| The Federal Trade Commission is responsible for | | | | exchanging money on world currency markets; |
| issuing and enforcing rules for consumer issues on the | | | | newsletters describing a variety of easy-money |
| Internet. As part of this process, the FTC has published | | | | opportunities; the perfect sales letter; and the secret to |
| a list of the 12 scams you are most likely to receive as | | | | making $4,000 in one day.The scam: If these systems |
| email.The Dirty Dozen ScamsThe "dirty dozen" are:1. | | | | worked, wouldn't everyone be using them? The |
| Business opportunitiesThese business opportunities | | | | thought of easy money may be appealing, but |
| make it sound easy to start a business that will bring | | | | success generally requires hard work.7. Free |
| lots of income without much work or cash outlay. The | | | | goodsSome email messages offer valuable goods-for |
| solicitations trumpet unbelievable earnings claims $1,000 | | | | example, computers, other electronic items, and |
| a day or more without doing any work. Many business | | | | long-distance phone cards-for free. You're asked to |
| opportunity solicitations claim to offer a way to make | | | | pay a fee to join a club, then told that to earn the |
| money in an Internet-related business. Short on details | | | | offered goods, you have to bring in a certain number |
| but long on promises, these messages usually offer a | | | | of participants. You're paying for the right to earn |
| telephone number to call for more information. In many | | | | income by recruiting other participants, but your payoff |
| cases, you'll be told to leave your name and telephone | | | | is in goods, not money.The scam: Most of these |
| number so that a salesperson can call you back with | | | | messages are covering up pyramid schemes, |
| the sales pitch.The scam: Many of these are illegal | | | | operations that inevitably collapse. The payoff goes to |
| pyramid schemes masquerading as legitimate | | | | the promoters and little or none to you.8. Investment |
| opportunities to earn money.2. Bulk emailBulk email | | | | opportunitiesInvestment schemes promise |
| solicitations offer to sell you lists of email addresses, by | | | | outrageously high rates of return with no risk. Many |
| the millions, to which you can send your own bulk | | | | are Ponzi schemes, in which early investors are paid |
| solicitations. Some offer software that automates the | | | | off with money contributed by later investors. This |
| sending of email messages to thousands or millions of | | | | makes the early investors believe that the system |
| recipients. Others offer the service of sending bulk | | | | actually works, and encourages them to invest even |
| email solicitations on your behalf. Some of these offers | | | | more.The scam: Ponzi schemes eventually collapse |
| say, or imply, that you can make a lot of money using | | | | because there isn't enough money coming in to |
| this marketing method.The problem: Sending bulk email | | | | continue simulating earnings. Other schemes are a |
| violates the terms of service of most Internet service | | | | good investment for the promoters, but no for |
| providers. If you use one of the automated email | | | | participants.9. Cable descrambler kitsFor a small sum |
| programs, your ISP may shut you down. In addition, | | | | of money, you can buy a kit to assemble a cable |
| inserting a false return address into your solicitations, | | | | descrambler that supposedly allows you to receive |
| as some of the automated programs allow you to do, | | | | cable television transmissions without paying any |
| may land you in legal hot water with the owner of the | | | | subscription fee.The scam: The device that you build |
| address's domain name. There are also very strict | | | | probably won't work. Most of the cable TV systems in |
| rules, known as the CAN-SPAM Act, regulating bulk | | | | the U.S. use technology that these devices can't crack. |
| email marketing.3. Chain lettersYou're asked to send a | | | | What's more, even if it worked, stealing service from a |
| small amount of money ($5 to $20) to each of four or | | | | cable television company is illegal.10. Guaranteed loans |
| five names on a list, replace one of the names on the | | | | or credit, on easy termsSome email messages offer |
| list with your own, and then forward the revised | | | | home-equity loans that don't require equity in your |
| message via bulk email. The letter may claim that the | | | | home. Usually, these are said to be offered by |
| scheme is legal, that it's been reviewed or approved | | | | offshore banks. Sometimes they are combined with |
| by the government; or it may refer to sections of U.S. | | | | pyramid schemes, which offer you an opportunity to |
| law that legitimize the scheme.The scam: Chain letters | | | | make money by attracting new participants to the |
| are almost always illegal and nearly all of the people | | | | scheme.The scams: The home equity loans turn out to |
| who participate lose their money. The fact that a | | | | be useless lists of lenders who will turn you down. The |
| "product" such as a report on how to make money | | | | promised credit cards never come through, and the |
| fast may be changing hands in the transaction does | | | | pyramid schemes always collapse.11. Credit |
| not change the legality of these schemes.4. | | | | repairCredit repair scams offer to erase accurate |
| Work-at-home schemesEnvelope-stuffing solicitations | | | | negative information from your credit file so you can |
| promise steady income for minimal labor-for example, | | | | qualify for a credit card, auto loan, home mortgage, or |
| you'll earn $2 each time you fold a brochure and seal it | | | | a job.The scam: The scam artists who promote these |
| in an envelope. Craft assembly work schemes often | | | | services can't deliver. Only time, a deliberate effort, and |
| require an investment of hundreds of dollars in | | | | a personal debt repayment plan will improve your |
| equipment or supplies, and many hours of your time | | | | credit. The companies that advertise credit repair |
| producing goods for a company that has promised to | | | | services appeal to consumers with poor credit |
| buy them.The scam: You'll pay a small fee to get | | | | histories. Not only can't they provide you with a clean |
| started in the envelope-stuffing business. Then, you'll | | | | credit record, but they also may be encouraging you to |
| learn that the email sender never had real employment | | | | violate federal law. If you follow their advice by lying on |
| to offer. Instead, you'll get instructions on how to send | | | | a loan or credit application, misrepresenting your Social |
| the same envelope-stuffing ad on your own. If you | | | | Security number, or getting an Employer Identification |
| earn any money, it will be from others who fall for the | | | | Number under false pretenses, you will be committing |
| scheme you're perpetuating.5. Health and diet | | | | fraud.12. Vacation prize promotionsElectronic |
| scamsPills that let you lose weight without exercising | | | | certificates congratulating you on "winning" a fabulous |
| or changing your diet, herbal formulas that liquefy your | | | | vacation for a very attractive price are among the |
| fat cells so that they are absorbed by your body, and | | | | scams arriving in your email. Some say you have been |
| cures for impotence and hair loss are among the | | | | "specially selected" for this opportunity.The scam: Most |
| scams flooding email boxes.The scam: These | | | | unsolicited commercial email goes to thousands or |
| gimmicks don't work. The fact is that successful | | | | millions of recipients at a time. Often, the cruise ship |
| weight loss requires a reduction in calories and an | | | | you're booked on may look more like a tug boat. The |
| increase in physical activity. Beware of case histories | | | | hotel accommodations likely are shabby, and you may |
| from "cured" consumers claiming amazing results and | | | | be required to pay more for an upgrade. Scheduling |
| testimonials from "famous" medical experts you've | | | | the vacation at the time you want it also may require |
| never heard of.6. Effortless incomeThe trendiest | | | | an additional fee. |
| get-rich-quick schemes offer unlimited profits | | | | |