Scams are all around us. No matter who or where we are, there is a con-artist that wants our money. Most of us are aware of 419 Nigeria Advance Fee Fraud scams. While those scams are still happening worldwide, other more sophisticated and devious scams are taking place on a much wider scale.
Hi-tech scams that take advantage of technology are springing up everywhere. Job scams, counterfeit check scams, overpayment scams, auction scams, investment scams, health scams, and so many more. Nothing and no one is safe from scams.
The Internet and modern technology has given con artists the tools to perpetrate hi-tech scams. Career sites like monster.com and careerbuilder.com are havens for unscrupulous operators. It is easy for them to lure job seekers and scam them because job postings and offers aren’t carefully screened by career sites. Thanks to high quality printers, ink and paper, con artists are able to print counterfeit checks that appear to be so real that even banks are fooled into cashing them.
Auction swindlers use a combination of technology and overpayment scams to fool their victims. They use phony second-chance offers for auctions that the bidder didn’t win to trick the bidder into paying for an item that someone else actually won. Overpayment scams are used to obtain cash by paying hundreds or thousands of dollars over the actual price of the item, and requesting that the excess amount be wired back to the swindler by Western Union. Sometimes the scammer gets the merchandise too.
Investment scams are mostly perpetrated using the Internet because a large audience can be reached in little time and with little effort. Phony stocks is a common scam. The scammers sell the phony stock of a non-existent company, scoop up the money and disappear. Since they were smart enough to cover their tracks, they are virtually untraceable, and the victims are ruined financially.
Health scams are one of the cruelest and most dangerous scams because the perpetrator plays on the victim’s vanity and her concern for her health. Phony health insurance is one of the biggest cons, and victims are without coverage when health issues arise. Fake group policies are sold to small companies for cheap prices. Many health scams take place over the Internet.
As a member of an anti-fraud organization, I have been asked what kind of person would fall for these types of scams. Consider these scenarios and the ensuing consequences:
Theresa is an unemployed single mom with three kids to support. She has doctor bills to meet for her youngest child who is sickly. She posted her resume at monster.com hoping to find a job. She receives a job offer by email promising her $3,500 per month as a payments representative for a growing company.
Theresa receives four checks to process. As instructed, she deposits the checks into her checking account, deducts her 10% commission, and wires the remaining 90% back to the con artist by Western Union. A week later, Theresa gets a call from the bank manager. The checks were all counterfeit, and the bank has frozen her account. She is held responsible to pay back the $30,000 in counterfeit checks.
Think about the older person on a fixed income.
Bill is in his sixties, widowed and retired. He can no longer afford to keep his travel trailer. He decides to list it on an auction site. Within an hour, Bill receives a bid from an overseas buyer named Sam. Sam states that his brother Ken will send payment and will pick up the trailer. Bill insists on a cashier’s check. A few days later, the cashier’s check arrives in Bill’s mailbox, but the amount of the check is $7,000 more than the price of the trailer. The letter that accompanies the check is from Ken, and instructs Bill to deposit the check in his checking account, and wire the remainder to Ken through Western Union so that Sam can arrange for Ken to transport the trailer overseas. Bill takes his money, wires the remainder as instructed, and waits for Ken to show up to claim the trailer.
A few days later, Bill’s email to Sam is returned as non-deliverable. Ken doesn’t pick up the trailer, and Bill receives a certified letter from his bank telling him that the cashier’s check is counterfeit. The letter requests that repayment of $12,000 be made in full immediately, or legal action will be taken against him. He has limited retirement funds, and $12,000 is a fortune that he doesn’t have. Legal action ensues with a judgment for $12,000 plus court costs and attorney fees being awarded in favor of the bank for $20,000.
Greed is another reason why people are so easily conned. The concept of getting a lot for a little can blind people to the fact that anything that requires little effort for a big payout is almost always a scam.
The sad part about getting scammed is that many victims don't recover emotionally or financially. The families of victims are also impacted, making them victims too. Self-esteem is damaged, and depression often sets in. Con-artists don’t have any conscience, and they don't care who gets hurt.
The twenty-first century con artist is very slick. He has the advantage of the Internet and modern technology, and he knows that he is difficult to catch. The best way to handle situations that sound too good to be true is to check them out thoroughly before getting involved. Anything It seems too good to be true, as a rule, and the best thing to do to avoid becoming a victim in the first place.
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