ASK MR. MODEM
How to Detect a
Spam Scam
‘Weight Loss While You Sleep?’
‘Confidential Business Proposal?’ The Top Five Online Subject Lines NOT to
Fall For
By Richard A. Sherman
If
you have an e-mail address, chances are you’ve received countless
invitations to earn six figures with minimal effort. Virtually every
e-mail opportunity of this sort is a scam, and scams exist for one
reason—to separate you from your hard-earned cash.
The
following are the top five categories of online scams, according to the
Federal Trade Commission, accompanied by my suggestions for your fiscal
defense.
1.Category:
Medical Treatments and Weight Loss
Subject Line:
"Miracle Cure for (insert affliction here)"
The Scam:
Virtual snake-oil salesmen selling exotic lotions, potions and pills,
magnetic or electrical devices, anti-bioterrorism products, the ability to
"burn fat while you sleep," and newly discovered therapies (domestic and
European) for serious and chronic diseases.
Your
Defense:
Common sense: If an important medical breakthrough really occurred, would
the news be announced in a spam-o-gram with a sales pitch? I think not. To
determine whether the FDA has issued a warning against a drug-selling Web
site, visit "Buying Medicines and Medical Products Online" at
www.fda.gov/oc/buyonline/enforce.html.
2.Category:
Multilevel Marketing Plans
Subject Line:
"Get a Great Job with a Fast-Growing
Company"
The Scam:
Earn money through the products and services you sell, as well as those
sold by people you recruit into the program. In other words, it's a
pyramid scheme with products.
Your
Defense:
Avoid plans that require you to recruit other distributors, buy expensive
inventory, or pay a fee to participate in an "incredible opportunity." The
only incredible opportunity is for the scam artist, each time he recruits
a new victim.
3.
Category:
Advance-Fee Fraud
Subject Line:
"Confidential Business Proposal"
The Scam:
Variations of this type of scam have been around for more than a decade.
In one popular version, an e-mail is received from an “official” of a
foreign government (usually Nigeria) who wants to use your bank account to
deposit up to $60 million that needs to be hustled out of his country due
to a political coup or other phony reason. For your trouble, you are
promised a percentage of the millions. If, against my advice (is that
possible?), you agree to participate, you will receive a series of demands
for various fees, bribes, and other payments to keep the venture afloat.
Your
Defense:
Don't let the promise of an "inside" deal tempt you for even a split
second. Yes, you're special, but not so special that anybody is going to
contact you to share their fortune with you. As ludicrous as this scam
sounds, millions of people have been victimized by it, losing an average
of $3,800. To review several examples of this scam, send a blank e-mail to
nigeria@MrModem.net. You'll receive the information from me by return
e-mail.
4.Category:
Internet Auction Fraud
Subject:
"Free Shipping with Cash Payments"
The Scam:
You mail or wire the cash, but the merchandise never arrives, or the item
that you do receive is damaged or less valuable than what was described.
Your
Defense:
Never, ever pay in cash. For items under $200—the amount eBay covers in
its Fraud Protection Program —use a credit card or an online payment
service such as Bill Point (www.billpoint.com)
or PayPal (www.paypal.com).
For more expensive items, or if you have any suspicions, demand
that an escrow service, such as Escrow American (www.escrowamerican.com),
be used to handle the transaction.
Beware:
46 percent of complaints filed with the Internet Fraud Complaint Center
involve Internet auctions.
5.Category:
Identity Theft
Subject:
"Urgent! Your Account Needs to be Updated"
The Scam:
You receive a high priority e-mail that appears to be from your ISP
or other online service, informing you that the credit card you initially
provided has been declined or has expired and the information must be
re-entered to keep the account active.
Your
Defense:
Don't respond without independently checking with the online service that
this e-mail claims to be from, by initiating the contact yourself.
Legitimate organizations do not ask for information of this type by
e-mail. For additional information about protecting yourself from identity
theft, send a blank e-mail to
idtheft@MrModem.net.
Five Things You Can Do
to Protect Yourself Against Online Scams
1.
Don't respond to e-mail from people or organizations you don't know; and
avoid doing business with any entity that fails to display its name,
address, phone number and other contact information on its Web site.
2.
Don't give out your personal information (Social Security number, mother's
maiden name, financial account numbers, passwords) unless you initiate the
contact and determine that the person or organization is entitled to your
information: e.g., your employer, bank, broker, etc.
3.
Check a company's track record and reputation through the Better Business
Bureau at
http://search.bbb.org/search.html, your state Attorney General's
office or Consumer Protection Agency, and complaint sites such as
www.consumeraffairs.com,
www.planetfeedback.com or
www.epinions.com.
4.
If you do get scammed, flimflammed, bamboozled or duped, don't be
embarrassed or ashamed. Instead, report the incident to your state
Attorney General immediately, and file a complaint with the FTC, toll-free
at 877-382-4357 or use the online forms at
www.ftc.gov or
www.consumer.gov/sentinel.
5.
Your best defense is always your good, common sense: An offer that makes
an outrageous claim such as promising a large return on investment, a cure
for an incurable disease, or weight loss while you sleep, should be
ignored, as should "Special Internet Offers" or "Limited Time" offers that
promise a discount if you order today. Remember the old adage, "If it
sounds too good to be true, it probably is."
Additional Resources
Better Business Bureau
Online:
www.bbbonline.com/consumer/
Federal Trade Commission (FTC):
www.ftc.gov/
Internet Fraud Complaint Center:
www1.ifccfbi.gov/index.asp
Internet Scam Busters:
www.scambusters.org/
National Fraud Information Center:
www.fraud.org/
To receive
a list of the FTC's Top 10 Scam Categories, and my suggestions for
protecting yourself, send a blank e-mail to
scams@MrModem.net.
_____________________________________
Richard A. Sherman, a k a Mr. Modem, is a nationally syndicated columnist,
whose “Ask Mr. Modem!” column appears in more than 60 publications
throughout the U.S. and in Canada. As publisher of the popular “Ask Mr.
Modem” weekly newsletter, he provides easy-to-understand, non-technical,
computer- and Internet-related answers to questions received from
subscribers worldwide. He is the author of eight books, including “Mr.
Modem’s Internet Guide for Seniors” (Sybex) and “Ask Mr. Modem,” a
collection of hundreds of frequently asked computer and Internet questions
received from readers. Richard is a contributing editor to TechTV and host
of the daily "Mr. Modem Minute" television segment produced by
FOX-TV.
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