FRAUDS & SCAMS

MTHS Personal Finance

Have I got a deaI for you.
en you buy a product, you don't expect to ave
problems wit it. Unfortunately, every purcase
involves some degree of risk.
Most consumer dissatisfaction results from products
tat are defective or of poor quality, but some are te
result of fraud.
n tis presentation, you will learn about some
common frauds as well as your rigts and
responsibilities as a consumer.so you will know
ow NOT to be victim of fraud.
at is Fraud?
ntentional deception to induce someone to
part wit someting of value.
Tere are millions of ways for you to be
deceived in te marketplace. Here are some
of te most common..
%eIemarketing Fraud
%eIemarketers seII inferior or non-existent
products. %ey often use ig pressure
saIes tecniques.
4u've w43 a 'free' gift, vacati43, 4r prize. But
y4u have t4 pay f4r p48tage a3d ha3dli3g
4r 4ther charge8.
!yramid Scemes
non-sustainable business model tat involves
promising participants payment, primarily for
enrolling oter people into te sceme or training
tem to take part, rater tan supplying any real
investment or sale of products or services to te
public.
Foreign Money Offers
ndividuals (u8ually i3 f4reig3 c4u3trie8) send
a ceck for you to cas. You return a portion
of te amount and keep te rest as payment.
Issue? Te ceck is bad.and te bank
olds YOU responsible for te full amount.
!ising
Fake websites are created tat look like a
real one. Used to "fis for your personal
information. (Email8 are 4fte3 u8ed t4 e3tice
y4u t4 utilize the8e fake 8ite8
ork-at-Home Scemes
You send money to start business, supplies
are sent back.but your finised products
are not accepted (you make no money!)
Real job opportunities DO NOT require
payment up front!
uyer eware
Tere are THOUSNDS of frauds and
scams in te world today. (A3d pe4ple ju8t
like y4u are falli3g f4r them
So ow can you know wen an offer is too
good to be true?
y cecking te offer, item, or service against te
RED FLAGS.
Red Flag #1:
Hig !ressure SaIes %ecniques
Te sales pitc is presented wit an urgency
or pressure to make a decision
f y4u d43t buy it t4day, it will be g43e t4m4rr4w."
nsistence tat you finalize a deal orally or
provide personal financial information w/out a
written agreement or contract
Red Flag #2:
Insufficient Information
f te promoter is not locally based and does
not provide important information it could
spell trouble. You sould be able to easily
find te following information suc as:
Pone Number
ddress
ebsite
Sometimes an unscrupulous company will
use only a P.O. box for contact information.
Red Flag #3:
Does it sound too good to be true?
eware of deals tat sound muc better tan
any being advertised by firms tat you know
to be legitimate
Everyone wants to get in on a great deal, but
remember if it sounds too good to be true it
probably is. Just be sure you ceck out
te information.
Red Flag #4:
Offer of Someting for Noting
Noting is free it cost you time or
money or bot.
e all love a freebie, but tere are usually
strings attaced find out wat tey
are.and decide if you want to "play
Red Flag #5:
Need to invest $ to earn $
Sometimes work-at-ome offers require you
to spend a considerable amount of money
before you can begin earning money.
Fraudulent investment scemes may require
a substantial amount of money upfront.
ERE!...if you are asked to send a ceck,
money order, or cas you migt be asking
for trouble!!!
Red Flag #6:
MisIeading testimoniaIs or endorsements
Sometimes te promoter name and/or logo
closely mimics tat of a respected brand or
business.
For example: te merican Cancer Society and
te merican Cancer Foundation are NOT te
same carities
Sometimes oter people provide
testimonials.but ow do you know tey are
not part of te scam too?
DO YOUR RESEARCH!!!
ere to get more information or
eIp:
etter usiness ureau
ttp://www.bbb.org/
ttorney General of
ttp://www.atg.wa.gov/
Federal Trade Commission
ttp://www.ftc.gov/