Top Christmas Scams to Avoid

Christmas may well be the time for goodwill to all men, but your goodwill will be in very short supply if you’re caught out by a Christmas online scam.

Consumers are increasingly spending their hard-earned Christmas present cash online, and scammers tap into this market by developing ways to divest you of the cash. These scams are becoming more and more sophisticated so if you’re one of the millions of UK consumers who’s sitting down at their PC to do most of their Christmas shopping, you need to know what to be on your guard for.

McAfee has come to the rescue of online shoppers with a really handy guide to what it calls ‘The twelve scams of Christmas’. The worst offenders are:

Fake Delivery Service Emails
If you have a half decent spam filter on your email account, the chances are that most of these emails will be filed straight in the junk folder, which is a good indication that they are, in fact, rubbish. If an email slips through into your inbox, it might look genuine but ignore it.

The email resembles a delivery notice or invoice from Fed Ex, UPS or U.S. Customs Service. Of course if you haven’t ordered anything to be delivered using one of these services it should also be a dead giveaway. So should the fact that they ask for a credit card number in order to set up a credit or ask you to open an online account to receive your package. It hardly need be repeated but genuine companies will never ask you for financial details via email. Don’t do it, delete it.


Seasonal Social Networking Scams
If you find a slightly suspicious looking friend request in your inbox, don’t click on the link because it’s likely to infect your computer with all sorts of viruses and malware that will steal personal details and use them against you. Even if you have a lovely festive message with your friend request, the best way to make sure it’s genuine is to log on to the site itself and check.

Holiday e-cards.
Even worse, scammers have been hijacking festive cheer by sending out fake e-cards, which contain worms that get into your computer and can wreak havoc, sending the same dodgy cards out to everyone in your address book and getting hold of details they shouldn’t. Last year, McAfee found worms in fake Hallmark e-cards and also in fake McDonald’s and Coca Cola holiday promotions. There are often worms and malware enclosed in those ‘cute’ power point themed presentations too, so beware and don’t click on links.

Christmas Carol Lyrics.
If you’ve forgotten the words to ‘Good king Wenceslas’ – ask someone! Don’t try and download the lyrics online - McAfee found that some lyric sites download more than words; they can also give you a dose of viruses, adware and spyware.

 Auction site fraud.
Make sure that the fantastic bargain you’re bidding for online actually exists – and that you’re not being scammed by a completely fake auction site. If you’re invited to bid via email, don’t even think about it, because of course the link will take you through to a completely fraudulent replication of the site in question and you’ll just end up giving all your financial information to scammers and criminals.

Don’t get caught out by online scams this Christmas, be vigilant when opening emails, always be wary when clicking links - even if they come from people you know. The main things to look for – and avoid – are URLs (click this link for...) jpeg and .ppt files which can all hide malware.

For the full twelve scams of Christmas, go to the McAfee website.

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Pyramid Schemes

Pyramid schemes are old cons, but these days they're all over the Internet. According to a report released by the F.B.I. and the National White Collar Crime Center in the U.S., they're the fifth most common type of Internet scam.
The invitation comes in a spam e-mail, offering the opportunity to quickly make a lot of money simply by recruiting people, or sending a small amount to someone, which will add your name to a list (the chain letter). Although the terms multi-level marketing (MLM) and pyramid schemes are sometimes used interchangeably, you should be aware that there's a difference between them.

What is Multi-Level Marketing?

Multi Level Marketing is a perfectly valid, legal and effective way of distributing product to the end user or customer. That's the difference between MLM and pyramid schemes - there's a product and a customer. You develop your sales organisation, and derive part of the profits of those working under you. There are start-up costs, such as developing an inventory, but real companies won't encourage stockpiling. Although most people won't make much, it is possible to earn good money with MLM, with enough time, effort and talent.

What is a Pyramid Scheme?

