Safety

Though estimates vary, it’s pretty clear that many American consumers are mired in debt, paying huge chunks of their monthly income to banks, credit card companies, and lenders of every sort. Federal Reserve statistics, for example, indicate that the average American household has at least three credit cards and owes about $7,000 in credit card debt. Some families, of course, have credit card balances far exceeding that amount, and many are shouldering additional burdens for houses and cars they can’t afford.

Bogus debt consolidation companies target such households. Why? Because those families are often desperate. Collection agencies are hounding them. Mortgage companies are threatening foreclosure. The repo guy is standing in the driveway, eyeing that shiny vehicle purchased on credit.

The good news? Legitimate credit counseling organizations exist. Using their services, many families have been able to consolidate loans, negotiate with creditors, and work toward financial solvency. But there’s no magic pill. Getting out of debt requires discipline. Like sticking to a diet, it involves sacrifice – and time.

If you’re tempted to call that number on your television screen or sign a contract with a sales representative offering debt consolidation services, watch out for these red flags:

• Pressure to sign now. Whether it’s a lottery con or prescription drug fraud, rip-off artists want the money now. So they often require up-front fees or try to bully their way into your bank account. Don’t fall for it. In fact, if a for-profit company sells debt consolidation services over the telephone and charges a fee before actually settling or reducing your debt, that company may be breaking the law. In addition, such businesses must disclose key information so you can make an informed evaluation. If a representative pressures you to sign an agreement quickly, walk away.
• Unreasonable guarantees. If the company claims it can fix your debt problems without knowing anything about your personal finances, hold on to your wallet. A legitimate firm will take whatever time is necessary to understand your assets, your income, and your liabilities before developing a debt consolidation plan. A salesman who pledges instant elimination of your debt or overnight improvement in your credit score won’t deliver.

With careful research, discipline, and time, many seemingly impossible debt problems can be solved. If you need help, give us a call.

At any given time, millions of items are being bought and sold via Internet auction sites. Furniture, clothing, sailboats, golf clubs, even a night on the town with your favorite sports star – all are available to the highest bidder. The companies that facilitate these trades are rich indeed. At last count, eBay had a market value of over $38 billion and craigslist generates well over $100 million in annual revenues.

Of course, most buyers who use online auction sites just want a good deal, and most sellers aren’t trying to rip off anyone. But it pays to be vigilant. Protect yourself from online auction fraud by following these four guidelines:

• Read the description carefully. Sometimes sellers misrepresent goods by overstating their value, authenticity, or condition. If the “solid oak nightstand” has “real polished oak veneer,” you might want to look elsewhere. If an authentic Selmer Mark VI tenor saxophone (in pristine condition and played by John Coltrane himself) is being offered for a few hundred dollars, something’s amiss.
• Check the quotes. Fraudsters sometimes use a valid source, but misrepresent its applicability to the item being sold. They might say that the quoted price on a silver goblet is $1,000, but don’t mention that their source is a guide published at the height of the silver market. To determine the market value of an item, review recent closing prices of similar items sold on the same auction site or in your local brick-and-mortar store.
• Pay with a credit card. If a seller requests cash, be suspicious. Using a credit card to buy goods over the Internet provides protection from fraud. Such transactions are traceable and contestable. Other secure options include using an escrow agent for large dollar items or paying cash-on-delivery (COD).
• Plan your meeting with a seller. If using a local selling function, pick up the item with a friend and tell others where you are going. If it is a valuable item, ask for a receipt or bill of sale.

Above all, know how the auction site works – its rules, policies, protections, and disclaimers – before placing your bid.

Employment scams are not new, but they’ve become increasingly sophisticated as scammers design websites that effectively mimic the sites of legitimate companies. How can you keep from being ripped off by bogus job agencies?

