How to Avoid Scams and Fraud

From the Pennsylvania Office of the Attorney General, via the Northampton Township Police Department:

Bill was excited about learning to use the Internet on his computer. While “surfing the net” one day, Bill came across what looked like a fabulous business opportunity to use his PC to make money at home. When he sent for more information about the business, he was surprised to discover that the required initial investment of money was far greater than was advertised on the net. 

The so-called “Information Superhighway” or Cyberspace” is the newest area being used by con artists. As the number of seniors using the Internet grows, and as more and more seniors become computer literate, the chances of becoming a victim of an online scam increases. Many scam artists using the telephone and mail to trick consumers are now also using the Internet and online services. Some of the favorite techniques are: 

• Classified advertising that promises much more than can be delivered, such as quick and easy weight loss products.
• Business opportunities, especially work-at-home schemes, involving the use of a personal computer to make money.
• Use of “900” telephone pay-per-call services that promise high profits for a small investment.
• Disguised “advertising” on the Internet and online service bulletin boards, chat rooms or chat forums that are actually sales pitches for products,
• Notification from a bank or other financial services organization, often incorporating the logo of the company, asking you to provide personal information to avoid a cancellation of your account or to verify your data (you may not even have an account with this company and no bank or financial services organization would ever ask you to provide personal information in this manner).

Tips to recognize an online scam:

• Overstated claims of product effectiveness
• Frequent use of the word “hot” to describe proposed investment opportunities
• Exaggerated claims of potential earnings
• Claims of “inside” information
• Promotions of cheap stocks promising high returns
• Promotions for exotic investments, such as gold mining, ostrich farming, etc.
• Requests from a foreign government official asking for financial assistance

For more information, contact the National Consumers League Fraud Center at

1-202-835-3323 or visit www.fraud.org