Scam-Proof Yourself to Eliminate Risk

I got more junk mail, but this time it was useful. This particular piece was from my bank, and it contained an article on spotting consumer scams, including this quiz:

1. What was the top consumer fraud complaint last year?
A) Bogus sweepstake prizes
B) Identity theft
C) Fake foreign money offers
D) Internet auctions

The correct answer was B. If your credit cards are lost or stolen, report it immediately with the creditor, then file a complaint with the FTC at 1-877-382-4357. Keep a close watch on your credit record to make sure no new credit has been opened in your name.

2. What is “phishing”?
A) How identity thieves acquire personal information online
B) Rummaging through trashcans for useful information
C) A method telemarketers use to identify seniors
D) How the IRS tracks down tax dodgers

The correct answer was A. The way to protect yourself from phishing is to never EVER use links to websites given in an e-mail. If the site is a familiar one to you and you do business with them regularly, have that site bookmarked, and always use your bookmarks to get somewhere. This avoids giving look-alike sites your login information.

3. When does the IRS contact taxpayers via e-mail?
A) When the agency needs your Social Security number
B) When you’re owed a refund
C) Never
D) When the agency has a question about your tax return

The correct answer is C. The IRS always contacts taxpayers through regular mail and includes a phone number to verify the authenticity of the letter. This prevents you from becoming susceptible to fraud online.

4. What is the costliest telemarketing scam?
A) Sweepstakes/prizes
B) Scholarships
C) Magazine sales
D) Credit Card offers

The correct answer is A. Most fraudulent offers require you to pay a fee to claim your prize. To eliminate the risk of fraudulent telemarketing, you can fight back by reporting any suspicious offers to fraud.org, or by opting out of telemarketer access by registering all your phones with the National Do Not Call Registry at donotcall.gov.

5. What’s the best way to spot a predatory loan?
A) Balloon payments
B) High interest rates
C) Penalties for early payment
D) All of the above

The correct answer is D. To avoid traps like the ones listed above, shop for the best rates, ask questions, have someone you trust review the documents if you don’t understand them, never NEVER sign a blank document that someone offers to fill in later, and never give in to high-pressure sales tactics—just get up and leave if it gets too hot for you to handle.

This addition is a personal one, and is a scam of a different sort.

6. A stranger walking down the road aimlessly suddenly sees you in your front yard and approaches you, offering to mow your lawn. You:
A) Let him do it
B) Make an appointment for a later date and time
C) Ask for a business card or some sort of documentation
D) Send him on his way

The correct answer is D. A co-worker of hubby’s had this experience, and he let the stranger in to mow his lawn. After job completion, the co-worker was hit with a $50 bill and threatened with a lien on his house if he didn’t pay up. Fortunately for the co-worker, he offered merchandise in trade, and the stranger accepted. This proves that just about anyone who performs any kind of work on your house or yard and doesn’t receive payment can hit the jackpot just by slapping a lien on your house—and your equity and credit.

And this little gem for the bleeding heart in all of us.

7. A woman and little girl are walking down the road in search of a place to live. She says she’s trying to escape a battering husband and domestic violence, and just wants to get off the street for the sake of the child. You:

A) Let them in, offering a place to stay indefinitely
B) Send them both on their way
C) Give them a ride to the nearest domestic violence shelter
D) Take them back home

The correct answers are B and C. Again, another co-worker of hubby’s was waylaid by the sad sight of a bedraggled mother and child supposedly trying to escape an abusive home life, and was waylaid alright—by a scamster and child looking for a free place to live and hide out from the law. It turns out the mother was wanted for felony drug trafficking, and the police had raided her home looking for her. Had he taken her and the child in, he himself would have been guilty of harboring a fugitive, and could have gone to jail if the police ever caught up with her. It never pays to get personally involved with strangers, no matter how pathetic the situation—there are agencies equipped to handle that. If these people don’t use them, then there’s a reason...and it usually isn’t good.