Eighteen (18) simple ways to protect yourself. Don’t get scammed at the car lot, on the Internet, in the hospital, on vacation, and more…
Do not respond to any scam, not even to remove your name from the list
Whether it's car salesmen or doctors, identity thieves or home repairmen, airlines or Internet auctioneers, somewhere along the line someone's going to try to take you to the cleaners. How do you stop them? Protect yourself and your wallet by heeding the following tips from some of America's top consumer guardians.
Federal Tax Credits for Engery Efficiency...With money being released for "Green Energy Programs, Scammers are trying to cash in...This site provides a listing of products that meet the standard for a tax credit....Article by: Sis Kirchheimer, author of Scam_Proof Your Life, published by AARP Books/Sterling
By Walter S. Mossberg...Personal technology...Daily Herald...Posted Monday, July 31, 2006
If you’re running a Windows computer, you must install an array of security software to fend off an international collection of crooks, hackers, vandals and sleazy business people who aim to invade your PC through the Internet.
You need a good antivirus program, a strong firewall program, an effective antispam program, and a program that specializes in stopping spyware and adware.
Or you could just buy an Apple Macintosh, which isn’t significantly affected (so far) by these threats, other than spam e-mail.
But the fastest growing computer security problem isn’t viruses or other traditional malicious programs, and it can’t be entirely defeated by using security software or by buying a Mac. It’s called“social engineering, ” and it consists of tactics that try to fool users into giving up sensitive financial data that criminals can use to steal their money and even their identities.
Social engineering is a broad term that includes “phishing,” the practice by which crooks create e-mails and Web sites that look just like legitimate messages and sites from real banks and other financial companies. It’s closely linked to a newly named category of malicious software called Crimeware — programs that help criminals steal your private financial information.
(*)For more on "Phishing" visit omnis1/private.htm
These terms are confusing and overlapping, but the threat is real. Increasingly, common looking scams are combined with secret installations of software that help criminals spy on you and steal your data.
•Don’t trust e-mail from financial institutions. E-mail is so easily manipulated by crooks that you simply should never, ever consider any e-mail from a financial institution as legitimate. The message may bear a bank’s or a broker’s logo, but you should never respond to such an e-mail, and never click on any link it contains.
There is a very high chance it’s a skillful fraud, and that the link will take you to a clever fake Web site designed to capture passwords and account numbers. The site may also silently install on your PC a program called a key logger, which records everything you type and sends that information back to the crooks.
• Never respond to unsolicited commercial e-mail, or spam, or even click on a link in an unsolicited commercial e-mail. In the old days, responding to spam just got you on more spam e-mail lists. Today, it might also result in the secret installation of a key logger or other malicious software.
Besides, any company that has to resort to spam as a sales tool isn’t likely to have a very good product to offer. Do you really think that if someone had invented a pill that enlarged penises and breasts, he’d be selling it through spam? He’d have sold it to a big drug company for billions. And nobody in Nigeria needs your bank account to store stolen millions.
Would you buy a stock touted on the street by a complete stranger? If not, why would you buy one touted in a spam e-mail?
• Don’t download or use free software unless you’re sure it’s legitimate.
Sites offering free cursors, for instance, can secretly install all sorts of bad Stuff on your PC. This is especially true of free security software, which is sometimes just malicious software posing as a security program. If you suddenly see a security program pop up on your PC, don’t trust it.
There are many legitimate free programs, including some good free security programs, like SpyBot or AVG Anti-Virus. But check them out before downloading.
Look them up on the C|Net or PC Magazine Web sites, which review most software. If they’re not covered there, assume they’re not legitimate.(*)ALSO CONSIDER POSTING THE SITE TO A FORUM OR SEVERAL FORUMS , ASKING IF ANYONE KNOWS ABOUT THE SOFTWARE. You may pass up some free programs that are real, but it could save you from huge grief.
Earlier... it is stated... that buying Windows security software, or using a Macintosh, can’t automatically protect you from social engineering schemes, and that’s true. But they can help.
An anti-spyware program can’t prevent you from entering sensitive information on a fake Web site, but it might block the installation and operation of spying software from that site.
A Macintosh owner can foolishly give up her bank account number, but most malicious software that crooks try to install won’t work on a Mac.
And there are some new security programs aimed directly at social-engineering scams.
