The Council of Better Business Bureaus said the most complaints filed last year were against home contractors. A big reason consumers lose money to contractors is because they don't do the research before hiring someone.

"Always get three estimates from contractors. And never do business with somebody who comes to your door unsolicited, or has a high-pressure sales pitch, or is offering a deal that is too good to be true,” said Kim Kleman with Consumer Reports.

There is a popular scam making the rounds that you should be on the look out for. It involves getting checks in the mail that look like you won money. All you have to do is send back a payment to cover taxes. The catch is the checks are not real.

"The check bounces, and the scammer runs off with your so-called taxes,” said Kleman.
You should also watch out for e-mails that look like they are from your bank, or some other business you know, and even from the Internal Revenue Service. They too, are fake and sent by schemers trying to steal Social Security and credit card numbers. Reputable companies and agencies warn they do not initiate contact through e-mail.

Another racket is the wrong-number scam. Someone calls your answering machine saying the are looking for someone else. They mention a stock that will make a lot of money. You call the person back hoping to take advantage of the stock tip you think was left for someone else.

The scam is complicated, but once promoters have you on board they push up the price of thinly traded stock, which they sell to you when it's high. The bottom drops out, and you are left holding worthless stock.

The Federal Trade Commission reports the top scam these days is identity theft. A way to protect yourself is to review your credit reports. Federal law entitles everyone to a free copy, once a year, from each of the three credit bureaus.

I've heard of most of these. Most of them are obvious anyway. I tried to color code them to make them eaiser to read. Never hurts to be informed.

[80sMusic]

There is a popular scam making the rounds that you should be on the look out for. It involves getting checks in the mail that look like you won money. All you have to do is send back a payment to cover taxes. The catch is the checks are not real.

"The check bounces, and the scammer runs off with your so-called taxes,” said Kleman.

I saw a story similar to this on court tv. The issuing "lottery company", or whatever they were, was in Canada and there was nothing the victim could do.

[HippyChick]

Great post!! You can never have too much information or be too skeptical in my opinion.

I think I've had calls from one like this actually...

Originally Posted by angie1989

Another racket is the wrong-number scam. Someone calls your answering machine saying the are looking for someone else. They mention a stock that will make a lot of money. You call the person back hoping to take advantage of the stock tip you think was left for someone else.

The scam is complicated, but once promoters have you on board they push up the price of thinly traded stock, which they sell to you when it's high. The bottom drops out, and you are left holding worthless stock.

Because I do subscribe to a few investment ezines, emails and magazines. I would NEVER sink money into something I didn't do research on first though. That's just asking to be scammed.

[chique]

Top 10 Internet Scams

1) The Nigerian scam, also known as 419

Most of you have received an email from a member of a Nigerian family with wealth. It is a desperate cry for help in getting a very large sum of money out of the country. A common variation is a woman in Africa who claimed that her husband had died, and that she wanted to leave millions of dollars of his estate to a good business.

In every variation, the scammer is promising obscenely large payments for small unskilled tasks. This scam, like most scams, is too good to be true. Yet people still fall for this money transfer con game.

They will use your emotions and willingness to help against you. They will promise you a large cut of their business or family fortune.

All you are asked to do is cover the endless legal and other fees that must be paid to the people that can release the scammer's money.

The more you are willing to pay, the more they will try to suck out of your wallet. You will never see any of the promised money, because there isn't any. And the worst thing is, this scam is not even new; its variant dates back to 1920s when it was known as 'The Spanish Prisoner' con.

2) Advanced fees paid for a guaranteed loan or credit card

If you are thinking about applying for a "pre-approved" loan or a credit card that charges an up-front fee, ask yourself: "why would a bank do that?". These scams are obvious to people who take time to scrutinize the offer.

Remember: re p*t*ble credit card companies do charge an annual fee but it is applied to the balance of the card, never at the sign-up. Furthermore, if you legitimately clear your credit balance each month, a legitimate bank will often wave the annual fee.

As for these incredible, pre-approved loans for a half-a-million dollar homes: use your common sense. These people do not know you or your credit situation, yet they are willing to offer massive credit limits.

Sadly, a percentage of all the recipients of their "amazing" offer will take the bait and pay the up-front fee.

If only one in every thousand people fall for this scam, the scammers still win several hundred dollars. Alas, far too many victims, pressured by financial problems, willingly step into this con man's trap.

3) Lottery scams

Most of us dream of hitting it big, quitting our jobs and retiring while still young enough to enjoy the fine things in life. Chances are you will receive at least one intriguing email from someone saying that you did indeed win a huge amount of money. The visions of a dream home, fabulous vacation, or other expensive goodies you could now afford with ease, could make you forget that you have never ever entered this lottery in the first place.

This scam will usually come in the form of a conventional email message. It will inform you that you won millions of dollars and congratulate you repeatedly. The catch: before you can collect your "winnings", you must pay the "processing" fee of several thousands of dollars.

Stop! The moment the bad guys cash your money order, you lose.

Once you realize you have been suckered into paying $3000 to a con man, they are long gone with your money. Do not fall for this lottery scam.

