What is a Ponzi Scheme scam?

Ponzi Scheme is false returns on an investment in order to get the confidence of an investor. A scam artist may pay money out of their own pockets in order to convince an investor to give them more access to their portfolio. This particular scam relies on your natural desire to make easy money. This particular scam is named after Charles Ponzi who all though was not the first, was possibly the worst. At the beginning of the century he swindled around $500,000 from investors, and was eventually caught and spent three and a half years in prison. The scam has many variations and may look very different, here is some things to look for:

• Any promise of a return higher than 0.1% return per day.
• A request for a much higher investment after an initial successful campaign.
• You have never heard of the investment company

The bottom line with investing and letting anyone have access to your portfolio is do your research. Scam artists are very clever and charming and can fool even savvy investors.

Beware of get rich quick scams and pyramid schemes

The way these get rich quick scams work is by getting you to give them your money. Basically you buy their program and they will teach you how to rip other people off. Its kind of like the add in the paper that says send me 5 dollars and I will send you the secret to making a million dollars. The secret is to put a add in the paper saying send me 5 dollars and I will send you the secret to making a million dollars. Sadly the target market for get rich schemes and pyramid schemes are the poor, the elderly, or people who are already in debt. And if you want to make money on a pyramid scheme you should start one yourself, otherwise you are just making money for other people. These are examples of common schemes:

1. Buy real estate for pennies on the dollar.
2. Wealth building seminars.
3. Risk free stock market schemes.
4. Muli-level marketing (pyramid scheme).
5. Secret ways to make money that no one knows about.
6. Psychic tips or betting tips.

Here are examples of phrases to run from:

1. Get in at the top.
2. Send us money and we will help you make money.
3. Business opportunities “they”  don’t want you to know about.
4. I made $10,000 dollars in 30 days, you can to.
5. Make money from home.
6. Want to make millions working part time?
7. If I can do it so can you.
8. You don’t need any education.

Remember the scam protectors golden rule; if it sounds to good to be true then it probably is.

Better Business Bureau Scam

The Better Business Bureau is being victimized by e-mail scams that claim they are an affiliate of the Bureau. Businesses that display the BBB symbol are considered trustworthy and can lead to consumers letting their guard down. The e-mail eventually leads to a Western Union transfer that cannot be traced at the receiving end. The e-mail example the Better Business Bureau uses claims to be an escrow company that will ensure the recipient will receive their merchandise before the seller gets his money. The bottom line is that we cannot trust every e-mail and website that copies the symbols image to their document or site. The bureau recommends that you always check with them, especially when it involves large money transactions. You can research reputable business at BBBonline. Be very Leary of any e-mail Spam and do your research before you buy from any of them. You can also report any scams and frauds at Federal Citizen Information Center.  Here is how easy it is to copy and display the BBB symbol.

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Business owners scammed

If you own a business then watch out for this one. Very clever and convincing.

Children getting scammed

With the holidays right around the corner, I felt it was time we talked about how children can be the target of the real life Grinches. Unfortunately we have to keep our eyes on events for children. Two years ago David Lee Ellisor decided he would setup a fake children’s event with Santa Clause and even the boy wizard Harry Potter. He used fake letter head from the University of Miami and falsified sponsorship from local police and fire departments. The Federal Bureau of Investigation reports that the pseudo event raised $38,000 dollars that went directly int Mr. Ellisor’s pocket. On the day of the event Mr Elllisor withdrew the money, paid off his new Jaguar, and split town. He has now served 2 years of  his 7 year sentence. Here is a short list of other examples of how children are  targeted:

1. Charity funds set up for real children with real disabilities, with no intentions of actually getting to the child.
2. Luring parents into believing they could get their children into commercials and movies, only to require an upfront fee.
3. Using children to ask for donations ( this is really bad because of what it teaches the children).

This being said, I still believe that the majority of all childrens charities and childrens advocate agencies are legitimate. Remember you can always do a search with the Better Business Burea or Charity.com.

Are you good looking? Then modeling agencies want your money.

