Preventing Fraud


Most people think they're too smart to fall for a scam. But con artists rob all kinds of people - from investment counselors and doctors to teenagers and elderly widows - of billions of dollars every year.


You Can Protect Yourself!

Be a Wise Consumer
  • Look closely at offers that come in the mail. Con artists often use official-looking forms and bold graphics to lure victims. If you receive items in the mail that you didn't order, you are under no obligation to pay for them - throw them out, return them, or keep them.
Some Classic Cons
Although con artists come up with new scams as times change, some classic scams never go out of style.

  • The Bank Examiner: Someone posing as a bank official or government agent asks for your help (in person or via the telephone) to catch a dishonest teller. You are to withdraw money from your account and turn it over to him or her so the serial numbers can be checked or the money marked. You do, and never see your money again.
  • The Pigeon Drop: A couple of strangers tell you they've found a large sum of money or other valuables. They say they'll split their good fortune with you if everyone involved will put up some "good faith" money. You turn over your cash, and you never see your money or the strangers again.
  • The Pyramid Scheme: Someone offers you a chance to invest in an up-and-coming company with a guaranteed high return. The idea is that you invest and ask others to do the same. You get a share of each investment you recruit. They recruit others, and so on. When the pyramid collapses (either the pool of new investors dries up or the swindler is caught), everyone loses - except the person at the top.
Protect Yourself From Telemarketing Fraud
Your best protection is to just hang up the phone. If you think that is rude, tell these callers politely that you are not interested, you don't want to waste their time, and please don't call back - and then hang up. If you find yourself caught up in a sales pitch, remember the federal government's Telemarketing Sales Rule.
  • You have to be told the name of the company, the fact that it is a sales call, and what's being sold. If a prize is being offered, you have to be told immediately that there is no purchase necessary to win.
  • If the caller says you've won a prize, you cannot be asked to pay anything for it. You can't even be required to pay shipping charges. If it is a sweepstakes, the caller must tell you how to enter without making a purchase.
  • You cannot be asked to pay in advance for services such as cleansing your credit record, finding you a loan, acquiring a prize they say you've won. You pay for services only if they're actually delivered.
  • You shouldn't be called before 8 a.m. or after 9 p.m. If you tell telemarketers not to call again, they can't. If they do, they have broken the law.
  • If you're guaranteed a refund, the caller has to tell you all the limitations.
And remember, don't give telemarketers your credit card number, your bank account number, Social Security number - or authorize bank drafts - ever.

If Someone Rips You Off
  • If you suspect fraud, call the National Fraud Information Center at 800-876-7060, 9 a.m. to 5:30 p.m. EST. To find out more, visit

Source: National Crime Prevention Council