There Is No Such Thing As Easy Money
National Consumer Protection Week, encouraging consumers to make better informed decisions, takes place March 6 through 12 this year. From seminars promising sure fire business opportunities to phony banking scams, the key to making an informed decision is to check things out before you commit your money and always remember that it is easier to hang on to your money than to try to get it back.
The Federal Trade Commission cautions consumers about four wealth building scams and offers the following tips on how to avoid them and save your money.
Wealth Building Seminars
You’ve probably seen the infomercials and full-page ads or even received an invitation in the mail to attend a seminar offering special, insider information that will unlock the secrets to investing or operating a business that will have customers lining up.
- Don’t be pressured to act immediately by threats you must buy now or miss the opportunity.
- Don’t just take their word for it. Research the field or business by talking to experienced experts in the field before investing.
- Don’t believe everything you hear. Some seminar operators may have paid people to offer enthusiastic testimonials.
- Be on guard if the seminar presenter only offers general answers to your questions and cannot provide you with specific information.
- Ask how much money you must pay to participate and the terms of a refund policy. Get that in writing but be aware that you may never get your money back from an unethical or criminal seminar presenter.
Check Overpayment
When you sell your car or other item through an online auction or your newspaper’s classified advertising you may get a response from a buyer offering to pay with a personal, cashier or corporate check. At the last minute, a crooked buyer will give you a reason for writing the check for more than the sale price. The buyer then asks you to wire back the difference once you’ve cashed the check. The check you receive may look good enough to fool you and the bank teller but it is probably counterfeit leaving you without the money for your sale and without the “refunded” amount you sent back.
- Don’t accept a check for more than your selling price, no matter how tempting or how convincing the story.
- Consider an alternative method of payment. If the buyer insists on using a particular payment service you’ve never heard of, check it out before agreeing.
- In any transaction, independently confirm the buyer’s name, street address, and telephone number.
- If you accept payment by check, ask for a check drawn on a local bank or bank branch that you can visit and ensure the check is valid.
- Legitimate buyers don’t pressure anyone to send money by wire.
- Don’t send any money until you are sure the check has cleared.
Foreign Bank Account Scams
Often called the “Nigerian” scam, this illegal con game features someone claiming to have a large amount of money in a foreign country and they need your help to get it out of the country. The con artists offer to transfer millions into your bank account and give you a small fee and all you have to do is give them your bank account number.
- Ask yourself two questions: (1) Why would a perfect stranger choose to share a fortune with you and (2) why would you share personal information like your bank account number with someone you don’t know?
- If you have lost money to one of these schemes already, call your local Secret Service field office.
- If you receive an offer via email from someone claiming to need your help getting money out of Nigeria or any other country, forward it to the FTC at spam@uce.gov. If you receive an offer via postal mail, contact the FTC toll-free at 1-877-FTC-HELP (382-4357).
Foreign Lotteries
Each year people take a chance and lose thousands of dollars in this con game that offers them the chance to participate in high-stakes lotteries in other countries. You may be asked to pay for taxes, insurance, and custom fees on winnings. The initial amounts you pay might be small but the requests will increase for more money. Some scam operators don’t buy tickets, others keep the “winnings” and some will make unauthorized withdrawals on their victims’ bank accounts or run up additional charges on victims' credit cards.
- Ignore any solicitation for foreign lotteries. They're all phony and illegal.
- If you receive what looks like lottery material from a foreign country through the mail, give it to your local postmaster.
- Keep your credit card and bank account numbers to yourself.
