August 12, 2009

How to Avoid Being Scammed

Think you can avoid falling for a scam? A new study shows that 1.3 million people have fallen for check scams alone (with most of them taken for $3,000 or more). Given the current economic climate, it's not very difficult for someone to convince eager Americans who are seeking to make a few extra dollars to take a chance on some quick money. In an effort to protect yourself , read through a few of the scams that have been exposed so far:

1. Mystery Shopper/Processor: These scammers may send you an email either attempting to sell you on the prospect of getting a job as a mystery shopper or the possibility of making money processing rebates from various retailers. When you get finally get "paid" you are sent an overpayment check and the company will request that you send them the difference once you deposit their check. (Fake jobs like these are often posted on sites such as Craigslist).
2. Overseas Letter: These are running rampant via email requesting that you help someone who just received an inheritance to stash the funds (usually millions of dollars) in America due to some political or personal issues they face in their native country. However, in order for them to receive the inheritance, they need to cover a small fee and they want your help with paying that fee. After you send the funds, a promise is made to share the proceeds with you which, of course, never happens.
3. What a Car Deal: It starts out with an ad for a car, featuring people claiming they are about to be deployed overseas with the military. The car is priced way below market value because they have to sell it quickly. You contact the seller and are told that you have to pay to an escrow service that they chose. The price is so good you don't want to lose out, so you agree to place a deposit or even pay the full amount to the "escrow service". It turns out it's not an escrow service and you don't end up with a car.
4. Cash Sent via Western Union for Ebay Purchase: This one happened to someone I know. The individual was shopping for a computer and found a refurbished one on Ebay from what was supposedly a legitimate business. The business happened to be overseas and requested for the funds to be sent via Western Union. Once the money was wired, there was no further communication and no product shipped to the buyer.
5. Phony Employers: Finally, be leery of potential "employers" who may try to offer opportunities such as sales and modeling where they claim to pay cash to potential employees.

Source Walletpop.com.

Bernita Williams, M.B.A.
Assistant Director, Financial Fitness