TODAY’S SCAMS

Kevin V. OlsenDirector Division of Consumer Protection

ARE YOU THE TARGET OF A SCAM?

Do you have a bank account? Do you have a credit card? Do you use the Internet? Do you use email? Do you receive U.S. Postal mail? Do you use a telephone? Would you like to have a lot of

money to spend?

TOP 10 COMPLAINTS REPORTED TO THE DIVISION IN 2010

1. E-Commerce/Internet Offers2. Coaching Services3. Health Spas4. Retail Sales5. Personal Services6. Alarm Systems7. Debt Collection8. Home Improvement/Repair9. Auto Repair10. Auto Sales-Used

SOME OBSERVATIONS REGARDING THE DIVISION’S TOP 10 LIST

The Internet has been at the top of the list for the past several years. There is no sign of change.

The Internet accounted for 40% of the top ten complaints and 32% of all complaints.

EXAMPLES OF COMMON SCAMS:Identity Theft

Identity Theft Common Ways ID Theft Happens

Dumpster diving Skimming

Use of storage device when processing credit card Phishing

Tax refund scam Texting scam Spoofing of web pages Manipulation of caller id Illegal use of assigned telephone numbers

Change your address “Old-Fashioned” Stealing

EXAMPLES OF COMMON SCAMS: Nigerian Letter Scams

Good day,

My name is Denise Kumalo, I was a Liberia child soldier, I was captured by the rebel in 1999 following the attack of a rebel group called Movement for Democracy in Liberia (MODEL) which tried to unseat the Charles Taylor-led Government. I escape as we advanced in Grand Bassa County, where my parent resided, When the rebel discovered, they came looking for me in my family cocoa plantation home. I and my father hurriedly hide some in the farm, they asked my mother and my junior sister of our where about and threaten to kill them, my mother denied seeing me and told them that my father went to look for chemical to spray on his disease infected cocoa plantation.  They did not believe her, they shot her kidnap my junior sister and drop a note that I return to the camp if I want my sister alive.

The death of my mother got my father devastated, he became hypertensive, I decided to go back, but, my father advice me not to go that the rebel will kill me and my junior sister, instead we should pray to God’s to keep her safe. Five day later she was brought to our farm, by the ECOMOG the West Africa peace keeping force, who rescued her in a bad shape, because she was raped at 10 years old severally by the rebels.

With the help of the peace keeping force we move to the refuge camp in Bujumbura Ghana, my father died two weeks after we arrive Ghana and now my sister is HIV positive. Before his death he deposited a box containing US$6.5M cash with a security company here in Ghana. The money was his last business transaction with a Dubai company for the export of cocoa. The content of the box was not disclose to the company, rather it was declare has family treasures and valuables.

I am 24 years old, and my sister is 19 years old now, I just complete my senior high school and my sister is in her final year in junior high school. We work after school hours to be able to meet up with our school fees and materials, I work as dry cleaner in different houses and my sister do hair for women in the refuge camp.

Now that I have complete my senior high school, we want you to assistance assist us invest the money (US$6.5M) left by our father in the security company, in a viable business venture and to also complete our education in your country. As next of kin to the deposited consignment, I will sent a let through a lawyer to the security company to change the ownership of the consignment to your name, then you can come down to Ghana to transfer the money to your bank account. If you can not come I will confirm from the company if it possible to move the consignment to your country. To be able to do that I want you to send me the following information: Your full name, Address, telephone or mobile number, and an assurance that you can be trusted.

I will look forward to your reply to this email box kufur@31.pl

Kind regards,Denise Kumalo

EXAMPLES OF COMMON SCAMS:Lotteries and Sweepstakes Scams

The typical scam works this way: Consumer receives notice of winning a large sum of

money. The notice explains the recipient’s obligations to pay

certain costs and gives a telephone number to call to claim the “winnings.”

A check made out to the consumer for around $5,000.00 is usually included with the notice.

When the telephone number is called the consumer is instructed to deposit the check and after it clears to wire a portion of that amount back via money gram or Western Union.

The check is later determined to be a forgery and must be refunded by the consumer.

Identity theft is usually involved.

EXAMPLES OF COMMON SCAMS:Work-at-Home Schemes

Business opportunities/coaching services

Stuffing of letters Reshipping of merchandise (or

payment of checks)

EXAMPLES OF COMMON SCAMS:Classified Ad Scams

Con artist poses as buyer (Con artist sends a check for more than purchase price and asks to wire transfer back difference.)

Con artist poses as seller (Con artist offers to rent non-existent property and collects deposit up front.)

Con artist poses as employer (Con artist posts fake job opportunity to get personal information.)

EXAMPLES OF COMMON SCAMS:Relative-in-distress Scams

Con artist calls you and identifies himself as a grandson (or other relative or friend) who is in trouble and in need of money;

Con artist asks that money be wire transferred.

EXAMPLES OF COMMON SCAMSScams targeting professionals

Law Firm was approached by woman from England who said she needed help collecting $250,000 in support ordered to be paid by her ex-husband.

EXAMPLES OF COMMON SCAMS:Internet Scams

Use of negative option feature Use of the word “Free” Unauthorized withdrawal from

account Misrepresentation of products or

services offered Misrepresentation of company

identity and its location The Internet is the “wild west.”

“RED FLAGS” THAT ARE COMMON TO THESE SCAMS:

You are asked to send money by wire transfer.

You are asked to disclose personal information such as your bank account number, credit card number, social security number, or birth date.

You are solicited at your home by door-to-door salesmen, telemarketers, U.S. mail, or email.

“Red Flags” continued

The deal sounds too good to be true. High pressure sales tactics are used. Con

artists are expert at using these tactics to influence your decision. Some of those tactics are: Scarcity of deal Acts as if your friend Appeals to authority Use of fear and intimidation Etc.