Filter Tips: 10 Scams to Screen from Your Email
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The “Nigerian” Email Scam
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Phishing
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Work-at-Home Scams
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Weight Loss Claims
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Foreign Lotteries
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Cure-All Products
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Check Overpayment Scams
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Pay-in-Advance Credit Offers
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Debt Relief
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Investment Schemes
While some consumers find unsolicited commercial email — also known
as “spam” — informative, others find it annoying and time
consuming. Still others find it expensive: They're among the people who
have lost money to spam that contained bogus offers and fraudulent
promotions.
Many Internet Service Providers and manufacturers offer filtering
software to limit the spam in their users' email inboxes. In addition, some
old-fashioned ‘filter tips' can help you save time and money by
avoiding frauds pitched in email. You can send unwanted spam on to the appropriate enforcement
authorities, and then hit delete. Here's how to spot 10 common spam
scams:
1. The “Nigerian” Email Scam
The Bait: Con artists claim to be officials,
businesspeople, or the surviving spouses of former government honchos in
Nigeria or another country whose money is somehow tied up for a limited
time. They offer to transfer lots of money into your bank account if you
will pay a fee or “taxes” to help them access their money. If
you respond to the initial offer, you may receive documents that look
“official.” Then they ask you to send money to cover
transaction and transfer costs and attorney's fees, as well as blank
letterhead, your bank account numbers, or other information. They may even
encourage you to travel to Nigeria or a border country to complete the
transaction. Some fraudsters have even produced trunks of dyed or stamped
money to verify their claims.
The Catch: The emails are from crooks trying to steal
your money or perpetrate identity theft. Inevitably, emergencies come up,
requiring more of your money and delaying the “transfer” of
funds to your account; in the end, there aren't any profits for you, and
the scam artist vanishes with your money. According to State Department
reports, people who have responded to “pay in advance ”
solicitations have been beaten, subjected to threats and extortion, and in
some cases, murdered.
Your Safety Net: If you receive an email from someone
claiming to need your help getting money out of a foreign country, don't
respond.
Forward “Nigerian” scams — including all the email
addressing information — to spam@uce.gov. If you've lost money to one of
these schemes, call your local Secret Service field office. Local field
offices are listed in the Blue Pages of your telephone directory.
2. Phishing
The Bait: Email or pop-up messages that claim to be
from a business or organization you may deal with — say, an Internet
service provider (ISP), bank, online payment service, or even a government
agency. The message may ask you to “update,”
“validate,” or “confirm” your account information
or face dire consequences.
The Catch: Phishing is a scam where Internet fraudsters
send spam or pop-up messages to reel in personal and financial information
from unsuspecting victims. The messages direct you to a website that looks
just like a legitimate organization's site. But it's a bogus site that
exists simply to trick you into divulging your personal information so the
operators can steal it, fake your identity, and run up bills or commit
crimes in your name.
Your Safety Net: Make it a policy never to respond to
email or pop-up messages that ask for your personal or financial
information, or click on links in the message. Don't cut and paste a link
from the message into your Web browser, either: Phishers can make links
look like they go one place, but then actually take you to a look-alike
site. If you are concerned about your account, contact the organization
using a phone number you know to be genuine, or open a new Internet browser
session and type in the company's correct Web address yourself. Using
anti-virus software and a firewall, and keeping them up to date, can
help.
Forward phishing emails to spam@uce.gov and to the organization that is
being spoofed.
3. Work-at-Home Scams
The Bait: Advertisements that promise steady income for
minimal labor — in medical claims processing, envelope-stuffing,
craft assembly work, or other jobs. The ads use similar come-ons: Fast
cash. Minimal work. No risk. And the advantage of working from home when
it's convenient for you.
The Catch: The ads don't say you may have to work many
hours without pay, or pay hidden costs to place newspaper ads, make
photocopies, or buy supplies, software, or equipment to do the job. Once
you put in your own time and money, you're likely to find promoters who
refuse to pay you, claiming that your work isn't up to their “quality
standards.”
