Transcript April-23-PPT.1a2 - Gassman Law Associates, PA

THE 10 BIGGEST INTERNET
SCAMS, TRAPS AND MISTAKES
CONSUMERS MAKE
BY:
BILL KAHN
[email protected]
MELISSA ALLUMS
[email protected]
TUESDAY, APRIL 23, 2013
5:00 P.M.
MODERATED BY:
ALAN S. GASSMAN
[email protected]
A WEBINAR BY GASSMAN LAW ASSOCIATES, P.A.
ABOUT OUR SPEAKERS
ABOUT BILL KAHN:
M R . K A H N ’ S E D U C AT I O N I S I N E L E C T R I C A L E N G I N E E R I N G F R O M T H E U N I V E R S I T Y O F
F L O R I D A A N D N U C L E A R P H Y S I C S F R O M O H I O S TAT E . H E W O R K E D AT A N AT O M I C B O M B
S I T E I N N E VA D A , WA S A C A P TA I N I N T H E A I R F O R C E A N D R E T I R E D F R O M L O C K H E E D
M A R T I N W H E R E H E R A N A VA R I E T Y O F M I L I TA R Y A N D C O M M E R C I A L P R O G R A M S . F O R
T H E L AT T E R , M R . K A H N D E S I G N E D T H E F I R S T D I G I TA L PA G I N G A N D C E L L U L A R
T E L E P H O N E S Y S T E M , T H E F O R E - R U N N E R O F T O D AY ’ S S Y S T E M S . H E H A S W R I T T E N
N U M E R O U S A R T I C L E S , R A N “ T H I N K TA N K S ”
FOR A WIDE RANGE OF INDUSTRIES,
R E C E I V E D M A N Y N AT I O N A L A N D I N T E R N AT I O N A L AWA R D S , W R I T T E N T W O B O O K S ,
L E C T U R E D A R O U N D T H E W O R L D , T U T O R E D AT PA C E C E N T E R F O R G I R L S , E N T E RTA I N E D
AT A S S I S T E D L I V I N G A N D A L Z H E I M E R C E N T E R S A N D H A S B E E N I N V O LV E D I N A VA R I E T Y
O F O T H E R PUB L I C S E RVI CE FUNCT I O NS .
ABOUT OUR SPEAKERS
MELISSA ALLUMS:
M E L I S S A A L L U M S I S A O R A N G E C O U N T Y C O N S U M E R F R A U D U N I T I N V E S T I G AT O R .
MS. ALLUMS EARNED HER BACHELOR OF ARTS IN LEGAL STUDIES FROM THE
UNIVERSITY OF CENTRAL FLORIDA IN 2004.
SHE HAS AUTHORED SEVERAL
BROCHURES ON AN ASSORTMENT OF CONSUMER PROTECTION TOPICS.
SHE BEGAN HER CAREER WITH THE ORANGE COUNTY CONSUMER FRAUD UNIT
I N 1 9 8 3 A N D H A S B E E N A N I N V E S T I G AT O R S I N C E 1 9 9 7 . A S A C O N S U M E R F R A U D
I N V E S T I G AT O R
SHE
HAS
I N V E S T I G AT E D
EVERYTHING
FROM
UNLICENSED
CONTRACTING AND TELEMARKETING FRAUD TO MOTOR VEHICLES SALES AND
IDENTITY
T H E F T.
SHE
M E D I AT E S
CONSUMER
COMPLAINTS,
CONDUCTS
C R I M I N A L I N V E S T I G AT I O N S , I N T E RV I E W S W I T N E S S E S A N D T E S T I F I E S I N L E G A L
PROCEEDINGS.
INTRODUCTION
We have compiled a list of the 10 Biggest Mistakes
Consumers Make.
They often buy into the following common pitches,
which more often than not end up being scams.
If you have any questions please email
[email protected]
GASSMAN LAW ASSOCIATES, P.A.
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Susceptibility – why do people get
taken in scams, frauds and cons?
POSSIBLE REASONS:
•G R E E D
•T R U S T I N G
•P R E S S U R E D
•M E N T A L L Y C H A L L E N G E D
•D O N ’ T U N D E R S T A N D
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#1- IDENTITY THEFT
 Consumers provide personal information, which is
used to access such items as their bank accounts
and lines of credit.
