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| FRAUD ALERT December - 2008 |
| Copyright ConsumerFight.com 2007, 2008 All rights Reserved. |
| FRAUD ALERT ARCHIVES April 2008 March 2008 February 2008 January 2008 November 2007 October 2007 September 2007 |
AUCTION FRAUD Auction fraud involves fraud attributable to the misrepresentation of a product advertised for sale through an Internet auction site or the non-delivery of products purchased through an Internet auction site. Consumers are strongly cautioned against entering into Internet transactions with subjects exhibiting the following behavior: The seller posts the auction as if he resides in the United States, then responds to victims with a congratulatory email stating he is outside the United States for business reasons, family emergency, etc. Similarly, beware of sellers who post the auction under one name, and ask for the funds to be transferred to another individual. The subject requests funds to be wired directly to him/her via Western Union, MoneyGram, or bank-to-bank wire transfer. By using these services, the money is virtually unrecoverable with no recourse for the victim. Sellers acting as authorized dealers or factory representatives in countries where there would be no such dealers should be avoided. Buyers who ask for the purchase to be shipped using a certain method to avoid customs or taxes inside another country should be avoided. Be suspect of any credit card purchases where the address of the card holder does not match the shipping address. Always receive the card holder's authorization before shipping any products. |
DEBT ELIMINATION FRAUD The potential risk of identity theft related crimes associated with the debt elimination scheme is extremely high because the participants provide all of their personal information to the subject. Some debt elimination companies do the work for you of contacting every credit card company you owe money to then asking them to accept a smaller payment to keep you from defaulting on the debt. They do this for every company you own money to and then you send them a certain amount each month and they use that to pay all the companies you owe money to. They charge you a fee for this 'intervention" which you could actually do yourself. Some get you to follow their advice and file for bankruptcy, which could have a worse effect on your credit history report. See our links page for help with debt problems. |
EMPLOYMENT/BUSINESS OPPORTUNITIES FRAUD Employment/business opportunity schemes have surfaced wherein bogus foreign-based companies are recruiting citizens in the United States on several employment-search websites for work-at-home employment opportunities. These positions often involve reselling or reshipping merchandise to destinations outside the United States. Prospective employees are required to provide personal information, as well as copies of their identification, such as a driver's license, birth certificate, or social security card. Those employees that are "hired" by these companies are then told that their salary will be paid by check from a United States company reported to be a creditor of the employer. This is done under the pretense that the employer does not have any banking set up in the United States. The amount of the check is significantly more than the employee is owed for salary and expenses, and the employee is instructed to deposit the check into their own account, and then wire the overpayment back to the employer's bank, usually located in Eastern Europe. The checks are later found to be fraudulent, often after the wire transfer has taken place. In a similar scam, some web-based international companies are advertising for affiliate opportunities, offering individuals the chance to sell high-end electronic items, such as Plasma television sets and home theater systems, at significantly reduced prices. The affiliates are instructed to offer the merchandise on well-known Internet auction sites. The affiliates will accept the payments, and pay the company, typically by means of wire transfer. The company is then supposed to drop-ship the merchandise directly to the buyer, thus eliminating the need for the affiliate to stock or warehouse merchandise. The merchandise never ships, which often prompts the buyers to take legal action against the affiliates, who in essence are victims themselves. Never pay a fee to obtain an application or to process an application for employment. This is another common ploy for so called "guaranteed work" in another country. They collect the fee and that is the last you will here of them. There are no shortcuts. Think twice and then again before you send money to anyone. |
INVESTMENT FRAUD
Investment fraud is geared towards the elderly, but everybody should follow the tips below.
- If the "opportunity" appears too good to be true, it probably is.
- Beware of promises to make fast profits.
- Do not invest in anything unless you understand the deal.
- Don't assume a company is legitimate based on "appearance" of the website.
- Be leery when responding to investment offers received through unsolicited email.
- Be wary of investments that offer high returns at little or no risk.
- Independently verify the terms of any investment that you intend to make.
- Research the parties involved and the nature of the investment.
- Be cautious when dealing with individuals outside of your own country.
- Contact the Better Business Bureau to determine the legitimacy of the company.
One of the biggest investment frauds that has continued for many years is the Ponzi Scheme. All
older investors are paid dividends from new investors. This can go on for a long time and everything
seems so great.
The person in charge of this phony investment company does nothing to actually invest everyone's
money except to live of the money as it comes in with his salesmanship of selling investments to
people that trust him without digging deeper to check the company out.
Finally, when he finds out he has too many investors to pay dividends to because he has not
brought in enough new infester's, the Ponzi Scheme begins to fall apart. The older investors start
complaining that they are not receiving dividend payments anymore and then to their surprise, their
original investment money has disappeared also.
Due diligence is mandatory to anyone contemplating investing their money.