Pyramid selling in illegal in Britain. That hasn't deterred people, however. There may be a product involved, but if so it's usually something with no demand. The essence is the service and recruiting. You pay to join, and recruit other people, keeping a percentage of their joining fee. What pyramid schemes stress is that you can get rich quickly, doing no work. Those at the top might make money, but if you do, it will only be a small amount. A pyramid scheme has to keep growing to make money. As soon as that stops (be it dies to falling off of members or investigation by the Department of Trade and Industry), it dies.

How to Recognise a Pyramid Scheme

Pyramid schemes can often disguise themselves well. But they share several characteristics. The following will give a good idea whether it's a pyramid or a genuine MLM opportunity.

• Does the product or service you are selling have an actual value? Is there a demand for it, and would you be willing to pay the price charged for the product or service if it were sold on its own?
• Does the program focus on the actual sale of the product or service, or on recruiting of new people into the programme?
• Is there a substantial start-up cost - do you have to pay to join or purchase a high-priced inventory
• Do they promise enormous earnings or claim to sell "miracle" products?

How to Avoid Being Scammed

The most basic advice is to do nothing rashly. Investigate any and all claims before you make a decision and part with your money. Looking out for the following can help you avoid being scammed:

• Beware of pressure tactics, and demands to sign a contract.
• Ask for references. Not just a couple, who might be shills, but several.
• Don't invest just because you know someone who has. They might easily be an unwitting victim.
• Ask for hard evidence to back up claims of quick wealth.
• Check out the product thoroughly.
• Determine whether the company will buy back your inventory.
• Get all promises in writing. Make sure the company has a valid address (not a P.O. box) and a landline number.

If You've Been Scammed

Report the crime to both the police and the Department of Trade and Industry. Turn over copies of all your notes regarding contacts, phone conversations and e-mails. Sadly, the chances of recouping your money are slight, but you might help bring the criminals to justice.

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The Floodlight Failure Betting Scam

No matter how much some fans (and managers) might complain about refereeing, English football really has an enviable reputation for integrity. Around the world the Premier League is known and respected as one of the top, and one of the toughest, leagues. That made it a perfect target for scammers who wanted to subvert and fix results in a betting fix, since no one would have thought it really possible.
It all revolved around a major difference in betting systems between Britain and Asia. In the UK, if a football match has to be abandoned before the final whistle for some reason, then all bets are literally off. In Asia, if the match is in the second half when it’s abandoned, then there’s a payoff on the result as it stands when abandoned.

How The Scam Worked

At its heart the scam was elegantly simple. Those behind it would simply arrange a floodlight failure in the second half of night games at the point when the score was where they wanted it (although, it must be said, they made no attempt to subvert players to influence the scores). It wasn’t done often enough to raise suspicion – there were just two completed instances – but with large enough bets in each instance, that wasn’t necessary; there could be some very serious money made on each match. It all originated in Malaysia, where betting on the Premier League has always been popular. There were two occurrences in 1997, the first when West Ham played Crystal Palace and the floodlights suddenly failed after the Hammers had equalised, and the second when Wimbledon played Arsenal and the lights failed after half time with the scores tied.
No one suspected anything. After all, electrical problems did happen, and in the darkness fixing them quickly was almost impossible, so there was no option but to abandon the matches.

How The Scam Went Wrong: A Study

Any scam requires the involvement of people, and the more people, the greater the risk. For the third floodlight scam, which was to happen at Charlton Athletic’s ground when they played Liverpool in February 1998, the trio involved – two Malaysians and a man from Hong Kong – needed inside help from Charlton Athletic security staff. They suborned one man with a £20,000 bribe – and the size of that is an indication of just how much money was involved in this scam, believed to be a staggering £30 million – but things fell apart when he tried to involve another security guard.The police were tipped off, and were waiting as the trio and the security guard arrived with equipment to sabotage the floodlights. Everything would have been in place, and then have been tripped remotely three days later during the game.
Instead four men were taken into custody. However, at the point the police had no suspicion that there had been more than this single match involved. It was only when they searched the suspects’ hotel rooms and discovered the names of West Ham and Wimbledon employees that they realised this had been going on for a while, although they’d discovered enough equipment among the Malaysians’ possessions to disrupt another eight games.

