Frequent fraud: Don't open your wallets to these scams

Con artists are hard at work taking advantage of desperate people struggling in today's down economy. With record unemployment nationwide and a host of economists predicting things will get significantly worse before they get better, there's no shortage of people willing to take risks they might otherwise be resistant to.

Hickory has not escaped the economic downturn and area residents are being taken in by some of the many scams making the rounds.

"People are desperate and sometimes they attempt to grasp at straws to make ends meet," said Hickory Police Sgt. Brett Porter.

Porter said some Hickory residents have been taken in by a lottery scam making the rounds on the Internet.

It's a scam that begins when the victim receives an e-mail claiming the recipient has won a lottery and can collect their winnings by sending anywhere from $500 to $40,000 in the form of a wire transfer. The scammer keeps the money and the victim has little recourse other than notifying law enforcement.

Another scam making the rounds involves fake checks that look like the real thing and come in the mail. They come with instructions asking the recipient to cash the checks, send the bulk of the money in the form of a cashier's check to another address and keep several hundred dollars for their trouble.

The catch is: The check received is fake, but the one sent is real and the bank will hold you responsible for the amount of the fake check. It's a way for scammers to get others to defraud the bank and then pay for it.

In an effort to spread the word that scams abound and the importance of guarding against them, Hickory police Sgt. Randy Isenhour wrote a letter called Scams and Common Sense that was circulated among city workers and officials.

It reads in part, "Not a day has gone by lately that I have not received an e-mail saying one of my accounts has been blocked or limited, and lately, that the Internal Revenue Service has needed information on how to deposit my economic stimulus check."

Isenhour goes on to point out there's no logical reason your bank would need to be told your account or PIN numbers and being asked for this type of information should raise alarm bells, whether the request comes from a phone call or in an e-mail. "If you get a message like this, you're probably dealing with a scammer," he said.

The IRS scam Isenhour mentioned comes in the form of an e-mail or a phone call. Both methods request bank account information and both come from would-be thieves.

When contacted to assess if an apparently legitimate e-mail was bogus, Mark W. Hanson of the IRS said in an e-mail, "This is a phishing scam. The IRS does not send out unsolicited e-mail messages."

"Taxpayers are urged to not open, click on links, download attachments or reply with personal information to such e-mails. If the IRS needs to contact a taxpayer, we will usually do so via a letter in the mail via the U.S. Postal Service."

He encouraged anyone who wishes to question any correspondence purporting to be from the IRS to call (800) 829-1040.

North Carolina Attorney General Roy Cooper issued a press release Friday listing three scams making their way across the state. They include:

Foreclosure rescue

These scammers prey on homeowners in foreclosure, promising help to deal with lenders and save homes. But once the fee is paid, they get little or no help to modify loans or get out of foreclosure. Three foreclosure rescue scams operations were recently shut down in the Charlotte area.

Steer clear of foreclosure rescue companies that require a payment before they'll help. It's illegal to charge an upfront fee for foreclosure assistance services in North Carolina.

Homeowners who fall victim to these foreclosure rescue schemes lose critical time and precious money that could be better spent on real solutions.

For free help dealing with foreclosure, call the HOPE hotline at (888) 995-HOPE. You can call the hotline toll-free 24 hours a day, seven days a week for free counseling on your options.

Credit repair and debt settlement

Watch out for outfits that promise to fix your credit report, boost your credit score or cut your debts in exchange for an upfront fee. One debt settlement outfits that was shut down last year promised to help customers avoid bankruptcy and become debt free in as little as one to three years. But in reality, credit repair and debt settlement scams cheat consumers out of hundreds or thousands of dollars and will generally do nothing to improve your credit or help you get out of debt.

Under North Carolina law, it's illegal to charge upfront fees for credit repair or debt settlement services. Instead, talk to a nonprofit credit counselor who may be able to help you set up a legitimate plan to manage your debts. Find an accredited, nonprofit credit counselor in your area by contacting the National Foundation for Credit Counseling at (800) 388-2227 or www.nfcc.org.

Advance fee loans, grants and credit cards

Credit is harder to get right now and scammers know it. Beware of ads, telemarketing calls and other pitches that promise to help you get a loan, a credit card or even a free government grant in exchange for an upfront fee. In most cases, you'll be wasting your money if you pay them a dime.

Under North Carolina law, it's illegal for a loan broker to charge an upfront fee to help get a loan or a credit card for a consumer. If you need credit, shop around with several banks and lenders rather than responding to advance fee pitches. Be sure to compare costs, terms and rates from several credit card issuers/lenders.

Also, don't fall for outfits that guarantee they can help you get a government grant. Legitimate grants are competitive and not everyone who applies gets funding. Instead of paying a fee for help finding grants, check directly with federal, state and local government agencies or go to www.grants.gov.

For help and tips or to report a scam, go to www.ncdoj.gov or call the Consumer Protection office at (877) 5-NO-SCAM.