Scams and fraudulent schemes come in a variety of disguises and may arrive as an email, a phone call, text or even in the mail.
Some of the most obvious scams are emails that promise you millions of dollars to transfer funds from another country or a notification that you have won a foreign lottery. The biggest tip-off that these are frauds is that you probably don't know the person who wants your help moving money or you didn't buy a ticket for the sweepstakes or lottery. It's illegal for U.S. residents to participate in foreign lotteries.
Another common characteristic of scams is any request to wire money or use a prepaid debit card to send payment. Few legitimate companies ask you to pay them that way.
Other scams aren't so obvious. Maybe it's an offer to help refinance student loans, a "survey" or personal shopping job for a retailer for an exorbitant fee or perhaps a call purporting to come from the IRS or a computer giant like Microsoft.
The first question to ask in any scheme is whether you're being asked to put up money. Advance-fee loans are illegal: if you're borrowing money from a legitimate lender, fees are normally incorporated into the loan amount. And if you've won an actual lottery, fees or taxes are normally deducted from the prize money.
In personal shopping schemes, the tip-off often is that you'll be paid by a check that supposedly covers the cost of purchasing items as well as your pay. Some scammers ask you to use the check to shop money transfer services such as Western Union or MoneyGram. Unfortunately, the check is fake, and if you deposit it and spend the money, your bank will want to be paid back.
If you get a call from someone claiming to be from the IRS, hang up. The IRS doesn't contact taxpayers by phone or email. If there's a problem with your taxes, you'll get a letter from the IRS or the Missouri Department of Revenue.
Better Business Bureau (BBB) gets dozens of calls every day from people who want to know if the call, email or letter they got is real or a scam. We're happy to help consumers sort that out, and we're always glad when we can keep someone from sending money to a scammer. BBB customer relations specialists are available weekdays between 9 a.m.-4 p.m. by calling 573-886-8965.
BBB also has a new tool that allows consumers to report suspected scams as well as to check them out: BBB Scam Tracker. Consumers can enter information about the scam to determine whether it's a known scheme or give details of the suspicious scheme. Scam Tracker is available at: www.bbb.org/scamtracker/us.
Some tips for consumers to avoid scams include:
• Don't turn over control of your computer or give your computer password to someone you don't know.
• Do not give banking, credit card or other personal information to a strange caller or in response to an email.
• If a deal sounds too good to be true, it probably is.
• If you are asked by a caller or email contact to wire money for fees or to resolve a debt, it's probably a scam. If the person threatens you, hang up.
Before you sign a contract or do business with an unfamiliar company, check for a BBB Business Review by going to www.bbb.org/stlouis or by calling 573-886-8965.
Chris Thetford is vice president of communications and marketing for Better Business Bureau in St. Louis.