Red Flags

Most of us think of hype as exaggerated or extravagant claims,
made especially in advertising or promotional material. Sometimes
it is deceptive and deliberately misleading. While we have
become a bit immune to this through constant exposure, it always
seems that someone comes up with a fresh approach that is not
immediately recognized. There are a number of "Red Flags:"
being raised.

Con artists have been around since the beginning of time, and are
always willing to take advantage of another "hot prospect". But
every scam has "red flags" and a little common sense should
prevail so you do not fall prey to them. Let's examine a few we
get by email everyday.

"Complimentary Vacation Package" - this one has been around a
long time, but has now found its way to the web. It starts off
with "Congratulations! You will be our guest in Orlando,
Florida, home of Walt Disney World, for 4 days and 3 nights. All
compliments of major Vacation Resort Developers." Reading it, you
might feel you have won a contest. In actuality, this is not the
case. It is a high pressure sales campaign designed to sell you
a "timeshare" vacation package.

Another variation promises deeply discounted vacation packages.
You pay for a package that seems great on the surface, but in
reality is either third rate accommodations or doesn't exist at
all.

"Guaranteed Winner" - they state - "You're going to get one of
these top five prizes, guaranteed!" In this scam you normally
send some information, and either return it by email or fill out
a form on a web site. They require that you supply your
telephone number to be eligible. You will then be contacted by a
telemarketer who confirms that you have been chosen for one of
the five "valuable" prizes; however, you must pay a processing
fee for handling, customs duties or taxes, and you must send a
check or money order to them by overnight mail. The prize usually
winds up being small trinkets of minimal value, discount coupons
or vouchers, worth far less than what you paid.

Or, you might receive an e-mail informing you that your order has
been received and processed, and your credit card will be billed
for the charges. The trouble is, you haven't ordered anything.
They contacted you using bulk email, using inactive return
addresses which prevent you from refuting the orders by email.
They do provide a telephone number in the area code 767, which is
actually in the West Indies. They try to keep callers on the line
as long as possible, and you are reportedly billed as much as
$25 per minute. Be aware that your local telephone company may
bill for services provided by other companies, and not be able to
provide you relief.

Another current scam floating about the web offers you a cut of
stolen money from Nigeria that was stolen and they need your help
getting the money out of the country. They of course want a cut
of the money that they claim will be wired to your personal bank
account. You of course are expected to pay them their share
up front. The money however never arrives in your bank.

One group sends hundreds of thousands of unsolicited emails to
people directing them to web sites promoting the Mega$Nets and
MegaResource programs. When you visit one of their web sites you
can download copies of the software program which contains a list
of five names and addresses. The software program and web sites
direct you to send twenty dollars to each of five people listed
in the software in order for you to get yourself placed at the
top of the list of names. This is simply a variation of the old
fashioned chain letter. Actually, there are a lot of chain
letters floating about the web and all should be avoided.

Another email promises guaranteed Credit Card approval! One group
offered Visa cards to the credit-challenged "to put you back in
the mainstream of financial life in high style" at an interest
rate of only 4.9%. How? Through the magic of using offshore banks
in tax haven countries. There is however a $100 processing fee
and $25 per month charge regardless of use.

Some people really believe that they have been selected to be in
the Internet Version of "Who's Who". This one started years ago
and was sent to every company executive in the country - They
will include your listing at no charge - oh, would you like a
copy? "Send $98 to us and it will be delivered to your
doorstep."

There is no way to adequately cover all the scams that permeate
the web. Before jumping into any of these "make a million while
you sleep" plans, use a little "due diligence" and check them
out.

If you see any of these "Red Flags", run, don't walk to your
nearest delete button . The money you save will be your own.