List of 9 Top Financial Scams and their Indicators

List of 9 Top Financial Scams and their Indicators

Author: Al Harlow

Posted: 10/16/2009 8:16:52 PM

Category: Security

Tags: financial scams

According to the U.S. Department of State, the Consular Affairs Bureau receives daily calls about scams involving Internet dating, inheritance, work permits, overpayment, and money-laundering. Many of these scams are initiated through the Internet with victims ranging in ages from 18 to 81 and coming from all socio-economic backgrounds.

While schemes such as these have long existed, the advent of the Internet has greatly increased their prevalence.  People have lost considerable money on these scams, ranging from a few hundred dollars to hundreds of thousands of dollars.

All types of advance-fee scams have one point in common – the targeted person is led to believe that he or she has a chance to attain something of very great personal value (financial reward, a romantic relationship, etc) in return for a small up-front monetary outlay.  As a general rule, if it sounds too good to be true, it probably is.

If you feel you have been a victim of an Internet scam, the State Department provides publications for help and advises you send all reports of Internet fraud directly to the Internet Crime Complaint Center.  If the scam originated through a particular website, they suggest you notify also the administrators of that website.  If you can find out who the hosting company is, such as iNamics, then try and contact them and tell them what the problem is with a site they are hosting. Unlike iNamics, a lot of website hosting companies do not know who their customers are and what they do.

When it becomes apparent you are the victim of a scam, you should end all communications with the scam artist, rather than attempt a resolution.  It is extremely rare for victims to recover lost money.  If you feel threatened in any way, you need to report your situation to the local police.

If you are concerned about an American in distress overseas, but are not sure if it is a legitimate case, call the State Department's office of Overseas Citizens Services at 888-407-4747 (from overseas: 202-501-4444).  Review the State Department's information on Emergency Assistance to Americans Abroad.

Scams evolve constantly and not all scam variations are included in the list below.  The U.S. State Department provides links and brochures to help alert you to the indicators of some of the most common scams and suggest what actions you should take:

List of 9 Top Financial Scams and their Indicators: