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Watch Out for the Latest Scams
You may be surprised to find out that spotting a scam it is not as easy as you think. The FTC points out, "[scam] claims are just good enough to be believable; their services and products just practical enough to seem legitimate. Some even try to look like a government agency to enhance their credibility." Here is a quick rundown of the four most critical issues: debt, housing, employment and government assistance:
1.) Credit repair / Debt Negotiation companies
The dirty scam: These companies advertise anything from outlandish claims ("We can remove ANY debt from your credit report!") to carefully veiled suggestions ("We know the tricks that your credit card company doesn't want you to know"). Almost all of them require an upfront fee, and almost none of them deliver on their promises.
The clean scene: The U.S. Department of Justice's U.S. Trustee Program provides a list of government-approved credit counseling agencies. The National Foundation for Consumer Counseling provides a list of member agencies online at National Foundation for Credit Counseling or call 1-800-388-2227 for 24-hour automated office listings. Look over this Fiscal Fitness: Choosing a Credit Counselor document from the FTC, and this new site discussing debt and scams including vehicle repossession, advance fee loans, 'anyone can get credit' card offers, debt negotiation and other scams that are increasing with the economic difficulty. The FTC also has some great advice for those "Knee Deep in Debt" or considering one of these companies, as well as the Better Business Bureau.
2.) Home refinance or foreclosure scams, loan modification programs
The dirty scam: Taking advantage of the panic in the market, thieves and scammers are contacting victims for loan negotiation, refinance or foreclosure scams. Using complete lies and half-lies, they never deliver what they promise. For more information on these types of scams and the red flags to look for, read the highlight by the FTC here.
The clean scene: Be very suspicious of these offers. Check with the attorney general in your state before dealing with any company or person offering assistance. Details on federal assistance available to homeowners can be found at Making Home Affordable - Home. Or, you can contact the Homeownership Preservation Foundation's national hotline at 1-888-995-HOPE. They provide free bilingual assistance to help homeowners avoid foreclosure. HPF is a member of the HOPE NOW Alliance of mortgage servicers, mortgage market participants and counselors. You can also check with the US Department of Housing and Urban Development, and the Federal Reserve's Foreclosure Resources for Customers. The FTC and Freddie Mac both offer helpful sites for those who are feeling the pressure of mortgage payment or trying to avoiding foreclosure. The Federal Reserve also recommends checking out NeighborWorks. You can also listen to a recent NPR broadcast about these scams.
(3) Employment fraud, Classifieds fraud
The dirty scam: Unfortunately, finding a job poses many risks. First, you must be careful about the amount of personal information you place on a resume or online application. Remember that disclosing your social security number and birth date should only be necessary when they are ready to hire you and complete tax information. Avoid any job that asks you to cash checks, wire money, or use Western Union on the job. Let's start with a short list of job scams: 'Placement service' for government jobs, head hunters, temporary employment, work-at-home or online jobs, and classifieds fraud.
The clean scene: Resources for government jobs are USAJOBS, US Postal Service Employment, FirstGov, and the Department of Labor. Check suspicious opportunities with the Better Business Bureau, your state Attorney General's Office, or consumer protection agency. Read these tips from ScamBusters. Find online job hunting privacy tips and a background check fact sheet at Privacy Rights Clearinghouse.
(4) Financial assistance from the government
The dirty scam: Letters, phone calls, emails, text messages- there is nothing that they won't try! Websites and representatives claim to be able to access "secret" government money and help you apply for it. Rebate companies claiming to have stimulus payments for you should not be trusted, regardless of how plausible the script sounds or how official the forms look.
The clean scene: Legitimate information about government grants and assistance can be found at Recovery.wa.gov, Grants.gov, FSA Portals, GovBenefits.gov - Your Benefits Connection and http://www.sba.gov/. Information for stimulus payments and refunds can be obtained directly from IRS.gov. Do NOT click on any hyperlink contained in an email, type the address directly into your browser. You can check up on your stimulus checks here.
If you are prepared, think critically, and proceed with caution, you should be able to determine the scams from the real deal. There are good habits you can form during this time as well. Using cash as a way to limit spending can help your wallet and prevent identity theft. As the economy starts to improve and the panic resides, remember that identity thieves don't just go away. Accounts can be opened now that will not appear on your report for years. Protection now, and in the future, is vital to keeping your identity safe.
