How to avoid financial scams

Beware: There are people out there who are trying to take our money. They play on our trust to get us to open our wallets, only to fill their own.

According to the National Consumer's League, the most popular financial scams are:
Foreign business offers:  Scammers pretend to be business people or government officials and promise millions of dollars  only if you'll send them a fee.  But real companies and government agencies don't offer legitimate business propositions to people they don't know.

Love losses: The scammer poses as a romantic interest online and promises to come to the U.S. to be with the victim.  Soon after, the online friend asks the victim to wire money or send a money order to cover “travel expenses.” They're never heard from again.

Overpayments:  Scammers buy merchandise online, and then claim they mailed the wrong amount by mistake.  The seller is asked to deposit the “wrong” check anyway, then return the “excess.” But the check doesn't clear, and the victim has sent the scammer his own money.

Rental schemes: Scammers claim to be moving to the area and put down a rental deposit.  Then they tell their landlord they have unexpected expenses, so they ask for some of their deposit back as a favor.  They never move in, and the deposited check never clears.

Sudden riches: The scammer claims the victim has won a foreign lottery or sweepstakes.  The notice comes by mail, phone, fax or email.  Consumers should know that winners of real cash prizes are notified by certified mail.

Work-at-home: The scammers promise easy money by “processing” checks.  The victim deposits the checks and sends the money to the scammer, minus a small fee.  Legitimate companies don't do business like this.

To report fraudulent activity and to learn more, go to http://www.fakechecks.org/.