JANUARY 2008 SAFETY TIP

Tips for Parents and Teachers and Students

FRAUD AND CON-GAMES

Current Scams Being Used in the United States
Mass Marketing Frauds target individuals of all ages and walks of life. Victims are lured with false promises of significant cash prizes, goods, services, or good works, in exchange for up-front fees, taxes or donations.

Common Scams—Be on the Lookout for Fraud

Foreign Lotteries & Sweepstakes
Foreign lottery fraud is currently one of the most prevalent consumer frauds.
Victims are told that they have won a lottery or sweepstakes in a foreign drawing.
To collect the winnings, victims are told they must first pay various taxes and fees.

Nigerian Letter Scams
Victims are asked to help illegally transfer funds out of Nigeria in return for a share of the money.
Perpetrators ask victims for their bank account information under the pretext that it is needed to complete the transaction. Victims may also be asked to pay money up-front to help defray the cost of taxes, legal fees, or bribes.

Credit & Loan Scams
Victims with poor or non-existent credit are offered credit cards/loans—for an advance fee.
“Credit repair services” may offer to help those with poor credit improve their credit ratings—for an advance fee.

Overpayment Scams
The victim is advertising an item for sale. A “buyer” sends the seller a counterfeit check or money order for more than the cost of the item. The victim is asked to return the difference between the payment and the cost of the item. When the payment turns out to be counterfeit, the victim is held responsible by his or her financial institution.

Charity Scams
Con artists solicit donations in the name of non-existent or fraudulent charities.
Most charity scams occur during the holidays or in the aftermath of disasters, when philanthropy is most common.

Protect Yourself—How You Can Avoid Becoming a Victim

The Hallmarks of Mass Marketing Fraud
Offers appear “too good to be true.”
Payments for goods or services are required in advance.
Personal information is requested over the telephone.
Offers are unsolicited.
Representatives use high pressure sales techniques, claiming that immediate action is required.
What You Can Do
Don’t believe everything you are told. If something sounds too good to be true, it probably is.
Avoid being taken by high pressure sales. Take the time to research offers before deciding whether or not to participate.
Don’t do business with anyone who solicits your money in advance of awarding a prize.
Inspect all representatives’ credentials carefully.
Get all offers in writing and keep a copy for your records.
Don’t deposit checks sent by companies that claim the check is being sent to pay fees or taxes on lottery winnings.

Report Scams When They Occur
Don’t ever be embarrassed. These frauds are perpetrated by sophisticated con artists.
File a claim with the appropriate entities listed in this brochure.
Report the crime promptly—you’ll have a better chance of getting your money back and bringing the perpetrators to justice when you file a complaint soon after the crime.

Federal Bureau of Investigation (FBI) www.fbi.gov
Individuals are always encouraged to report Mass Marketing Frauds to their local FBI office.

Information taken from the United States Department of Justice web site www.justice.gov