Archive for the ‘Scam Watch’ Category
Fake Site Helps People Spot Loan Scams
April 26th, 2010
by Amy
Esteemed Lending Services
A loan for every situation…guaranteed. Loans for a new business, college, or even a vacation. Consolidating the debt you already have. The loan you need, even if you’ve been turned down by other lenders because of a poor credit history. Loan specialists waiting to help you.
The website looks reliable, the company sounds reputable, and the offer is just what many people are looking for. Unfortunately, this is the pitch for an advance fee loan scam. Scammers promise you a loan, but you soon find out there’s a fee you have to pay first. If you pay, it’s unlikely you’ll see the promised loan, and you run the risk of someone using your personal information to steal your identity.
That’s why the FTC created the Esteemed Lending Services website. The company and site are fakes, designed to tip you off to the signs of an advance fee loan scam (and an important reminder that just because a site looks trustworthy doesn’t mean it is). Click on any link, and you’ll go straight to a page letting you in on the truth behind the site and telling you what you need to know to recognize advance fee fraud.
I hope you’ll link to, write about or talk about the site with your audience, members or anyone else in your network. It’s an opportunity for people to see what an advance fee scam looks like, and avoid losing their hard-earned money.
The FTC also offers other “teaser sites.” Learn to weigh the evidence in diet products and spot claims that signal a rip-off at our phony FatFoe site, or to evaluate health claims through Glucobate, a made-up diabetes treatment. Find them all at wemarket4u.net.
Tags: advance fee, debt, diabetes, identity theft, loans, lose weight, scams
Posted in Credit and Debt, Scam Watch | 4 Comments »
Investment Fraud
April 23rd, 2010
by Guest Blogger
[Today's guest blogger is Larry Dyekman, Director of Communications and Education at the National Futures Association.]
“GUARANTEED to double your money in six months!”
Let’s face it; those are words everyone wants to hear, especially when rebuilding from economic uncertainty. Unfortunately, those words are almost never true and many people have lost their life savings because they believed them.
Financial fraud has gotten a lot of attention lately. You might have seen these buzz words and names in recent news headlines: affinity fraud, ponzi schemes and Bernie Madoff. From low-income wage earners to retirees, doctors and political leaders, we are all vulnerable to the tactics of con-artists.
Don’t Become a Victim of Investment Fraud features our President and CEO Dan Roth as he discusses different types of investment fraud, common characteristics of investment scams and the importance of conducting a background check before making any kind of investment decision. Help educate your family, friends and neighbors against investment fraud by sharing these important tips with them.
Tags: brokers, investment fraud, investment scam, retirement plan
Posted in Investing, Money, Scam Watch | 4 Comments »
Census Scams
April 9th, 2010
by Colleen
No foolin’… April 1 was the deadline to mail back your U.S. Census form. If you didn’t, you may get a knock on your door from a Census taker.
Now I don’t know about you, but I’m not a big fan of strangers knocking on my front door, especially when con artists, pretending to be Census takers, are out there, scheming to steal your personal information or commit some other type of fraud.
So I thought this might be a good time to put the old saying, “To be forewarned is to be forearmed” to good use. Here are a few facts to help put you at ease if a Census taker comes a calling:
- Census takers must show you an ID badge that has their name, a Department of Commerce watermark, and an expiration date. If you ask, census takers also will give you information so you can verify their identity with their supervisor or the Local Census Office.
- Census takers will not ask to come into your home, and will ask you only the 10 questions on the census form, including name, gender, age, race, ethnicity, relationship, whether you own or rent your home, who is in the home at the time you are completing the form, and your phone number. They will not ask for your Social Security number, PIN codes, passwords, or similar access information for credit cards, banks or other financial accounts.
- If you aren’t home or can’t come to the door, the census taker will return up to three times, each time leaving a door hanger with a phone number so you can call to schedule a visit.
For the full list of questions on the 2010 Census, visit www.2010.census.gov. To read more about Census scams, check out the FTC’s Consumer Alerts: How to Recognize and Report 2010 Census Scams and 2010 Census Job Scams.
Tags: 2010 census, census, phishing, scams
Posted in Scam Watch | 4 Comments »
International Scams
April 1st, 2010
by Guest Blogger
[Today's guest blogger is Michelle Bernier-Toth, Bureau of Consular Affairs, U.S. Department of State.]
One of the primary missions of the Bureau of Consular Affairs at the U.S. Department of State is to protect the lives and interests of American citizens overseas. So, for April Fools’ Day, I’m reaching out to educate U.S. citizens about common international scams that fool hundreds of people out of thousands of dollars every year. In fact, one third of our callers report losses of over $10,000.
