ID Theft
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You may be a target for fraud if you:

• receive a lot of junk mail for contests, "free" trips, prizes, and sweepstakes
• get frequent calls from strangers offering valuable awards or great money-making opportunities, or asking for charitable contributions
• make repeated and/or large payments to out-of-state companies
• have payments picked up by private courier services
• get calls from organizations offering, for a fee, to recover money you have paid to telemarketers

Mail/E-Mail Fraud
The FTC asked people to forward commercial mail and e-mails received from unknown companies so the agency could take an inside look at the bulk-mailing business. FTC staff found that many mail offers appeared to be fraudulent and could cost unsuspecting consumers billions of dollars. The FTC has identified 12 scams that are most likely to arrive in consumers' mail and e-mail boxes:

1. Bogus Business Opportunities
   Beware of opportunities that make it sound easy to start a business that will yield high income without much work.
   The scam: Many of these "opportunities" are illegal pyramid schemes masquerading as legitimate businesses.



2. Bulk E-Mail Solicitations
   Bulk e-mail solicitations offer to sell you lists of e-mail addresses to which you can send your own bulk solicitations.
   The problem: Sending bulk e-mail violates the terms of service of most Internet service providers. Your service provider may shut you down.



3. Chain Letters
   You're asked to send a small amount of money ($5 to $20) to each of four or five names on a list, replace one of the names on the list with your own, and then forward the message.
   The scam: Chain letters are almost always illegal. Most people who participate in them lose money.



4. Work-at-Home Schemes
   Envelope-stuffing offers promise steady income for minimal labor (e.g., you'll earn $2 each time you fold a brochure and seal it in an envelope).
   The scam: You'll pay a hefty fee to get started in the envelope-stuffing business.



5. Health and Diet Scams
   Health and diet "miracles," such as pills that help you lose weight without exercising or changing your diet, herbal formulas that liquefy your fat cells, and cures for impotence and hair loss.
   The scam: These products are usually gimmicks that don't work. Always research a product before buying.



6. Currency Market Income
   The trendiest of the get-rich-quick schemes offers unlimited profits exchanging money on world currency markets.
   The scam: World currency markets change on a daily basis and, depending on political conditions, can change unpredictably and dramatically.



7. Free Goods
   Some messages offer valuable goods (e.g., computers, other electronic items, and long-distance phone cards) free of charge.
   The scam: Most of these messages are covering up pyramid schemes-operations that inevitably will collapse.



8. Investment Opportunities
   Investment schemes promise outrageously high rates of return with no risk.
   The scam: Ponzi schemes eventually collapse because there isn't enough money coming in to continue stimulating earnings.



9. Cable De-scrambler Kits
   For a small sum of money, you can buy a kit to assemble a cable de-scrambler that supposedly allows you to receive cable television transmissions without paying subscription fees.
   The scam: Stealing service from a cable television company is illegal, when the product doesn't work, who will you report it to?



10. Guaranteed Loans or Credit
    Some messages offer home equity loans that don't require equity in your home or guaranteed, unsecured credit cards regardless of your credit history.
    The scams: The home equity loans turn out to be useless lists of lenders, the promised credit cards never come through, and the pyramid money-making schemes eventually collapse.



11. Credit Repair
    Credit-repair scams offer to erase accurate, negative information from your credit file so you can qualify for a credit card, auto loan, home mortgage, or a job.
    The scam: The scam artists who promote these services can't deliver. Even removing inaccurate data can require many communications with a credit company and credit reporting agencies.



12. Vacation Prize Promotions
    Certificates (either paper or electronic) congratulate you on "winning" a fabulous vacation for a very attractive price.
    The scam: Often the "cruise ship" you're booked on may look more like a tugboat. The hotel accommodations likely are shabby, and you may be required to pay more for an upgrade.

New e-mail scams come up constantly. One that has been around for years, and is still fooling people, include requests for money from foreign countries (Nigeria, for instance) and messages from "your" bank asking that you verify information about your account.

The best way to protect your hard-earned money is to not divulge any personal information unless you initiate the e-mail/mail solicitation.