Many of us (some more than others) have at some point in our lives been duped, swindled or simply bamboozled by con artists (like Neil Ellis or Frankie Wilson) in some form or the other. Is it our greed, the desire for a quick buck, or promises of great wealth that intrigues us and eventually leads to our participation in these questionable activities?
The reasons may be as diverse as the scams, but one thing is certain: if you know how a scam works, odds are you will recognise it a mile off and be less likely to fall for its false promises.
Just remember that there are no new scams ﾗ only new participants.
In many instances, these con artists are only adding new spins to age-old scams. Only today, these shysters don’t prey on unsuspecting victims with loud, rapid-fire, slick pitches. They have re-invented their tactics, using dial-up and cable connections; bombarding your e-mail inbox, using web sites, attacking by telephone, disguising their identities behind nameless, faceless modern technology all nicely packaged.
Don’t get sucked in. Take notes from the following scams and you can avoid being another victim ﾖ no matter what new twists these clever con artists devise:
The Pyramid Scheme
Many of you may have remembered this scam that swept through The Bahamas several years ago. To some, a pyramid scheme seems like a fast way to make a lot of money.
If you’ve never heard of pyramid schemes, here’s how they work: One person convinces several people to join a club or business. The only way to make money is to get more people to sign up, too.
For example, certain groups that call themselves “gift parties” require that everyone who joins donate $4,000. All the cash goes to the person who is at the “top.” You are told that as soon she has received a certain amount of money, she will step down and nominate the next person to be on top.
While these schemes seem like an easy way to make cash, inevitably, the only person to make money is the FIRST (and only) one at the top ﾗ who usually gets busted or disappears before the group figures out that the math doesn’t work.
The prize that will cost you
It should go without saying that if you get an e-mail saying you won something ﾗ and you didn’t enter ﾗ you should just delete it. But alas, many have fallen victim to this one.
Here’s how it works: The e-mail says you’ve won, but to receive your lottery winnings or whatever the prize is, first you must pay a “handling fee” or some other charge, or all you have to do is send in your bank account information for them to transfer the funds to you. You hand over your cash or information and you never hear from this person again or find soon enough that your own bank account has been raided or you have been the victim of identity theft with debt racked up on credit cards you didn’t know you had.
While you may be tempted to respond, don’t be fooled, this is only another scheme con artists have devised to take advantage of the unsuspecting. Also, NEVER, give out personal information such as your bank account number to anyone to claim a prize. They’re just trying to steal your identity.
Ladies and gentlemen, we repeat: If you didn’t enter anything, you didn’t win anything.
Promises to sell your timeshare
In recent times many Bahamians have been invited to purchase timeshare properties and in some cases in order to increase the chances of acceptance, companies have even paid for these prospective clients to stay at one of their timeshare establishments.
Many have bought into to these deals. Unfortunately, these arrangements/costs are for the long-term and for those persons who did not adequately budget for the additional expenses or who have simply fallen on hard times are now finding it difficult to continue with the obligation. Many have tried to dispose of the unit(s). However, the reality is, while these arrangements were very easy to enter into, trying to get out of them can be quite challenging.
In their desperation, they have been approached by persons (usually contacted via email or internet) claiming that they can sell the units but they have to pay an upfront fee (s). And you can guess how it ends… they give these con artists their money and never hear back from them again and they are still saddled with the timeshare and its associated costs.
Before you get yourself into such an arrangement take a good look at your finances and be certain that you can afford it. If you are trying to get rid of your unit and have been approached by offers to sell, do your homework. See if this person or company is legitimate. If it’s a foreign entity, check and make sure that the individual/company(s) are licensed and/or registered by the appropriate authority.
Get rich QUICK!
Many of you have probably been courted by the Nigerian scam. It comes via e-mail or letter form and may start, “Dear Sir, I got your information from a confidential source . . .” The letter then goes on to tell you a story of a huge amount of money hidden overseas that the writer of the letter wants to put in your bank account. In return, he promises you a big cut of the cash.
Long story short: Any cheques you receive from this person will be fake. The con will ask you to keep part of the money and send him the difference. Shortly after you send him the difference by mail or wire, his cheque bounces and you owe the total amount to your bank. Warning: Sometimes, people are told by their banks that the cheque has cleared, so they wire the difference to the Nigerian scammer. But don’t be too sure: The scammers sometimes forge a cashier’s cheque, which fools the bank into prematurely reporting the cheque as “cleared.” Once the forgery is discovered, the bank will hold you liable.
Products that are too good to be true
If it seems too good to be true, it probably is. Remember that a con artist makes a career of using excuses and explanations to lead you away from your common sense. When dealing with your money and personal information, never allow yourself to be rushed, threatened or persuaded against your better judgment.
Don’t believe offers that claim that they can enhance your features or help you lose weight, such as miracle diets or pills or even creams. These products are usually very expensive and generally don’t work so don’t fork over your hard-earned cash.
Final Note!!!
Before you part with your hard-earned dollars for promises of high returns and great fortunes remember this:
If it’s an easy way to make money, it’s probably illegal, a scam or just a really bad idea.
By: Colina Financial Advisors from The Nassau Guardian
