Look Out!

Common Fraud

Foreign scams - may involve a letter or phone call about a foreign investment that it is "too good to be true."

Telemarketing scams - commonly include sweepstakes, prize offers, travel packages, investments, charities, work-at-home schemes, magazine sales, lotteries, and business opportunities.

Advance-fee loans - fraudulent loan brokers misrepresent the availability of credit with a guarantee to get you credit--but you must pay before you apply.

Credit repair - an appeal to clean up the credit reports of consumers with poor credit histories.

Automatic debit scams - fraudulent telemarketers use this technique to improperly take money from checking accounts. DO NOT give out checking account information over the phone unless you are familiar with the company.

Fraudulent diets - Americans spend an estimated $6 billion a year on fraudulent diet products sold with advertising such as "The Amazing Skin Patch Melts Away Body Fat" or "Lose Weight While You Sleep."

Magazine subscription scams - beware of telephone sales pitches for "free," "prepaid," or "special" magazine subscription offers.

Toll-free scams - calls to 800 and 888 numbers are almost always free. However, there are some exceptions. Be careful.

International phone scams - scam artists confuse callers by promoting calls to 809 numbers; while these telephone numbers may look like domestic calls, international rates apply.

Pre-paid phone card scams - selling prepaid calling cards may involve a multi-level marketing scam with a large up-front fee.

Online and high tech scams - common Internet scams are pyramid schemes, Internet related services, equipment sales, business opportunities, and work-at-home offers.