Your Safety Net: The FTC has yet to find anyone who has
gotten rich stuffing envelopes or assembling magnets at home. Legitimate
work-at-home business promoters should tell you — in writing —
exactly what's involved in the program they're selling. Before you commit
any money, find out what tasks you will have to perform, whether you will
be paid a salary or work on commission, who will pay you, when you will get
your first paycheck, the total cost of the program — including
supplies, equipment and membership fees — and what you will get for
your money. Can you verify information from current workers? Be aware of
“shills,” people who are paid to lie and give you every reason
to pay for work. Get professional advice from a lawyer, an accountant, a
financial advisor, or another expert if you need it, and check out the
company with your local consumer protection agency, state Attorney General
and the Better Business Bureau, not only where the company is located, but
also where you live.
Forward work-at-home scams to spam@uce.gov.
4. Weight Loss Claims
The Bait: Emails promising a revolutionary pill, patch,
cream, or other product that will result in weight loss without diet or
exercise. Some products claim to block the absorption of fat, carbs, or
calories; others guarantee permanent weight loss; still others suggest
you'll lose lots of weight at lightening speed.
The Catch: These are gimmicks, playing on your sense of
hopefulness. There's nothing available through email you can wear or apply
to your skin that can cause permanent — or even significant weight
loss.
Your Safety Net: Experts agree that the best way to
lose weight is to eat fewer calories and increase your physical activity so
you burn more energy. A reasonable goal is to lose about a pound a week.
For most people, that means cutting about 500 calories a day from your
diet, eating a variety of nutritious foods, and exercising regularly.
Permanent weight loss happens with permanent lifestyle changes. Talk to
your health care provider about a nutrition and exercise program suited to
your lifestyle and metabolism.
Forward weight loss emails to spam@uce.gov.
5. Foreign Lotteries
The Bait: Emails boasting enticing odds in foreign
lotteries. You may even get a message claiming you've already won! You just
have to pay to get your prize or collect your winnings.
The Catch: Most promotions for foreign lotteries are
phony. Participating in a foreign lottery violates U.S. law. The scammers
will keep any money you send for “taxes” or fees. In addition,
lottery hustlers use victims' bank account numbers to make unauthorized
withdrawals or their credit card numbers to run up additional charges.
Your Safety Net: Skip these offers. Don't send money
now on the promise of a pay-off later.
Forward solicitations for foreign lottery promotions to spam@uce.gov.
6. Cure-All Products
The Bait: Emails claiming that a product is a
“miracle cure,” a “scientific breakthrough,” an
“ancient remedy” — or a quick and effective cure for a
wide variety of ailments or diseases. They generally announce limited
availability, and require payment in advance, and offer a no-risk
“money-back guarantee.” Case histories or testimonials by
consumers or doctors claiming amazing results are not uncommon.
The Catch: There is no product or dietary supplement
available via email that can make good on its claims to shrink tumors, cure
insomnia, cure impotency, treat Alzheimer's disease, and prevent severe
memory loss. These kinds of claims deal with the treatment of diseases;
companies that want to make claims like these must follow the FDA's
pre-market testing and review process required for new drugs.
Your Safety Net: When evaluating health-related claims,
be skeptical. Consult a health care professional before buying any
“cure-all” that claims to treat a wide range of ailments or
offers quick cures and easy solutions to serious illnesses. Generally
speaking, cure all is cure none.
Forward spam with miracle health claims to spam@uce.gov.
7. Check Overpayment Scams
The Bait: A response to your ad or online auction
posting, offering to pay with a cashier's, personal, or corporate check. At
the last minute, the so-called buyer (or the buyer's “agent”)
comes up with a reason for writing the check for more than the purchase
price, and asks you to wire back the difference after you deposit the
check.
The Catch: If you deposit the check, you lose.
Typically, the checks are counterfeit, but they're good enough to fool
unsuspecting bank tellers; when they bounce, you are liable for the entire
amount.