• Do you research. Gather information about the job placement companies you’re interested in. Also ask around. Chances are you know someone else in your industry that has worked with a job agency and can offer opinions based on personal experience working with the agency.
• Beware bogus job e-mails. When contacted by a job placement service, watch for misspellings, grammatical mistakes, or a personal e-mail address. They’re red flags for fraud. Some descriptive words that may be tip-offs to fraud are “package forwarding” or “foreign agent agreement.” When used in e-mails, such words may indicate that a scammer is trying to entice you into a money laundering scheme.
• Job placement or job counseling? Some legitimate companies charge a fee to help you identify and hone your skills, prepare a professional resume, and practice interview techniques. But they don’t guarantee job placement. You’re paying for a service. It’s your responsibility to send out that resume and ace that interview. If you’re looking for someone that can place you in a job, make sure you’re working with a job agency.
• Get the details. Read the job listing and contract and ask specific questions. What happens if the job lead doesn’t pan out? If you get vague or confusing answers, back away.
• Refuse upfront payments. If a company representative says he’s got a job ready for you, but you need to pay a fee for certification, training materials or placement expenses, hold on to your money. The promise of a job isn’t a job. If possible, contact the potential employer directly to find out if the company is actually hiring.

If you think you’ve been a scam victim, close all bank accounts that may have been involved in the fraud and keep a close watch on your credit reports for unusual activity.

Scam artists often seem to target older adults because they’re generalized as being more trusting and more easily confused than others. Whether or not that’s true, you can help protect your parents and the other older adults in your life by following a few simple steps:

• Add phone numbers to the National Do Not Call Registry. Many scams aimed at older adults are phone scams. Even if a telephone offer is not an outright scam, seniors may be talked into buying things they don’t really need. By putting their number on the registry, you’ll eliminate most unwanted phone calls. Explain that if they continue to receive solicitation calls, they’re much more likely to be from a scam artist. Encourage them to just hang up on such callers.
  
  You can add phone numbers to the National Do Not Call Registry on www.donotcall.gov.
• Secure financial account numbers. Make sure your older family members are not carrying their account numbers and PINs on a piece of paper in their purse or wallet. If necessary, help them change their PIN to a number they’ll have an easy time remembering. You can also help them find a trusted loved one who can keep a record of important account info as a backup.
• Warn about in-person and online scams. Alert your parents to fraudsters who appear at the door offering to fix the roof or the driveway, or pointing out a supposed problem with the house. Tell your parents not to sign up for anything unless they’ve talked to you or another trusted loved one first.
  
  In addition, warn them about phishing e-mails. These are bogus messages appearing to come from banks, department stores or even the government, requesting personal information. The real purpose is identity theft.
• Keep the communication open. Talk to your parents often. Ask them about purchases they’ve made or offers they’ve received. If you’re willing, offer to help keep their financial records in order. That can give you the chance to spot any unusual payments they’re making. Encourage them to talk to you before they make any big purchase or accept any special offers.

Fraudsters have been using “easy money” scams for years. However, methods have been adapted to exploit advances in technology, which has helped with tricking victims into new cons.

For instance, the Federal Trade Commission (FTC) filed a complaint against Digital Altitude LLC and other defendants in February. The agency alleged that the company’s operations misrepresented an online business “coaching program.” The defendants told consumers they would receive individualized coaching from successful marketers, yet most of defendants’ customers never earned substantial income as a result of the coaching. The scheme was promoted using webpages and social media platforms, including Facebook and Instagram.

While scams may have changed over the years, the goal never varies. Swindlers want access to your wallet and your bank account.

You can avoid “easy money” schemes by following three straight-to-the-point practices:

• Conduct an online search. Look for complaints by searching for the company’s name and phone number online, including the Better Business Bureau (BBB) website. You may be able to find out if the company has a a good — or bad — reputation, and why.
• Hang up on high-pressure sellers. If you’re told something like, “You’re leaving thousands of dollars on the table by not moving up to the next membership tier,” don’t fall for it. Trust your gut feeling and pass on the offer. You can always do a search online to learn more if you’re still curious about the service or offer.
• Be skeptical of outrageous claims. Does this company really offer a turnkey system that will enable you to earn six figures in 90 days or less? If the claim sounds too good to be true, it probably is.

To report fraud, identity theft, or an unfair business practice, visit the FTC Complaint Assistant page. You can also file a business complaint using the BBB Online Complaint System.