McAfee’s Site Advisor program can tell you if a Web site seems bad. A new add-on for the Firefox Web browser, called Shazou, can tell you where a Web site’s server is located.
If you think you’re on the Bank of America Web site, but Shazou tells you the server is in Russia, that’s a clue that you’re being scammed.
And Symantec plans a new product this fall called Norton Confidential that will tell you if a Web site appears to be a fake.
Also, forthcoming new versions of Firefox and of Microsoft’s Internet Explorer browser will have built-in warnings that sites may be fake.
The best defense against social engineering, however, is to be smart and careful. © 2006, Dow Jones & Co. Inc.
The phone calls come when people are most vulnerable, just days after a spouse or other family member has died. But the callers are neither friends expressing their condolences nor funeral home staffers; they’re bogus bill collectors.
They struck recently in Mississippi, where at least half a dozen grieving families were telephoned with startling news: Their dearly departed had owed a large debt, and if it wasn’t paid immediately, collection efforts would begin.
“We don’t have a lot of good information, but we do know enough to believe that these calls are not legitimate,” says Bill Moak, president of the Better Business Bureau of Mississippi in Ridgeland, whose agency was quickly notified. The phone calls, he says, “seem to be specifically targeting elderly folks when they’re not in their best decision making capacity.”
This con is similar to one that prompted nationwide warnings from state officials in 2002. In those cases, families in at least 14 states received payment demands, within days of the death of a loved one, from a bogus outfit called Exodus Collection Services. The demands came in phone calls and invoices asking for up to $700 to settle an alleged unpaid debt of the deceased.
Exodus proved to be a nonexistent company that rented a mail drop in Delaware to collect “debt” money. In the newer Mississippi calls, the callers named no specific collection agency. Besides trying to collect nonexistent debts, scammers looked for other ways to trick the grieving.
“There’s often heavy pressure to have personal information divulged over the phone,” says Moak, who thinks the scammers chose their marks from newspaper obituaries. “Bereaved families may be in a rush to settle the matter, and be more likely to let their guard down.”
• Know your obligation . “Unless a family member is a cosigner, they’re not responsible for the deceased’s debt and under no obligation to repay it,” says David DuMond, an Indiana lawyer specializing in collection law.
• Know the procedure . If you cosigned for a loan or a credit card with a balance, it is legal—if unethical—for legitimate collection agencies to contact you after the borrower’s death. “Bill collectors should go through the executor or probate court to attempt to collect a debt owed by the deceased,” DuMond says. So provide that contact information and nothing else—especially not your Social Security or bank account numbers.
• Get the facts . If curiosity gets the best of you, require the collection agency to furnish proof of the debt. Have the agency put in writing who is owed, how much, for what reason, when the debt was acquired and why you are being contacted.
• Do an identity check . When contacted by a bill collector—for your debts or those of a deceased loved one—check the company’s authenticity by contacting the Better Business Bureau. If things don’t add up, notify your state attorney general’s office.
Sid Kirchheimer is the author of Scam-Proof Your Life (AARP Books/Sterling). Highlights by page author.
Web site for above article on Bill collectors preying on grieving families. Site link provided for those who want to verify and have access to further data
To protect against bogus claims for payment:
Designate one person, probablY not the surviving spouse, to screen claims. Take charge of the conversation, by asking follow-up Questions. Get Written proof of the claim. confirm that the person truly represents the company or organization cited. Don't make payment immediately.
Families in mourning have yet another burden to contend with in the weeks and months following the death of a loved one:
Avoiding a growing number of scams designed to take advantage of their grief.
Con artists approach families by phone, mail and personal visits, typically claiming they are owed money after having sold a product or service to the decedent.Font color="blue"> They can trip up victims with phony contracts or aggressive demands.
Individuals who might react with suspicion under normal circumstances may be too exhausted or overwhelmed when grieving, making them an easy mark.
"People will take advantage of you when you're at your most vulnerable," says Shirley Rooker, president of Call for Action, a nonprofit consumer organization in Bethesda, Md. "You have to be on your guard."
Lawyers and consumer advocates advise families to figure out how they'll handle claims on the estate before the obituary runs in the local paper. Legitimate debts need to be paid, so it's not practical to ignore every claim you don't recognize.
