FIGHTING FRAUD
Don’t be a victim. Five steps to take after a scam.
By Steve Bastien
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The Federal Trade Com-mission says that nearly one in nine Americans are the victims of some sort of fraud each year. Print advertising is often the biggest source of scams, often causing a full one-third of the cases. Telemarketing and the Internet are the second biggest sources of scams. One of the biggest scams, however, is the work-at-home ploy. Earlier in the year, the Department of Justice, along with other federal and state authorities, cracked down on more than 200 such scams.
In one scam, a Pennsylvania promoter, caught in the dragnet, lured an estimated 30,000 people to pay $50 for registration and a kit to assemble “kitty cat door magnets.” The promoter scammed those 30,000 people, who dreamed of owning their own business and operating it from their homes, with promises of earning $800 a week. The operator, however, would reject most or all of the people’s work for quality reasons, the FTC alleges, and the victims lost their up-front money. What could they have done to recover their monies? Probably not much because they didn’t follow one simple rule: Before you spend your money, always know the name of the company and the complete address where they are headquartered.
Before you even think about sending your money in or handing your credit card to a company that promises wealth and success, get down to the basics. Even large businesses can be scammed, so be on the lookout. Obtain the correct spelling of the first and last name of the person that heads the company, as well as the company’s fax number. If you are purchasing a product or service from a well-known company, all of this information often can be obtained after the purchase over the Internet or from your local librarian. Otherwise you need to ask for it ahead of time. If it is a company you are not familiar with and the person is not willing to give you this information, this should be a red flag that you may become the victim of a scam.
If you do become the victim of a scam, receive poor service or purchase a defective product, however, there are ways to get justly compensated. Even businesses can try taking these steps to resolve a scam.