Avoiding Telemarketing and E-Mail Scams

• Sweepstakes and prize offers. The voice on the phone says you've "won" a prize or a sweepstakes. You may never have heard of the outfit calling or perhaps you filled out a sweepstake card at a local retail mall or by mail. The catch is you have to pay "shipping and handling" or some other charge. That request for money (to be sent by check, credit card, money order or any other means) should set off warning bells. Never give out your financial information (credit card number, bank account number, social security number) in response to such calls. If the "prize" even exists (often they don't), it's generally worthless or extremely overpriced.
• Phony charities. The caller often uses a name that's very similar to a reputable charitable organization. Ask any charity that makes an unsolicited call to send you information in the mail. If they refuse, hang up. If the organization actually sends literature, check it out with the BBB Wise Giving Alliance a project of the Better Business Bureaus and National Charities Information Bureau.
• Get-rich-quick, can't-fail "investments." These guys say they are selling an "investment opportunity" that will offer you a high return on your money. In fact, whatever their "investment instrument"-gemstones, art, "collectible" coins, gas, oil and mineral leases, precious metals, unknown stocks, and foreign currency are a few common offerings-the only bank account enriched is theirs. Their commodity or stock is usually worthless, if it even exists. The simplest way to guard against these scams is to say no as soon as you can to any unsolicited "investment" calls. Ask them to "put this number on your do not call list." If they call again, they've broken the law. Report them to the FTC.
• Protection Against Credit Card Loss. This scheme has grown in popularity during the recent economic slowdown. According to the FTC, these folks often lie by saying that you need to pay for extra protection because a) you are liable for more than $50 in unauthorized charges on a credit card, b) computer hackers can get at your card number and charge thousands (or a variation on this theme) or they claim they are "from 'the security department' and want to activate the protection feature on your credit card." That's all a pack of lies. The law still limits liability to $50 for unauthorized use. Every card issuer provides procedures for disputing unauthorized claims. (Most consumer experts advise that you probably don't need the "protection plans" offered legitimately by the card issuers, either-but that's another story.)
• Advance-Fee Loan Offers. This call from the blue offers to get you a loan to pay off bills or buy anything you like-success is practically guaranteed, they say. All you have to do is pay a small advance fee first, before you fill out any applications-say $250 or $300 or so. Those warning bells ought to be ringing again. Any legitimate offer of credit never asks for money UP FRONT before you complete an application. Don't even consider these offers-hang up on them. If you feel you need a consolidation loan, consult your credit union first. They can help you look at your best options in an unbiased way.
• Free or cheap travel offers. How'd you like a free weekend in the mountains or a cheap week in the islands? These calls seem to offer fun for little cost, but are filled with hidden charges. At best you'll have to listen to a sales spiel and have poor accommodations; at worst the scammers just take your money and run. Your best bet is to say no to these calls. If you fancy a low-cost vacation, see what bargains your travel agent can offer. Then check them out carefully.
• Loss Recovery Scams. If you've lost money before in a telemarketing scam, you may hear from these folks. They buy "sucker" lists that identify what you've lost, and they say that for a fee they'll get that money back for you. Wrong. Bite on this offer, and you'll just throw more money away. Nobody, not even law enforcement, can promise to get your money back. Don't even listen to these calls.

• Chain e-mails. Pyramid e-mail chain letters promise typically that you can make thousands of dollars in 90 days or so, if you just send $5.00 to the four or five names at the top of the list, then add your name to the top of the list, delete the bottom name and send it out as they instruct. Many letters even say that such chain e-mail is legal and has been approved by the FTC. Wrong on all counts! Delete those e-mails. Sending money is just throwing it away-and informing the sender that you are a gullible target. Read more about how these work and how to help stop them, at the FTC's chain e-mail web site.
• Online auctions. More people lose money on Internet auctions than all other scams combined. Although such auctions are more often marketed by web site than e-mail, plenty of bogus firms are out there pitching offers at your e-mail address. The experts' advice: Stick to the well-known auction sites if you want to play the auctions, but remember even the most reputable sites with the best track records can't really control the individuals offering the merchandise.
• Work at home and earn thousands. Envelope-stuffing schemes and assembling craft items are two types of this scam. You send in your "start-up" fee-which can be hundreds of dollars-and then learn that the folks making the pitch have no real work to offer or real referrals for such work. For your fee they'll tell you how to run the same work-at-home scam on other people. If you actually get some craft work to assemble, they'll claim your work is never up to their "quality standards." That small print in the agreement you signed means they don't have to pay you.
• Credit repair. Pay these companies a nice fee and they promise to fix your bad credit. The problem? No one can "fix" your credit record for you. Only you can repair your credit by making a deliberate plan to repay debt and with time. If you need help, talk to your credit union about legitimate credit counseling. Certainly, don't fall for illegal schemes that tell you to lie or make up information on new credit applications. If you do so, only you and not the con artists recommending the play will be held accountable.

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