Romance scams make up nearly 80 percent of the incidents we see. Victims report that they meet scammers in chat rooms and on well-known dating websites. Scammers also can be found on special-interest sites for Christian singles, widows, and singles with disabilities. Not even the most reputable sites are guaranteed to be scam-proof. The U.S. Embassy in London created this video to help people spot and avoid romance scams.
We also see scams that involve alleged business ventures or bank holdings. The FBI regularly publishes alerts about new e-scams on its website.
In addition, citizens have reported fraudulent websites directing them to pay their passport fees online. To avoid these scams, follow the passport application instructions on our official State Department website.
Similarly, non-U.S. citizens sometimes fall victim to scams when they trust unofficial websites, e-mails or print advertisements with fraudulent information about the visa application process. Read our Fraud Warning for more information.
Report frauds and scams to the Federal Trade Commission.
Here in the Bureau of Consular Affairs, we routinely provide services to U.S. citizens in distress abroad. Citizens may reach out to any of our embassies and consulates overseas. We also provide emergency financial assistance for U.S. citizens abroad. If you, or someone you know, needs emergency assistance abroad, you may call our overseas citizens services line at 1-888-407-4747, or if you are overseas you may call 202-501-4444.
To learn more about our office, visit travel.state.gov, become a Facebook fan of the U.S. Department of State: Consular Affairs, follow us on Twitter @TravelGov, or read the DipNote blog – Travel section.
Tags: dating site, International, online dating, romance, scams
Posted in Money, Scam Watch | 4 Comments »
Real People, Real Stories: Avoiding Foreclosure Rescue Scams
March 24th, 2010
by Julia
Yesterday, NeighborWorks America shared some information about what to do if you’re facing foreclosure, and how to avoid scams. This is an important issue right now, and the Federal Trade Commission (FTC) and its partners have been cracking down on so-called “foreclosure rescue companies” that take advantage of homeowners in distress.
Of course, education is your first line of defense against these scammers. That’s why the FTC produced the video Real People, Real Stories (also in Spanish and on the FTC’s YouTube channel). This video features the stories of real people taking action to save their homes and encourages homeowners to get the help they need.
As the video says – if you’re having trouble paying your mortgage, avoid any company or individual that:
- requires a fee in advance
- guarantees to stop a foreclosure or modify a loan
- advises you to stop paying your mortgage company
Free help is a phone call away. Call 1-888-995-HOPE or visit www.hopenow.com for free personalized advice from HUD-certified housing counseling agencies.
For more information, visit www.ftc.gov/YourHome. To report a foreclosure rescue scam to the FTC, visit www.ftc.gov/complaint. And for free information about the President’s plan to help financially strapped homeowners in mortgage misery, visit www.makinghomeaffordable.gov.
Tags: foreclosure, loan modification, mortgage, scams, your home
Posted in Mortgages, Scam Watch | 2 Comments »
Fake Check Scams
March 10th, 2010
by Guest Blogger
[Today's guest blogger is Susan from the Consumer Federation of America.]
An official-looking envelope arrives in the mail with a check or money order for $20,000 inside. The letter says you have won $4 million in a sweepstakes or lottery. You just need to wire $3,000 for taxes to claim the rest of your winnings. Is this your lucky day?
No! It’s a fake check scam that will cost you thousands. These scams take many forms. You might unexpectedly receive notice that you are getting a grant or that a company wants to hire you to work at home as a mystery shopper. You might be selling something and the “buyer” sends you more than your asking price with instructions to wire the extra money back to him or to someone else.
- A fake check from an FTC investigation
No matter the story, fake check scams always involve someone giving you a genuine-looking check or money order and asking you to wire money somewhere in return. After you deposit the check and send the money, you will learn that it was phony. The crook will have the money, and you will owe it back to your bank or credit union.
According to a survey by the Consumer Federation of America, many people mistakenly believe that banks and credit unions confirm that checks are good before posting that money to the account. That’s not how it works. Funds from deposited checks are available within days, but a counterfeit check can take weeks to detect. You’re responsible for checks you deposit because you’re in the best position to know if the person who gave it to you is trustworthy.
Believe it or not, losing thousands of dollars might not be the worst part of a fake check scam. If there isn’t enough money in your account to cover the check, you could face collection or be sued. Your account may be frozen or closed, and you could be reported to a database of checking account abusers, making it difficult to open another account. Some victims are even charged with check fraud.
