companies will contact businesses representing themselves as the regular or new supplier of office goods and from a receptionist or new employee will get a contact name leading to merchandise being sent or invoices.

Tips: Don’t allow employees to give out product or names of model numbers of office machines over the phone and refer all such calls to a purchasing agent who is familiar with suppliers and companies with whom you do business.

Source: Better Business Bureau
Originally printed in the Vancouver Sun, January 26, 2004