With high unemployment and a still sluggish economy, many Americans are on the lookout for new opportunities to get some cash—a fact that scammers are well aware of and eager to exploit. Government grant scams have been a frequently reported scam to NCL’s Fraud Center in recent months.NCL’s Fraud Center was recently contacted by a woman we’ll call “Maureen.” Maureen received a phone call from a woman who said she was a “customer service representative” from the United States government who was happy to inform Maureen that she was “eligible” to receive a government grant in the amount of $5,600. The friendly woman on the phone informed Maureen that, in order to receive her money, all she had to do was pay a onetime “processing fee” to the tune of $1,100. Maureen quickly wired the money to the address she was given, only to learn that she had to pay an additional $419 in order for her grant to be “released.” Maureen was now growing concerned and began to ask why she had to pay so many fees. The caller calmly explained that Maureen’s grant was “guaranteed” as soon as she made the final payment, which Maureen reluctantly made. Unfortunately for Maureen, the guarantee was bogus and the only thing she got was a $1,500 hole in her bank account.

With high unemployment and a still sluggish economy, many Americans are on the lookout for new opportunities to get some cash — a fact that scammers are well aware of and eager to exploit. Government grant scams have been a frequently reported scam at NCL’s Fraud Center in recent months. A typical scam can go one of two ways: the scammer requests a “processing fee” or “security deposit” (as in Maureen’s case), or the victim is instructed to provide personal information, such as bank account and Social Security numbers, under the guise that the caller will “deposit” the funds directly into the victim’s accounts. Once the caller has the victim’s banking information, the scammer drains the account.

The experts at NCL’s Fraud Center are tracking scams like Maureen’s and reminding consumers of the most obvious red flags for spotting fraudulent government grants, such as:

• The government doesn’t telephone people or send unsolicited letters or emails to offer grants. If someone contacts you unexpectedly and offers you a grant, it’s a scam. Don’t provide your financial account numbers, Social Security numbers, or other personal information in response to such an offer. Crooks “phish” for that information to steal victims’ money and impersonate them for other illegal purposes.

• Government grants never require fees of any kind. You might have to provide financial information to prove that you qualify for a government grant, but you won’t have to pay to get one.

• Government grants require an application process. They aren’t simply given over the phone and are never guaranteed. Applications for government grants are reviewed to determine if they meet certain criteria and are generally awarded based on merit. If you didn’t apply for a government grant and someone says you’re receiving one, it’s a scam.

• Government grants are made for specific purposes, not just because someone is a good taxpayer. Most government grants are awarded to states, cities, schools, and nonprofit organizations to help provide services or fund research projects. Grants to individuals are typically for things like college expenses or disaster relief.

• Don’t be fooled by official or impressive-sounding names. Swindlers claiming to provide or help get government grants often invent impressive-sounding names and titles for themselves and the organizations they claim to represent. They operate under many different names and phone numbers, take your money, then often leave town to start all over again.

When it comes time to buy a car, consumers are more empowered than ever thanks in large part to the Internet and its offerings of car reviews, online vehicle history reports, detailed car listings, and more. The Internet has also, unfortunately, given scammers a new venue to find auto-buying victims.When it comes time to buy a car, consumers are more empowered than ever thanks in large part to the Internet and its offerings of car reviews, online vehicle history reports, detailed car listings, and more. The Internet has also, unfortunately, given scammers a new venue to find auto-buying victims.

One car-buying venue that consumers are increasingly turning to is online classifieds sites such as Craigslist. There are many advantages to using such sites to purchase an automobile, most notably cutting out the dealership middlemen. Unfortunately, NCL’s Fraud Center also hears frequently from consumers who have fallen victim to fraud when purchasing a car via these services. Different scams tend to affect buyers and sellers. Here are some of the more common variants, though this list should not be considered exhaustive, as con artists are among some of the more inventive criminals out there.

The “Price Too Good to Be True” scam

In this scam, a prospective buyer sees an attractive-looking car (often a classic or exotic car) for a price well below market value. When the buyer contacts the seller, he or she is notified that the seller and the car is outside of the country and will arrange for shipment of the car upon receipt of payment, most often via wire transfer (such as Western Union) or bank-to-bank transfer (for very large payments). When the money is transferred and collected, the “seller” breaks contact and the buyer is out the money.

