Journal: 10 Scams to Screen from Your Email: Part 2

1. The “Nigerian” Email Scam

The Bait: Con artists claim to be officials, businesspeople, or the surviving spouses of former government honchos in Nigeria or another country whose money is somehow tied up for a limited time. They offer to transfer lots of money into your bank account if you will pay a fee or “taxes” to help them access their money. If you respond to the initial offer, you may receive documents that look “official.” Then they ask you to send money to cover
transaction and transfer costs and attorney's fees, as well as blank letterhead, your bank account numbers, or other information. They may even encourage you to travel to Nigeria or a border country to complete the transaction. Some fraudsters have even produced trunks of dyed or stamped
money to verify their claims.
The Catch: The emails are from crooks trying to steal your money or perpetrate identity theft. Inevitably, emergencies come up, requiring more of your money and delaying the “transfer” of funds to your account; in the end, there aren't any profits for you, and
the scam artist vanishes with your money. According to State Department reports, people who have responded to “pay in advance ” solicitations have been beaten, subjected to threats and extortion, and in some cases, murdered.
Your Safety Net: If you receive an email from someone claiming to need your help getting money out of a foreign country, don't respond.

Forward “Nigerian” scams — including all the email addressing information — to spam@uce.gov. If you've lost money to one of these schemes, call your local Secret Service field office. Local field offices are listed in the Blue Pages of your telephone directory.

2. Phishing

The Bait: Email or pop-up messages that claim to be from a business or organization you may deal with — say, an Internet service provider (ISP), bank, online payment service, or even a government agency. The message may ask you to “update,” “validate,” or “confirm” your account information or face dire consequences.
The Catch: Phishing is a scam where Internet fraudsters send spam or pop-up messages to reel in personal and financial information from unsuspecting victims. The messages direct you to a website that looks just like a legitimate organization's site. But it's a bogus site that
exists simply to trick you into divulging your personal information so the operators can steal it, fake your identity, and run up bills or commit crimes in your name.
Your Safety Net: Make it a policy never to respond to email or pop-up messages that ask for your personal or financial information, or click on links in the message. Don't cut and paste a link
from the message into your Web browser, either: Phishers can make links look like they go one place, but then actually take you to a look-alike site. If you are concerned about your account, contact the organization using a phone number you know to be genuine, or open a new Internet browser
session and type in the company's correct Web address yourself. Using anti-virus software and a firewall, and keeping them up to date, can help.
Forward phishing emails to spam@uce.gov and to the organization that is
being spoofed.

3. Work-at-Home Scams

The Bait: Advertisements that promise steady income for minimal labor — in medical claims processing, envelope-stuffing, craft assembly work, or other jobs. The ads use similar come-ons: Fast cash. Minimal work. No risk. And the advantage of working from home when it's convenient for you.
The Catch: The ads don't say you may have to work many hours without pay, or pay hidden costs to place newspaper ads, make photocopies, or buy supplies, software, or equipment to do the job. Once you put in your own time and money, you're likely to find promoters who
refuse to pay you, claiming that your work isn't up to their “quality standards.”
Your Safety Net: The FTC has yet to find anyone who has gotten rich stuffing envelopes or assembling magnets at home. Legitimate work-at-home business promoters should tell you — in writing — exactly what's involved in the program they're selling. Before you commit any money, find out what tasks you will have to perform, whether you will
be paid a salary or work on commission, who will pay you, when you will get your first paycheck, the total cost of the program — including supplies, equipment and membership fees — and what you will get for your money. Can you verify information from current workers? Be aware of “shills,” people who are paid to lie and give you every reason
to pay for work. Get professional advice from a lawyer, an accountant, a financial advisor, or another expert if you need it, and check out the company with your local consumer protection agency, state Attorney General and the Better Business Bureau, not only where the company is located, but also where you live.
Forward work-at-home scams to spam@uce.gov.

