1. Scams & Schemes Caveat Emptor – “Let the buyer beware” “There’s a sucker born every minute.” -PT Barnum Caveat Emptor – “Let the buyer beware” “There’s a sucker born every minute.” -PT Barnum

2. New scams – Updates!  Computer “virus” detected – call or email company to clean computer  “London” Virus – email from stranded friend… needs $$$  Text phishing… - send info to bank to “verify” your acct.  Computer “virus” detected – call or email company to clean computer  “London” Virus – email from stranded friend… needs $$$  Text phishing… - send info to bank to “verify” your acct.

3. EBAY/Craisgslist sales scams  Seller contacts you “outside the system” to offer you a great deal / discount. Wants you to send him/her a check. You never get the product  Buyer is leaving the country and wants you to send the product overseas.  Buyer pays using a money order for more than the full amount.  Money order is a fraud.  Simple forgeries …  Seller contacts you “outside the system” to offer you a great deal / discount. Wants you to send him/her a check. You never get the product  Buyer is leaving the country and wants you to send the product overseas.  Buyer pays using a money order for more than the full amount.  Money order is a fraud.  Simple forgeries …

4. Online protection  Use Pay Pal  Use Credit Card  Never give out personal info.  Deal only with people with high ratings/many sales  Meet in a public place with parent/adult present  Take pictures/Have evidence of your actions  Use Pay Pal  Use Credit Card  Never give out personal info.  Deal only with people with high ratings/many sales  Meet in a public place with parent/adult present  Take pictures/Have evidence of your actions

5. Modeling and Talent Scams  Flattery lures you in – they tell you that you have “the look”  Charges begin from the start  Promises of money, stardom are followed by close misses  Different programs, services, and products are sold to you at inflated prices  The dream fades… and their promises are broken…  Flattery lures you in – they tell you that you have “the look”  Charges begin from the start  Promises of money, stardom are followed by close misses  Different programs, services, and products are sold to you at inflated prices  The dream fades… and their promises are broken…

6. Multilevel Marketing  Known as Network or Matrix marketing  You sell goods for a distributor  Often over-promises & under-delivers on profit estimates  Market saturation ruins most income  Members make $$ by recruiting new members  Be very skeptical of seminars & other sales training products…  LEGAL if more than 70% of revenue is from outside customers  Known as Network or Matrix marketing  You sell goods for a distributor  Often over-promises & under-delivers on profit estimates  Market saturation ruins most income  Members make $$ by recruiting new members  Be very skeptical of seminars & other sales training products…  LEGAL if more than 70% of revenue is from outside customers

7. Pyramid Scheme  Primary or sole source of income is through recruiting new members  Recruiters are pressured to get more people or be kicked out of organization  “Lower level” members make money only if they recruit  Typically wrought with fraud  Guaranteed that 70-88% lose money  Absolutely ILLEGAL  Primary or sole source of income is through recruiting new members  Recruiters are pressured to get more people or be kicked out of organization  “Lower level” members make money only if they recruit  Typically wrought with fraud  Guaranteed that 70-88% lose money  Absolutely ILLEGAL

8. Ponzi Scheme  Promises of easy money gets you into the investment  Early investors are paid off with very large returns  New investors come on board often at the urging of early investors who struck it rich  Original investors often “re-up”  Con artist is just taking money from new investors and paying early investors until he can leave town…  Promises of easy money gets you into the investment  Early investors are paid off with very large returns  New investors come on board often at the urging of early investors who struck it rich  Original investors often “re-up”  Con artist is just taking money from new investors and paying early investors until he can leave town…

9. (Magazine) door-to-door solicitors  Promises of low prices  Usually pay more for subscription than other deals. Automatic subscription renewal attached  “Poor students” wanting to earn points to go to Europe  Pressure sales techniques  “Bonus points” for cash  Often won’t get product  Some salespeople are thieves  Salespeople are NOT students – they are in a van that travels the country  Promises of low prices  Usually pay more for subscription than other deals. Automatic subscription renewal attached  “Poor students” wanting to earn points to go to Europe  Pressure sales techniques  “Bonus points” for cash  Often won’t get product  Some salespeople are thieves  Salespeople are NOT students – they are in a van that travels the country

10. Timeshare Scams  Lure people into high pressure sales meetings  Contracts may over-promise & under-deliver on the properties  Contracts are missing verbal promises and fine print has hidden fees, restrictions & obligations  Value of property is overstated  Annual fees are “adjustable”  Price is much higher than used ones on sale on secondary mkt.  Lure people into high pressure sales meetings  Contracts may over-promise & under-deliver on the properties  Contracts are missing verbal promises and fine print has hidden fees, restrictions & obligations  Value of property is overstated  Annual fees are “adjustable”  Price is much higher than used ones on sale on secondary mkt.

11. Email phishing  Request for financial information from a website that pretends to be your bank/business partner  Alarming warnings of problems with your account  Threats of closing your account if you don’t “verify your account information”  The info you give, is used to take your money  Request for financial information from a website that pretends to be your bank/business partner  Alarming warnings of problems with your account  Threats of closing your account if you don’t “verify your account information”  The info you give, is used to take your money

12. Bait and Switch  Spectacular offer is publicized  Customer shows up to buy product & it is “sold out” – or limited by size/color  Sales people may require buyers to be “qualified” in order to buy item  “Normal” accessories are missing and require extra payment  Illegal according to Federal Law  Sales people degrade value of the deal & upsell customer to substitute  Spectacular offer is publicized  Customer shows up to buy product & it is “sold out” – or limited by size/color  Sales people may require buyers to be “qualified” in order to buy item  “Normal” accessories are missing and require extra payment  Illegal according to Federal Law  Sales people degrade value of the deal & upsell customer to substitute

13. Nigerian 419 Scam  Almost always perpetrated via email.  A Nigerian prince or exiled political figure needs your help  Scammer exchanges emails with victim getting to know them  They then ask for money in order for them to escape Nigeria and in exchange they will give you millions…  Many variations are are done for smaller amounts using various excuses…  Almost always perpetrated via email.  A Nigerian prince or exiled political figure needs your help  Scammer exchanges emails with victim getting to know them  They then ask for money in order for them to escape Nigeria and in exchange they will give you millions…  Many variations are are done for smaller amounts using various excuses…