Avoiding Scams

As the world falls deeper into the economic recession, the amount of scams that prey on the poor or easily misguided are on the rise.  The best rule to avoid most problems is the old saying, “if it sounds to good to be true, then it probably is.”  Here is a run down of the most common scams that scammers are running right now.  There are so many scams out there that affect every aspect of the internet.  So just use common sense and most of the time, you can avoid these problems. 

Nigerian Lottery/Bank Account Scam:

Though this scam originated in Nigeria, scammers from all over the world have adopted this scheme. 

The gist of the scam is that someone will email you claiming that they won the lottery in a foreign country, someone died and left a huge sum of money and that they can’t get the money unless they pay a fee.  So they are asking you to pay the fee and in exchange for your kind act, they will give you a percentage of the prize or money.  The problem is that no such money exists. 

First of all, if you win a lottery, you do not have to pay any fees to claim it.  Secondly, you’re taking someone else’s word, someone you’ve never met and who just happened to send you an email hoping you would help.   Long story short, if you send them any money, or wire any money, YOU WILL NOT get what you think you are getting and the money you sent is GONE.  There are many variations to this scam but if you’re not expecting an email, then it’s probably a scam. 

Example:  Greetings, I have won the Nigerian Lottery but cannot claim it due to fees that must be paid.  I ask that you pay the 895 fee and we can split the lottery winnings. 

Bank Account Verification:

This scam targets people with bank accounts, paypal accounts and basically any type of account that provides remote access to cash or purchasing power.  It started out with email but now can occur on cell phone text messages. 

You get an email or text that says your bank account/paypal account has been compromised and that you need to go to a website to verify your account information.  The message (primarily text messages) may give you a phone number to call.  You go to the site or call the number and they ask you for your account number, your name, birth date and social security number and they tell you the problem has been resolved.  Then they clean out your accounts and sell your information for identity theft. 

First of all, NO bank or paypal will contact you through email or text to verify your account information.  Simple as that.  If you receive such an email or text and you feel convinced that it’s legitimate, call your local branch or better yet, go to your local branch and speak to someone you know works for the bank. 

Example:  You get an email or text that reads, Bank of America (or any bank).  Your account has been temporarily suspended due to multiple invalid logons to your account.  Please click link or call our number to verify account information. 

Craigslist Overpayment/Prepayment Scams:

This scam involves scammers contacting sellers on craigslist and offering to buy their item for sale or rent a room for rent.  They send you a cashier’s check for more than the price and ask you to send the rest of the money back.  The problem is that the cashier’s check is fake and bounces.  If you deposited it in your checking account, then you will be held responsible.  The best way to avoid this scam is only accept cash and to deal with people in person at a mutual place like a coffee shop.  I also recommend not using an email and only posting your phone number.   

Example:  You place ad to sell your laptop computer for $500.  Someone contacts you and says their buying for their client overseas and would like to purchase your laptop or buy more than your selling.  They will send you a cashier’s check for $3000 and ask you to cash it, keep the money for your item and send the rest back with the laptop.  If you do this, the check will bounce and whatever you send will be gone. 

Craigslist Car Shipping Scams:

This scam is another payment scam but usually involves the scammer posting an ad to sell a car.  A tell-tale sign of this scam is late model cars at extremely low prices.  IE 2006 Cadillac Escalade for $4500 or 2007 Nissan Altima for $4000.  You respond to the ad and you will get an automatic response giving you a story of why they are selling the car so cheap.  They will be vague about the details and 100% of the time, the vehicle will not be in the city or country that you are in.  They will ask you to buy the car, sight unseen and prepay and trust that they will send the car.  They may entice you with buyer protection services or escrow services.  All part of the scam.  Bottom line, don't buy a car unless you can actually test-drive it!  In other words, only buy locally. 

Example: You see an ad for a near new car for unbelievably low price.  The ad seems legit because there are many pretty pictures and the seller posts the ad as a dealer which anyone can do.  You email the seller and they tell you the car is in Europe or some other country and they can't take it to where they are going and that is why they are selling it so cheap.  All you have to do is wire them the money plus the fees to ship the car to your country.  Maybe they will point you to an escrow service and claim that craigslist has a buyer protection plan.  All false.  If you send them any money, you will never get a car nor will you be able to get your money back. 

http://www.ehow.com/how_3390861_spot-car-scams-craigslist.html

Participation for a Prize/Free Product Testing/Free Gift Cards:

These seem legitimate because you see these ads on various websites including reputable sites.  But they are not as they are advertised.  Again, too good to be true probably isn’t.  Most ads promise a free product such as an Ipod, Nintendo Wii or laptop computer.  All you have to do is complete 5 or whatever offers.  The catch is that each offer involves spending money, applying for credit which many times end up costing you more than the product you are trying to get, if you get the item at all.  These companies will try to avoid giving you the item at all costs by claiming you did not complete the offers properly or in the allotted time.  These companies operate in a very grey area but are practically scams.  If an item truly was free, then why would you have to spend money to get it?  Also, you will see free gift cards to name brand companies like Best Buy or Chili’s.  Again, they require you to complete so many offers and there’s a 99% chance that you will NEVER get the gift cards.  Additionally, by trying to complete these offers, you will be giving your email out to many companies which will add more spam to your inbox. 

Erroneous Internet Browser Viruses:

There are several spyware and viruses that get downloaded to your computer by pretending to alert you to a spyware or virus attack.  These occur mostly on sites that offer free stuff, stuff of questionable legality like free movie and music downloads and adult content sites.  You will be surfing and all of a sudden you get a popup window or your whole browser switches to a screen that alerts you to a virus or spyware infection and gives you the option to fix the problem.  By clicking the fix problem, you are actually downloading the virus or spyware which in turn can do a number of things like transmit your personal information to remote computer to completely wiping out your hard drive.  To avoid these viruses, you should be aware of the spyware and viruse programs you have running on your computer so you should know right away if something is fishy.  I recommend AVG anti-virus and spybot search and destroy.  If you get a popup or screening warning you about viruses, do ctrl + alt +del at the same time and go to task manager.  Close the window that the virus warning is coming from.  If this does not work, restart your computer.  It is only a window and as long as you don’t click on the download button, your computer is no yet infected. 

Other stuff to watch out for:

Free land from the government: These ads are all over the internet and may be seen in printed media.  You must buy this guide in order to find out how and where to get the free land.  The government does not have such a program so this is 100% scam. 

Government jobs: You will see these ads mostly on craigslist and in some thrifty nickel type papers.  They all claim to allow you to apply for government jobs but for a fee.  You do not have to pay a fee to apply for a government job.  You can apply directly on the agency’s website.  These ads are 100% scam. 

Tips for Craigslist:

Only deal locally or within cities you are willing to travel to. 

Don't plan on buying things that will have to be shipped to you.

If at all possible, choose ads that have local phone numbers or some indication that the person is actually in your city. 

Don't buy items sight unseen.

Don't accept cashier's checks, money orders. 

If you place an ad, don't show your email, only post your phone number. 

Meet people in mutual locations and bring a friend.

If you feel uncertain, then don't do it. 

If it seems too good to be true, then it probably is!