Fraud appears in many ways and robs innocent victims of billions of dollars every year. Mortgage fraud alone is estimated to have cost $1 billion in 2005 and is expected to be a continuing problem in 2007 -- a recent analysis shows mortgage loan fraud reports rose 35 percent in the past year. Internet fraud last year cost victims $183 million, much of it through bogus online auctions and the non-delivery of goods.
As New Year emerges with its infinite possibilities, add another resolution to the mix --resolve not to be a victim. Do not fall for scams designed to steal your identity or your money. Be vigilant with your personal data, know what scams are lurking, and be mindful of the golden rule: "If it looks too good to be true..."
Here is a short list of scams to be aware of. It is by no means complete, but offers a glimpse of ways scammers try to take what is yours. More information can be found on the FBI's Common Fraud Schemes site. Meanwhile the Internet Crime Complaint Center (IC3) keeps a running list of emerging Internet scams.
The links below describe different types of fraud and offer tips on how to protect yourself:
- Telemarketing Fraud: When you give personal or financial information to unknown callers, you increase your chances of becoming a victim of fraud.
- Nigerian Letters or "419" Fraud: A letter, often mailed from Nigeria, offers the recipient the "opportunity" to share in a percentage of millions of dollars.
- Identity Fraud: The sources of information about you are so numerous that you cannot prevent the theft of your identity. But you can minimize your risk of loss by following a few simple hints.
- "Ponzi" Scheme: A Ponzi scheme is essentially an investment fraud wherein the operator promises high financial returns or dividends not available through traditional investments.
- Internet Auction Fraud: Understand as much as possible about how an auction works, what your obligations are as a buyer, and what the seller's obligations are before you bid.
- Scams Targeting Senior Citizens: The elderly are targeted for fraud for several reasons: they are more likely to have a "nest egg," they are typically more trusting, and they are less likely to report-or realize-they have been scammed.
- Mortgage Fraud: It's one of the fastest growing white-collar crimes in the U.S. We list seven common mortgage loan fraud schemes, including "flipping," when property is purchased, falsely appraised at a higher value, and then quickly sold.