You may be surprised to find out that spotting a scam it is not as easy as you think. The FTC points out, "[scam] claims are just good enough to be believable; their services and products just practical enough to seem legitimate. Some even try to look like a government agency to enhance their credibility." Here is a quick rundown of the four most critical issues: debt, housing, employment and government assistance:
1.) Credit repair / Debt Negotiation companies
The dirty scam: These companies advertise anything from outlandish claims ("We can remove ANY debt from your credit report!") to carefully veiled suggestions ("We know the tricks that your credit card company doesn't want you to know"). Almost all of them require an upfront fee, and almost none of them deliver on their promises.
The clean scene: The U.S. Department of Justice's U.S. Trustee Program provides a list of government-approved credit counseling agencies. The National Foundation for Consumer Counseling provides a list of member agencies online at National Foundation for Credit Counseling or call 1-800-388-2227 for 24-hour automated office listings. Look over this Fiscal Fitness: Choosing a Credit Counselor document from the FTC, and this new site discussing debt and scams including vehicle repossession, advance fee loans, 'anyone can get credit' card offers, debt negotiation and other scams that are increasing with the economic difficulty. The FTC also has some great advice for those "Knee Deep in Debt" or considering one of these companies, as well as the Better Business Bureau.
2.) Home refinance or foreclosure scams, loan modification programs
The dirty scam: Taking advantage of the panic in the market, thieves and scammers are contacting victims for loan negotiation, refinance or foreclosure scams. Using complete lies and half-lies, they never deliver what they promise. For more information on these types of scams and the red flags to look for, read the highlight by the FTC here.
The clean scene: Be very suspicious of these offers. Check with the attorney general in your state before dealing with any company or person offering assistance. Details on federal assistance available to homeowners can be found at Making Home Affordable - Home. Or, you can contact the Homeownership Preservation Foundation's national hotline at 1-888-995-HOPE. They provide free bilingual assistance to help homeowners avoid foreclosure. HPF is a member of the HOPE NOW Alliance of mortgage servicers, mortgage market participants and counselors. You can also check with the US Department of Housing and Urban Development, and the Federal Reserve's Foreclosure Resources for Customers. The FTC and Freddie Mac both offer helpful sites for those who are feeling the pressure of mortgage payment or trying to avoiding foreclosure. The Federal Reserve also recommends checking out NeighborWorks. You can also listen to a recent NPR broadcast about these scams.
(3) Employment fraud, Classifieds fraud
The dirty scam: Unfortunately, finding a job poses many risks. First, you must be careful about the amount of personal information you place on a resume or online application. Remember that disclosing your social security number and birth date should only be necessary when they are ready to hire you and complete tax information. Avoid any job that asks you to cash checks, wire money, or use Western Union on the job. Let's start with a short list of job scams: 'Placement service' for government jobs, head hunters, temporary employment, work-at-home or online jobs, and classifieds fraud.
The clean scene: Resources for government jobs are USAJOBS, US Postal Service Employment, FirstGov, and the Department of Labor. Check suspicious opportunities with the Better Business Bureau, your state Attorney General's Office, or consumer protection agency. Read these tips from ScamBusters. Find online job hunting privacy tips and a background check fact sheet at Privacy Rights Clearinghouse.
(4) Financial assistance from the government
The dirty scam: Letters, phone calls, emails, text messages- there is nothing that they won't try! Websites and representatives claim to be able to access "secret" government money and help you apply for it. Rebate companies claiming to have stimulus payments for you should not be trusted, regardless of how plausible the script sounds or how official the forms look.
The clean scene: Legitimate information about government grants and assistance can be found at Recovery.wa.gov, Grants.gov, FSA Portals, GovBenefits.gov - Your Benefits Connection and http://www.sba.gov/. Information for stimulus payments and refunds can be obtained directly from IRS.gov. Do NOT click on any hyperlink contained in an email, type the address directly into your browser. You can check up on your stimulus checks here.
If you are prepared, think critically, and proceed with caution, you should be able to determine the scams from the real deal. There are good habits you can form during this time as well. Using cash as a way to limit spending can help your wallet and prevent identity theft. As the economy starts to improve and the panic resides, remember that identity thieves don't just go away. Accounts can be opened now that will not appear on your report for years. Protection now, and in the future, is vital to keeping your identity safe.