1. FRAUDS & SCAMS MTHS Personal Finance

2. Have I got a deal for you… When you buy a product, you don’t expect to have problems with it. Unfortunately, every purchase involves some degree of risk. Most consumer dissatisfaction results from products that are defective or of poor quality, but some are the result of fraud. In this presentation, you will learn about some common frauds as well as your rights and responsibilities as a consumer…so you will know how NOT to be victim of fraud.

3. What is Fraud? Intentional deception to induce someone to part with something of value. There are millions of ways for you to be deceived in the marketplace. Here are some of the most common….

4. Telemarketing Fraud Telemarketers sell inferior or non-existent products. They often use high pressure sales techniques. "You've won a 'free' gift, vacation, or prize." But you have to pay for "postage and handling" or other charges.

5. Pyramid Schemes A non-sustainable business model that involves promising participants payment, primarily for enrolling other people into the scheme or training them to take part, rather than supplying any real investment or sale of products or services to the public.non-sustainablebusiness modelproductsservices

6. Foreign Money Offers Individuals (usually in foreign countries) send a check for you to cash. You return a portion of the amount and keep the rest as payment. Issue? The check is bad…and the bank holds YOU responsible for the full amount.

7. Phishing Fake websites are created that look like a real one. Used to “fish” for your personal information. (Emails are often used to entice you to utilize these fake sites)

8. Work-at-Home Schemes You send money to start business, supplies are sent back…but your finished products are not accepted (you make no money!) Real job opportunities DO NOT require payment up front!

9. Buyer Beware There are THOUSANDS of frauds and scams in the world today. (And people just like you are falling for them) So how can you know when an offer is too good to be true? By checking the offer, item, or service against the RED FLAGS…

10. Red Flag #1: High Pressure Sales Techniques The sales pitch is presented with an urgency or pressure to make a decision “If you don’t buy it today, it will be gone tomorrow.” Insistence that you finalize a deal orally or provide personal financial information w/out a written agreement or contract

11. Red Flag #2: Insufficient Information If the promoter is not locally based and does not provide important information it could spell trouble. You should be able to easily find the following information such as: – Phone Number – Address – Website Sometimes an unscrupulous company will use only a P.O. box for contact information.

12. Red Flag #3: Does it sound too good to be true? Beware of deals that sound much better than any being advertised by firms that you know to be legitimate Everyone wants to get in on a great deal, but remember if it sounds too good to be true it probably is. Just be sure you check out ALL the information.

13. Red Flag #4: Offer of Something for Nothing Nothing is free – it WILL cost you time or money or both. We all love a freebie, but there are usually strings attached – find out what they are…and decide if you want to “play”

14. Red Flag #5: Need to invest $ to earn $ Sometimes work-at-home offers require you to spend a considerable amount of money before you can begin earning money. Fraudulent investment schemes may require a substantial amount of money upfront. BEWARE!...if you are asked to send a check, money order, or cash – you might be asking for trouble!!!

15. Red Flag #6: Misleading testimonials or endorsements Sometimes the promoter name and/or logo closely mimics that of a respected brand or business. – For example: the American Cancer Society and the American Cancer Foundation are NOT the same charities Sometimes other people provide testimonials…but how do you know they are not part of the scam too? DO YOUR RESEARCH!!!

16. Where to get more information or help: Better Business Bureau – http://www.bbb.org/ http://www.bbb.org Attorney General of WA – http://www.atg.wa.gov/ http://www.atg.wa.gov/ Federal Trade Commission – http://www.ftc.gov/ http://www.ftc.gov/