While a number of fraudulent practices are illegal, punishable offenses, many others aren''t. In fact, some of the most deceptive scams are those that, while unethical, are legal.
Legal scams come in many forms and are veiled with deceptive terminology and advertising made to look legitimate. If you are not careful, well-written legal scams can easily trick you out of your money or your personal information.
Con artists have endless sources of creativity, so it is possible to encounter a scam you have never heard of before. Some of the most common types of scams include:
Anytime someone quickly befriends you in an effort to sell you something, be cautious. Don''t agree with them without researching their claims for yourself. Be careful about paying upfront for opportunities, such as buying prepaid legal services.
Most con artists will firmly assure you that a deal is not a scam and may even list reasons why something is not a scan. Con artists are usually friendly, polite and likeable. When you suspect someone may be a con artist, keep in mind that any of the following can be fake:
Legal scams involving calls to non-local area codes have been around for years. While the conman may tweak the exact details of his story, the matter is always urgent. In some cases, the conman may tell you exciting news, lying that you''ve won a prize or inherited a large some of money. Other types of legal phone scams can present you with false, bad news, such as a grave illness or tragic accident that has befallen your friend or family member.
The caller will tell you his important message and will ask that you call a provided number back. This number will be a long distance number, often in Barbados, the Cayman Islands or Puerto Rico, and the caller will try to keep you on hold as long as possible.
Meanwhile, the charges for the phone call will skyrocket. These numbers are outside of American FTC regulations and are similar to 900 numbers. By staying on the line for even just a few minutes, your phone bill can increase by hundreds of dollars.
The legal scam involving an advance fee has become especially popular with the emergence of online selling sites such as Ebay and Craigslist. In this scam, someone will contact you to purchase goods that you are selling. They will send you a check for more than you requested, and usually claim it was a mistake. They will then tell you to keep the check and send a new check back to them to cover the difference. The check you send back will be cashed immediately, and weeks later, your bank will tell you the initial check you received and deposited was a fake.
The advance fee scam has variations, all of which have the common thread of asking you to send money under false pretenses. Another way a conman can use the advance fee scam is to ask for your help cashing a check. The check will be made out for thousands more than it should be.
As a result, if you receive a check for the wrong amount, send it back and wait for a check with the right amount. Do not be fooled if the person claims to be a Christian, recently widowed or facing a terminal illness or some other difficulty.
Also, be sure that a check sent to you is cleared before you ever send out any money. Sticking to this rule will help you avoid losing money to advance fee scams.
Legal Fake Will Scams In a fake will scam, someone, usually from a foreign country, contacts you and says you received an inheritance or a bequest. Usually, they request your bank information and an upfront fee to pay for wiring costs or transfer costs. As another form of the advance fee scam, the fake will or fake inheritance scams are typically aimed at stealing your identity, a transfer fee or both.
In a fake will scam, someone, usually from a foreign country, contacts you and says you received an inheritance or a bequest. Usually, they request your bank information and an upfront fee to pay for wiring costs or transfer costs. As another form of the advance fee scam, the fake will or fake inheritance scams are typically aimed at stealing your identity, a transfer fee or both.
Chances are you may have already been approached by a salesperson or a consultant of a prepaid legal services company. Prepaid legal services are legitimate services, but those who sell it do not always have an innocent agenda. Oftentimes, these prepaid legal associates are not lawyers or anybody even in the legal industry. They are salespeople in a multi-level marketing pyramid determined to sell legal services and build a down-line of salespeople.
If you are considering purchasing prepaid legal services, do your homework. Never base your decision to buy anything on unsupported claims. Check for complaints and quality information from the American Bar Association and the Better Business Bureau.
Similarly, keep in mind that just because a company is listed with the New York Stock Exchange does not mean that it sells services or products you need or want. In many cases, you are paying for services a lawyer would otherwise do for free, such as a consultation. Additionally, the "service" you pay for may not give you adequate legal representation when you need it.
Selling Prepaid Legal Services If someone offers you an opportunity to sell prepaid legal services, it is probably a multi-level marketing pyramid scheme. In many cases, you will likely have to pay an upfront fee to get the opportunity to sell prepaid legal services. Most people do not enjoy multi-level marketing and drop out eventually. Some of these legal scams may even require you to sell a certain amount to stay in the program.
If someone offers you an opportunity to sell prepaid legal services, it is probably a multi-level marketing pyramid scheme. In many cases, you will likely have to pay an upfront fee to get the opportunity to sell prepaid legal services. Most people do not enjoy multi-level marketing and drop out eventually. Some of these legal scams may even require you to sell a certain amount to stay in the program.
Remember, just because somebody assures you a program is not a scam doesn''t necessarily mean it is not. If you are doubtful of any situation, check for information from your local bar association or the Better Business Bureau.
Some other tips that will help you avoid being victimized by legal and illegal scams include:
Davis, Melissa (2005). Prepaid Weathers Guilty Verdict. Retrieved March 16, 2008, from the TheStreet.com Web site. Fraud and Scam News (2007). Advance Fee Scam: How to Spot One Promptly. Retrieved March 16, 2008, from the 419 Legal Web site. Larson, Aaron (2003). Prepaid Legal Services Plans. Retrieved March 16, 2008, from the Expert Law Web site. Payne, Jack (2007). The Con Man''s Handbook. Retrieved March 16, 2008, from the Sixhrs.com Web site. Payne, Jack (2008). Legal Phone Scams. Retrieved March 16, 2008, from the Ezine Articles Web site.