How to Identify Fraud in an Online Business Proposition

Fraud is everywhere because of the internet, invading every desktop and finding its way into every part-time-job search. Small-time criminals now prey on anyone who is looking for a way to make money, under the guise of employment or small business. All of their offers and programs are designed to get money away from you, and some of them are fairly sophisticated and difficult to recognize. But they are all “cons” that will leave you disgruntled with all your wasted effort , or they will partially or completely ruin you financially.

Instructions

Difficulty: Challenging

1. Watch carefully for (or completely avoid) any email solicitation that suggests any kind of financial benefit. There is little to ever gain from unsolicited email, so simply deleting any email you don’t recognize or setting up strict filters are the best things to do. If it comes in via your inbox, it is already suspect. Never give out any sensitive data or agree to anything regarding personal, business or financial information.
2. Protect your credit card, Social Security number, bank account and driver’s license information. As soon as anyone requests any of this information, you are taking a huge risk to even consider complying. Since, in our current society, we have grown accustomed to applying for remote credit cards and investment accounts by providing personal information online, the swindlers position themselves as employers when they ask for this information. Americans should be more guarded about giving up personal information, but the U.S. Government has facilitated unconstitutional and unfair invasion of privacy that employers leverage as control over prospective employees. Often companies will complete the entire hiring process online and without ever meeting you. But you should never give out your information until you have checked out the other party thoroughly, whether it is a legitimate employer or a criminal suspect.
3. Maintain a log of communications that you can easily refer to at any time. You will be surprised how quickly you will forget what was written (or said, if you speak by telephone, which is not uncommon). Having the progression of events and communications readily available can help you make the right decision when your future is on the line. If there are ever legal implications, this information will be critical.
4. Note the domain extension in the other party's emails. If it is one of the free email services and not a company domain, he isprobably not legitimate, especially if he is claiming to be an officer of a bank.
5. Look for a physical address and other evidence of legitimacy. If a cell phone number is all you can get, you should immediately forget about this particular "business". Never trust a website as being anything more than a shallow façade.
6. Pay close attention to the correspondent's English. If he doesn’t write and speak using proper English, the chances are very strong that you are being scammed.
7. Determine the origin of the communications. Basically, anywhere in Africa, especially South Africa, is a scam. Eastern European countries such as Bulgaria are a sure bet as well.
8. Watch closely for the kill (i.e., the close). When he has set you up properly, the other party will ask for something that feels uncomfortable. Normally, he will want to transfer a small amount of funds, as little as $1, back and forth between accounts. It seems harmless enough, but the exact same steps are used to transfer large amounts. Give it up before it becomes tempting.
9. Never even discuss anything of this nature with anyone if you are a credit card merchant. There is no room for error for a credit card merchant, and whether or not you are the victim is of no concern to the merchant bank.
10. Refuse any arrangement in which you are to be running money through your account, keeping a percentage of it as a commission and sending the rest off to some remote bank account, or wiring money to an individual in another country. This arrangement indicates that you will be laundering money, and eventually you will be held responsible for all of it.
11. Look for a physical address and other evidence of legitimacy. If a cell phone number is all you can get, you should immediately forget about them. Never trust a website as being anything more than a shallow façade.