Foundation Sponsors "Spot the Scam" Seminar

Many people believe that they are “too smart” to be taken in by a scam artist. Many times that is true, but as technology develops, scammers are becoming more intelligent as well. They have figured out ways to circumvent the system and fool people into trusting them.

John Sanders of the Illinois Securities Department leads the “Can You Spot the Scam” seminar, which was sponsored recently by the Foundation for Pinckneyville. Sanders brought to light many known scams as well as giving information about red flags that may signal a scam. The main message was to trust your instincts. If it sounds too good to be true and promised higher than average returns on an investment, it is probably a scam.

Many thieves target senior citizens, but anyone is susceptible. One popular type of scam, called “Affinity fraud” targets an audience of like-minded people and often preys on people’s sense of loyalty. Sanders notes that this type of fraud is rampant in Illinois. Never be afraid to verify the legitimacy of any investment.

Another popular scam happens when a person receives a check in the mail along with a letter that part of the funds will need to be returned, often by wire or money order. Many will claim that the recipient has won some sort of a sweepstakes but must pay “taxes” before the rest of the winnings can be claimed. The check that was sent is fraudulent, but scammers hope that the recipient will send money to them right away before they realize that fact.

Sanders warns consumers to always check up on anyone to whom their money is trusted. All legitimate investment brokers are required be registered with the Secretary of State Securities Department. It is important to do thorough research before committing to anything.

People are often taken in by scams and stand to lose their hard earned money if they do not guard themselves. Precautions should begin with a simple phone call. Anyone who is thinking of investing money should first contact the Illinois Securities at 1-800-628-7937. The department will verify if an agent is registered according to the law.

Identity theft is also a prevalent method thieves use to target unsuspecting victims. The best way to know if your identity has been compromised is to monitor your credit. Each credit bureau offers a free report each year. The process is simple, just go to annualcreditreport.com or call 1-877-322-8228.

In the document “Ten Ways to Stop Identity Theft Cold,” Jeff Wuorio gives simple steps to protect oneself. 1. Destroy private records and documents that include private financial information. 2. Empty mailboxes quickly to avoid stolen mail. 3. Safeguard your Social Security card and do not carry it with you. 4. Never leave ATM, credit card or gas station receipts lying around. 5. Never let your credit card out of your sight. 6. Don’t give your information to anyone who contacts you over the phone. Find out who they are, who they work for, and the reason for the call, then hang up. Call the company to verify what you were told before revealing any personal data. 7. Cut down junk mail and opt out of credit card solicitations through the Do-not-Call registry at 1-888-382-1222. 8. Be more defensive with personal information, and do not give out unless absolutely necessary. Check privacy policies of institutions that require the information. 9. Monitor your credit report. 10. Review credit card statements carefully.

Sanders also noted that in the event a scam has already been committed, it is still a good idea to contact his office. In some instances, funds may be recovered but that can only happen if the crime is reported.

More information can also be found at avoidthescam.net.