Consumer Scams
America’s economy depends upon truthful and non-misleading information about the goods and services consumers buy. Many transactions run smoothly. Unfortunately, some transactions are scams, and consumers are not getting what the seller leads them to believe that they were buying.
Scammers use a wide variety of schemes to trick consumers, but here are some common scams: census fraud, charity scams, banking scams, investment scams, lottery scams, pyramid schemes, tax-related identity theft, telephone scams, and government imposter scams.
While the United States Census Bureau legitimately gathers some personal and demographic data about U.S. citizens and residents for research and recordkeeping purposes, some con artists claim to be Census Bureau agents and communicate via mail – mail that may appear official – or in person to acquire personal information in order to commit fraud, identity theft, and more. Con artists also use illegitimate charities with names evoking sympathy and capitalize on public generosity after tragedies and disasters in order to steal personal information. In banking scams, scammers forge counterfeit checks and attempt to deposit them in banks, or scammers obtain consumers’ credit cards and run up charges on consumers’ credit cards. Similarly, in investment scams, scammers take advantage of consumers’ anticipation of acquiring an investment return for the money they previously invested.
Some scammers use fake lotteries in order to commit theft; they make false promises of prizes or awards via telephone or snail mail to lure consumers into purchasing unnecessarily pricey products or services or donating to fake charities. In multilevel marketing pyramid schemes, how much profit participants make is measured by how many new recruits they bring in as opposed to how many goods or services they sell. These schemes play out, and consumers take a hit.
Consumers become victims of tax-related identity theft when crooks steal their Social Security Numbers (SSNs) in order to land refunds or employment or send fake Internal Revenue Service (IRS) notices saying that multiple tax returns with their SSNs have been filed, that more taxes are owed, that actions against them have been taken, or that unknown employers sent them wages. In addition, some scammers use telephones, text messages, letters, or other communication methods to commit theft; they attempt to persuade consumers to purchase goods or services such as travel packages, advance loans, and bogus business investments, which the consumers did not intend to purchase, in order to obtain consumers’ credit card details, SSNs, and other information.
Moreover, some con artists impersonate government officials from agencies like the IRS, Federal Trade Commission (FTC), and United States Citizenship and Immigration Service (USCIS). Consumers should ask to see their credentials and official papers. Consumers thus should contact the government office. Real government officials do not and are not allowed to offer consumers lottery prizes and do not threaten consumers with arrests, lawsuits, or imprisonment if consumers do not comply.
Fortunately, consumers can beat con artists. Consumers should be cautious and skeptical of names and numbers, verify everything, refrain from making any hasty decisions, refrain from sending money, refuse to send money for prizes, refrain from sharing their personal information, reply to all legitimate government notices, and sign up with the National Do Not Call Registry, which will thwart many scams. In addition, consumers should notify the proper authorities and tell them when and how the scammers contacted them, who or what they claimed to be, what instructions they gave, and any other prudent details. Consumers should remember: Con artists often use technology to disguise themselves; nevertheless, law enforcement agencies possess technology to unveil scammers’ true identities.
If you are the victim of a scam, do not fret. You have rights and legal remedies. For more information, contact Nashville Attorney Perry A. Craft.
Perry A. Craft has dedicated his life to helping people in need. He has tried, settled, or resolved numerous civil and criminal cases in State and Federal courts, and has represented teachers and administrators before school boards, administrative judges, and the state Board of Education. Learn more about Attorney Craft.