We have all heard the commercials “modeling agency coming to  the area”,  run away not towards! These  agencies  just want your money.  Here are  some of the  claims  that  these  Pseudo  modeling agency:

1. We are very selective on who we accept into the program. The truth is they actually accept most people since they are paid on commission.
2. We place our models in high paying ads. The truth is a small percent get jobs and they are usually low paying.
3. We offer a money back guarantee. The truth is that they may offer a guarantee but you probably have to get a lawyer to get it.
4. We can only use our photographers. The truth is that real modeling agencies require you to get your own photographs.
5. We are coming to your town because we need models. The truth is real modeling agencies do not have a shortage of models, and you have to work hard and fight for jobs.
6. We require a payment from you in advanced. Real agencies get paid when you get a job.

Remember modeling is very hard work, and although you can get discovered in areas outside New York and Los Angeles it is very rare. If modeling is your true passion then be prepared to move to one of these cities and starve for a while.

Dr. Phil Scam

People sit around thinking this stuff up:

Top 7 sign’s you’re getting scammed!

Here is a quick list of phrases you should watch out for:

1. You must act know!
2. You need to reset your passwords!
3. You owe back taxes!
4. You have won some money (variation is you have unclaimed money) !
5. You get a high yield return with no risk!
6. Do you know who this is?
7. You have to send your payment via money order or wire transfer!

For a more comprehensive list download our telemarketers cheat sheet. Great for high risk family members, laminate it and keep it close to the phone. Telemarketers cheat sheet

What to look for on e-mail viruse’s

I. Emails from people trying to infect your system and steal your friends’ email addresses for spam

I.1 Pictures of Osama Bin Laden hanging or Arnold Schwarzenegger’s suicide note I.2. Email from your system administrator or other familiar sender that says your email could not be delivered, or some similar statement.
I.3. Email with subject “Against!” or “Revenge”
I.4. Email with subject Re_ and body with animals or foto or other subjects

II. Emails from people trying to steal your identity (and your money)

II.1. Update Your Billing Information (from eBay)
II.2. Your account at eBay has been suspended
II.3. Your account at Wells Fargo has been suspended
II.4. Notification of US Bank Internet Banking
II.5. Attn: Citibank Update

III. Emails from people trying to fool you into hurting yourself or your friends and coworkers

III.1 Subject: “jdbg” Virus: how to detect and remove.

Information Technology

Killer for hire scam-Hitman scam, this one will creep you out!

Some of you might be thinking who would fall for this, but unfortunately some do. Fear is a very nasty weapon, and scam artist’s know it. Here is a sample e-mail threatening to kill the recipient if they do not pay them:

This is the only way I could contact you for now,I want you to be very careful about this and keep this secret with you until I make out space for us to se. You have no need of knowing who I am or where I am from.I know this may sound very surprising to you but it’s the situation.I have been paid some ransom in advance to terminate you with some reasons listed to me by my employer.It’s someone I beleive you call a friend, I have followed you closely for a while now and have seen that you are innocent of the accusations he leveled against you.Do not contact the police or try to send a copy of this to them,because if you do, I will know,and I might be pushed to do what I have been paid to do.Besides, this is the ist time I turn out to be a betrayer in my job.I took pity on you,that is why I have made up my mind to help you if you are willing to help yourself.

Now listen,I will arrange for us to see face to face,but before that, I need $12,000. I will come to your home or you determine where you wish we meet;I repeat, do not arrange for the cops and if you play hard to get, it will be extended to your family.Do not set any camera to cover us or set up any tape to record our conversation, my employer is in my control now. Payment details will be provided for you to make a part payment of $5000 first,which will serve as gurantee that you are ready to you co-orperate,then i will post a copy of the video tape that contains his request for me to terminate you which will be enough evidence for you to take any legal action against him before he employs another person for the job. You will pay the balance of $7000 once you receive the tape.

Warning; do not contact the police, make sure you stay indoors once it is 7.30pm until this whole thing is sorted out,if you neglect any of these warnimgs, you will have yourself to blame. You do not have much time, so get back to me immediately

Note:I will advise you keep this to yourself alone, not even a friend or a family member should know about it because it could be one of them.

Even when I know this is a scam I still get an eerie feeling. Also understand that if 99% of people will not comply, it still leaves that 1%. We need to get the word out before that 1% is left sick with worry. Note the poor English, it seems to be a reoccurring theme with a lot of scams.

Also check out our top 10 scam’s list, and our list of fraudulent websites list.