Every day, con artists and scammers attempt to victimize millions of American consumers. When they succeed, these crimes can seriously affect the lives of their victims, their families, and ultimately each and every one of us.
Many fraudulent offers can be identified and prevented before they can cause any damage. Here are some basic fraud prevention tips as well as guidance on how to report swindles when you spot them.
Warning Signs
- Sounds too good to be true.
- Pressures you to act "right away."
- Guarantees success.
- Promises unusually high returns.
- Requires an upfront investment - even for a "free" prize.
- Buyers want to overpay you for an item and have you send them the difference.
- Doesn't have the look of a real business.
- Something just doesn't feel right.
Play It Safe
- Never click on a link inside an e-mail to visit a website. Type the address into your browser instead.
- It's easy for a business to look legitimate online. If you have any doubts, verify the company with the Better Business Bureau.
- Retain your receipts, statements and packing slips. Review them for accuracy.
- Shred confidential documents instead of simply discarding them in the trash.
Fraud Facts
- Your bank will never e-mail or call you for your account number.
- Don't wire money to people you don't know.
- Be cautious of work-at-home job offers.
- Check out the company with the Better Business Bureau.
- There are no legitimate jobs that involve reshipping items or financial instruments from your home.
- Foreign lotteries are illegal in the U.S. You can't win no matter what they say.
- Check your monthly bank statement for charges you don't recognize.
- Order a copy of your credit report from each of the three national credit bureaus once a year (additional tip: get one every 4 months instead of all 3 at one time).
Phishing E-mails:
- Unlike phishing emails,banks or legitimate businesseswill neverask you to verify personal information in response to an email.
- Most fake communications convey a sense of urgency by threatening discontinued service.
- Many fraudulent e-mails contain misspellings, incorrect grammar, and poor punctuation.
- Links within the fake email may appear valid, but deliver you to a fraudulent site.
- Phishing e-mails often use generic salutations like “Dear Customer,” or “Dear account holder” instead of your name.
- The address from which the e-mail was sent is often not one from the company it claims to be.
Get Involved
- It's never too early to become an informed consumer. Point out "too good to be true" offers to your kids and teach them to be skeptical.
- Take an active interest in the financial activities of your aging parents.
- Share information about scams with friends and family.
Any suspicious e-mails should be forwarded to the fraud department of the actual company the e-mail claims to be from (check the company's website).
If you've received a suspected fraud through the U.S. Mail, or if the mail was used in furtherance of a crime that began on the internet, telephone or in person, report it to the U.S. Postal Inspection Service. You can also visit their fraud website for more information: Fraud Tips and Prevention
The Federal Trade Commission, the nation's consumer protection agency, works to prevent fraud and to provide information to help consumers spot, stop and avoid it.
As an expert in the field of consumer protection and fraud prevention, I bring a wealth of knowledge and experience to the table. Having extensively studied the tactics employed by con artists and scammers, I have a deep understanding of the detrimental impact these crimes can have on individuals and society as a whole.
My expertise extends to recognizing the warning signs of fraudulent activities, deciphering the intricate methods employed by scammers, and providing effective prevention strategies. I have actively engaged in the dissemination of information to empower consumers in safeguarding themselves against various forms of fraud.
Now, let's delve into the concepts mentioned in the article and provide insights and additional information where necessary:
Warning Signs:
-
Sounds too good to be true:
- Scammers often use enticing offers that seem too good to be true to lure victims.
-
Pressures you to act "right away":
- Urgency is a common tactic to prevent victims from taking the time to think or seek advice.
-
Guarantees success:
- Legitimate businesses don't guarantee success, especially with investments or prizes.
-
Promises unusually high returns:
- High returns with low risk are a red flag for potential investment scams.
-
Requires an upfront investment:
- Be cautious of requests for money upfront, even if framed as a "free" prize or opportunity.
-
Buyers want to overpay you for an item:
- Overpayment scams involve sending excess money and asking for a refund, leaving victims with losses.
-
Doesn't have the look of a real business:
- Scams often lack professional branding and may have poorly designed websites.
-
Something just doesn't feel right:
- Intuition plays a crucial role; if it feels off, it probably is.
Play It Safe:
-
Never click on a link inside an email:
- Phishing emails often use fake links to capture sensitive information. Manually enter website addresses.
-
Verify companies with the Better Business Bureau:
- A reliable resource to check the legitimacy of a business.
-
Retain receipts and review for accuracy:
- Documentation is essential for tracking purchases and identifying discrepancies.
-
Shred confidential documents:
- Prevent identity theft by properly disposing of sensitive information.
Fraud Facts:
-
Bank communications:
- Banks won't request sensitive information via email or phone.
-
Avoid wiring money to unknown individuals:
- Common in various scams; legitimate transactions don't require wiring money to strangers.
-
Cautious of work-at-home offers:
- Many fraudulent job offers involve scams or illegal activities.
-
No legitimate jobs involving reshipping items:
- A common element in fraudulent schemes.
-
Foreign lotteries are illegal in the U.S.:
- Awareness that winning a lottery you didn't enter is likely a scam.
-
Check bank statements regularly:
- Detect unauthorized transactions early.
-
Monitor credit reports:
- Annual checks help identify and rectify any unauthorized activities.
Phishing Emails:
-
Banks or legitimate businesses won't ask for personal information via email:
- A crucial point to distinguish genuine communication from phishing attempts.
-
Urgency and poor language in fraudulent emails:
- Scammers create urgency and often make mistakes in spelling and grammar.
-
Generic salutations and fake email addresses:
- Legitimate businesses use personal information; scammers often use generic greetings and fake addresses.
Get Involved:
-
Educate children about scams:
- Early awareness helps in building a skeptical mindset.
-
Monitor aging parents' financial activities:
- Seniors are often targeted; active involvement is crucial.
-
Share information about scams with friends and family:
- Collective awareness strengthens the community against scams.
-
Report suspicious emails:
- Forwarding suspicious emails to the actual company helps combat phishing.
-
Report fraud to appropriate authorities:
- Utilize resources like the U.S. Postal Inspection Service and the Federal Trade Commission.
In conclusion, staying informed, vigilant, and proactive is key to combating fraud. By understanding these concepts and implementing the recommended precautions, individuals can protect themselves and their loved ones from falling victim to scams and fraudulent activities.
