Maybe it's sympathy that motivates people to give money to a stranger. Or maybe it's the temptation to put one over on the system.
For whatever reason, the sort of scam called "the Nigerian letter" separated Americans from more than $122 million of their hard-earned cash in 2002.
The solicitation usually comes in an e-mail supposedly sent by the widow of a former military head of state or a deposed member of a foreign government who cannot access money after a government coup. They could end their suffering if only you could provide a bank account to help secretly transfer their millions out of their country. And by the way, you'll be richly rewarded for your help.
To most of us "the Nigerian letter" is a laughably obvious rip-off. Still, this scam has caught plenty of Americans, according to the Federal Trade Commission.
Victims of scams are not always greedy. Sometimes they are financially strapped people just looking for a little extra cash to help pay the bills.
"We didn't try it to be rich," said Jim Roetheli, a 56-year-old Chicago resident who was taken by an envelope-stuffing scam. "We just wanted some income."
Instead of making easy money, he found himself in a scheme in which he got paid only if people responded to the work-at-home offer he was mailing out at his own expense.
It can be hard to stay ahead of schemes, since the way in which they present themselves is constantly evolving.
"Nothing is really new," said Sheila Adkins, who handles public affairs for the Council of Better Business Bureaus. "We're just hearing about them in different formats."
The most victimized group remains those over age 50.
"One, they have money to invest," explained Sally Hurme, an attorney in AARP's consumer protection division. "Two, investing is really important to them, particularly if they are at or near retirement, and three, if they are not working they have no new money coming in."
Here are the newest twists on old scams:
Advance fee scams. "The Nigerian letter" and the "Canadian lottery winner letter" are modern variations of the classic "pigeon drop," what AARP's Hurme calls the "I'll-get-you-in-on-a-deal" swindle.
The general premise is always the same - you have to pay money to get money. In the Canadian lottery scam you have to pay fees to process a check for your share of "lottery winnings." In the Nigerian letter scheme you might be asked to pay for chemicals to clean bills that have been blackened to get them past customs.
Internet schemes. The Internet has given con artists a new venue for defrauding consumers through auction Web sites or phony e-mails. Hucksters will use auction Web sites to take payments for goods they never intend to deliver, or swap what they advertised with something less valuable.
A concept called "phishing" has cropped up repeatedly whereby e-mails purportedly from Internet auction sites, financial institutions or Internet service providers ask you to provide your bank account or credit-card number so they can verify their records. The message might direct you to what deceptively looks like an official corporate page, but the personal information you are providing is being used to steal your identity.
Cramming. This scam can sneak up on you. Cramming involves mysterious and bogus charges popping up on your phone bill for services you never agreed to, so always keep a close eye on your monthly statement to ensure no one is trying to slide anything past you.
You may call a toll-free number or fill out a contest entry form and be tricked into agreeing to a membership fee that shows up as a miscellaneous charge on your phone bill.
Bogus business opportunities. As the soft economy sends people looking for ways to shore up their income, more consumers are complaining to the Better Business Bureau about work-at-home scams or pitches that leasing an ATM, pay phone or vending machine will provide a financial windfall.
Promoters assure you that you will receive help in placing the machines and get a high return for your investment, said Adkins, but what really happens is that you end up pouring money into a floundering business venture.
Viaticals
Be wary of anyone trying to sell you a viatical, the life-insurance policy of a terminally ill person. They will tell you that by paying a discounted price you will eventually get the death benefits, and the ill individual gets instant cash to pay medical bills or other expenses. The problem occurs when the person lives longer than expected, leaving you to pay monthly premiums, not to mention the possibility of the insurance company challenging the claim if the policy was sold to you fraudulently.
http://www.billingsgazette.com
For whatever reason, the sort of scam called "the Nigerian letter" separated Americans from more than $122 million of their hard-earned cash in 2002.
The solicitation usually comes in an e-mail supposedly sent by the widow of a former military head of state or a deposed member of a foreign government who cannot access money after a government coup. They could end their suffering if only you could provide a bank account to help secretly transfer their millions out of their country. And by the way, you'll be richly rewarded for your help.
To most of us "the Nigerian letter" is a laughably obvious rip-off. Still, this scam has caught plenty of Americans, according to the Federal Trade Commission.
Victims of scams are not always greedy. Sometimes they are financially strapped people just looking for a little extra cash to help pay the bills.
"We didn't try it to be rich," said Jim Roetheli, a 56-year-old Chicago resident who was taken by an envelope-stuffing scam. "We just wanted some income."
Instead of making easy money, he found himself in a scheme in which he got paid only if people responded to the work-at-home offer he was mailing out at his own expense.
It can be hard to stay ahead of schemes, since the way in which they present themselves is constantly evolving.
"Nothing is really new," said Sheila Adkins, who handles public affairs for the Council of Better Business Bureaus. "We're just hearing about them in different formats."
The most victimized group remains those over age 50.
"One, they have money to invest," explained Sally Hurme, an attorney in AARP's consumer protection division. "Two, investing is really important to them, particularly if they are at or near retirement, and three, if they are not working they have no new money coming in."
Here are the newest twists on old scams:
Advance fee scams. "The Nigerian letter" and the "Canadian lottery winner letter" are modern variations of the classic "pigeon drop," what AARP's Hurme calls the "I'll-get-you-in-on-a-deal" swindle.
The general premise is always the same - you have to pay money to get money. In the Canadian lottery scam you have to pay fees to process a check for your share of "lottery winnings." In the Nigerian letter scheme you might be asked to pay for chemicals to clean bills that have been blackened to get them past customs.
Internet schemes. The Internet has given con artists a new venue for defrauding consumers through auction Web sites or phony e-mails. Hucksters will use auction Web sites to take payments for goods they never intend to deliver, or swap what they advertised with something less valuable.
A concept called "phishing" has cropped up repeatedly whereby e-mails purportedly from Internet auction sites, financial institutions or Internet service providers ask you to provide your bank account or credit-card number so they can verify their records. The message might direct you to what deceptively looks like an official corporate page, but the personal information you are providing is being used to steal your identity.
Cramming. This scam can sneak up on you. Cramming involves mysterious and bogus charges popping up on your phone bill for services you never agreed to, so always keep a close eye on your monthly statement to ensure no one is trying to slide anything past you.
You may call a toll-free number or fill out a contest entry form and be tricked into agreeing to a membership fee that shows up as a miscellaneous charge on your phone bill.
Bogus business opportunities. As the soft economy sends people looking for ways to shore up their income, more consumers are complaining to the Better Business Bureau about work-at-home scams or pitches that leasing an ATM, pay phone or vending machine will provide a financial windfall.
Promoters assure you that you will receive help in placing the machines and get a high return for your investment, said Adkins, but what really happens is that you end up pouring money into a floundering business venture.
Viaticals
Be wary of anyone trying to sell you a viatical, the life-insurance policy of a terminally ill person. They will tell you that by paying a discounted price you will eventually get the death benefits, and the ill individual gets instant cash to pay medical bills or other expenses. The problem occurs when the person lives longer than expected, leaving you to pay monthly premiums, not to mention the possibility of the insurance company challenging the claim if the policy was sold to you fraudulently.
http://www.billingsgazette.com
