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Protect yourself from fraud: Watch for red flags
The MMI Online Articles are designed to inform, assist, educate and alert consumers.
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The word fraud means an action or lack of action that is punishable by law. This includes outright deception, and sometimes almost “accidental” misrepresentation that causes damages. Fraud can also include the failure to reveal facts. Telemarketing fraud caused losses of more than $1.7 million in 2003. Total Internet fraud losses equal more than eight times that figure.
While it may be obvious that you should to steer clear of get-rich-quick schemes and phony contests, some types of fraud are not so easily detected. Unfortunately, thieves adapt as consumers become educated; fraud has seeped its way into more trustworthy covers including “charities,” credit repair, loans, travel, online auctions and work-from-home offers. Following are some ways to foil fraud:
You have up to one year after the alleged violation to sue. If you win, you may be entitled to damages plus an additional amount up to $1,000. You may also be able to recover court costs and attorney’s fees. A group of people may sue a debt collector and recover money for damages. At the very least, you should file a complaint with the FTC by visiting www.ftc.gov or call 1-877-FTC-HELP. Although the FTC does not act to resolve individual problems, it does look for patterns of possible law violations.
Even if you are not being harassed by a collector, their collection calls can cause a lot of stress. Fortunately, there is an easy way to make them stop. Simply write to them demanding they not contact you anymore. The FDCPA states:
-Be informed. You can educate yourself about current known scams by visiting www.idtheftcenter.com or www.consumer.gov.
-Practice due diligence. Before making any purchase, find out if any complaints have been registered with the Better Business Bureau or the Attorney General’s office. While a clean complaint record is not a guarantee, it is a step in the right direction.
-Be wary of high pressure appeals. For example, be skeptical if someone thanks you for a pledge you don’t remember making. Legitimate companies should not intimidate you into making an on-the-spot donation or purchase.
-Be skeptical. If someone promises you an easy way to make fast cash, be wary. As the old saying goes, “if it’s too good to be true, it probably is.”
-Remember your budget. Even if a solicitation proves to be legitimate, ask yourself if it is really something you want. Remember, before they called you probably didn’t know you “needed” what they’re selling.
-Head them off at the pass. Ask telemarketers to put you on their “do not call” list. Under federal law, they are required to comply. If they continue to call you can sue them in small claims court for $500. For information on how to stop unsolicited email spam, review your state’s laws at www.spamlaws.com.
Scams target senior citizens
According to the FTC, telemarketing fraud against senior citizens is substantial. Senior citizens are an easy target for some unscrupulous marketers because they are often home and have access to a lifetime of savings. In addition, individuals who grew up in the 1930s, 1940s, and 1950s were generally raised to be polite; normally desirable, scammers may abuse this trait and take advantage of their trusting nature. The Federal Bureau of Investigation (FBI) warns seniors to be particularly wary of:
-Health insurance fraud. Never sign blank insurance claim forms or give broad authorization to anyone to bill for services. Keep detailed records of all health care appointments and make sure you are aware of any equipment ordered for you by your physician.
-Counterfeit prescription drugs. Talk with your pharmacist or doctor if your prescription medicine looks suspicious. Do not purchase medications from websites that don’t require a prescription.
-Funeral and cemetery fraud. Get the details of all proposed plans and purchases in writing; remember to carefully read contracts and purchasing agreements before signing. Don’t sign anything you don’t understand.
-Fraudulent anti-aging products. Be suspicious of medical “breakthroughs” and always talk with your doctor before taking any dietary or nutritional supplement.
If you suspect a scam, call the National Fraud Information Center at 800-876-7060.
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