But experts say there are several ways people can lower the risk of falling victim to a scam:
Ask for proof of the claim in writing. Call back the agency or company that's supposedly involved to verify the legitimacy of the person who approached family members. Above all, don't act or agree to make payment immediately.
"Predators prey on people's desperation...on not giving you time to think," says Melanie Lee, an estate planning attorney in Richmond, Va.
The scammer even visited the widow to demand payment three months after the initial call. Ms. Lee advised her client not to act until they could verify the claim. No one found any evidence that the husband had signed up for the service, and eventually the person stopped contacting the widow.
A variation of the "services" scam is to claim payment is still outstanding on a product, such as a piece of jewelry or a fancy pen. The product ploy is sometimes conducted by mail, with the item and an inflated invoice sent to the decedent's home.(*) Be Sure To Save all correspondence you receive.
Ms. Rooker of Call for Action says her group got a call from a woman who was targeted three weeks after her husband's death. A man claiming to be a jeweler said the woman's late husband had bought a ring and still needed to make one more payment on it. The caller grew more aggressive when the widow tried to put him off; he said the ring was engraved, so she had to buy it.
The widow told the caller to keep the ring and the money he'd already received. Later, she looked through credit card and bank records and found no record of the transaction.
When an unfamiliar request for payment comes in, Zan Deery, chief investigator at the Better Business Bureau in Spokane, Wash., suggests asking for a name, mailing address and callback number and replying with lots of follow-up questions.
"Don't let them take control of the situation and start pounding you with personal questions," Ms. Deery says.
Obituaries tend to give a lot of personal information, including the widow or widower's name and the length of the marriage, making it easy to pinpoint potential victims.
Consider having the surviving spouse and other family members direct all claims to an attorney or one selected member of the family. That might be the executor named in the will, whose role includes handling claims against the estate and distributing assets to heirs.
In another type of scam, Ms. Deery of the Better Business Bureau remembers a man who got a call from someone claiming to be an insurance agent. The "agent" told the widower that his wife's life insurance policy was delinquent, and that he had to pay $3,000 before the funds could be released to the funeral home.
A second person, claiming to be from the funeral home, was also on the line. The "agent" asked the widower for his credit card number, so he could take a partial payment, and told him to wire the rest of the money to the company. The widower, who refused the requests, later found that the insurance agent and funeral home employee were both frauds.
Kansas Insurance Commissioner Sandy Praeger advises families that get a call about insurance to contact the insurance company or the state insurance commissioner before making any decision.
The state can tell you -- at the minimum -- if the company mentioned is actually a legitimate insurance provider. "That doesn't take long," Ms. Praeger says, and it can be the difference between being scammed and staying safe.
You can find the Web site for your state's insurance commissioner by going to naic.org and clicking on the "NAIC States and Jurisdictions" link on the left side of the page.
Also confirm a caller's identity whenever anyone asks for personal information. You don't want to be a victim of identity theft, in which fraudsters sell that information or use it to obtain credit.
In 2002, a Milwaukee man was sentenced to three years in prison after applying for credit in the names of two men -- one dead -- and posing as an agent with the Wisconsin Department of Revenue. Gary R. Piehl found targets by scanning the obituaries and would get personal information from the surviving spouse under the pretext of looking into the decedent's final income tax return, according to the criminal complaint.
Last summer,(*) 2006) at least two recent widows in Montana received calls from someone claiming to be from that state's Office of Vital Statistics. The office handles records like birth and death certificates. The caller requested birth certificates, marriage licenses and Social Security numbers for the women's husbands.
The department doesn't phone people to ask for personal information, says James Edgar, supervisor at the Office of Vital Statistics, and a quick call would have revealed the so-called employee as a fake. Email: forum.sunday03@wsj.com. Highlights &* added by page author.
(#1) Be Sure To Leave Your Mark
Two years ago, the California Bureau of Automotive Repair ran an undercover sting. The discovery: nearly half of all body repairs in that car crazy state were fraudulent. The bureau's primary weapon was a permanent marker. "What we did was discreetly mark auto parts before we took cars in for repairs," says investigator Warren Sam. "After the repair was made, we asked for our old part. If it didn't have the marking we made, we knew the work wasn't done."
Although his sting focused on bodywork, Sam recommends you do the same before taking your car in for maintenance inspections. Inconspicuously mark air and oil filters, spark plugs, brake pads, alternators, and other visible parts.
