Scams and Fraud

The above website keeps up with the latest Scams, Frauds, and Consumer Abuse items in the news .... from the Federal Government.

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Quick Consumer Tips

A savvy consumer is always on the alert for con artists and other shady efforts to separate you from your money. To protect your money and avoid being a victim of fraud, keep these things in mind:

• A deal that sounds too good to be true usually is! Offers that often fall into this category are promises to fix your credit problems, low-interest credit cards, deals that let you skip credit card payments, business/job opportunities, risk-free investments and free travel.
• Extended warranties or service contracts are rarely worth what you pay for them.
• Say no to credit insurance offers. Often offered with credit cards, car loans and home mortgages, it is almost always better to purchase regular property, life or disability insurance.
• There is no universal three-day cooling-off period. Don’t be misled into thinking that you have an automatic three-days for canceling a purchase. Only a few types of contracts give you a right to cancel.
• Think twice before sharing personal information. Protect your privacy and avoid unauthorized use of your personal information by following the advice in Protect your Privacy.
• Beware of payday and tax refund loans. Interest rates on these loans are usually excessive. Even a high-interest cash advance on a credit card may be a better option.
• Not all plastic cards offer the same protections. Your liability for the unauthorized use of a gift card and debit/ATM card may be much higher than the $50 maximum on your credit card.
• Real estate agents represent the seller – not the buyer. When buying, consider hiring a buyer-broker who represents you.
• Home and auto repairs are the subject of frequent complaints Second opinions are especially important when you are dealing with a repair service you do not know.
• Think twice before you rent-to-own. Interest rates on rent-to-own purchases can be very high. If you miss a payment, you could end up with nothing. Consider other options such as buying second-hand at a thrift shop or through ads in your local newspaper.

Research suggests senior citizens, people in crisis (e.g., coping with a death or debt), college students, small business owners, minorities and immigrants are especially at risk of being victimized. Avoid making big-ticket purchases during times of duress.

Beware: Charitable Giving

Investigate before you donate. Some con artists use names similar to well-known charities or pretend to be raising money for state or local law enforcement agencies.

• Ask for written information, including how much of the money raised is actually used for charitable purposes.
• Ask your Secretary of State if the charity is registered to solicit in your state.

Check the Better Business Bureau and others for information on charities: www.give.org, www.charitywatch.org, and www.guidestar.org.

Beware: Youth Peddling

Some for-profit companies use young salespersons to sell magazines and other items door-to-door. They trick consumers into believing they are giving money to legitimate charities because consumers tend to support young persons and youth programs. If a young person solicits you, ask for identification verifying the organization’s name, address and purpose. If the representative can’t provide this information, ask them to leave. Report suspicious people to your local police department and/or contact the child labor division of your state labor department listed in the phone book. Even if you are satisfied with the information provided, don’t feel pressured to make a purchase or contribute.