How can I avoid being ripped off?

Remember learning about all the fees financial institutions can charge? It seems like fees lurk at every financial transaction. You might also recall that being aware of these fees is the best way to avoid them.

Thieves, like fees, lurk as well. They stay hidden until they emerge as a scam artist or identity thief, ready to commit fraud. Being aware of scams and identity theft is the best way to avoid being ripped off.

Common Scams Lottery Scams. Letters or telemarketers claim you have won the lottery. Later, you receive a follow-up letter or phone call instructing you to pay a fee or tax in order to receive your prize. The thief takes your money—and you don’t get a prize. Get-Rich-Quick Scams. “Make money in your spare time!” “Work from home and make thousands of dollars!” Thieves lure you to purchase products at a discount, then sell at a profit by calling their list of “preapproved” customers. Usually the products are worthless, nobody wants them, and the “preapproved” list is a set of random names. The thief takes your money. You don’t make thousands of dollars. Free Credit Reports. You now know that you can get credit reports for free yourself. Thieves claiming they can get you a free credit report are really scamming to get your Social Security number and steal your identity. This can’t be stressed enough: Guard your Social Security number and personal financial information with extreme care. An Important Note on Predatory Lending. Once you become a habitat homeowner, the most important thing to keep in mind is this: You have the absolute best loan available in the country—an interest-free home mortgage. No one can offer you anything better than that. Once you are in your Habitat home, any mortgage loan offers made by nonHabitat lenders are made with the intent to rip you off.

Identifying and Stopping Fraud
Here are warning signs that fraud may be in the works. This list is from the 2007 Consumer Action Handbook. You can access this handbook for free at www.ConsumerAction.gov, or call to request a copy at 1-888-878-3256. Fraud by telephone, Internet, and mail is a serious international problem. Con artists can steal your money, your identity, and even your self respect. Protect yourself by looking for these warning signs:
•	Someone asks you to send money to claim a lottery or prize, or to obtain a credit or loan.
•	Someone you don’t know requests that you send money by way of a wire transfer, the most common way fraud criminals obtain money from victims. There is NO legitimate reason for someone who claims to be giving you money to ask you to wire money back.
•	An unknown caller claiming to be a lawyer or a law enforcement officer offers to help you get back stolen money (for a fee).
•	A deal someone presents you is only good for today or a short period of time.
•	The seller offers “free gifts” in return for a minimum effort or a fee.
•	A “repair person” suddenly finds a dangerous defect in your car or home.
•	You are given little or no time to read a contract.
•	A sale item is suddenly unavailable but a “much better item” is available for slightly more money.
•	Someone is trying to scare you into purchasing credit\-protection plans.
•	A letter you receive in the mail looks like a government document and suggests you can claim contest winnings or unclaimed assets for a small fee. The government doesn’t solicit money from citizens.
•	You are asked for your bank account, credit card number, Social Security number, or driver’s license number.
	Source: 2007 Consumer Action Handbook, www.ConsumerAction.gov

General Tips for Avoiding Fraud

1. Don’t give out personal information. This includes your Social Security number, credit card and bank account details, date of birth, etc. 2. Have a plan. Having a plan for terminating a potentially fraudulent interaction is one of the best ways to protect yourself. Develop a refusal script to get off the phone, such as, “I’m not interested. Remove my name from your calling list." Stop Telemarketers from Calling You can prevent salespeople from calling your home by adding your name to the federal government’s Do Not Call Registry. Your number stays in the registry for five years. After that time, you can renew your registration. Once you add your phone number to the registry, telemarketers cannot call you (unless you have done business with them in the past). If they do, you can file a complaint. To add your phone number to the registry, call 1-888-382-1222, or visit www.DoNotCall.gov. You can also file a complaint at that same phone number and Web site. Reduce Junk Mail Tired of sifting through mail you just throw away? Reduce the amount of junk mail you receive by contacting the Direct Marketing Association. Request to be removed from telemarketing and mailing lists. Direct Marketing Association (DMA) Consumer Affairs 1111 19th St., NW, Ste. 1100 Washington, DC 20036 202-955-5030 consumer@the-dma.org www.dmaconsumers.org Reduce Credit Card Offers The credit reporting agencies share your contact information with insurance and credit card companies. That’s how all those credit card offers end up in your mailbox. Stop the pile-up by calling 1-888-567-8688 (1-888-5OPTOUT) and request to be removed from the mailing list.