When you pick up the the car, ask for the old parts back. If they're missing your mark when you get them back along with your bill, you're probably getting a used part from another repair job and your old part is still in/on your car.
(#2) "Pass" on the test drive
"By the time you return from the test drive, they know what you paid for your last car, what's on your credit cards, and your mortgage payment," says Duane Overholt, a former car salesman who now counsels consumers on dealership scams. "That information tells the dealer your spending habits, and we know that most people typically spend 10 to 15 percent more than the monthly payments on their last vehicle."Smart move: keep your driver's license tucked away until after you've negotiated a price.
(#3) Don't buy an "etching"
Ironically, one of the biggest consumer rip offs is an anti-theft measure for your new car. The most popular, says Overholt, is an etch the car's vehicle identification number (VIN) is acid etched into the windshield or side windows by the dealer to prevent car thieves from altering it. This process costs the dealer less than $100 but typically costs you at least five times that much. It's wasted money because alter proof VINs are displayed elsewhere on your car usually on the driver's doorjamb and the engine block.
(#4) Steer clear of drive-by repairmen
The most notorious scamsters in home repair frauds are those repairmen who cruise neighborhoods and sell their services at your front door.
A tip off: Check the repair truck's license plate. If it's from out of state or a county miles away, you're probably talking to a fly by night operator.
The license plate check is especially important to prevent the most common dupe: an offer to "recoat" your roof or driveway. "A promise to extend the life of asphalt or wood shingles with a recoating is a $1,000 rip-off that involves nothing but covering shingles with regular paint to make them look shiny and new," says Tom Kraeutler, a home inspector in New Jersey who hosts a nationally syndicated radio home-fix-it program, The Money Pit.
And don't fall for door-to-door driveway resealers who offer a bargain price to use the leftover materials from the "last job." Chances are, your driveway may be recoated, for several hundred dollars, with used and useless motor oil.
(#5) Smoke out bogus chimney improvements A chimney sweep may tell you that your fireplace is unsafe and needs a new liner. But unless you have visible problems such as cracks or loose or missing bricks, he's probably pulling a scam, says Kraeutler. "They'll come to your house for a $50 cleaning, look down the chimney, and say you need $3,000 to $4,000 in repair work for the fireplace to work safely." The work they do is usually unnecessary, and it's your money that goes up in smoke. Before agreeing to this expensive "repair," hire an independent home inspector to do an evaluation.
(#6) Avoid Being Drained By Waterproofing
If your basement floods every time it rains, you may need to have it waterproofed. But consider this very expensive job only after you've ruled out cheaper options. Frequently, gutters are simply clogged or soil surrounding the home has eroded so it slopes toward your home, causing water to flood in.
"Anytime someone tries to panic you, that should raise a red flag," says Kraeutler. "What some guys will do is dig up your entire basement and install gutters in the interior beneath the surface of the floor, which can cost $25,000 or more, when all that's needed is some minor tweaking outside at a fraction of the cost." (Damp-proofing paints and sealants can help with minor problems, and sump pumps can sometimes be installed without ripping up the entire basement floor.)
Three of every four hospital bills include overcharges that average $1,000—money you have to pay for supplies and services never provided. The reason: bills are calculated from a "block" of medical supplies, drugs, and services pre-determined to be necessary for *A Specific procedure or treatment.
But these services are not always forthcoming (* required ). So, to ensure you're not billed for tests or procedures on that list but never performed, ask for an itemized list of all services for each day you're in the hospital. The line-item listing, which hospitals must provide if you ask for it, individually lists drugs, tests, and services and allows you to track exactly what you are billed for.
"This way you can review what's been done...or not done...when it's fresh in your mind," says Charles Inlander, president of the People's Medical Society, a consumer advocacy group.
(#8) BYOD ( Bring Your Own Medication(Drugs)
Don't want to pay $5.00 per pill for a postoperative antibiotic or the cholesterol lowering statin you take daily? Before a hospital stay, ask your doctor what drugs you'll likely need following your procedure, get and fill a prescription for them—as well as the medications you usually take—and bring them with you. If your hospital allows you to bring such items, "just sign off when you're admitted that you will supply and administer those drugs," says Inlander.
