Guide to scams and rip-offs
Scams are on the increase - every day people are
being ripped off by unscrupulous sharks who are out to earn easy
money from YOU.
Remember - "if it sounds too good to be true -
it probably is! It will be a scam"
If you receive a call, or even a letter, stating
you have won thousands of pounds in a lottery, hang on to your
wallet. It is a fraud. Even so, scam operators, often based in
the Netherlands or Canada, are using the telephone and direct
mail to entice consumers to buy chances in high-stake foreign
lotteries, from as far away as Australia and the Americas. In
addition, lottery hustlers use victims' bank account numbers to
make unauthorised withdrawals or their credit card numbers to run
up additional charges.
Responding to just one foreign lottery ticket can open up the
doors to many more bogus offers for lottery or investment
"opportunities." Ignore all mail and phone solicitations for
foreign lottery promotions. If you receive what looks to be
lottery material from a foreign country, turn it over to your
local postmaster
If you receive a phone call from someone who
claims that you need a credit card loss protection plan, do not
buy the pitch unless you check out the company.
Telephone scam artists are lying to get consumers to buy
worthless credit card loss protection and insurance programs.
Some scam artists tell consumers that according to a new law,
people are now liable for all unauthorised charges on their
account. This is not true. If you did not make the authorised
charge, do not pay it. Follow your credit card issuer's
procedures for disputing charges you have not authorised.
Do not give out your personal information -- including your
credit card or bank account numbers -- over the phone or online,
unless you know the business is reputable.
A different kind of "loan shark" is preying on
unwary consumers by taking their money for the promise of a loan,
credit card or other extension of credit.
Advertisements and promotions for advance fee loans "guarantee"
or suggest that there is a high likelihood of success that the
loan will be granted, regardless of credit history. But to take
advantage of the offer, you have to pay a fee first. The catch
is, you pay a fee, and the scam artist takes off with your money
and the loan never materialises.
Keep in mind that legitimate guaranteed offers of credit do not
require payments up front in order to make a loan application. It
is illegal for companies doing business by phone to promise you a
loan and ask you to pay for it before they deliver.
"Ring this number now to win a holiday????.."
The widespread availability of telephones provided scam operators
with another avenue to perpetrate their frauds. Now the
widespread use of mobile phones and text messaging has provided
another new medium for scam operators to approach potential
victims. Typical is the approach offering the prize of a holiday.
Calling the quoted phone number invariably means using a premium
rate telephone line for some time and this is usually part of the
scam. Any holiday on offer, if there even is one, is likely to be
subject to terms and conditions which make it worthless to the
vast majority of people.
The same risks and warning signs apply to telephone calls and
text messages as to any other form of unsolicited approach
offering money or prizes.
"Looking for some extra cash over Christmas? We
are flat out with orders for the Christmas rush. Big money for
hard workers. Earn in excess of ?500 a week... Call Steve now
on??? "
The catch is it takes you up to five costly minutes on the phone
to find out there is no real job on offer.
The use, and high cost, of premium telephone numbers can be a
central feature of a scam. Fraudsters use these numbers to carry
out many different scams.
They include:
The longer you stay on the line the more money
the fraudster earns.
The scams may begin with notification by post, by phone or other
means, claiming that you have won something or have qualified for
a credit card. You might be promised a product or service, but
what you actually receive, if you receive anything, is likely to
be disappointing.
If you are calling to get a credit card you might simply get a
list of banks to which you can apply for a card. If you are told
to call because you are the winner of a prize draw you will
receive nothing at all, except a very large phone bill!
You might call the number and be required to listen to a long
recorded sales message or answer a long list of questions.
Remember, the longer you stay on the phone, the higher the charge
for the call.
You might even be directed to a second premium rate telephone
number for additional information or to claim you prize or order
your product or service.
Remember:
? Premium rate telephone numbers attract charges
by the minute, usually well above the cost of a local or STD call
- often ?1.50 per minute!!!
? Don't dial these numbers unless you are absolutely sure how
much you will be charged and you are willing to pay for it.
? Be on your guard if, after dialling one of these numbers you
hear a message asking you to dial a second number.
see redirected phone calls
? Do some research into the organisation if you have never heard
of them before, and trust your own common sense.
? You can always hang up.
Beware the phone call which may offer you a
holiday and asks you to dial back by pressing 9 (or other
number). This scam will them use your line to dial some
international numbers via a high cost intermediary - but YOU will
pay the bill!!
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Guide
to scams and rip-offs