4) Phishing emails and phony web pages

This is the most widespread Internet and email scam today. It is a "sting" con game. "Phishing" is identity and password theft based on convincing emails and web pages. These emails and web pages resemble legitimate credit authorities like Citibank, eBay, or Paypal. They frighten or entice you into visiting a phony web page and entering your ID and password. Commonly, the guise is an urgent need to "confirm your identity". They will even offer you a story of how your account has been attacked by hackers to lure you into entering your confidential information.

The email message will require you to click on a link. But instead of leading you to the real login https: site, they will to a fake website. The fake website is often very convincing looking.

You then innocently enter your ID and password. This information is intercepted by the scammers, who later access your account and fleece you for several hundred dollars.

This phishing con , like all cons, depends on people believing the legitimacy or their emails and web pages. Because it was born out of hacking techniques, "fishing" is stylistically spelled "phishing" by hackers.

Tip: the beginning of the link address should have
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Phishing fakes will just have http:// (no"s" . If still in doubt, make a phone call to the financial institution to verify if the email is legit. In the meantime, never click on the link in any suspicious email.

5) Items for sale overpayment scam

This one involves an item you might have listed for sale such as a car, truck or some other expensive item. The scammer finds your ad and sends you an email offering to pay much more than your asking price. The reason for overpayment is supposedly related to the international fees to ship the car overseas. In return, you are to send him the car and the cash for the difference.

The money order you receive looks real so you deposit it into your account. In a couple of days (or the time it takes to clear) your bank informs you the money order was fake and demands you pay that amount back immediately.

In most documented versions of this money order scam, the money order was indeed an authentic document, but it was never authorized by the bank it was stolen from.

In the case of cashier's checks, it is usually a convincing forgery. You have now lost the car, the cash you sent with the car, and you owe a hefty sum of money to your bank to cover for the bad money order or the fake cashier's check.

6) Employment scam

You have posted your resume, with at least some personal data accessible by potential employers, on a legitimate employment site. You receive a job offer to become a "financial representative" of an overseas company you have never even heard of before. The reason they want to hire you is that this company has problems accepting money from US customers and they need you to handle those payments. You will be paid 5 to 15 percent commission per transaction.

If you apply, you will provide the scammer with your personal data, such as bank account information, so you can "get paid". Instead, you will experience some, or all, of the following:

* identity theft,
* money stolen from your account, or
* may receive fake checks or money orders for payments which you deposit into your account but must send 85 – 95 percent of that to your "employer".

Soon you will owe much money to your bank!

In other instance, you will receive an unsolicited e-mail message from a "multinational company" congratulating you for being selected for a specific job. The e-mail contains details about the "hiring company", the positions needed, and a very enticing compensation package.

You will be asked to send money through Western Union as processing fee or reservation fee.


7) Disaster relief scams

What do 9-11, Tsunami and Katrina have in common? These are all disasters, tragic events where people die, lose their loved ones, or everything they have. In times like these, good people pull together to help the survivors in any way they can, including online donations. Scammers set up fake charity websites and steal the money donated to the victims of disasters.

If your request for donation came via email, there is a chance of it being a phishing attempt. Do not click on the link in the email and volunteer your bank account or credit card information.

Your best bet is to contact the recognized charitable organization directly by phone or their website.

Travel scams

These scams are most active during the summer months. You receive an email with the offer to get amazingly low fares to some exotic destination but you must book it today or the offer expires that evening. If you call, you'll find out the travel is free but the hotel rates are highly overpriced.

Some can offer you rock-bottom prices but hide certain high fees until you 'sign on the dotted line'. Others, in order to give you the 'free' something, will make you sit through a timeshare pitch at the destination. Still others can just take your money and deliver nothing.

Also, getting your refund, should you decide to cancel, is usually a lost cause, often called a nightmare or mission-impossible.

Your best strategy is to book your trip in person, through a re p*t*ble travel agency or proven legitimate online service like Travelocity or Expedia.

9) "Make Money Fast" chain emails

A classic pyramid scheme: you get an email with a list of names, you are asked to send 5 dollars (or so) by mail to the person whose name is at the top of the list, add your own name to the bottom, and forward the updated list to a number of other people.

The author of this scam letter painstakingly explains that, if more and more people join this chain, when it's your turn to receive the money, you might even become a millionaire!

Bear in mind that, most times, the list of names is manipulated to keep the top name (the creator of the scam, or his friends) on top, permanently.

As with the previously circulating snail-mail version of this chain, the email edition is just as illegal. Should you choose to participate, you risk being charged with fraud – definitely not something you want on your record, or resume.

10) "Turn Your Computer Into a Money-Making Machine!"

Although not a full blown scam, this scheme works as follows: You send someone money for instructions on where to go and what to download and install on your computer to turn it into a money-making machine -- for spammers.

At sign-up, you get a unique ID and you have to give them your PayPal account information for the "big money' deposits you'll soon be receiving. The program that you are supposed to run, sometimes 24/7, opens multiple ad windows, repeatedly, thus generating per-click revenue for spammers.

In other scenario, your ID is limited to a certain number of page clicks per day. In order to make any money whatsoever from this scheme, you are pretty much forced to scam the spammers by hiding your real IP address with Internet proxy services such as "findnot", so you can make more page clicks.

I won't even go into the discussion about what this program will do to your computer's performance... it is a true tragedy if you get conned into this scam.