Whether you have an annual cholesterol screening or a test for Lyme disease, you'll pay twice as much for blood drawn at the doctor's office as you would if pricked at a lab. At the doctor's, you're charged for a scheduled office visit, for drawing blood, and for sending it to the lab.
By getting your own lab work done, says Inlander, you may save up to half the cost. Sometimes your doctor may have to provide a prescription that allows you to get tested at a lab, and many physicians will call in this permission at no charge.
Added bonus: it's often easier to schedule an appointment at a lab than with your doctor.Labs are found in the yellow pages under Laboratories (Medical or Testing) . Most will accept insurance, but be sure to ask if they take yours. They may even provide you with test results directly, sparing you yet another doctor visit.
(#10) Borrow (**or Buy )A Shredder
Destroying ( Shreading )documents before they're thrown away can prevent vital information such as your Social Security and bank account numbers from falling into the hands of crooks who sift through your trash… but only if you use the right type of shredder.
"The most common shredder sold,a straight cut shredder,only cuts the documents like ribbons; all that's needed is to push these ribbons together to get your numbers," says Abagnale, who adds that crooks will happily take the time to do this kind of puzzle work. "Spend the few extra dollars and get a 'confetti,' or cross-cut, shredder. It makes documents impossible to read." Average price: $120. [See previously published buyer's guide to paper shredders on AARP Bulletin Online.
All it takes to clean out your bank account is a signed check swiped from your outgoing mail and the chemical acetone commonly found in nail polish remover, says Frank W. Abagnale Jr., the former check forger and identity thief depicted by Leonardo DiCaprio in the movie Catch Me If You Can.
It works like this: The crook steals outgoing paid bills from your mailbox and places a piece of cellophane tape over the front and back of your signature on the check. Then he or she places the check into a pan of nail polish remover for about 30 minutes,which lifts anything that's not printer's ink, except for your tape,protected signature. The check is then blow dried and flattened in a book, and the tape is carefully removed. Voilá! A blank check, signed by you.
Only one type of ink the kind in gel pens is counterfeit proof to acetone or any other chemical used in "check washing." "I recommend the " Uniball Gel Impact" pen, which sells for about $2.00 each at any office supply or chain store," says Abagnale, who now consults law enforcement and corporations on the art of the steal. "I personally sign all my checks and important documents with one."
One of the best ways to stop identity theft is to subscribe to a service that alerts you when anyone checks your credit rating or attempts to open a credit account by using your name. But make sure the service is quick about it. Many take a week or longer to notify you or send quarterly statements of this activity. "You need to know instantly," says Abagnale.
He recommends the PrivacyGuard Enhanced program, which for a $119-a-year fee notifies you by e-mail immediately. "In the four years I've used this program, I've been amazed how often my credit has been checked by stores where I shop to companies I do business with." For more information visit PrivacyGuard's website or call 1-877-202-8828.
Be Sure To Read about "phishing"
(#13) Don't "phish" with strangers
You've heard of spam, or unsolicited e-mail; phishing is spam specifically designed to steal vital information such as your password and credit card and bank account numbers.
"You'll get e-mail saying your bank, Internet service, or another account needs to be updated or verified," says John Hambrick, an FBI supervisory special agent who works with the Internet Crime Complaint Center (IC3). When you click on the link provided, you'll be taken to a highly authentic looking website. The best ones have the same corporate logo and even the URL address of the corporation being impersonated.
How can you tell that it's not legitimate? Because no bank would ever ask you those questions online. "Your bank does not need to verify your ATM pin or Social Security number," says Hambrick. "Neither do AOL and other companies."
**Don't click on the link that "scammers" provide, because when you do a "Cookie" will be generated that provides your on-line identification.
You should know that "Secured" links will evidence ( show ) the letter "s" at the end of the hyperlink (https://) and will also show a "Lock" icon on the "Status Bar"
For more on PhishingPhishing
(#14) Get wise to online auction scams
There are great deals and great steals on eBay and other online auctions. Here's how to tell the difference: "Anytime you get an offer from the seller that is outside the normal auction process, it's a scam," says Hambrick.
"For instance, you'll get an e-mail saying, 'You aren't the winning bidder, but I have one more of those items to sell.' What they are doing is trying to circumvent the auction system and get you to send them a cashier's check. Trust me, they will not send anything to you in return."