The overpayment scam

A legitimate seller posts a car for sale. He or she is then contacted by a prospective “buyer” (really a scammer) who offers to send a cashier’s check immediately plus additional funds to cover shipment of the car overseas. When the check arrives, the seller is instructed to deposit it and wire the overage to the “shipper.” When this is done and the wire transfer picked up, the “buyer” breaks contact and the seller is left on the hook to their bank for the fraudulent check and the missing funds.

Escrow scams

Many consumers are rightfully wary of sending large amounts of money to someone they’ve never met. Scammer frequently recommend the use of fake “escrow” services that will hold funds involved in the transaction until both parties are satisfied that the transaction has been completed. In a typical scam, a legitimate buyer will be approached by a scammer selling a car (again, often an exotic or classic car priced, but usually priced well below market value). The scam seller will offer to ship the car and that there is no risk of fraud due to the “escrow” service (purportedly eBay, PayPal, or another service). Once the money is transferred, contact is broken (or sometimes additional funds are requested to cover “unforeseen” events). In any case, the legitimate buyer never receives a car and loses their money.

How to avoid car-buying scams

• NEVER wire money or use a bank-to-bank transfer in a transaction.
• ALWAYS try to deal locally when buying or selling an automobile or other high-value merchandise
• DO NOT sell or buy a car from someone who is unable or unwilling to meet you face to face.
• NEVER buy a car that you have not seen in real life and had inspected by a professional. A vehicle history report may also be a good idea, though scammers have been known to use fake vehicle identification numbers to defeat this countermeasure.
• WAIT until a check (personal, cashier’s, certified, or otherwise) has cleared the bank to transfer title or the car itself. Funds being made available by a bank DOES NOT mean the check is not counterfeit. Clearing a check can take days or weeks depending on the financial institutions involved. Check with your bank about their particular processes for clearing checks.
• NEVER trust a seller or buyer who says that the transaction is GUARANTEED by eBay, Craigslist, PayPal, or other online marketplace. These sites explicitly DO NOT guarantee that people using their services are legitimate.
• BEWARE sellers or buyers who want to conclude a transaction as quickly as possible. Scammers want to get your money before you have time to think or have a professional examine the deal.
• CALL the buyer or seller to establish phone contact. If the buyer or seller seems to neglect details agreed to via e-mail or is unable to answer questions about their location or the location of the automobile in question, it is likely to be a scam.
• ALWAYS trust your gut. If a deal feels “fishy” or sounds too good to be true, it probably is. Plenty of people use online classified ads to buy and sell cars every day. The vast majority of these transactions are legitimate and go smoothly. Losing out on a “great” deal in order to work with someone you trust could save you big in avoiding a possible scam.

If you feel you or someone you know has been a victim of a car-buying scam, report the scam to NCL’s  Fraud Center at www.fraud.org.

The advertisement says you can make lots of money working from the comfort of your home. But if this were true, wouldn’t we all be doing it? There are legitimate home-based businesses out there, but also numerous scams – enough to make you think twice about “working from home” offers.Know who you’re dealing with. The company may not be offering to employ you directly, only to sell you training and materials and to find customers for your work.

• Don’t believe that you can make big profits easily. Operating a home-based business is just like any other business – it requires hard work, skill, good products or services, and time to make a profit.
• Get all the details before you pay. A legitimate company will be happy to give you information about exactly what you will be doing and for whom.
• Find out if there is really a market for your work. Claims that there are customers for work such as medical billing and craft making may not be true. If the company says it has customers waiting, ask who they are and contact them to confirm. You can also ask likely customers in your area (such as doctors for medical billing services) if they actually employ people to do that work from home.
• Get references for other people who are doing the work. Ask them if the company kept its promises.
• Be aware of legal requirements. To do some types of work, such as medical billing, you may need a license or certificate. Check with your state attorney general’s office. Ask your local zoning board if there are any restrictions on operating a business from your home. Some types of work cannot be done at home under federal law. Look for the nearest U.S. Department of Labor in the government listings of your phone book.
• Know the refund policy. If you have to buy equipment or supplies, ask whether and under what circumstances you can return them for a refund.
• Beware of the old “envelope stuffing” scheme. In this classic scam, instead of getting materials to send out on behalf of a company, you get instructions to place an ad like the one you saw, asking people to send you money for information about working at home. This is an illegal pyramid scheme because there is no real product or service being offered. You won’t get rich, and you could be prosecuted for fraud.
• Be wary of offers to send you an “advance” on your “pay.” Some con artists use this ploy to build trust and get money from your bank. They send you a check for part of your first month’s “pay.” You deposit it, and the bank tells you the check has cleared because the normal time has passed to be notified that checks have bounced. Then the crook contacts you to say that you were mistakenly paid the wrong amount or that you need to return a portion of the payment for some other reason. After you send the money back, the check that you deposited finally bounces because it turned out to be an elaborate fake. Now the crooks have your payment, and you’re left owing your bank the amount that you withdrew.
• Do your own research about work-at-home opportunities. The “Work-At-Home Sourcebook” and other resources that may be available in your local library provide good advice and lists of legitimate companies that hire people to work for them at home. You may discover that these companies hire only local people and that there is nothing available in your area.

