Schemes and Scams

There are as many scams, schemes and frauds as there are creative minds to invent them. Whether you are approached in person, by mail or over the phone, remember one thing: if it looks or sounds too good to be true, it probably is. Information is your best form of protection. To keep yourself, your privacy and your credit out of trouble, follow this simple advice.

The Most Common Cons

900 Numbers.
A warning sign in any appealing offer. The call will cost you much more than it is worth.

Charity Fraud.
Only a small percentage of your money really goes to the cause. It's safer to send money directly to the charity of your choice.

Credit Repair.
Beware! Beware! No one can remove accurate information from your credit report! If there is an error you can get it corrected yourself.

Home Improvement.
Be wary of anyone who "just happens" to be doing work in your area.

Pre-Approved Credit Offers.
Evaluate all offers carefully. Some are not what they seem to be and may require purchases from a discount catalog.

Prizes/Vacations.
If you are truly a winner, you will not have to send in money, give your credit card number, or call a 900 number.

Rent-To-Own.
Calculate your interest. You may be paying 200-300%.

Work-At-Home.
If you really could get rich working at home, we would all be doing it. Check it out in depth.

Payday Loans.
Again, calculate your interest.

Use the word "trick" to learn how to avoid being the victim of a scam.

Too Good to Be True.
If it looks or sounds too good to be true, it probably is.

Read everything before you sign anything.
Any limitations, special requirements or catches will be found in the small print.

Investigate any organization not familiar to you.
Call the Better Business Bureau to check the company's record. This also means you should not be pushed into making hasty decisions.

Carefully guard your personal numbers.
Never give your driver's license, social security, credit card or checking account numbers to anyone over the phone unless you are absolutely sure who you are talking to and what the information will be used for.

Know the messenger.
If you don't - beware! Any call or contact which you did not initiate or request should automatically put you on your guard. Why should you trust someone you don't know?

Remember "T-R-I-C-K" to keep from being tricked!

If you suspect you are talking to a con artist, you should probably hang up and not converse at all. But if curiosity gets the best of you, these questions may protect you.

1. Where did you get my name?
   Don't accept "a select list of qualified, serious investors" as an answer.

2. Explain all the risks involved in this investment.
   No investment is "risk-free." Most offers that are really worthwhile will still be available at a later date.

3. Can you send me a brochure or other written material to back up your claims?
   Don't let the caller get away with an explanation of how you must "take advantage of this wonderful opportunity right now."

4. Could you explain your proposal to my attorney, accountant or banker?
   A scammer definitely won't do this, especially not in person.

5. What governmental or other regulatory agencies supervise your activity?
   If the caller gives you a name check it out.

6. How long has your company been in business?
   Beware if the answer is less than one year. Also, ask for references.

7. How much of my money will go for fees and commissions?
   Showing you are a knowledgeable investor will discourage a con artist.

8. What happens if I am not satisfied?
   Is there a money-back guarantee? How long do you have to change your mind? Will the company pay shipping charges if you send me something back? Get all the details.

Remember: legitimate callers have nothing to hide!

Where Can A Consumer Get Help?

To file a complaint about a business, call or write to:

To file a complaint about a business in central Indiana, or to inquire about a business call or write to:

For more help with information, referral and complaint filling contact:

To remove your name from various mailing lists contact:

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