Also, avoid would be sellers that:
Don't accept standard third party payers such as PayPal and instead ask you to use their own escrow system Ask for bank account numbers, Social Security number, or other information not required Ship from, or are registered in, Andorra, a small country in the Pyrenees well known to be a home base for phony eBay vendors Ship items from an address or area other than the seller's address.
(#15) Burn the midnight oil
You see those enticing offers for low fare flights in the newspaper, but when you call you're told they've been sold out. It's not an outright rip-off, but it sure feels like one. So, how do you land those cheapo seats?
Be a night owl, advises Peter Greenberg, chief correspondent for the Travel Channel and author of Hotel Secrets (Villard, 2004). "Starting from one minute after midnight to about 1 a.m. on Wednesday, all airline computer systems are flooded with low fare reservations that were booked but never paid for." This one hour window of bargain prices varies, depending on the time zone where you live and where the airline you're flying is based. For example, if you live in Philadelphia and you're booking with American Airlines, which is based in Fort Worth, you'd want to start calling at 1:01 A.M. If you live on the West Coast and want to call East Coast-based U.S. Airways, you'd call starting at 9:01 P.M.
(#16) Split the markup
Don't be fooled that you're getting the best hotel bargain by booking online. Websites such as Orbitz, Expedia, Travelocity, and hotels.com buy rooms from hotels at a discount price but then charge you a markup of 24 to 48 percent, says Greenberg. "Instead, if you see a hotel room advertised online for $100 a night, call the hotel directly and offer $85. At the typical markup, you have to figure the hotel is offering it to the discounter at about $65. The hotel still stands to make a $20 profit by booking it from you rather than through the website.
Tip: negotiate directly with the on-duty manager or sales director rather than a lower-level reservations operator or desk clerk.
(#17) Check out those charges
Avoid checkout shock by being aware of some common hotel flimflams. For example, there's "double dipping," which happens when you're presented with a room service charge on what resembles a credit card receipt. In addition to the cost of an overpriced meal, the hotel will add on a service charge (usually about 2.5 percent), state tax and a gratuity anywhere from 15 to 20 percent. But instead of totaling the amount, the hotel prints a "subtotal," leaving space below for you to write in a tip. "Before you know it, you're eating a $35 hamburger," says Greenberg. Bottom line: read the room service menu carefully for any mention of automatic gratuity charges
Another nasty surprise may be waiting should you have a fax or overnight-courier package delivered to your hotel room, warns Greenberg. "The desk will ring you and ask if you'd like the item brought up, and most likely you will tip the person who makes the delivery. It isn't until you check out that you discover the hotel has tacked on a surcharge of $3 to $5 for every fax or package you received." In both cases, Greenberg suggests complaining to the manager on duty. "Nine times out of 10 the hotel will remove the charge at your request."
* Another "surprise" you should look for on your bill is a "daily" charge for a "Safe" that the hotel provides for safe keeping of your valuables. If you don't utilize the safe, be sure to request that the charge be removed from your bill including any tax that has been added.
* (#18)Remove any reference to your Name, Address, etc.
If you perform a Good Person Deed of passing on copies of magazines so others can enjoy and not have to incur the expense of buying, be sure to remove all reference of the personal data from the cover of the magazine.
Looking at the magazines, I reflected that some unscruoulous person or persons, could see the individuals information and go to the address to determine if anyone was home or if a later visit was to be planned.
I picked up the magazines and did as I do with all magazines, either before I discard in the Recycle bin or leave for others to view when I visit doctors office or other places... I tear or cut out any refernce on me, my wife etc.
Fraud against older Americans is a serious problem affecting thousands every year. Many scam artists prey on and target senior citizens. Some unsuspecting older Americans have lost their life savings or suffered serious financial strain.
It is sometimes hard to tell if a sales pitch is legitimate or fraudulent. You "cannot" judge a proposal by how friendly or sincere the person seems to be. Good salespeople are convincing - and so are crooks.
Remember, the word con is short for confidence. Therefore, a con operator has to gain a person's confidence in order to be successful.
It is likely to be a scam if:
• You get a call, postcard or e-mail from someone telling you that you have won a prize and the person is asking for payment for processing or administrative fees, customs, taxes or any other reason. Legitimate sweepstakes or prize offers do not ask for such payments because it is illegal
• The person says you have to take the offer immediately or you will miss the opportunity, or the caller refuses to send written information before you commit to anything. Legitimate companies are always glad to send information about what they are offering.
