Scam Alerts for 2014

Every year, crooks from around the world go out of their way to try to find new ways to cheat people out of their hard-earned money.  The type of people who initiate these scams can range from local small-town contractors to international terrorist groups.  These people can also try to cheat us in a multitude of ways.  They may make a personal appeal, use a robo-call phone system, or go on a computer phishing expedition.  They might put a virus on your computer.

However they attempt to cheat us, we want to be prepared and know about the variety of tricks they may choose to use.  Here are some of the scams you need to watch out for in 2014:

Scam Alerts

*  If you used a credit or debit card in a Target Store anywhere in the United States in late November or the first half of December, 2013, you need to watch your statements carefully.  A foreign group was able to steal 40,000,000 credit card numbers.  It is possible that some PIN numbers were also captured.  Many of the cards are already for sale on international websites. To avoid problems, you may want to change your PIN number and/or ask that your card be replaced.  In addition, you should watch your statements carefully to avoid fraudulent charges.  If you are especially concerned, you may also want to enroll in a credit monitoring service to make sure your account information is not used to open new accounts.

*  According to the Federal Trade Commission, more people are defrauded by people promoting weight loss products than any other product category.  Talk to your doctor and read independent reviews before trying any miracle drug or supplement that claims it will help you lose weight easily and quickly.

*  Illegal or incompetent contractors often try to take advantage of people after a major weather event, such as an ice storm, hurricane, tornado or floods.  They may simply show up at your door and claim that your homeowner's association sent them, or that they were working on other homes in the neighborhood and noticed that your home needed work, too.  They may ask for large deposits, but do little or no work before they disappear.  Ask for referrals before hiring any contractor and verify, verify, verify.

*  Watch out for phony subscription invoices in your email or mailbox.  If someone other than the publisher contacts you about renewing a subscription, contact the publisher to make sure it is legitimate.

As always, be skeptical of any unexpected contact by a stranger ... whether that contact is in person, through a phone call or an email.  Scammers use a wide variety of ways to trick you, and you do not want to be their next victim.

In addition, you may want to follow a website such as this one in order to stay up-to-date on new scams that are going around.  An educated consumer is much less like to be tricked!

You are reading from the blog:  http://lies-and-liars.blogspot.com

Photo of damaged home is courtesy of www.morguefile.com

Post-Disaster Contractor Fraud

One of the most devastating things that can happen to a family is to be the victim of a disaster.  Whether your home has been damaged by a major hurricane, a tornado, a fire or a flood, your immediate reaction is to try to get things back to normal as quickly as possible.  Because of this impulse, many people fall victim to contractor fraud after every major disaster. Unscrupulous criminals, often called storm-chasers, turn up after natural disasters, collect upfront deposits and disappear.  After everything else that has happened to the homeowner, this final insult can be devasting.

How to Avoid Being a Victim of Construction Fraud

If you are a victim of a natural disaster, you do not have to fall victim a second time to a dishonest contractor.  Here are a few steps that insurance companies suggest you take in order to protect yourself:

Have your insurance company assess the damage.
Ask your insurance company for a list of approved contractors.
Get a list of licensed contractors from your state licensing agency at NASCLA.org.
Check out the company with the Better Business Bureau at bbb.org.
Ask to see the contractor's license, workers comp insurance policy, driver's license and, perhaps, a performance bond.
Get the estimate, completion date, and list of materials and prices in writing on the company letterhead.
Check back with your insurance company if a contractor says you have damage that the insurance adjuster did not notice.  They could be trying to exaggerate the work you need.  Even if they are not, you want to make sure the insurance company will cover the repairs.
Do not pay a deposit larger than 25 percent of the estimate, and don't pay that until the contractor has the materials and is ready to start work.
TAKE YOUR TIME before choosing a contractor.  Make sure you have taken all the steps listed above. Be suspicious if a contractor shows up at your door or if they do not have a business card, a physical address or anything else that causes you to question whether or not they have a legitimate business.  You should also be suspicious if one estimate is substantially less than the other estimates.  They may not be using quality materials.

There are many people who suffered financial and emotional damage as a result of Hurricane Katrina fraud.  Although there are many honest, helpful contractors, everyone should be aware that contractor scams still occur.  Disaster fraud is devasting, but you do not have to let it happen to you.

You may also be interested in reading:

How to Tell When Someone is Lying
The Government Will Not Pay Your Utility Bills
The Scam the Promises to Fix Your Credit

You are reading from the blog: http://lies-and-liars.blogspot.com

Photo courtesy of www.morguefile.com