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CURRENT ISSUES
Topics of Interest to Consumers
THE
FIVE BIGGEST LIES TOLD TO CONSUMERS
Recently the United States Postal Inspection Service issued a
report based on over 80,000 mail fraud complaints they
received in 2003. CAC
receives similar complaints each year and in most cases, no
agency is able to recover money once it is out of the
consumer’s bank account.
The best defense is your awareness of scams so you can
avoid them before its too late.
According to the USPS here are the biggest lies used by
rip-off artists to sucker you into giving up your cash:
1.
“You are a guaranteed winner of one of five
valuable prizes.” This
scheme invites you to fork over big bucks to buy chemically
inert vitamins, a cheap home security alarm system or water
purifier; or to contribute to a bogus charity before you get
the booby prize. The
amount of money being forwarded to the rip-off artist far
exceeds the value of the prize being offered.
2.
“This chain letter is perfectly legal.”
Everyone receives this pitch sooner or later, asking
you to participate in a “multi-level marketing” plan.
But does anyone really get rich by participating?
Only the people at the very top of the list, usually
rip-off artists, are the ones who make any money.
Everyone else looses.
Also, chain letters that ask for money are a type of
lottery and are illegal when sent through the mail.
3.
“Stuff envelopes at home and earn BIG BUCKS!”
Typically, the person making this offer is going to
sell you a ‘plan’ on how to sucker others into this
scheme. Recently
we received an offer to pay us $2.00 per envelope for stuffing
if we sent $19.95 for the startup kit.
Save your money.
4.
“You are pre-approved!”
Consumers receive offers for credit cards or
guaranteed loans that guarantee credit by charging an up-front
fee. Last year,
several people from out of state were suckered into sending
$500 to a Post Office Box on the Cape in expectation of
receiving a $5000 loan. The
money sent to the local box was then forwarded to a foreign
country.
5.
“Your donation of $25 will help fight heart
disease!” “By returning you entry form, you could be the winner
of $20,000 cash! This
is a charity sweepstake.
Legitimate charities do not ask for donations in
conjunction with a contest. A legitimate charity will send information about its mission,
how your donation will be used, and proof that your
contribution is tax-deductible.
The problem is that many phony charities use names that
sound like or look like respected organizations.
If
you have doubts about a charity, you should check with the
Attorney General’s charitable division 617-727-2200
www.ago.state.ma.us/charity or the Better Business website
www.give.org
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