• The caller, e-mail or letter claims you can make huge profits in an investment with no risk. High-return investments are not guaranteed and legitimate companies will tell consumers about possible risks involved.
• The caller, e-mail or letter claims you can make huge profits through a franchise or other business opportunity with little or no effort. All business , ventures require knowledge and effort on the part of the buyer, and no reliable company would guarantee profits.
• The caller is asking for a donation but will not tell you exactly how the money will be used or how you can verify the charity and what it does.
Reputable charities are willing to say what percentage of contributions is used for services and; how much goes to overhead and fund raising. They are also willing to tell consumers whom they can check with to confirm the charity is legitimate.
• The caller asks for your Social Security number,credit card or other financial information when you have not made a purchasing decision. Legitimate companies only ask for financial information to bill you or debit your account for purchases yoU have agreed to make.
• The company offers to get you a loan or credit card, no matter what your credit record, or to repair your bad credit if you pay an upfront fee. Legitimate lenders and credit-card issuers do not ignore credit records and will not demand payment in advance.
• The person insists that you send payment by private courier or wire the money. Reputable companies do not discourage customers from checking the deal and changing their minds, nor do they try to evade the postal authorities by demanding payment by courier or wire service.
Remember, when in doubt call the Better Business Bureau.
Letters and questions can be addressed to: 330 N. Wabash Ave., Suite 2006, Chicago IL 60611. For company inquiries or complaints, 24 hours a day, telephone (312) 832-0500 (cost: $3.80 per call, credit card only), The BBB Web address is www.chicago.bbb.org.
Are you facing the threat of losing your home? Be wary of individuals and companies offering to "help" you out of your difficult financial situation.
BBBs and other consumer advocates report an increase in complaints about fore closure "rescue" scams.
These scams specifically target home owners who are in financial distress.
Scam operators advertise over the Internet and in local publications, plaster posters on telephone poles and at bus stops, stick flyers in people's front doors or contact people whose homes are listed in public foreclosure notices.
In one scenario the scam operator offers to "buy" the homeowner's property by paying off the amount that is overdue on the loan. He convinces the homeowner to move out and deed the property over to a third party.
The homeowner is given the option of renting the property with the option to buy it back later.p The rent payment on the home is often higher than the homeowner can afford.
Often times, the original homeowner cannot make the rent payment and is evicted from their home. Or, if the homeowner expresses a desire to buy back the property, the scam operator usually sets the price of the home higher than the homeowner can afford.
The hapless homeowner can lose his equity and his home. Sometimes, the homeowner's troubles go even deeper.
In many cases the initial mortgage has not been paid off and the deed was never transferred, as promised.Not only is the homeowner faced with eviction from the home, but they still owe for the original loan amount.
The Better Business Bureau advises consumers who are tempted by such offers to recognize that they are at risk of losing money, equity, their home or all three.
Consider the following if your mortgage is in arrears or you are facing foreclosure:
Talk to your lender. Ask about how to restructure your loan payment or refinance.
Some foreclosure "rescuers" will offer to "negotiate" with your lender or lawyer.Know that such an offer is likely to involve a significant fee.
If you are hesitant to talk to your lender,engage the assistance of a family member. If that proves to be unfeasible, try selling on your own to payoff the lender.
NOTE(*) that Signing over a deed in no way releases you from your mortgage responsibilities!
Some schemers will offer to complete paperwork for you, or ask you to sign documents, supposedly to secure a new Mortgage.
Victims have later learned that they signed a quit claim deed to their home.
Beware the peronal approach.
Some less than ethical businesses will /~omnis1/Stuff a handwritten note in your front door or mailbox that implies that"help"is available from someone who has your interests in mind.
If a foreclosure "rescuer" instructs you not to contact your mortgage company or your attorney, beware.
Your mortgage company is the very business that you should be in touch with! Why would you agree to cease contact with your attorney that involves your biggest investment, your home?
You should never sign a contract under pressure and never sign away ownership of your property.
Ask a trusted family member, your attorney or a financial professional to review any paperwork you may be asked to sign.
Before signing any deals with a potential buyer, contact your BBB (*) Better Business Bureau) to request a report on the company and check with the state Real Estate Commission.
*Highlights and Bold on above article added by page author
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