For more than a decade, online auctions have been one of the top-reported frauds to NCL’s Fraud Center. Both buyers and sellers can benefit from online auctions; many people make their living selling items online, and millions of consumers have had positive experiences making purchases. But there are many risks as well, and both buyers and sellers can take steps to avoid becoming a Fraud Center statistic.

• Understand how the auction works. Many online auctions simply list items that people want to sell. They don’t verify that the merchandise actually exists or that it is described accurately, and they can’t guaranty that the sellers will keep their promises.
• Check out the seller before you bid. Some auction sites have feedback forums with comments about the sellers based on other people’s experiences. Be aware that positive reports may have been “planted” by the seller and negative comments could be from a competitor. Other sources of information are state or local consumer protection agencies and the Better Business Bureau. Negative information is a good warning sign, but a clean complaint record doesn’t guarantee that your transaction will go smoothly.
• Be careful if the seller is a private individual. Many consumer protection laws don’t apply to private sales, though government agencies may take action if there are many complaints the same individual or criminal fraud is involved.
• Be especially cautious when dealing with sellers in other countries. If you have a problem, the physical distance, difference in legal systems, and other factors could make resolving it very difficult.
• Beware of “shills.” The seller may try to raise the price artificially by making bids under fictitious names or recruiting other people to make bids. Using bogus bidders is illegal and a violation of online auction policies.
• Get the name and contact information of the seller. The name, physical street address, email address, and phone number are helpful to have for checking the seller out and following up later if there is a problem. Don’t do business with anyone who refuses to provide that information.
• Be wary of claims about collectibles and other expensive items. Since you can’t examine the merchandise or have it appraised until after the sale, don’t assume that claims about its condition or value are true, or that photographs are accurate. Print out and save the description and any photos to document the claims that were made.
• Ask about delivery, returns, warranties and service before you pay. Get a definite delivery time and insist that the shipment is insured. Ask about the return policy. If you’re buying electronic goods or appliances, find out if there is a warranty and how to get service.
• Look for information on the auction site about insurance. Some auction sites provide insurance that covers buyers up to a certain amount if something goes wrong. Others may have links to third-party programs that offer insurance for a fee. Read the terms of the insurance carefully. There is often a deductible, and there be other limitations or requirements that apply. For example, you may not be covered if the seller had a negative feedback rating on the auction site at the time of the transaction.
• Pay by credit card. Under federal law, you can dispute the charges if you paid the seller with a credit card and the goods were never delivered or if they were misrepresented. If you are paying through an intermediary service, ask what happens in the case of disputes.
• Look for bonded sellers. Some sellers are bonded through programs that have investigated their business backgrounds and credit histories and guaranty your money back if they don’t fulfill their promises. Click on the program symbol to learn how the bonding program works and verify that the seller is a member in good standing.
• Consider using an escrow service for expensive purchases that aren’t covered by insurance or bonding. For a small fee, an escrow service takes your payment and forwards it to the seller once you confirm satisfactory delivery.  If there is a dispute, the escrow service may act as a referee.  Ask if the service is licensed and bonded, and how you can confirm that with the appropriate agency.
• Try mediation to resolve disputes. Not all problems are due to fraud. Sometimes people simply fail to hold up their side of the bargain in a timely manner or there may be a misunderstanding about something. Some auction sites provide links to third-party mediation services that help people resolve disputes. There may be a small fee that is usually paid by the party who requests the mediation.
• Inform auction sites about suspected fraud. They may have policies to remove sellers from their sites if they use “shills” or don’t live up to their obligations.