Top consumer scams

Soldiers Magazine, Nov, 2003

Tax Scams

THE Internal Revenue Service warns consumers that tax seams occur even outside of the federal tax-filing season. A recent tax scam targeted potential recipients of the Advance Child Tax Credit. Scam artists promised to speed up the payment if the taxpayer agreed to a $39 credit-card charge. No organization or person can speed up the payment of tax benefits.

Scam artists also prey on black Americans by offering to file for tax credits or refunds related to reparations for slavery, then require clients to pay up front fees for claim preparations. Tax laws do not allow for credits or refunds related to slavery reparations.

Some taxpayers have received e-mails from a non-IRS source indicating the taxpayer is under audit. The recipient is asked for such confidential information as Social Security and bank account numbers. IRS does not conduct audits through e-mail.

Telemarketing Recovery Scares

SOME scare artists buy and sell "sucker lists" with the names, addresses and phone numbers of people who have lost money in fraudulent promotions. Businesses that buy these lists contact the consumers and promise to recover the lost money--for a fee. Under the Telemarketing Sales Rule, it is illegal to request payment until seven business days after the recovered money is returned to the consumer.

Telephone Scams

PHONE companies may switch consumers' phone service by telling the local phone company that consumers have authorized a change in service providers. Phone companies may also charge consumers for miscellaneous services they never requested, such as voice mail, paging, Internet access or personal 800 numbers.

The providers of pay telephones in such public places as hotels, airports and stores can use any long-distance provider they choose. Even when using a prepaid calling card, you can still be charged rates as high as $3 to $5 a minute.

Calls to 1-900 and 1-999 numbers for "information" are very expensive. Calling these numbers "authorizes" the business to charge a large fee to your telephone bill. Charges can be $3 per minute to $25 per minute. Some seams have consumers call a toll free number first, then transfer callers to the charge line after the first 10 to 15 seconds.

Travel Seams

TRAVEL and vacation seams are most common in spring and summer. Scam artists may tell consumers they've won a free vacation package or that they must "act now" before the offer expires. Consumers usually end up paying a high price for some part of the package, like hotel or airfare, or end up with accommodations and services of lower quality than advertised.

Weight-Loss Scams

WEIGHT-loss promotions may guarantee consumers will shed unwanted pounds in a week--or even overnight--without cutting back on calories or exercising. Medical science has not yet discovered a secret for easy weight loss. Consumers should check out products with the Food and Drug Administration and remember that testimonials do not serve as scientific proof of a product's effectiveness.

Used-Car Fraud

USED cars may seem like an attractive purchase to consumers who are low on cash, but purchasers must do some research to avoid fraud.