GENERAL FRAUD

Watch out for these other common fraudulent schemes!

Investment scams. In these difficult economic times, phony and unscrupulous investment agents may offer too-good-to-be true investment opportunities. Watch our for these warning signs:

• Agents who promise “guaranteed” results. No legitimate investment advisor will guarantee any results. There is always risk, and it always possible that your investment will lose money.
• Agents in a hurry to close the deal. Avoid high pressure sales. Real investment opportunities rarely require instant decision making. Always take time to research your investments.
• Offers from unsolicited telephone calls. Be skeptical of unsolicited offers from unknown companies, and always research any company that contacts you first.

Mortgage Rescue Scams. These scammers often promise to reduce your payments on your mortgage or help you avoid foreclosure. Watch for the following warning signs:

• Be wary of anyone who requires fees in advance.
• Be wary of anyone who advises you to stop paying your mortgage company.
• Be wary of anyone who “guarantees” to reduce your mortgage obligation.

Work at Home Scams. “Be a part of one of America’s Fastest Growing Industries!” You see ads like this everywhere – from the street light and telephone pole on your corner to your newspaper and PC. While you may find these ads appealing, especially if you can't work outside your home, proceed with caution. Not all work-at-home opportunities deliver on their promises.

Many ads omit the fact that you may have to work many hours without pay. Or they don't disclose all the costs you will have to pay. Countless work-at-home schemes require you to spend your own money to place newspaper ads; make photocopies; or buy the envelopes, paper, stamps, and other supplies or equipment you need to do the job. The companies sponsoring the ads also may demand that you pay for instructions or 'tutorial' software. Consumers deceived by these ads have lost thousands of dollars, in addition to their time and energy.

Questions to Ask
Legitimate work-at-home program sponsors should tell you in writing what's involved in the program they are selling. Here are some questions you might ask a promoter:

• What tasks will I have to perform? (Ask the program sponsor to list every step of the job.)
• Will I be paid a salary or will my pay be based on commission?
• Who will pay me?
• When will I get my first paycheck?
• What is the total cost of the work-at-home program, including supplies, equipment and membership fees? What will I get for my money?

The answers to these questions may help you determine whether a work-at-home program is appropriate for your circumstances and whether it is legitimate.

You also might want to check out the company with your local consumer protection agency, state Attorney General and the Better Business Bureau, not only where the company is located, but also where you live. These organizations can tell you whether they have received complaints about the work-at-home program that interests you. But be wary: the absence of complaints doesn't necessarily mean the company is legitimate. Unscrupulous companies may settle complaints, change their names or move to avoid detection.

The following information does not constitute legal advice or representation, but is provided as a public service by the Dallas Association of Young Lawyers (“DAYL”) and is for educational purposes only.

Made possible by a generous grant from the Texas Bar Foundation.