How to Spot a Scam a Mile Off
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