Use Common Sense
It's not always easy to spot con artists. They're smart, extremely persuasive and aggressive. They invade your home through the telephone and the mail, advertise in well-known newspapers and magazines, and come to your door.
Most people think they're too smart to fall or a scam. But con artists rob all kinds of people - from investment counselors and doctors to teenagers and elderly widows - of billions of dollars every year.
Remember...IF IT SOUNDS TOO GOOD TO BE TRUE, IT PROBABLY IS!
Protect Yourself
Never give a caller your credit card, phone card, Social Security or bank account number over the phone. It's illegal for telemarketers to ask for these numbers to verify a prize or gift.
Beware of 900 numbers. People who call 900 numbers to request instant credit often end up with a booklet on how to establish credit or a list of banks offering low-interest credit cards. Such calls end up costing $50 or more, but consumers rarely end up obtaining credit.
Listen carefully to the name of the charity requesting money. Fraudulent charities often use names that sound like a reputable, well-known organization such as the American Cancer Association (instead of the American Cancer Society). Ask for a financial report before you donate, a reputable charity will always send you one.
Investigate before you invest. Never make an investment with a stranger over the phone. Beware of promises that include the terms "get rich quick" or "once in a lifetime opportunity."
Telemarketing Fraud
Your best protection is to just hang up the phone. If you think that is rude, tell them politely that you are not interested, you don't want to waste their time and to please don't call back...and then hang up. If you find yourself in a sales pitch, here is the Federal Government's Telemarketing Sales Rules:
>You have to be told the name of the company, the fact that it is a sales call, and what's being sold. If a prize is being offered, you have to be told immediately that there's NO purchase necessary to win.
>If the caller says you've won a prize, you cannot be asked to pay anything for it. You can't even be required to pay shipping charges. If it is a sweepstakes, the caller must tell you how to enter without making a purchase.
>You cannot be asked to pay in advance for services such as cleansing your credit record, finding you a loan, acquiring a prize they say you won. You pay for services only if they're actually delivered.
>You shouldn't be called before 8:00 a.m. or after 9:00 p.m. If you tell telemarketers not to call again, they can't. If they do, they are breaking the law.
>If you are guaranteed a refund, the caller has to tell you all the limitations.>DO NOT give telemarketers your credit card number, your bank account number or Social Security number - or authorize bank drafts - EVER! If you suspect fraud, call the National Fraud Information Center at 1-800-876-7060. Be a Wise Consumer
Don't buy health products or treatments that include a promise for a quick and dramatic cure, testimonials, imprecise and non-medical language, appeals to emotion instead of reason, or a single product that cures many ills. Quackery can delay an ill person from getting timely treatment.
Look closely at offers that come in the mail. Con artists often use official looking forms and bold graphics to lure victims. If you receive items in the mail that you did not order, you are under no obligation to pay for them. You can legally throw them out, return them or keep them.
Be suspicious of ads that promise quick cash by working from your home. After you've paid for the supplies or a how-to book to get started, you often find there's no market for the product and there's no way to get your money back.
Beware of cheap home repair work that would otherwise be expensive, regardless of the reason given. The con artist may just do part of the work, use shoddy materials and untrained workers, or simply take your deposit and never return.
Use common sense in dealing with auto repairs. One mechanic convinced a woman that she needed to have the winter air in her tires replaced with summer air! Get a written estimate, read it carefully, and never give the repair shop a blank check to "fix everything."
Some Classic Cons
"The Bank Examiner"
Someone posing a a bank official or government agent asks for you help (either in person or via the phone) to catch a dishonest teller. You are to withdraw money from your account and turn it over to him or her so the serial numbers can be checked or
the money marked. You do, and you never see your money again.
"The Pigeon Drop"
A couple of strangers tell you they've found a large sum of money or other valuable. They say they'll split their good fortune
with you if everyone involved will put up some 'good faith' money. You turn over your cash and you never see your money
or the strangers again.
"The Pyramid Scheme"
Someone offers you a chance to invest in an up-and-coming company with a guaranteed high return. The idea is that you invest and ask others to do the same. You get a share of each investment you recruit. They recruit others and so on. When the pyramid collapses, (either the pool of new investors dries up or the swindler is caught), everyone loses - except the person at the top.
What to do if you get ripped off
Report con games to the police, your city or state consumer protection office, district attorney's office or consumer advocacy group. Also call the National Fraud Information Center at 1-800-876-7060. Don't feel foolish or stupid. Reporting is vital. If you do not report a fraud or con, you are leaving the con artist free to rob other people of their money.
