FBI CONSUMER INFORMATION

See for new or updated items as of February 2, 2004

FACTS FOR CONSUMERS
(Information, links and quotes on this page are from the FBI website.)
(Information from other sources here)

SCAMS

  • Nigerian 4-1-9 Advance Fee Fraud - "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." More

  • Telemarketing Fraud - "When you send money to people you do not know personally or give personal or financial information to unknown callers, you increase your chances of becoming a victim of telemarketing fraud." Warning Signs

  • Impersonation/Identity Fraud - "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 bank information. They may approach you in person, by telephone, or on the Internet and ask you for the information." More

  • Advance Fee Scheme - "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. More

  • Common Health Insurance Fraud - "Medical Equipment Fraud: Equipment manufacturers offer "free" products to individuals. Insurers are then charged for products that were not needed and/or may not have been delivered. "Rolling Lab" Schemes: Unnecessary and sometimes fake tests are given to individuals at health clubs, retirement homes, or shopping malls and billed to insurance companies or Medicare." More
  • FBI Telemarketing Victim Call Center - Fraud Prevention Tips
     

INVESTMENT RELATED SCAMS

  • Microsoft X-Box E-mail Scam - A spam e-mail designed to harvest debit or credit card information. More

  • Letter of Credit Fraud - "Legitimate letters of credit are never sold or offered as investments." More

  • Prime Bank Note - "International fraud artists have invented an investment scheme that offers extremely high yields in a relatively short period of time. In this scheme, they purport to have access to "bank guarantees" which they can buy at a discount and sell at a premium." More

  • "Ponzi" Scheme - "A Ponzi scheme is essentially an investment fraud wherein the operator promises high financial returns or dividends that are not available through traditional investments. Instead of investing victims' funds, the operator pays "dividends" to initial investors using the principal amounts "invested" by subsequent investors." More

  • Pyramid Scheme - "Pyramid schemes, also referred to as franchise fraud, or chain referral schemes, are marketing and investment frauds in which an individual is offered a distributorship or franchise to market a particular product. The real profit is earned, not by the sale of the product, but by the sale of new distributorships." More

INTERNET SCHEMES - More information here


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