What It All Meant

The arrest of the conspirators broke up a very carefully organised ring, one that had planned its actions subtly and carefully – and even then it was sheer luck that the police found out it involved more than one game. Although it affected Asian betting, it thankfully left no slur or question mark on English football, and precautions were put in place to ensure it couldn’t happen again.

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Ebay Buy and Switch Scam

EBay experiences millions of transactions every day, and most of them go off without trace. But it's also a haven for scammers and their tricks. One of the most common is "buy and switch," an update of an old mail order scam.

How It Works

It's a clever little scam, and one that's almost undetectable. The buyer has an item of moderate value that's broken or unusable. He searches eBay for the same item, in good condition, then bids on it and wins it. When he receives the undamaged item, he switches it for his broken one, telling the seller it was either broken in transit, or accusing the seller of auctioning off broken goods, and threatening to leave negative feedback.As most sellers want to maintain high positive feedback, they'll refund the money, leaving the buyer with an undamaged item free of charge. With this scam, the buyer will insist the seller leaves feedback first before leaving theirs - a form of blackmail.
Since it's rarely reported, there's no way of knowing how pervasive this scam is, or how many sellers fall victim to it on an annual basis, but estimates are in the thousands.

How To Avoid The Scam

Truthfully, this is a scam that's almost impossible to avoid. It's also virtually impossible to prove - how can you ever be certain that the merchandise wasn't damaged in transit, for instance?The best way to protect yourself, if the item is of more than nominal value, is to insist on insurance. It adds a little to the postage, but it can save you problems later.
If you receive a communication from a buyer about receiving damaged goods, check his feedback. If there are neutral remarks or even questionable ones, contact other sellers to see if they've had problems. Don't be afraid to confront the buyer and report him to EBay.

If You've Been A Victim

Unfortunately, your chances of recouping your money or your undamaged item are small. It's a situation where you have to chalk up the loss to experience, and, if you have even the slightest suspicion, refuse to sell to that person again.You can also bite the bullet and leave negative feedback, accusing the buyer. But your problem then becomes proving the accusation.
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Chain Mail Scam

The chain mail scam quite possibly began not long after the advent of the postal system. These days, like so many other frauds, it's migrated to the computer, where it frequently clogs inboxes around the world.

What It Is

There are several variants of the chain mail floating around the Net. Some ask you to pass on an e-mail to several people, in return for which someone - often Microsoft's Bill Gates - will pay you hundreds of dollars for testing his new e-mail tracker (or something similar). Others take the more traditional route, instructing you to pay a certain amount of money to the person at the top of a list, add your name at the bottom of the list and pass the e-mail to ten of your friends. When your name reaches the top, within a few days, you'll begin receiving a lot of money.
What they have in common:

• The promise of money for very little effort.
• A sense of urgency ("Do it now!).
• A sense of helping your friends make money by continuing the chain.

In the U.S. these come under pyramid scheme statutes, and are illegal if anything is sent in the mail (one new version is all conducted via Paypal, avoiding those laws). But, legality aside, the bottom line is that you will not make any money on these schemes. There might be a little bit, but mathematically the only people likely to profit are the ones who started it, and only then if enough people reply and send them cash. Don't feel you've been specially singled out, even if the mail is forwarded by someone you know. These all started out as spam bulk mailings.

What To Do About Them

The simple solution is to delete the mail. But all too often people don't do that. But these steps will keep you safe:

• Don't send anyone any money, ever.
• Don't forward the e-mail to friends and family. They won't thank you for it, however good the cause purports to be, and whatever riches it promises.
• Inform the sender's ISP (abuse@.....). Be aware, though, that it's quite possibly a fake address. Changing the send address on an e-mail is very simple.
• Forward a copy of the mail to the Office of Fair Trading.

