Mass
Marketing Fraud—Basic Overview
Mass Marketing Frauds target individuals of all ages and walks of
life. Victims are lured with false promises of significant cash prizes,
goods, services, or good works, in exchange for up-front fees, taxes
or donations.
Costs of Fraud
Mass Marketing Frauds victimize millions of Americans each year and generate
losses in the hundreds of millions of dollars.
The Top Schemes
- Foreign Lotteries & Sweepstakes
- Nigerian Letter Scams
- Credit & Loan Scams
- Overpayment Scams
- Charity Scams
Common Scams—Be on the Lookout for Fraud
Foreign Lotteries & Sweepstakes
- Foreign lottery fraud is currently one of the most prevalent
consumer frauds.
- Victims are told that they have won a lottery or sweepstakes
in a foreign drawing.
- To collect the winnings, victims are told they must
first pay various taxes and fees.
Nigerian Letter Scams
- Victims are asked to help illegally transfer funds out of Nigeria
in return for a share of the money.
- Perpetrators ask victims for their bank account information under the
pretext that it is needed to complete the transaction.
- Victims may also
be asked to pay money up-front to help defray the cost of taxes, legal
fees, or bribes.
Credit & Loan Scams
- Victims with poor or non-existent credit are offered credit cards/loans—for
an advance fee.
- “Credit repair services” may offer to help those
with poor credit improve their credit ratings—for an advance fee.
Overpayment Scams
- The victim is advertising an item for sale.
- A “buyer” sends
the seller a counterfeit check or money order for more than the cost
of the item.
- The victim is asked to return the difference between the payment
and the cost of the item.
- When the payment turns out to be counterfeit,
the victim is held responsible by his or her financial institution.
Charity Scams
- Con artists solicit donations in the name of non-existent or
fraudulent charities.
- Most charity scams occur during the holidays or in
the aftermath of disasters, when philanthropy is most common.
Protect Yourself—How You Can Avoid
Becoming a Victim
The Hallmarks of Mass Marketing Fraud
- Offers appear “too good to be true.”
- Payments for goods or
services are required in advance.
- Personal information is requested over
the telephone.
- Offers are unsolicited.
- Representatives use high pressure sales techniques,
claiming that immediate action is required.
What You Can Do
- Don’t believe everything you are told. If something sounds
too good to be true, it probably is.
- Avoid being taken by high pressure
sales. Take the time to research offers before deciding whether or not
to participate.
- Don’t do business with anyone who solicits your
money in advance of awarding a prize.
- Inspect all representatives’ credentials
carefully.
- Get all offers in writing and keep a copy for your records.
- Don’t
deposit checks sent by companies that claim the check is being sent to
pay fees or taxes on lottery winnings.
Report Scams When They Occur
- Don’t ever be embarrassed. These frauds are perpetrated
by sophisticated con artists.
- File a claim with the appropriate entities
listed in this brochure.
- Report the crime promptly—you’ll
have a better chance of getting your money back and bringing the perpetrators
to justice when you file
a complaint soon after the crime.
Reporting Resources
Federal Trade Commission (FTC)
www.ftc.gov
(877) FTC-HELP; (877) 382-4357
Victims are strongly encouraged to report frauds to the FTC, which maintains
a comprehensive scam database called Consumer Sentinel.
PhoneBusters
Tel: (888) 495-8501; Fax: (888) 654-9426
For frauds related to Canada, victims should contact PhoneBusters, a Canadian
government clearinghouse for fraud information.
Internet Crime Complaint Center (IC3)
www.ic3.gov
For internet-based scams, individuals are encouraged to report incidents directly
to IC3.
American Association of Retired Persons (AARP)
www.aarp.org
For information related to fraud schemes targeting senior citizens, individuals
should take advantage of the resources available on the AARP website.
Internal Revenue Service (IRS)
(877) 829-5500
www.irs.gov
To avoid charity frauds, individuals should research organizations on the
IRS website.
Better Business Bureau, Wise Giving Alliance
(703) 276-0100
www.give.org
The Wise Giving Alliance provides information on charities that have been
the subject of donor inquiries and also offers tips about charitable giving.
Federal Bureau of Investigation (FBI)
www.fbi.gov
Individuals are always encouraged to report Mass Marketing Frauds to their
local FBI offices, all of which are listed on the back of this brochure.
FBI Field Office Contact Information.
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