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You Are Here >> Scams & Fraud >> Tips For Protecting Yourself Against Scams & Fraud Crimes
Tips For Protecting Yourself Against Scams & Fraud Crimes
As a fraud victim, you have a strong motivation to avoid being defrauded again. The following recommendations may help. Remember, of course, that not every organization that calls you or sends you mail is involved in fraud - most are not. Still, if you encounter any of the techniques described below, use caution before buying, investing, or making donations.
Avoid Identity Fraud
- Never provide personal or financial information, such as your Social Security number, mother's maiden name, savings or checking account numbers, or credit card numbers or expiration dates, to a person or agency with whom you are not familiar, especially over the telephone or Internet.
- Don't imprint your Social Security number or driver's license number on checks. When filling out checks, avoid using pencil or light-colored ink, which can be altered easily.
- Remove mail from your mailbox as soon as possible. Also, it's better not to place mail in your mailbox for postal pickup - take it directly to the post office.
Avoid Online Escrow Services Fraud
- If the buyer or seller "insists" on using a particular online escrow service or online payment service you've never heard of, before using that service, both parties should verify that it is a legitimate, reputable company. Check out if the escrow service is licensed and bonded with the appropriate state agency, usually the state in which the escrow service is located. Visit its website and call its customer service line. If there isn't one, or you call and can't reach someone, don't use that service. A generic voice mail that says leave a message is a sign that the company may be fraudulent.
- Check with the Better Business Bureau (BBB), your county or state consumer protection agency (check the blue pages of the phone book under county and state government), the Federal Trade Commission (FTC), or your state attorney general's office - where you live and where the online payment or escrow service is based - to see if any unresolved complaints are on file against the escrow service and to make sure the escrow service really is endorsed by these organizations. But remember, a lack of complaints doesn't guarantee that the escrow service has no problems.
- Sometimes the website of a phony escrow service can be detected by sloppy content, for example, spelling and grammar errors, and/or inconsistent information. Other times, scammers can build their phony escrow sites by copying the content from legitimate escrow service sites, such as Escrow.com.
As mentioned above, "always contact the escrow company directly" to ensure it has not been a victim of corporate identity theft.
- Escrow.com is a legitimate escrow site, recommended by eBay. Internet Escrow Service (IES) is a wholly-owned subsidiary of Escrow.com. IES only provides escrow services to Escrow.com. Any site that claims otherwise is fraudulent.
- Protect your privacy. Never provide your Social Security number, driver's license number, credit card number, bank account information, or eBay - PayPal info, etc., until you have checked out the seller, and the online payment or escrow service, if you're using one, to ensure it is a legitimate, reputable company.
- Never wire funds via Western Union, Moneygram or any other wire service, anyone who asks you to do so is a scammer. Legitimate escrow companies will not ask you to do this. Legitimate escrow companies ask you to wire money from "your bank to their bank", and provide you with a routing number and account number for their financial institution.
- Reputable escrow services do not use spam advertising.
- Avoid escrow service sites with domain names ending in .cc, .biz, .org, .info., or .US.
- Be aware of fake cashier checks and money orders. If you receive one, the bank will cash it for you, and then hold you responsible when the fake is discovered weeks later.
Avoid Staged Auto Accident Fraud
- If you're in an accident, call the police immediately.
- Report accident claims to your insurance company. Don't settle on site with cash.
- Be careful with your personal information, mindful of identity theft.
- If you can, photograph the car and passengers and write down names, addresses, and phone numbers.
- Use medical, car repair, and legal professionals you know and trust.
- Don't tail gate - drive safely.
Check on Company Background
- Check a company's or individual's record with your local Better Business Bureau, or the Attorney General Consumer Pro-tection Unit, or local, state, and federal licensing agencies, or other consumer protection agencies.
- Advertising through recognized media outlets or on-line services does not ensure a company's legitimacy. Newspapers, television stations, magazines, and other media are not required to verify the legitimacy of their advertisers.
- If you have not conducted business with a company or individual in the past, never pay in advance without a thorough investigation.
- Be wary if a charitable organization asks to come to your home to pick up money. Ask for written information about all charities before deciding whether to contribute.
- Verify business addresses and telephone numbers through the phone company. Many fraud criminals do not stay in an area long enough to be included in directory assistance data banks.
- Check professional credentials and licenses through organizations like the county medical society, state or local bar associations, or other professional licensing associations, such as the Association of Licensed Financial Planners.
- Franchises and some other business opportunities are required to give detailed written disclosures before asking consumers for payment. Read them carefully and check all references.
- Contact the National Fraud Information Center (NFIC) to educate yourself about current scams and tips on how to avoid becoming a victim. You can also report fraudulent activities to the National Fraud Information Center (NFIC), which will notify the appropriate law enforcement or other government agencies. The National Fraud Information Center (NFIC) can be reached at (800) 876-7060.
Foreclosure Rescue Scam
- Avoid any business that guarantees to stop the foreclosure process - no matter what your circumstances.
- Beware of ads like "Stop Foreclosure Now!" or "We guarantee to stop your foreclosure." or "We Can Save Your Home. Guaranteed. Free Consultation." or "We stop foreclosures everyday. Our team of professionals can stop yours this week!" The door is open for fraudulent foreclosure "rescue" professionals who use half-truths and outright lies to sell services that promise relief and then fail to deliver. Their goal is to make a quick profit through fees or mortgage payments they collect from you, but do not pass on to the lender. Sometimes, they assume ownership of your property by deceiving you.
- Avoid any business that instructs you not to contact your lender, lawyer, or credit or housing counselor.
- Avoid any business that collects a fee before providing you with any services.
- Avoid any business that accepts payment only by cashier's check or wire transfer.
- Avoid any business that encourages you to lease your home so you can buy it back over time.
- Avoid any business that tells you to make your mortgage payments directly to it, rather than your lender.
- Avoid any business that tells you to transfer your property deed or title to it.
- Avoid any business that offers to buy your house for cash at a fixed price that is not set by the housing market at the time of sale.
- Avoid any business that offers to fill out paperwork for you.
- Avoid any business that pressures you to sign paperwork you haven't had a chance to read thoroughly or that you don't understand.
Miscellaneous
- Before you respond to any offer, review it carefully to make sure you know who you're dealing with.
- Review your financial account statements as soon as you receive them to check for unauthorized charges.
Promotional Material
- When in doubt, ask for information in writing. If they don't supply it, don't buy.
- Be suspicious of all mail, phone, or computer promotions that require you to act quickly to receive goods or services.
- Beware of checks for small amounts that are mailed as prizes. Often, if you cash them, you will authorize a charge for services or items you did not want.
Review Financial Dealings
- Investigate all referrals from family, friends, colleagues, or acquaintances concerning financial investments or purchases, especially if you are unfamiliar with the vendor. Your local Better Business Bureau (BBB), consumer protection agency, and local, state, and federal licensing agencies may be able to help you verify the vendor's business license and professional credentials or any complaints filed against the vendor or his or her business. Unfortunately, many fraud organizations close business before complaints reach the BBB.
- Carefully document all transactions related to your finances or business, including dates and the names of individuals you dealt with.
- Never send money orders or checks to a post office box unless you are sure of the recipient. When in doubt, contact your local Better Business Bureau or consumer protection agency.
- Be wary of ads claiming that bad credit is no obstacle to obtaining a car loan, secured credit card, or other service. Many businesses that market to people with bad credit charge exorbitant interest rates or require an advance fee to apply for credit that may not be available. Check with your local Better Business Bureau or consumer protection agency first.
- Be cautious of lenders who use 800 or 900 numbers. You may call an 800 number only to be directed to a 900 number, which you pay to use, allowing the vendor to profit from the call while giving you little or nothing in return.
- Be wary of individuals or companies that require you to send contracts, payments, or other items through non-postal delivery systems, such as overnight couriers. Many fraudulent companies and individuals use such delivery systems to avoid detection and prosecution by the U.S. Postal Service.
- For personal services and repairs, always obtain several estimates and compare costs. Don't sign any contract you don't fully understand, and don't advance any money for services or repairs until you have thoroughly investigated the individual or company.
- If you are making investments through a bank, make sure you understand whether they are insured by the federal government.
- Before buying any product or service, find out the company's refund and cancellation policies. Check with your state or local consumer protection agency to see if the product or service you are buying has automatic cancellation rights, such as a cooling-off period. Be sure to get all refund and cancellation policy information in writing.
- Always be careful about making any loan agreements over the telephone.