That might all seem basic. But this is one of the simplest scams around. It seems transparent. Unless you sit down and do the maths, the chances of making money seem excellent - foolproof, in fact.Perhaps the redeeming feature about this scam is that, even if you're a victim, you're only out a small amount, usually in the region of £5. However, that's a fiver you shouldn't have to lose.
The chain letter scam has been around for so long because it works - for the people who start it. Take precautions and don't let yourself be a victim.

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Fake Lottery Scam

It's a scam that's been around for years, but somehow it just won't go away. The fake lottery scam still finds victims, and along the way it's developed some new wrinkles to make it seem even more real.

How It Works

You receive a notification that you've won a large lottery prize overseas - sometimes it's Spain, sometimes Australia or Canada, at other times elsewhere, the location doesn't really matter. To claim your prize, however, you need to pay an "administration fee" which can range up to hundreds, occasionally even thousands, of pounds.These days, however, as more people become wise to the scam, your notification might include a cheque for a sizeable amount, and drawn on a reputable bank. This comes from your supposed winnings, for you to use to pay the administration fee and whatever taxes might apply. It's a clever trick to make the con seem more legitimate.
You bank the cheque, send off the fees they request, and maybe even spend some or all of your advance "winnings." It's only a few weeks later that you discover the cheque was, in fact, counterfeit, and you're suddenly responsible for all the money from this fake cheque that you've spent. The crooks, meanwhile, have the administration fee you sent in good faith.
It's clever, and it's fooled a lot of people. According to statistics in Which? Magazine, almost eight million people across the U.K. have received or seen material promoting international lotteries.

How To Avoid The Scam

• The very first question to ask yourself is how you could win a lottery you'd never entered.
• Real lotteries don't ask you to pay administration fees, taxes, or other amounts before you can claim your winnings.
• You should wonder why you're being asked to pay upfront by money transfer.
• Before you do anything, check the lottery with Consumer Direct to be sure it's legitimate.
• If you receive a cheque, verify it with your own bank before depositing it. Do nothing until you're absolutely certain it's cleared and is real.

What To Do If You're A Victim

Unfortunately, there's little chance of recovering your money. By the time the fraud is discovered, the crooks have hidden their tracks, and he fact that they're based overseas makes the whole situation more complex.Sadly, you're likely to be responsible for all the money you spent; it's unlikely you can persuade you bank to take the loss.Inform Consumer Direct. They can't help retrieve your money, but they might be able to stop others becoming victims

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General Indicators Of Scams

The scams described  are some of the most common types of Internet fraud. However, these fraudsters are clever people who may use many variations of the above scams to achieve their nefarious ends.
In general, be wary of unsolicited emails that:

• Promise you money, jobs or prizes
• Ask for donations
• Propose lucrative business deals
• Ask you to provide sensitive personal information
• Ask you to follow a link to a website and log on to an account.

By taking the time to educate yourself about these common types of scam, and/or by sharing this information with others, you can make a valuable contribution to the war against Internet fraud.

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“Make Money Fast” chain emails

A classic pyramid scheme: you get an email with a list of names, you are asked to send 5 dollars (or so) by mail to the person whose name is at the top of the list, add your own name to the bottom, and forward the updated list to a number of other people.
The author of this scam letter painstakingly explains that, if more and more people join this chain, when it’s your turn to receive the money, you might even become a millionaire!
Bear in mind that, most times, the list of names is manipulated to keep the top name (the creator of the scam, or his friends) on top, permanently.
As with the previously circulating snail-mail version of this chain, the email edition is just as illegal. Should you choose to participate, you risk being charged with fraud – definitely not something you want on your record, or resume.

