Money Fraud & Scams

Scams and Frauds are used interchangebly in many instances but they are bit different in their own way. With the Internet usage being common in many households, many crooks and culprits use this window to get in wearing a false mask to trap the people in scams and fraud. Identity Theft is one of the biggest  problem with these scams and frauds.

Through the news, you may have heard of unscrupulous individuals who are busy developing new scams for the unsuspecting public. Awareness and education are your best protection against fraud, scams, and schemes,

Lets understand and learn few things about Scam and Frauds.



What is a Scam?

A scam is usually something that deprives you of money or opportunity. Scammer use your need for making more money and use the opportunity to sell a product or service. These days Scammers are more sophisticated and use the Internet in a number of ways to promote scams.  The basic rule of thumb is that if something seems too good to be true it probably is! 


What is a Fraud?

In criminal law, fraud is the crime or offense of deliberately deceiving another in order to damage them – usually, to obtain property or services unjustly. Fraud can be accomplished through the aid of forged objects. In the criminal law of common law jurisdictions it may be called “theft by deception,” “larceny by trick,” “larceny by fraud and deception,” or something similar.

There are different varieties of Fraud and Scams which unfolds especially during the bad economic times. Check out the old list of scams and frauds to be keep abrust  and more recent ones.

What is Ponzi Scheme?

A Ponzi scheme is a fraudulent investment operation that pays returns to investors from their own money or money paid by subsequent investors rather than from profit.


The Ponzi scheme usually offers abnormally high short-term returns in order to entice new investors. The perpetuation of the high returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors in order to keep the scheme going.


What you can I to avoid getting into Scams, Frauds and Ponzi schemes?

1. It is too good to be true. If your inner instinct smells something suspicious about scheme, stay away from it. Most of the time, inner voice feels the right thing.

2. It is always a good idea to take protective measures to take care of your personal information.

3. Don’t carry your Social Security card, passport, or birth certificate in your wallet.

4. Don’t give your credit card or Social Security numbers or other information over the phone unless you initiated the phone call.

5. Open and read all financial statements and bills as soon as you get them and look at transaction activity.

6. Get a copy of your credit report and check for fraudulent activity at least once a year.


Resources

For more information, visit the links to learn onScams and Frauds:








IFCC (Internet Fraud Complaint Center)– To notify law enforcement of fraud.

Infragard (a FBI and Private Sector Alliance)– For incident reporting regarding Unstructured Threats (Insiders, Recreational Hackers, and Institutional Hackers); Structured Threats (Organized Crime, Industrial Espionage and Terrorists); and National Security Threats (Intelligence Agencies and Information Warriors).

Better Business Bureau

FakeChecks.org– The USPIS (United States Postal Inspection Service) and several private and public sector organizations launched this public awareness campaign and informational web site to help prevent check fraud. It also educates consumers on how to protect themselves from internet scams involving fake checks.


LooksTooGoodToBeTrue.com– Several public and private sector organizations launched this national campaign and informational web site to educate consumers on how protect themselves from internet-related crimes.

eBay’s Tutorial on Spoof Emails and Fake Web Sites

StreetWise ID Theft

Security @ BankersOnline.com


Some content from dcu.org