7. Check Overpayment Scams

The Bait: A response to your ad or online auction posting, offering to pay with a cashier's, personal, or corporate check. At the last minute, the so-called buyer (or the buyer's “agent”) comes up with a reason for writing the check for more than the purchase price, and asks you to wire back the difference after you deposit the check.
The Catch: If you deposit the check, you lose. Typically, the checks are counterfeit, but they're good enough to fool unsuspecting bank tellers; when they bounce, you are liable for the entire amount.
Your Safety Net: Don't accept a check for more than your selling price, no matter how tempting the plea or convincing the story. Ask the buyer to write the check for the purchase price. If the buyer sends the incorrect amount, return the check. Don't send the merchandise. As a seller who accepts payment by check, you may ask for a check drawn on a local bank, or a bank with a local branch. That way, you can visit personally to make sure the check is valid. If that's not possible, call the bank the check was drawn on using the phone number from directory assistance or an Internet site that you know and trust, not from the person who gave you the check. Ask if the check is valid.
Forward check overpayment scams to spam@uce.gov and your state Attorney General. You can find contact information for your state Attorney General at www.naag.org.

8. Pay-in-Advance Credit Offers

The Bait: News that you've been “pre-qualified” to get a low-interest loan or credit card, or repair your bad credit even though banks have turned you down. But to take
advantage of the offer, you have to ante up a processing fee of several hundred dollars.
The Catch: A legitimate pre-qualified offer means you've been selected to apply. You still have to complete an application and you can still be turned down. If you paid a fee in advance for the promise of a loan or credit card, you've been hustled. There may be a list of lenders, but there's no loan, and the person you've paid has taken your money and run.
Your Safety Net: Don't pay for a promise. Legitimate lenders never “guarantee” a card or loan before you apply. They may require that you pay application, appraisal, or credit report fees, but these fees seldom are required before the lender is identified and the application is completed. In addition, the fees generally are paid to the lender, not to the broker or person who arranged the “guaranteed” loan.
Forward unsolicited email containing credit offers to spam@uce.gov.

9. Debt Relief

The Bait: Emails touting a way you can consolidate your bills into one monthly payment without borrowing; stop credit harassment, foreclosures, repossessions, tax levies and garnishments; or wipe out your debts.
The Catch: These offers often involve bankruptcy proceedings, but rarely say so. While bankruptcy is one way to deal with serious financial problems, it's generally considered the option of last resort. The reason: it has a long-term negative impact on your creditworthiness. A bankruptcy stays on your credit report for 10 years, and can hinder your ability to get credit, a job, insurance, or even a place to live. To top it off, you will likely be responsible for attorneys' fees for bankruptcy proceedings.
Your Safety Net: Read between the lines when looking at these emails. Before resorting to bankruptcy, talk with your creditors about arranging a modified payment plan, contact a credit counseling service to help you develop a debt repayment plan, or carefully consider a second mortgage or home equity line of credit. One caution: While a home loan may allow you to consolidate your debt, it also requires your home as collateral. If you can't make the payments, you could lose your home.
Forward debt relief offers to spam@uce.gov.

10. Investment Schemes

The Bait: Emails touting “investments” that promise high rates of return with little or no risk. One version seeks investors to help form an offshore bank. Others are vague about the nature of the investment, and stress the rates of return. Promoters hype their high-level financial connections; the fact that they're privy to inside information; that they'll guarantee the investment; or that they'll buy it back. To close the deal, they often serve up phony statistics, misrepresent the significance of a current event, or stress the unique quality of their offering.
The Catch: Many unsolicited schemes are a good investment for the promoters, but not for participants. Promoters of fraudulent investments operate a particular scam for a short time, close down before they can be detected, and quickly spend the money they take in. Often, they reopen under another name, selling another investment scam.
Your Safety Net: Take your time in evaluating the legitimacy of an offer: The higher the promised return, the higher the risk. Don't let a promoter pressure you into committing to an investment before you are certain it's legitimate. Hire your own attorney or an accountant to take a look at any investment offer, too.
Forward spam with investment-related schemes to spam@uce.gov.

Fighting Back

Con artists are clever and cunning, constantly hatching new variations
on age-old scams. Still, skeptical consumers can spot questionable or unsavory promotions in email offers. Should you receive an email that you think may be fraudulent, forward it to the FTC at spam@uce.gov, hit delete, and smile. You'll
be doing your part to help put a scam artist out of work.