Consumers beware… lurking in the shadows are scam artists just waiting for an opportune time to strike. The first step in protecting yourself, according to the Federal Bureau of Investigations (FBI), is being aware of common fraud schemes. These include telemarketing fraud, Nigerian letter scams, impersonation/identity fraud, and advance fee schemes.

“You must Act now” or “You’ve won a ‘free’ vacation or gift, but you have to pay for postage and handling or other charges,” or “You must send money, give a credit card or checking account number” are all warning signs of a telemarketing scheme. The FBI offers a few tips in avoiding telemarketing fraud:

• Don’t buy from an unfamiliar company. Keep in mind that legitimate businesses understand that you want more information about their company and are happy to comply. And always check unfamiliar companies with your local consumer protection agency or the Better Business Bureau.
• Always ask for and wait until you receive written material about any offer or charity. If you get brochures about costly investments, ask someone whose financial advice you trust to review them.
• Before you send money, ask yourself, “What guarantee do I really have that this solicitor will use my money in the manner we agreed upon?”
• Never send money or give out personal information such as credit card numbers and expiration dates, checking account numbers, dates of birth, or social security numbers to unfamiliar companies or unknown persons.
  

Nigerian letter frauds combine the threat of impersonation fraud with a variation of an advance fee scheme in which a letter, mailed from Nigeria, offers the recipient the "opportunity" to share in a percentage of millions of dollars that the author, a self-proclaimed government official, is trying to transfer illegally out of Nigeria. While it’s hard to believe people would actually fall for this scheme, they do. And here are some helpful suggestions on how not to get scammed:

• Be skeptical of individuals representing themselves as Nigerian or foreign government officials asking for your help in placing large sums of money in overseas accounts.
• Do not believe the promise of large sums of money for your cooperation.
• Guard your account information carefully.
• If you or someone you know receives a letter from Nigeria asking you to send personal or account information, do not reply in any manner. Send the letter to the U.S. Secret Service or the FBI.

Impersonation fraud occurs when someone assumes your identity to perform a fraud or other criminal act. Criminals can get the information they need to assume your identity from a variety of sources, such as the theft of your wallet, your trash, or from credit or checking account information. They may approach you in person, by telephone, or on the Internet and ask you for the information.

There unfortunately is no full proof way to prevent identity theft, but you can at least minimize your risk of loss by adhering to a few simple measures:

• Avoid throwing away ATM receipts, credit statements, credit cards, or credit union statements in a usable form.
• Never give your credit card number over the telephone unless you make the call.
• Reconcile your checking account monthly and notify your credit union of discrepancies immediately.
• Report unauthorized financial transactions to your credit union, credit card company, and the police as soon as you detect them.
• Review a copy of your credit report at least once each year, and notify the credit bureau in writing of any questionable entries and follow through until they are explained or removed.
  

An advance fee scheme occurs when the victim pays money to someone in anticipation of receiving something of greater value, such as a loan, contract, investment, or gift, and then receives little or nothing in return. The variety of advance fee schemes is limited only by the imagination of the con artists who offer them. Here’s how not to get hooked:

• If the offer of an "opportunity" appears too good to be true, it probably is. Just follow common business practice.
• Know whom you are dealing with. If you have not heard of a person or company that you intend to do business with, learn more about them.
• Be wary of businesses that operate out of post office boxes or mail drops and do not have a street address, or of dealing with persons who do not have a direct telephone line, who are never "in" when you call, but always return your call later.