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How to Spot a
Scam a Mile Off
by Elena Fawkner
Received the following forwarded email from a subscriber
this morning:
"I am an Executive Director with the Nigerian National
Petroleum Corporation (NNPC) and a member of the Contract
Advisory Committee (CAC). I am seeking your assistance to
enable me transfer the sum of $26,500,000 (Twenty Six
Million, Five hundred Thousand United States Dollars) into
your private/company account."
Carole told me she has received "3 or 4 of these in the last
week, I think from different people. I deleted the others.
It makes me nervous. Sounds like a dangerous scam."
That's exactly what it is, of course. Maybe you're reading
this thinking "I can't believe people are still falling for
the Nigeria scam after all this time". On the other hand,
maybe you're reading this thinking, "Wow, I might have
responded to that. How am I supposed to know what's a scam
and what's real?
The reality is that there are hundreds of thousands of
people coming online, for the first time, each year. Many of
these people have simply not been exposed to scams like the
ones that are constantly touted on the Internet before. Many
of these people come online to try and find a way to make
money with their computers and/or they're looking for ideas
for making money from home.
The fact that they may not recognize scams off the bat
doesn't mean they're naive or stupid, it just means that
they haven't been in an environment where this sort of stuff
came their way before now. And don't the scammers know it.
Like vultures circling overhead, they await their prey. They
know they have only a narrow window of opportunity because
it doesn't take newbies long to catch on so they have to be
quick about it. And how do they do that? They hang out where
newbies hang out so they can get them while they're still
young and fresh and vulnerable. They're nothing but
predators looking to pick off the easiest game. Wouldn't
want to have to engage in any real work, after all. In this
article we look at several main scams and how to recognize
them.
=> Nigerian Advance Fee Scheme
The gist of this worldwide scheme is that small to
medium-size businesses receive a letter from someone who
purports to be an official of the Nigerian government or
major utility or similar who needs to transfer some huge
amount of money out of the country. The money typically is
an overpayment by the government on a procurement contract.
The object of the exercise is to get you to provide your
bank account details (for the purpose of wire transferring
the money of course). Surprise surprise, there's a transfer
all right but not INTO your account!
=> The FTC "Dirty Dozen"
These are the top 12 scams that have been identified by the
(U.S.) Federal Trade Commission as the most likely to arrive
via email:
1. Business Opportunities - often pyramid schemes (see
below) thinly disguised as legitimate opportunities to earn
money. What to look for: high returns with little or no
effort or cash outlay required.
2. Bulk Email - offers of lists of thousands of email
addresses all of whom, of course, are just dying to receive
your marketing message. What to look for: "Bulk Email Works!
10,000 addresses for $9.99."
3. Chain Letters - send $5 to the next name on the list then
cross the bottom name off the list, replace it with your
own, then forward the letter to 500 of your nearest and
dearest. What to look for: A jail cell. This is a pyramid
scheme and is illegal. The letter goes to great pains to say
that it is not illegal.
4. Envelope Stuffing - think you're going to be paid for
stuffing envelopes? Think again. You get a kit that you can
turn around to recruit others to an envelope stuffing scam
of your very own! Watch out for craft assembly work as well.
You'll probably find all of your hard work is not up to
their exacting "quality standards" and therefore you won't
get paid for your work.
5. Health and Diet Scams - magic pills that eradicate the
need to eat fewer calories than you expend in order to lose
weight. They don't work.
6. Effortless Income - no such thing. As the FTC says, if
they worked, everyone would be doing it.
7. Free Goods - you're told you'll get a free computer. You
have to pay a fee to join a club and then told you have to
recruit other members. You get paid in computers. They're
nothing but pyramid schemes.
8. Investment Opportunities - look for outrageously high
rates of return with no risk.
9. Cable Descrambler Kits - they probably won't work and
even if they do, you're stealing a service from a cable
company and committing a crime.
10. Guaranteed Loans or Credit - pay a fee and you're given
a list of lenders, all of whom turn you down. Credit cards
never arrive.
11. Credit Repair - no matter how bad your credit, pay these
people and they'll fix it. They generally just advise you
how to lie on future credit applications - how to commit
fraud in other words.
12. Vacation Prize Promotions - your accommodations will be
so bad you'll want to pay for an upgrade. You'll probably
have to pay to schedule a vacation at the time you want as
well.
=> Pyramid Schemes
Make money by recruiting members into the program without
giving anything of equal value in exchange for membership
fees. Contrast MLM (multi-level marketing schemes). These
are not pyramid schemes because they involve the sale of
products and services in return for membership.
=> Medical Billing
Prepackaged businesses requiring an investment of $2,000 to
$8,000. Few people who purchase one of these "businesses"
are able to find clients, start a business and generate
revenues. Competition in this area is fierce and
concentrated around a few big, well-entrenched firms.
=> Your In Box
Finally, go to your in-box now. You'll find no end of scams
sitting right there. Here's one that just arrived in mine
...
"Subject: How to make $1,000,000 in 20 weeks selling to
Newcomers on the Net"
Like all the rest, it gets the one-finger salute - index
finger to the delete key. Works beautifully every time.
Where to go for more information on internet scams:
FTC Website
http://www.ftc.gov/ftc/consumer.htm
Scambusters
http://www.scambusters.org
Netscams
http://www.netscams.com/frameset.html
Elena Fawkner is editor of A Home-Based Business Online ...
practical home business ideas for the work-from-home
entrepreneur. Visit http://www.ahbbo.com
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