Sweepstakes Scams
- In their latest effort to defraud the public, con artists claiming to work for the Federal Trade Commission (FTC) are calling consumers and claiming that they have won a lottery or sweepstakes. Read Exploiting the FTC Name, Scammers Promise Phony Sweepstakes Prizes
- Don't pay to collect sweepstakes winnings. REAL SWEEPSTAKES DON'T REQUIRE YOU TO SEND MONEY TO CLAIM A PRIZE!! If you have to pay to collect your winnings, you haven't won anything. Legitimate sweepstakes don't require you to pay "insurance," "taxes," or "shipping and handling charges" to collect your prize.
- Hold on to your money. Scammers pressure people to wire money through commercial money transfer companies like Western Union because wiring money is the same as sending cash. If you discover you've been scammed, the money's gone, and there's very little chance of recovery. Likewise, resist any push to send a check or money order by overnight delivery or courier. Con artists recommend these services, so they can get your money before you realize you've been cheated.
- Look-alikes aren't the real thing. It's illegal for any promoter to lie about an affiliation with - or an endorsement by - a government agency or any other well-known organization. Disreputable companies sometimes use a variation of an official or nationally recognized name to try to confuse you and give you confidence in their offers. Insurance companies, including Lloyd's of London, do not insure delivery of sweepstakes winnings.
- Phone numbers can deceive. Some con artists use Internet technology to call you. It allows them to disguise their area code: although it may look like they're calling from Washington, DC, or your local area, they could be calling from anywhere in the world.
- File a complaint with the Federal Trade Commission (FTC). If you receive a call from someone who claims to be a representative of the government trying to arrange for you to collect supposed sweepstakes winnings, file a complaint at the Federal Trade Commission (FTC) website at www.ftc.gov or call 1-877-FTC-HELP. Your complaint will be most useful to enforcement officials if you include the date and time of the call, the name or phone number of the organization that called you, the FTC employee name that was used, the prize amount, the amount of money requested, the payment method, and any other details.
Telephone & Internet Fraud
- Do not reply to unsolicited (spam) e-mail or pop-up message that asks for personal or financial information. Email is not a secure way to send sensitive information.
- Always take precautions when giving out personal information such as your Social Security number, date of birth, account numbers, passwords, or credit card numbers. Never give out personal information over the Internet or when you receive an unsolicited phone call unless you are extremely confident of the source to whom you are providing the information.
- Be cautious of lenders who use 800 or 900 numbers (as mentioned above). You may call an 800 number only to be directed to a 900 number, which you pay to use, allowing the vendor to profit from the call while giving you little or nothing in return.
- Be aware of unsolicited e-mail or phone calls from someone who claims to represent your local election board or civic group and asks to confirm your eligibility or registration to vote. Scammers may send messages asking for your Social Security number or financial information supposedly to register you to vote - or to confirm your registration - when they really want to commit identity theft.
- Some scammers call with a recorded message, or send an email that appears to be from an institution, and ask you to call a phone number to update your account. Because they use Voice over Internet Protocol technology, the area code you call does not reflect where the scammers are. To reach an institution you do business with, call the number on your financial statements.
- Do not click on links contained within an unsolicited e-mail, even if it appears to be from your bank. 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 actually redirect you to another. Anyone wishing to access a particular Web site should initiate contact by typing the Web site address into their Internet address window, rather than clicking on a link in an e-mail or opening an attachment. For example, type www.irs.gov for the Internal Revenue Service's Web site, or www.bankofamerica.com for Bank of America's Web site.
- Be cautious about opening any e-mails claiming to contain pictures in attached files, or downloading any files from emails you receive, regardless of who sent them. These files can contain viruses or other software that can weaken your computer's security. Only open attachments from known senders.
- Contact the actual business that supposedly sent the e-mail to verify if the e-mail is genuine.
- Use anti-virus and anti-spyware software, as well as a firewall, and update them regularly.
- Forward phishing emails to spam@uce.gov - and to the institution or company impersonated in the phishing email.
You also may report phishing email to reportphishing@antiphishing.org. The Anti-Phishing Working Group, a consortium of ISPs, security vendors, financial institutions and law enforcement agencies, uses these reports to fight phishing.
If you've been scammed, visit the Federal Trade Commission's Identity Theft website at ftc.gov/idtheft for important information on next steps to take.
For more tips from the federal government and the technology industry to help you be on guard against Internet fraud, secure your computer, and protect your personal information, visit www.OnGuardOnline.gov.
References:
U.S. Department of Justice
Office of Justice Programs
www.ojp.usdoj.gov
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