CHAPTER 4Slide 1 of 5 Chapter 4. FRAUDS AND SWINDLES, AND HOW TO AVOID THEM When it sounds too good to be true… How to Spot the Scams… Where to Report Them… Snake Oil Sam A. Barnum Was Right: There’s a Sucker Born Every Minute 1. Snake Oil Sam’s newest tool: The Internet B. Bait and Switch C. Mail-Order Madness Get-Rich-Quick Schemes

CHAPTER 4Slide 2 of 5 E. Frauds on the Street F. Frauds in the Home G. Home Improvement Swindles H. Investment Schemes 1. The Boiler Room 2. Ponzis and Pyramids 3. Who Can You Trust? I. Leisure and Luxuries Snake Oil Sam’s Miscellanea

CHAPTER 4Slide 3 of 5 K. What to Do About It 1. Federal Agencies 2. The U.S. Postal Service 3. State and Local Government 4. The News Media 5. Better Business Bureau 6. Financial Institutions 7. Small Claims Court Your Best Defense (See Personal Action Worksheet, text page 130)

CHAPTER 4Slide 4 of 5 TALKING POINTS… Chapter Four, Number One As you are walking into your branch bank, you see a sharpie leading an elderly gent along, and you overhear him saying to his presumed victim, “As soon as you’ve withdrawn your cash to show your good faith, we’ll go to my lawyer’s office and split up the money we found in the briefcase.” Which of these actions would you take and what do you think the results might be? 1. Approach the elderly gent and tell him that he’s becoming the victim of a scam. 2. Tell the sharpie to leave the old man alone or you will call the police. 3. Call the police. 4. Tell the bank manager to instruct the teller to delay cashing the elderly gent’s check until the manager has had a chance to interview the victim to determine if he knows what may be happening. 5. Do nothing. It is not your concern.

CHAPTER 4Slide 5 of 5 TALKING POINTS… Chapter Four, Number Two The same set of facts as in the prior scenario, except that you get the following answers to each of your statements. How would you then respond? 1. You tell the elderly gent, and he tells you to leave him alone, he’s going to make a lot of money. 2. You tell the sharpie to split, and he tells you, in a menacing way, to mind your own business. 3. The police tell you that unless you have evidence that a crime is being committed, there’s nothing they can do. 4. The bank manager says he has no right to delay a customer’s withdrawal, let alone question the customer. 5. You do nothing, then feel guilty that you might have helped as you see the sharpie walking towards his car with the victim.