How can I spot a rip-off?
- Don't allow yourself to be pushed into a hurried decision. Most good deals will still be good next week.
- Always request written information about the product, service, investment, or charity.
- Don't make investments or purchases you don't fully understand.
- Ask which state or federal agencies regulate the firm and contact them.
- Request that information be sent to your accountant, financial advisor, banker, or attorney for review.
- Ask for a written copy of the refund policy before making a commitment.
- Beware of unverifiable testimonials.
- Never give credit card or bank info over the phone.
- If unsure, walk away.
What should I know about Internet fraud?
Internet crime such as identity theft and online fraud exceeded $10.3 billion in losses in 2022. Beware of claims like "quick profits", "guaranteed returns", or "risk-free investment".
What are some of the Internet scams I should watch out for?
New scams appear every year, often with similar themes:
- Refund Scam: Bogus emails claiming IRS refunds, requiring personal info.
- Lottery or Cash Consignment: Emails promising millions if you provide personal information or pay fees.
- Romance Scams: Fake profiles gain trust and request money from victims.
How can I prevent the illegal use of my credit card or Social Security number?
Six tips from the CFPB:
- Don't share account numbers or passwords.
- Never pay upfront for a promised prize.
- Compare prices and ask for information in writing.
- Be skeptical of offers that seem too good to be true.
- Walk away from high-pressure deals.
- Register on the National Do Not Call Registry: donotcall.gov.
Application fraud may involve stolen information or intercepted pre-approved credit offers.
If you see a bill on your credit report that doesn’t belong to you, contact the creditor and review the original application.
How trustworthy are "credit clinics" and other organizations that claim to help me out of financial trouble?
Credit clinics often promise: "Clean up credit reports" or "Get a major credit card despite bankruptcy". Consumers should check with their state attorney general and Better Business Bureau before paying.
How honest are ads touting "federal government surplus" sales?
Many ads sell agency names and addresses. For accurate info, visit: Government Sales and Auctions.
How can I protect myself from penny stock scams?
Penny stocks are high-risk and often targets of manipulation. Warning signs include unsolicited calls, high-pressure sales tactics, and difficulty selling stocks.
How can I protect myself from a pyramid scheme?
Pyramid schemes pay returns from new investors, not business profits. Avoid offers promising returns for recruiting others.
How can I protect myself from a Ponzi scheme?
Ponzi schemes pay old investors using new investors' money. Eventually, the scheme collapses and investors lose money.
How can I protect myself from travel scams?
Look out for offers that are too good to be true, pressure you to pay immediately, or don’t provide full details of the trip. Always request written info and compare prices.
When buying a used car, how can I avoid buying a "lemon?"
Steps include: research, check recalls, inspect the vehicle, get a vehicle history report, and be wary of low mileage or out-of-state cars.
How can I avoid being ripped off by auto mechanics?
Common scams include unnecessary repairs, secret warranties, and double billing. Always get a second opinion and verify warranties.
How can I avoid being pick-pocketed?
Tips from NYPD: Use secure bags, keep wallets out of back pockets, avoid distractions, be cautious in crowds, and alert authorities if pick-pocketed.