 Common pitfalls:
 Not securing personal information.
 Falling victim to phishing and pharming.
 Weak computer security.
 Providing too much information to businesses when making
purchases.
GASSMAN LAW ASSOCIATES, P.A.
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#2- FINANCIAL THEFT
 Directly and indirectly, crooks try to take your
money.
 Common pitfalls:
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No-risk, money-back guarantee schemes.
Get rich fast, learn the secret to success with the promise of
high financial returns scams.
A caller who pretends to be a grandchild in trouble, asking
the grandparent to wire money.
A caller who claims a consumer’s computer has been
compromised and asks for remote access to the computer.
A caller claiming a friend or family member has been
arrested or injured and needs the caller to send money
immediately.
GASSMAN LAW ASSOCIATES, P.A.
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#3- VICTIMIZATION
 A consumer unknowingly hires un-reputable
contractors.
 Common pitfalls:
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Contractors advertise immediate repairs.
Contractors advertise cheap services or upgrades or have
extra materials available.
A company or individual is not bonded/insured/licensed.
Jobs are abandoned or never even started.
A lien is placed on the home.
GASSMAN LAW ASSOCIATES, P.A.
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#4- MEDICAL CONCERNS
 Consumers pay for a course of treatment that gives
false hope.
 Common pitfalls:
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Cures a wide range of ailments.
Promises a quick or painless cure.
Lose weight no matter how much you eat of your favorite
foods with little or no effort.
Offers health coverage for just pennies a day.
Mistaking a discount card for doctors‘ visits and hospital
stays as insurance.
GASSMAN LAW ASSOCIATES, P.A.
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#5- CLAIMS OF FINANCIAL RELIEF
 Claims to reduce or eliminate tax debts, clean up
your credit, stop foreclosure, dispose of mortgage
loans and pay off credit card debts for a fee.
 Common pitfalls:
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Get a loan regardless of your credit problems by paying an
upfront fee.
Others.
GASSMAN LAW ASSOCIATES, P.A.
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#6- HOME-BASED WORK
 The promise to work from home for big financial
rewards. People continue to fall prey to those who
promise to make them money. Rewards fail to
materialize and if at all, people make pennies per
hour of work.
 Common pitfalls:
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Get a 10% return on your investment for purchasing work
material.
Be a mystery shopper.
GASSMAN LAW ASSOCIATES, P.A.
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#7- FREE PRIZES AND GIFTS
 Money is stolen from unsuspecting consumers who
think they have won a free prize/all-expense-paid
vacation/magazine.
 Common pitfalls:
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Just pay a small fee for shipping and handling, taxes, cruise
landing fees.
You receive the prize for more than expected and are asked
to send back the difference.
These offers come by mail, email, telephone, and text.
GASSMAN LAW ASSOCIATES, P.A.
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#8- RETAIL GRABBER
 False advertising draws in the gullible.
 Common pitfalls:
 The bait and switch. A low-ball advertisement is displayed,
but the product is sold out when you get to the store, there
are only limited supplies available, or there is constantly a
going out of business/lost lease sign up all the time.
 Offers come by mail, email, telephone, and text.
GASSMAN LAW ASSOCIATES, P.A.
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#9- FAMILIARITY
 Trust is used to fleece the unwary.
 Common pitfalls:
 Celebrities or well-known scientists sell a product.
 Playing on your feelings of guilt over a crisis.
 You are given hints about a “secret” to getting money, or
how to turn your experience into a degree for a better job.
GASSMAN LAW ASSOCIATES, P.A.
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#10- LOVE PITCH
 Loneliness can empty your pocketbook or kill you.
 Common pitfalls:
 Meet your match on-line.
 Claims that you will find love in a heartbeat with someone
who shares your interests.
 You need to give money to meet the person or to solve
problems.
GASSMAN LAW ASSOCIATES, P.A.
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QUESTIONS?
BILL KAHN
[email protected]
MELISSA ALLUMS
[email protected]
ALAN GASSMAN
[email protected]
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