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How to Detect a Scam
In 2006, the Federal Trade Commission
(FTC) complaint database received
more than 670,000 consumer fraud and
identity theft complaints, and consumers
reported losses from fraud of more than
$1.1 billion. The two best weapons you
can use to protect yourself against scam
artists are awareness of current fraud
schemes and some common sense.
Now Making the Rounds
Sweepstakes prizes and lottery scams inform potential victims that even
though they never entered the contest,
they've won a prize; first, however, the
"winners" must pay registration, lawyer
or courier fees. People who pay the fees
end up losing their money and never see
a prize.
Advance fee fraud, also known as a "419"
or "Nigerian" scam because of the section
of Nigerian criminal law that makes it
illegal, is a scam in which the victim is
asked to pay fees in advance in exchange
for huge sums of money. For example,
the victim might be told that he or she
will receive an unclaimed bank account if
lawyer or court fees are paid.
Work-at-home scams prey heavily on
senior citizens, stay-at-home moms
and the disabled, with promises of easy
money and no experience required.
Unfortunately, the victims often shell
out money for instructions or materials,
only to find that they are left with
merchandise that is impossible to sell.
Charity fraud occurs when a phony
group uses a name resembling that of
a legitimate charitable organization,
or high-pressure or highly emotional
appeals to raise money from unsuspecting
victims.
New Found Love is a scam where
fraudsters spend weeks and months
building trust via online chats. Eventually
they ask the member to write a check in
order to send money to their family or
send money to their "new love" in order
for them to come to the U.S.
Protect Your Finances
When fighting fraud, a little common
sense goes a long way. Remember:
- If it sounds too good to be true, it
probably is.
- Never give out your personal
information, including account or
Social Security numbers, in response to
a call or e-mail that you did not initiate.
And never send sensitive information
by e-mail.
- Claims of urgency should raise alarms
of suspicion.
- If you suspect fraud, contact St. Mary's
Bank and the National Consumers
League's Fraud Center at www.fraud.org or 1.800.876.7060.
For questions, or to learn more about this subject, visit St. Mary's Fraud Prevention Center or call the Member Contact
Center at 1.888.786.2791.
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This publication does not constitute legal, accounting or other professional advice. Although it is intended to be accurate, neither the publisher nor any other party assumes liability for loss or damage due to reliance on this material.