Deterring Con Games and Consumer Fraud

Con Games

Con games are schemes perpetuated by confidence artists. They are often charming and persuasive and are usually well dressed and intelligent. Con artists frequently promise “incredible bargains” or “quick money.” The con artist frequently sees senior citizens as an easy target. Many senior citizens live on social security and pensions supplemented by savings. They may be looking for ways to increase their incomes through investments, home business opportunities or retirement properties.

·    Tips For Senior Citizens

Ø      The first thing to remember — and to always bear in mind — anything that sounds too good to be true, probably is.

Ø      If you receive a telephone call from someone telling you you’ve won a prize and asking for payment to buy something, for processing or administrative fees, for customs, taxes, or for any other reason, it’s probably a scam because legitimate sweepstakes or prize offers don’t ask for payment because it’s illegal.

Ø      If a person says you have to take the offer immediately or you’ll miss the opportunity; it’s probably a scam because legitimate companies don’t pressure people to act without time to look into the deal.

Ø      If a caller refuses to send you written information before you commit to anything, it’s probably a scam because legitimate companies are always glad to send information about what they are offering.

Ø      If a caller claims you can make huge profits in an investment with no risk, it’s probably a scam because all investments are risky and legitimate companies must tell consumers about the possible risks involved.

Ø      If a caller claims you can make huge profits through a franchise or other business opportunity with little or no effort, it’s probably a scam because all business ventures require knowledge and effort on the part of buyers, and no legitimate companies would guarantee profits.

Ø      If a caller asks for a donation but won’t tell you exactly how the money will be used and how you can verify the charity and what it does, it’s probably a scam because legitimate charities are willing to say what percentage of contributions are used for services and how much goes to overhead and fundraising. They are also willing to tell consumers who they can check with to confirm that the charity is legitimate.

Ø      If a caller insists you send your payment by a private courier or wire money, it’s probably a scam because legitimate companies don’t try to keep people from checking the deal out and changing their minds, or try to evade the postal authorities by demanding immediate payment by courier or wire.

Ø      If a company asks for cash, it’s probably a scam because legitimate companies don’t ask for cash; but con artists do. They often have trouble obtaining merchant approval from credit card companies, and they also want to be difficult to trace.

Ø      If a caller asks for your social security number, it’s probably a scam because legitimate companies do not request your social security number unless you are applying for credit and they need to check your credit report.

Ø      If a caller asks for your credit card number, bank account number, or other financial information when you aren’t buying anything or paying with those accounts, it’s probably a scam because legitimate companies only ask for financial information to bill you or debit your account for purchases you’ve agreed to make.

Ø      If a company calls you relentlessly or after you’ve asked not to be called anymore, it’s probably a scam because legitimate companies will take “no” for an answer and will take you off their calling lists if you ask. Con artist will keep calling to wear you down or get more money from you.

Ø      If a company offers to get you a loan, or credit, or a credit card or to “repair your bad credit if you pay an up-front fee, it’s probably a scam because legitimate lenders and credit card companies do not demand payment in advance, and no one can get bad information removed from a credit file if it is accurate.

·    Con Artist Schemes

      Con games are schemes perpetuated by confidence artists. They often see senior citizen as easy targets and use their charm and persuasive powers to separate the victim from his or her money. The following are among the more frequent schemes used by con artists:

Ø      The Pigeon Drop

-    The victim is approached by a stranger and engaged in a conversation. When the con artist has gained the victim’s confidence, he/she mentions a large amount of money that they or an acquaintance has found.

-    A second person joins the stranger and they discuss that whoever lost the money probably came by it unlawfully.

-    One of the con artists indicates he/she works in the area and decides to contact his/her employer for “advice.”

-    He/she returns in a few minutes and states that his/her employer has counted the money and verified the amount and said they should keep and divide the money three ways.

-    They are then instructed to each put up “good faith” money to show evidence of financial responsibility and good faith before collecting a share.

-    The victim is then induced to withdraw his/her share form their bank and the con artist takes the money to his/her “employer.”

-    The con artist then disappears and the “employer” cannot be found.

Ø      The Bank Examiner

-    A phony bank or saving and loan “investigator” contacts the victim and asks for his/her help in catching a dishonest employee.

-    The victim is asked to go to their bank, make a cash withdrawal and then turn the money over to the bank examiner who will verify the serial numbers and catch the suspected employee.

-    When the money is turned over to the phony bank examiner or “investigator,” he or she disappears with it.

Ø      Lottery Ticket Scam

-    A con artist will approach an individual and explain they have purchased a winning lottery ticket but cannot collect the lottery prize because he/she is an illegal alien.

-    The victim is offered the winning lottery ticket for a substantial sum of cash. 

-    The con artist may call an accomplice and pretend to be calling the Lottery Commission to verify the winning number.

-    After giving the victim the “winning” lottery ticket in exchange for cash, the con artist disappears.

-    Con artists using this scheme may target someone from their country or religion hoping the potential victim will be more trusting if they have something in common.