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Beware of Travel Scam

These scams are most active during the summer months. You receive an email with the offer to get amazingly low fares to some exotic destination but you must book it today or the offer expires that evening. If you call, you’ll find out the travel is free but the hotel rates are highly overpriced.
Some can offer you rock-bottom prices but hide certain high fees until you “sign on the dotted line”. Others, in order to give you the “free” something, will make you sit through a timeshare pitch at the destination. Still others can just take your money and deliver nothing.
Also, getting your refund, should you decide to cancel, is usually a lost cause, often called a nightmare or mission-impossible.
Your best strategy is to book your trip in person, through a reputable travel agency or proven legitimate online service like Travelocity or Expedia.

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Disaster relief scams Explained By Ken Gamble

What do 9-11, Tsunami and Katrina have in common? These are all disasters, tragic events where people die, lose their loved ones, or everything they have. In times like these, good people pull together to help the survivors in any way they can, including online donations. Scammers set up fake charity websites and steal the money donated to the victims of disasters.
If your request for donation came via email, there is a chance of it being a phishing attempt. Do not click on the link in the email and volunteer your bank account or credit card information.
Your best bet is to contact the recognized charitable organization directly by phone or their website.

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Phishing Emails Yet Another Type Of Internet Scam

This is the most widespread Internet and email scam today. It is the modern day "sting" con game. "Phishing" is where digital thieves lure you into divulging your password info through convincing emails and web pages. These phishing emails and web pages resemble legitimate credit authorities like Citibank, eBay, or PayPal. They frighten or entice you into visiting a phony web page and entering your ID and password. Commonly, the guise is an urgent need to "confirm your identity". They will even offer you a story of how your account has been attacked by hackers to lure you into entering your confidential information.The email message will require you to click on a link. But instead of leading you to the real login https: site, the link will secretly redirect you to a fake website. You then innocently enter your ID and password. This information is intercepted by the scammers, who later access your account and fleece you for several hundred dollars.
This phishing con , like all cons, depends on people believing the legitimacy of their emails and web pages. Because it was born out of hacking techniques, “fishing” is stylistically spelled "phishing" by hackers.
Tip: the beginning of the link address should have https://. Phishing fakes will just have http:// (no “s”). If still in doubt, make a phone call to the financial institution to verify if the email is legit. In the meantime, if an email seems suspicious to you, do not trust it. Being skeptical could save you hundreds of lost dollars.

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Turn Your Computer Into a Money-Making Machine!- Yet Another Internet Scam

Although not a full blown scam, this scheme works as follows: You send someone money for instructions on where to go and what to download and install on your computer to turn it into a money-making machine… for spammers.

At sign-up, you get a unique ID and you have to give them your PayPal account information for the “big money” deposits you’ll “soon” be receiving. The program that you are supposed to run, sometimes 24/7, opens multiple ad windows, repeatedly, thus generating per-click revenue for spammers.

In other scenario, your ID is limited to a certain number of page clicks per day. In order to make any money whatsoever from this scheme, you are pretty much forced to scam the spammers by hiding your real IP address with Internet proxy services such as “findnot”, so you can make more page clicks.

I won’t even go into the discussion about what this program will do to your computer’s performance... it is a true tragedy if you get conned into this scam.

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Employment Search Overpayment Scam

You have posted your resume, with at least some personal data accessible by potential employers, on a legitimate employment site. You receive a job offer to become a “financial representative” of an overseas company you have never even heard of before. The reason they want to hire you is that this company has problems accepting money from US customers and they need you to handle those payments. You will be paid 5 to 15 percent commission per transaction.

If you apply, you will provide the scammer with your personal data, such as bank account information, so you can “get paid”. Instead, you will experience some, or all, of the following:

• identity theft,
• money stolen from your account, or
• may receive fake checks or money orders for payments which you deposit into your account but must send 85 – 95 percent of that to your “employer”.

Soon you will owe much money to your bank!

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