ew scams surface more frequently these days, but attempts to defraud unsuspecting consumers are nothing new. Our greatgrandparents were seduced by "snake-oil" salesmen and worthless "miracle" cures, unless they had been alerted to these deceitful practices. Today, thanks particularly to the Internet, scams and the risk of identity theft are becoming both commonplace and ever more sophisticated. According to the Better Business Bureau, the average identity fraud case costs consumers $6,383. While most banks and credit card companies offer protection against fraud, most consumers nevertheless end up footing the bill themselves, while they must take the time and spend their own money just to have the case investigated.
Scammers appeal to the best and the worst in each of us. Some appeal to our generosity, others to our desire to get rich quick. They know these ploys will work at least some of the time, and that is good enough for them to profit. They also know that no one wants to be left out when the lottery jackpot is high and seems almost within reach. Sophisticated offers from all sorts of unsavory promotional companies and individuals arrive by telephone, email, and snail mail that are cleverly disguised to sound and look very real. Scammers seduce us into believing we actually have a chance to cash in, and we don't want to let what could be a "sure thing" slip away.
Our contemporary lifestyle itself makes us ripe for the picking. Sometimes we cave quickly just to end an annoying phone call and move on. At our hectic pace, we can easily be confused by scam artists or miss important details. Sometimes, though, we are victimized simply through intimidation or, even more sadly, through our natural tendency toward altruism - a chance to reach out, give to the needy, or be a good citizen.
Telephone and Internet con artists don't miss a trick If you are solicited by Publishing Clearing House, for example, will you notice they don't have the name quite right? It's Publishers, not Publishing, but that particular ruse has fooled many already. If you get a call from the American Kidney Foundation, will it immediately register that the real organization is the American Kidney Fund? And how many people give to the American Cancer Center, which is not a bona fide charitable organization but a scam, thinking they are donating to the American Cancer Society?
Many of the worst scams involve predatory home improvement deals. Predatory lenders, sometimes working with contractors, strip owners of their home equity through a series of high-cost loans that consumers are all too often unable to repay. Or contractors hired directly by a homeowner disappear after taking the homeowner's money without making the repairs they agreed to make. If you are considering home improvement work, work only with a licensed contractor and be sure to check all the contractor's references.
Alleged credit-repair services claim the ability to erase bad marks from a consumer's credit history or to create a new credit identity, which is illegal. Do not believe such offers that poor credit can be magically wiped away. Credit repair companies can do nothing for consumers that consumers cannot do for themselves for little or no cost. The very act of correcting credit errors is a learning experience that everyone should have a direct hand in doing on their own should that become necessary. Do not be sucked into giving this task over completely to anyone who indicates "they'll take care of everything - not to worry."
Travel clubs promise free travel certificates that come with steep, undisclosed costs. Or, as a novel twist, a vacation is offered (and actually awarded, sometimes) as a prize. However, the travel involves so many terms and conditions, it is more often than not rendered useless. That "dream vacation" is for the off-season only and includes no airfare. To make matters worse, the recipient of the "prize" has often been persuaded to pony up an "advance fee" of some sort to win the travel or vacation deal, and the fee or product purchase required generally exceeds the value of the prize or gift.
Many Americans have protected themselves against the talons of telemarketers by entering their phone numbers on the National Do Not Call Registry. Still, for those not enrolled and for those whose aging parents or young adult children are not enrolled, it is worth the time to gain a better understanding of fraudulent telemarketing practices.
Telemarketing and legitimate survey research are not fraudulent practices. However, be aware that the telephone also is used to dupe the unsuspecting. Scam artists call to announce that you have just won a fabulous prize. (Of course they cannot release the prize to you until you pay the taxes and transfer fee, "that's the law - everything gets taxed, you know.") The first thing to remember is that your taxes are between you and the U.S. government. Yes, you must pay taxes on a lottery jackpot or sweepstakes prize, but you pay them directly to the government, not to anyone else. If you are asked to pay any amount up front, be very cautious: The gift or prize might be nonexistent or might never find its way to you. The telemarketer on your line is probably targeting you to collect the "fee" or "taxes" and will never be heard from again. What if the offer you hear over the phone sounds legitimate and you want to go ahead with it. STOP and THINK! A legitimate "good deal" or "special offer" or request to "give to a charity" is not good for you if you a) cannot really afford it or b) are being pressured to decide quickly or to pay immediately. Ask instead for the caller to mail you a solicitation or offer, and tell the caller "you do not respond to telephone requests for money." If the call is fraudulent, expect to hear an abrupt dial tone. If it is legitimate, the caller will agree to your request. Never give your credit card or bank account information to an unknown caller, and never send money in advance for an item you did not order or have not received. These con artists can make very attractive (but bogus) offers. If you have a high M (Money Value) score, you might initially want this "great deal or bargain." Or if the product or prize is just the item your high T (Tangible Value) heart needs to complete a favorite collection, you might be tempted but resist the offer anyway. Everyone is vulnerable to fraudulent telemarketers. Being aware of your Life Values Profile can help make you less so.
Some scam artists target businesses with phony billings or sell substandard office products. Always check credentials and references before you switch vendors. Ask all callers who target businesses with requests for donations to charities or upcoming civic events to put their requests in writing. Large corporations generally have their advertising/donation budgets planned for the year and simply decline these offers, so small businesses are more at risk. Does the charity actually exist? Is the civic event really scheduled to take place in your area? Can you see a copy of the program or flyer from previous years? Again, if you are asked to decide in a hurry, just say no.
Probably the best way to fall prey to a scam is to make a habit of entering sweepstakes. Some are legitimate, but still they are huge money-making machines, collecting far more entries than you might ever believe. In fact, the odds of winning any major sweepstakes prize are said to be 1 in 50,000,000. When you enter a sweepstakes, do you feel obligated to purchase a product? Many consumers are unaware that the U.S. Supreme Court has made it illegal to require a purchase to be entered in a sweepstakes. Would making the purchase improve your odds of winning, though? Publishers Clearing House claims that 23 of their 30 millionaire winners did not order a magazine with their entry.
And how tempting is that non-negotiable check you find in the envelope, made out to you, suggesting you might have won $500,000? Actually, sweepstakes companies are prohibited from mailing those non-negotiable checks unless you have actually won a prize, so that "check" might be your first indication you are dealing with a fraud. Getting into the habit of entering sweepstakes is dangerous, but, when the sweepstakes is combined with fraudulent telemarketing, things can get dicey. If a great offer comes by phone when you least expect it and is promoted by a highly trained, skilled persuader, you become much more susceptible to the con.
As in any telemarketing scam described here, the caller is usually calling to inform you that you have won a prize. Don't even consider investing in this scam. Chances are very good there is no prize whatsoever. Even the product you're ordering is likely to be inferior or never show up. The company itself might be bogus. This caller could very well be simply collecting checks in a postal box and getting rich by duping hopeful individuals.
It gets even worse, though. The con artist might ask for your credit card information because the company is offering a special gift for those willing to pay immediately, over the phone. This can be tricky because some bona fide fund raising companies do make such legitimate offers at times and actually do send the free gift. How will you know whether to give out your credit card information? The rules are simple: If you have any doubt at all, don't do it. And if you feel pressured or hurried in any way, don't do it.
Our website is not responsible for the information contained by this article. Articleinput.com is a free articles resource thus practically any visitor can submit an article. However if you notice any copyrighted material, please contact us and we will remove the article(s) in discussion right away.
Note: This article was sent to us by: Dan J. Carter at 03082010
1. Is the American Dream still alive in our days
All articles are property of their respective authors. Please read our Privacy Policy!
© 2009 ArticleInput.com.