Remember, there is no legitimate reason for anyone to give you a check or money order and ask you to send money somewhere in return. If that’s the deal, it’s a scam. Check out our website for more information about these scams and how to protect your hard-earned money.
Tags: check, lottery, money transfer, mystery shopper, wire transfer
Posted in Banking, Scam Watch | 5 Comments »
What Have You Got to Complain About?
February 25th, 2010
by Amy
One of my favorite things about online shopping is reading user reviews, whether it’s for a pair of jeans or a digital camera. I still read articles and talk to friends, but it can be useful to see if a lot of people have the same kinds of complaints about the product I’m pondering. While there are obvious differences, I think filing a complaint with the FTC is similar — you’re helping the FTC and the 1,700 other federal, state and local law enforcement partners that have access to the information spot patterns and identify not only the scams and frauds that are happening, but the people behind them.
So what do you complain to the FTC about? And how do you do it? The FTC has a new animated video (also in Spanish and at the FTC’s YouTube channel) that shows just that, including examples of the kinds of experiences you might share with the FTC. Complaints can help stop scams, rip-offs and fraudsters, so I hope you’ll share this video and encourage people you know who’ve been ripped off or spotted a scam to file a complaint with the FTC.
On a related note, check out the FTC’s just-released top complaints from consumers for 2009.
Tags: complain, Federal Trade Commission, Money, scams
Posted in Scam Watch | 19 Comments »
BBB Lists Top Scams of 2009 and New Year’s Resolutions for 2010
February 22nd, 2010
by Guest Blogger
[Today's guest blogger is Alison from the Council of Better Business Bureaus.]
The Better Business Bureau has released its list of the top scams and rip-offs of 2009. Free trial offers capped the list, including online offers for acai berry diet supplements and teeth whiteners.
If you were ripped off by a free trial offer last year, you’re not alone. According to a survey by Visa, 29% of Americans believe that they have been deceived by a free trial offer online.
Other high ranking scams were grant assistance scams, robocalls, and lottery sweepstakes scams.
With the economy still climbing out of a slump and the unemployment rate still in the double digits, consumers literally can’t afford to waste money on scams or with untrustworthy businesses.
This year, resolve to be a savvier consumer. The BBB can help. For simple ways to become a savvier consumer in 2010, check out this list of top ten New Year’s Resolutions.
Tags: BBB, scams, tips
Posted in Money, Scam Watch | 3 Comments »
FTC Announces Operation Bottom Dollar
February 18th, 2010
by Guest Blogger
[Today's guest blogger is Monica Vaca, Assistant Director, Division of Marketing Practices, Federal Trade Commission.]
For most of us who have friends or relatives looking for jobs, the reports about unemployment figures make our hearts sink. But for some, the news that tens of millions of people are searching for something hard to find – a paying job – is just what they need to cook up a scam.
My new friend Cathy told me a story recently. She came across a job listing in the classifieds that seemed right for her and called the number on the ad. The woman on the other end promised to place her in a job for an $89 placement fee. In exchange for a job paying $14 to $19 per hour, that seemed okay, so Cathy borrowed the money to pay it. You can probably guess the end — there was no job.
Today, the FTC, with federal and state partners, announced Operation Bottom Dollar, a law enforcement effort to shine a light on job fraud. For its part, the FTC filed 7 new cases against individuals and businesses that allegedly tricked people into paying money for jobs or other chances to earn income.
What are some types of job scams involved in Operation Bottom Dollar?
Here is what you need to know about job fraud:
- Don’t pay money for the promise of a job.
- Federal government jobs and jobs with the U.S. Postal Service do not require any application or other fees.
- Be very skeptical of anyone who asks for money in exchange for a so-called “opportunity” to work from home.
- Before paying money, check out the business with the Better Business Bureau.
- Report fraud to the FTC.
What’s the takeaway for job seekers from Operation Bottom Dollar?
Learn more at ftc.gov/jobscams.
Tags: classifieds, employment, job search, jobs
Posted in Scam Watch | 6 Comments »
Job Scams
February 17th, 2010
by Amy
Many people looking for work are being ripped off by scam artists. These are people who say they’ve got jobs to fill, promise you access to special job listings or interviews, or guarantee to place you in a job. All you have to do is pay them a fee or give them your credit or debit card information. Unfortunately, once you pay, you find out there is no job.
That’s why the Federal Trade Commission has produced Job Scams (also in Spanish), a new video warning job hunters not to pay for the promise of a job. The video tells you how to spot a job scam, and how you can stop them — by reporting them to the FTC.
Tags: classifieds, employment, job search, jobs, scams
Posted in Scam Watch | 1 Comment »