Your Safety Net: Don't accept a check for more than
your selling price, no matter how tempting the plea or convincing the
story. Ask the buyer to write the check for the purchase price. If the
buyer sends the incorrect amount, return the check. Don't send the
merchandise. As a seller who accepts payment by check, you may ask for a
check drawn on a local bank, or a bank with a local branch. That way, you
can visit personally to make sure the check is valid. If that's not
possible, call the bank the check was drawn on using the phone number from
directory assistance or an Internet site that you know and trust, not from
the person who gave you the check. Ask if the check is valid.
Forward check overpayment scams to spam@uce.gov and your state Attorney
General. You can find contact information for your state Attorney General
at www.naag.org.
8. Pay-in-Advance Credit Offers
The Bait: News that you've been
“pre-qualified” to get a low-interest loan or credit card, or
repair your bad credit even though banks have turned you down. But to take
advantage of the offer, you have to ante up a processing fee of several
hundred dollars.
The Catch: A legitimate pre-qualified offer means
you've been selected to apply. You still have to complete an application
and you can still be turned down. If you paid a fee in advance for the
promise of a loan or credit card, you've been hustled. There may be a list
of lenders, but there's no loan, and the person you've paid has taken your
money and run.
Your Safety Net: Don't pay for a promise. Legitimate
lenders never “guarantee” a card or loan before you apply. They
may require that you pay application, appraisal, or credit report fees, but
these fees seldom are required before the lender is identified and the
application is completed. In addition, the fees generally are paid to the
lender, not to the broker or person who arranged the
“guaranteed” loan.
Forward unsolicited email containing credit offers to spam@uce.gov.
9. Debt Relief
The Bait: Emails touting a way you can consolidate your
bills into one monthly payment without borrowing; stop credit harassment,
foreclosures, repossessions, tax levies and garnishments; or wipe out your
debts.
The Catch: These offers often involve bankruptcy
proceedings, but rarely say so. While bankruptcy is one way to deal with
serious financial problems, it's generally considered the option of last
resort. The reason: it has a long-term negative impact on your
creditworthiness. A bankruptcy stays on your credit report for 10 years,
and can hinder your ability to get credit, a job, insurance, or even a
place to live. To top it off, you will likely be responsible for attorneys'
fees for bankruptcy proceedings.
Your Safety Net: Read between the lines when looking at
these emails. Before resorting to bankruptcy, talk with your creditors
about arranging a modified payment plan, contact a credit counseling
service to help you develop a debt repayment plan, or carefully consider a
second mortgage or home equity line of credit. One caution: While a home
loan may allow you to consolidate your debt, it also requires your home as
collateral. If you can't make the payments, you could lose your home.
Forward debt relief offers to spam@uce.gov.
10. Investment Schemes
The Bait: Emails touting “investments” that
promise high rates of return with little or no risk. One version seeks
investors to help form an offshore bank. Others are vague about the nature
of the investment, and stress the rates of return. Promoters hype their
high-level financial connections; the fact that they're privy to inside
information; that they'll guarantee the investment; or that they'll buy it
back. To close the deal, they often serve up phony statistics, misrepresent
the significance of a current event, or stress the unique quality of their
offering.
The Catch: Many unsolicited schemes are a good
investment for the promoters, but not for participants. Promoters of
fraudulent investments operate a particular scam for a short time, close
down before they can be detected, and quickly spend the money they take in.
Often, they reopen under another name, selling another investment scam.
Your Safety Net: Take your time in evaluating the
legitimacy of an offer: The higher the promised return, the higher the
risk. Don't let a promoter pressure you into committing to an investment
before you are certain it's legitimate. Hire your own attorney or an
accountant to take a look at any investment offer, too.
Forward spam with investment-related schemes to spam@uce.gov.
Fighting Back
Con artists are clever and cunning, constantly hatching new variations
on age-old scams. Still, skeptical consumers can spot questionable or
unsavory promotions in email offers. Should you receive an email that you
think may be fraudulent, forward it to the FTC at spam@uce.gov, hit delete, and smile. You'll
be doing your part to help put a scam artist out of work.