Be Vigilant; Don’t Be A Victim
This article is not directly related to ID theft, but the prevention of fraud is very similar to that of ID theft and should be beneficial to the majority of you
The Consumer Federation of America, one of the country’s biggest consumer watchdog groups, released a warning recently: the more desperate you are financially, the more vulnerable you are to the predations of unscrupulous white-collar criminals. These are scammers who wont’ hesitate to turn your worry to their cruel advantage. Thus, in the wake of the past year’s economic troubles, more and more Americans are potential victims of fraud.
“In economic hard times, consumers are even more vulnerable to phony promises to help them financially or money-making schemes,” explained CFA leader Susan Grant.
The CFA had just issued a survey that confirmed Grant’s generalization. Locally-based consumer interest groups from throughout America reported that some of consumers’ most consistent complaints of fraud concerned loan providers, car salesmen offering criminal “deals,” and online organizations promising mortgage and debt relief.
One example par excellence of today’s scammers was an organization that recently operated in the state of Georgia. This company enticed its customers, desperately hit by the housing crisis, to pay hundreds of dollars supposedly to save their houses from foreclosure. The company promised to help consumers appraise and refinance their homes, and to help them fill out the complicated paperwork that these processes entailed. In the end, this company performed no services for its customers. In effect, it took their money and ran.
These days, consumers have to be more vigilant than ever to avoid becoming the victims of a scam. How can you tell if you are encountering the smooth talk of a criminal? Here are five ways.
First, take note if that car salesman, broker, or loan agent seems to be exerting undue effort to convince you to buy his or her product, or to enter into agreement with the company that he or she represents. Beware of emotional appeals, or threats. Real companies generally offer compartively simple services or goods, and allow their products to speak for themselves. They are rarely ingratiating or pushy.
Second, be especially concerned about “too good to be true” offers. Do not let your desperation be your guide. If something seems too good to be true, it probably is.
Third, investigate companies that you deem suspicious, or that investments from you. The Better Business Bureau is a useful organization to help you towards this end. If you’re buying something costly over the Internet, demand references, and contact those references. Find out if that online company you’re buying from has an address.
Fourth, it’s helpful to use a credit card to pay online businesses instead of taking money directly out of your bank. That way, if you find that you have paid for a scam, you can convince your credit card company to refund you. This is considerably easier than demanding a refund from your bank. Do pay off your credit card purchase as soon as you can, to avoid being dragged into debt, however.
Finally, leave a paper trail. Ask for specific, written agreements regarding any offer you take up. Make sure to read those agreements, and don’t be afraid to contest a point you aren’t okay with.
October 20th, 2008 at 12:11 pm
It is true that with every crisis the con artists and fraud artists emerge. Be especially careful of phishing emails purporting to be from financial institutions and government agencies. With all the news about the financial crisis, there is an increase in emails designed to steal your personal information.
November 14th, 2008 at 4:19 pm
I recently created an interactive quiz to enlighten people about what they can do to protect themselves against Identity Theft. I’d like to share it with this audience – is that something I can do?
Let me know!