Ten Common Scams

The United Kingdom’s Office of Fair Trading (OFT) initiated a campaign in 2005 to educate the public about the most frequent scams. As a result, the OFT recently revealed ten of the most common frauds experienced by Brits. Find out the best info about Cryptocrime.

If you look at the examples we’ve provided below, you’ll notice some common threads. It’ll help you stay safe from con artists anywhere you go.

FAKE HOME-BASED JOBS

Many online job and company opportunities that promise to pay you to work from home are fraudulent. Applicants who want to work from home are asked for upfront payments to cover the materials costs. Unfortunately, the parent company stops communicating after receiving payment.

Another variant is when the corporation sends out components to be assembled elsewhere. These components are typically relatively cheap. Inevitably, the produced products are rejected because they “do not meet the necessary quality standards” when submitted. Scammers can have another chance at making a profit from this strategy by selling a second kit with instructions for making the necessary quality changes for future acceptance. Regardless of how well-made, the final products will never be approved.

SCAM LOTTERY PHONE CONTACTS

Con artists pretend to be affiliated with a legitimate lottery to steal money. Then, they call potential victims immediately and tell them they have been entered into a drawing.

The victim gets another call a few days later, saying they’ve won a large sum. The victim, however, must pay a charge for administration and taxes before they can claim their reward. There is no award, of course.

The Matrix Plan

These schemes are widely publicized on the internet and typically involve websites offering expensive electrical and electronic gadgets as free presents in exchange for inexpensive mobile phone chargers. People who buy low-priced items (fall for the bait) are placed on a waiting list to obtain the free bonus.

The top individual on the list will be rewarded after a certain amount of new customers have signed up. Victims are often pressured to “speed things up” by bringing in their own friends and family members to join in on the scam. As a result, most people on the list will never win the award.

SCHOLARSHIP DRAW LETTERS

The victim receives mail claiming they have won a vacation or other prize in a sweepstakes. However, an up-front registration or administration fee is required to claim the prize. If you pay this, the award will never come through.

OPPORTUNITY FUNDING PLANS

The goal of the free presentation is to convince potential investors to pay a lot of money to enroll in a school that would teach them how to become successful property dealers.

Unfinished homes are offered at a discount in some schemes. Some are variations on a “buy-to-let” system, where the fraudsters pretend to help you find a property, fix it up, and rent it out for a profit. Unfortunately, in many cases, the renters have vanished, and the properties are in disrepair.

CONS THAT Use Premium Rate Phone Numbers

A letter claiming the recipient has won a vacation or other prize is mailed to them. Calling a premium rate number (typically begins with 090) to claim the reward will result in expensive overage fees. Sometimes, the tip does not exist after a lengthy recorded statement.

SCAMS RELATED TO INVESTMENTS

An unwanted phone call convinces the recipient to put money into valuable items like diamonds, exquisite wines, or shares. But unfortunately, the high training, expertise, and experience typically required for these investments are also high.

The stock is not traded on any significant market. Therefore, if there are diamonds and they are supplied, they will be of poor quality and not worth what was paid for them.

Scams involving Nigerian advance fees

This fraudulent practice has been around for quite some time. Although many of the earliest examples of such frauds can be traced back to Nigeria (thus the name), modern examples may be found worldwide, including in Iraq, Asia, Africa, etc. The most important factor appears to be the recent presence of war or significant political turmoil in the area.

While e-mail has become the preferred method for this kind of fraud, some relics of the postal system’s old guard may still be used. For example, the victim receives an offer to split a substantial sum, stipulating that the money be wired out of the country using the recipient’s bank account. Scammers can potentially deplete a victim’s bank account if they are given account information.

The con artists may sometimes demand payment in advance, typically to bribe corrupt officials to remove the funds outside the nation.

FRAUDULENT USE OF CREDIT

This is yet another Canadian-based advance fee scam. Local loan advertisements promise fast approval regardless of credit history. Loan applications are approved, but the borrowers are informed that they must pay an insurance premium before receiving their funds. The victim will never receive the loan proceeds or hear from the scammers again after paying the fee.

PYRAMIDAL PLANS

Investment returns in what are known as “Ponzi schemes,” sometimes known as “pyramid schemes,” are contingent on the number of participants in the program increasing over time. It’s a classic case of “robbing Peter to pay Paul” because the funds from new investors are used to compensate existing ones.

When there are no longer enough new victims joining to pay off the original investors, the pyramid scheme will inevitably fail.

These top 10 frauds that belong in the “Hall of Shame” are described in pretty general terms. But, hopefully, specific recurring themes are becoming apparent that you can use to protect yourself against similar scams.

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