Identifying and Avoiding Online Scams

Recognizing the Nigerian Advance Fee Scam

One of the most notorious scams is the Nigerian Advance Fee Scam. This scam typically involves an email from someone claiming to be a high-ranking official from Nigeria who needs help transferring a large sum of money out of the country. The scammer will ask for your bank account details to facilitate the transfer, but instead of depositing money into your account, they will withdraw from it.

The FTC's "Dirty Dozen" Scams

The U.S. Federal Trade Commission (FTC) has identified the top 12 scams most likely to arrive via email. These include:

• Business Opportunities - Often pyramid schemes disguised as legitimate opportunities to earn money. Look out for promises of high returns with little effort or cash outlay required.
• Bulk Email - Offers of lists of thousands of email addresses for your marketing needs. Be wary of claims like "Bulk Email Works! 10,000 addresses for $9.99."
• Chain Letters - These are pyramid schemes and are illegal. They involve sending money to the next name on a list, then forwarding the letter to others.
• Envelope Stuffing - Promises of payment for stuffing envelopes, but you're actually being recruited into a scam.
• Health and Diet Scams - Claims of magic pills that allow you to lose weight without diet or exercise.
• Effortless Income - There's no such thing as effortless income. If it sounds too good to be true, it probably is.
• Free Goods - Offers of free goods, like computers, in exchange for recruiting other members. These are pyramid schemes.
• Investment Opportunities - Be wary of outrageously high rates of return with no risk.
• Cable Descrambler Kits - These are illegal and often don't work.
• Guaranteed Loans or Credit - You pay a fee and are given a list of lenders, all of whom turn you down.
• Credit Repair - Companies that promise to fix your credit, often advising you to lie on future credit applications.
• Vacation Prize Promotions - You win a vacation, but the accommodations are subpar and you have to pay to schedule your vacation.

Pyramid Schemes and Medical Billing Scams

Pyramid schemes involve making money by recruiting members into the program without providing anything of equal value in exchange for membership fees. Medical billing scams involve prepackaged businesses requiring an investment of $2,000 to $8,000, but few people who purchase these "businesses" are able to find clients or generate revenues.

Protecting Your Inbox

Your email inbox can be a hotbed for scams. Be wary of emails promising quick riches, like "How to make $1,000,000 in 20 weeks selling to Newcomers on the Net." When in doubt, delete the email.

For more information on internet scams, visit the FTC Website, Scambusters, or Netscams.