Scams That Can Fool Just About Anyone
Beware the scammer
We see people from all walks of life fall victim to these scams, everyone from lawyers to unemployed people, from the rich to the poor.
— John Breyault, National Consumers League vice president of public policy, telecommunications and fraud
The scam artist is your best friend.
He offers the investments of a lifetime, guaranteed jobs with guaranteed salaries that will blow your mind. She promises everlasting love to the lonely and eternal happiness to the depressed. He drops big-time lottery winnings into the laps of the poor, even those who have never played the lottery. She tells her victims that she will help them start a business, secure government grants, get into college or reduce their debt.
They offer the world---and then they take everything.
"We have heartbreaking stories about houses going into foreclosure, cars being repossessed, and people going through their life savings because they're sending all their money to scam artists," said John Breyault, vice president of public policy, telecommunications and fraud for the National Consumers League.
How They Do It
Scam artists are exceptionally good at what they do. They are professionals. They know exactly how to talk to their victims and they share information, trading lists of people who fell for scams so they can be targeted again.
No one is beyond their reach.
"One thing we push back against is the idea that people fall victim to these scams because it's their own fault, that they're too greedy or too stupid to realize it," Breyault said. "We see people from all walks of life fall victim to these scams, everyone from lawyers to unemployed people, from the rich to the poor."
Scam artists contact their targets through a variety of methods, including classified ads, email, text messaging and the telephone, the most popular being the Internet.
An economic recession is a scam artist's dream, because struggling people are more vulnerable, said Sheila Adkins, spokeswoman for the Better Business Bureau. They are looking for some way to supplement their income or for new business opportunities to drag them out of their financial hole.
"It makes people more vulnerable to the sweepstakes scam, where someone is told they won the lottery but have to pay for processing fees or taxes to collect," she said.
The Fake Check Scam
In 2011, the daddy of all scams was the fake check scam, accounting for nearly 30 percent of all fraudulent activity reported to the NCL.
The con goes like this: A person responds to an advertisement promising work-at-home opportunities such as envelope stuffing, merchandise assembly or mystery shopping. The alleged employer sends the victim a check, an upfront payment for the work she will perform. But there is one problem: The company "accidentally" sends too much money, $6,000 instead of $4,000, for example. So the target is asked to deposit the check immediately and wire back the difference.
"When people deposit the check they see the funds as available, so they assume the check cleared," Breyault said. "That's the key part of the scam. They don't understand that the bank has simply made the funds from the check available, but the check hasn't cleared and will never clear because it's fake. But it looks absolutely real."
Not only are the victims robbed of the $2,000 they send to the scammer; they are also on the hook with the bank for depositing a fake check.
The Sweetheart Swindle
In addition to preying on people's financial woes, con artists often go for the heart in so-called sweetheart swindles. They target people through online dating sites, chat rooms and message boards, strike up a relationship, and once it becomes serious, they hit up the victims for money.
"They ask for airfare to come see them, money to pay for their kid in the hospital or to bribe authorities so 'I can get out of the country to come see you.' There's always some reason why they need more money," Breyault said.
The average loss in sweetheart swindles is $7,000.
The Best Defense
So how do people protect themselves?
By watching for red flags, said Laura Kim, assistant director for the division of marketing practices at the Federal Trade Commission. These include being asked to wire money, being told you are guaranteed to make a profit or being informed that you won a lottery you never entered.
It's important to keep a few things in mind: You can't get something for nothing, and if it sounds too good to be true, it probably is, Kim said.
If something sounds suspicious, check the company's website. If there is a phone number, call it; if it is disconnected or the mailbox is full, that's a red flag.
People may contact their state attorney general's office and inquire about a company, checking to see if it has been flagged or has unresolved complaints filed against it. They can contact the Better Business Bureau or type the company's name and the word "scam" into an Internet search engine. If it has a history of fraud, there's a good chance people have written about it.
One thing that often exposes scam artists is their use of a hard sell and an urgent need to get a quick payment.
"The key message we tell our consumers is to take their time," Kim said. "They should be wary of high-pressure sales tactics. If it's a legitimate offer, it will be around when the consumer is ready to decide to buy. The best defense is to do your research."
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