Fraud Never Sleeps

The Federal Trade Commission received over 1.8 million consumer complaints in 2011 (see graph). More than half of these were for various types of fraud. Despite improved consumer education and tighter controls, criminals continue to come up with new ways to separate unwitting victims from their hard-earned money.

A list of potential scams would fill many pages, but here are three relatively new ones to watch out for.¹

  • Cut your credit-card rate! An unsolicited caller offers to help you reduce your credit-card interest rate for a fee, and you must fill out a financial profile with account numbers, Social Security numbers, and other personal information. The scammer may arrange a conference call with your credit-card company and ask for a fee reduction, which is usually refused and could have been requested yourself. You are out the fee and at risk for the misuse of your personal information.
  • You’ve won a free gift! You receive a call from a local store claiming that you have won a gift or a gift card but must go to the store to pick it up. The call could really be from a thief who wants to get you out of your home in order to break in while you’re gone. If you receive this type of offer, call the store immediately and contact your local police if the offer appears to be a ruse.
  • Enter this online auction! A pop-up window appears while you are online inviting you to bid on a popular item, typically electronics, but you have to provide your cellphone number to enter. When you submit your entry, you receive a text message to your phone that you have subscribed to a paid “service,” which you may not notice on your bill. This trick is called “cramming.” Protect your cellphone number just as you protect other account numbers.

Remember, fraud never sleeps, so consumers have to stay wide awake! For more information, visit the Federal Trade Commission’s website, http://www.ftc.gov.

1) Consumer Reports, October 2012

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. Copyright © 2013 Emerald Connect, Inc.

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