US-based Web site OnGuardOnline.gov provides a list of ways that scammers try to trick people through e-mail, online advertisements, pop-ups, and search results into sending them money and personal information.
The site is managed by the US's Federal Trade Commission, in partnership with federal agencies. It is a partner in the Stop Think Connect campaign, led by the Department of Homeland Security, and part of the National Initiative for Cybersecurity Education, led by the National Institute of Standards and Technology.
1. Work-at-home scams
When considering a work-at-home opportunity, ask questions and do some research before committing any money.
Scammers bait people by offering a steady income for home-based work, typically in medical claims processing, online searching, international shipping, rebate processing, envelope-stuffing, or assembling crafts and other items. The advertisements use variations on themes such as “be your own boss” and “earn thousands very month from your own home”.
The catch is that the advertisements do not state that consumers may have to spend money to buy supplies, software, or equipment to do the job. “They probably don't say you won't be paid for all the hours you put in, either. It's hard to find a promoter of home-based businesses who will pay you for all the time and money you spend, and who accepts your work as up to 'standards of quality'.”
End-users should ask questions such as how pay will work and get answers in writing. Typing the company's name into a search engine could reveal if it is a scam.
2. Weight loss claims
Some messages promise a revolutionary pill, patch, cream, or other product that will result in weight loss without the need for diet or exercise. Some products claim to block the absorption of fat, carbohydrates, or calories; others guarantee permanent weight loss; still others suggest one will quickly lose dramatic amounts of weight.
The catch is that the advertisements are gimmicks, playing on people's sense of hopefulness. There is nothing available online that one can wear or apply to skin that can cause permanent - or even significant weight loss - without significant changes to behaviour.
3. Lotteries and sweepstakes scams
Scam artists often use the promise of a valuable prize or award to entice people to send money. E-mails inform people that they have won a foreign lottery or an online sweepstakes, sometimes purporting to be from a government agency, a bank or a well-known company.
The scam requires payment be wired to cover taxes, fees, shipping costs, or insurance, and once the money has been wired it is gone. “Any letter or e-mail from a lottery or sweepstakes that asks you to pay taxes, fees, shipping, or insurance to claim your prize is a scam.”
4. Fake cheque scams
The scam works by fraudsters offering to buy items advertised for sale online and then writing a cheque for more than the purchase price, which is followed by a request for the seller to wire back the difference, after banking the cheque.
Typically, the cheques are counterfeit, but they're good enough to fool unsuspecting bank tellers and increase the balance in your bank account - for a few days. But when the cheque eventually bounces, the end-user is liable for the entire amount. Don't accept a cheque for more than the selling price and call the bank the cheque was drawn on to check it is valid.
5. Impostor scams
Scammers pose as people one knows and trusts and then make desperate appeals for cash via e-mail, text, or a call, to deal with an emergency.
Fraudsterswant the victim to keep the request a secret from other family members. There might be a second person in on the scheme - someone who claims to be an authority figure, like a judge, lawyer, or police officer. These callers may claim that your friend will not be allowed to leave the country unless you send money right away.
It is surprisingly easy for scammers to impersonate a trusted friend, family member, or organisation. If money is sent, they will likely be followed by more requests. Check the story out with other family members or ask the scammer questions only family can answer.
6. Mystery shopper scams
Legitimate mystery shopping companies will not ask for an application fee. For the first assignment, scammers ask people to evaluate the services of a money transfer company, like Western Union or Money Gram. People get a cheque deposited and are asked to wire the money, usually over the border.
When the deposit turns out to be fake, the victim will owe the bank money.
7. Debt relief scams
Debt relief advertisements are commonplace and tout a way to consolidate bills into one monthly payment without borrowing further, or stop goods being repossessed. The offers often require people to declare bankruptcy, but rarely say so. Bankruptcy is a last ditch option and will affect a credit record.
8. Pay-in-advance credit offers
People get the good news that they have “pre-qualified” to get a low-interest loan or credit card, or repair bad credit even though banks have turned one down. To take advantage of the offer, the consumer must pay a processing fee of several hundred dollars, which is a hustle.
Legitimate lenders never “guarantee” a card or loan before application. If fees are payable, these will be after the application is completed and is to the lender, not a broker.
9. Investment schemes
It is not unusual to see messages touting “investments” that promise high rates of return with little or no risk. Many versions seek investors to help form a new company or bank. Others are vague about the nature of the investment, but stress the rates of return.
Promoters hype their high-level financial connections; the fact that they are privy to inside information; that they guarantee the investment; or will 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 offer.
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.
10. The 'Nigerian' e-mail scam
These messages are the butt of late night jokes, but people still respond to them. The people behind these messages claim to be officials, businesspeople, or the surviving spouses of former government honchos in Nigeria or another country whose money is tied up temporarily.
They offer to transfer lots of money into your bank account if you will pay the fees or “taxes” they need to get their money. On response, the victim may receive documents that look “official” or be encouraged to visit the country.
However, the mails are from crooks trying to steal money or identities and payment is usually delayed by an emergency. According to State Department reports, people who have responded to these e-mails have been beaten, subjected to threats and extortion, and in some cases, murdered.
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