A little caution can stop most scams

A long-lost relative from a foreign country has left you a million-dollar inheritance.

A broker calls offering you a mortgage with guaranteed low monthly payments.

An investment opportunity arrives in the mail, promising large returns and zero risk.

Sound tempting? Authorities say don’t fall for it; it’s most likely a scam.

Thousands of people nationwide fall victim to fraud, scams and identity theft every year. In 2006, 674,354 people reported complaints to the Federal Trade Commission, with 12,052 originating from Colorado. In Colorado Springs, 591 reports were made, but authorities believe the number should be higher because many cases go unreported.

Sgt. Randall Johnson, who supervises the Colorado Springs Police Department’s financial crimes unit, said he sees two or three reports a day.

“A lot of these scams play to greed and naivete,” he said. “I read these reports, and I think, ‘How can people fall for these?’ But I see these all the time.”

The methods to bait victims are plentiful, from foreign lotteries to work-at-home schemes to answering pet classified advertisements. There are so many scams that it’s often hard for authorities to keep up.

“Scams have always been around, but the format and nature of them change,” said Robyn Cafasso, senior deputy with the district attorney’s office in El Paso County. “They are changing with the times.”

Identity theft was the most reported complaint to the FTC in 2006. Colorado was no exception, ranking sixth nationally in identity theft victims per 100,000 people with 92.5. Until last year, when it was made a Class 4 felony, identity theft wasn’t even a crime in Colorado.

“Previously, we’ve had to rely on forgery or fraud for criminal prosecution,” said inspector John San Agustin of the El Paso County Sheriff’s Office. “Now, we can hang our hats on identity theft. A felony 4 is a pretty significant crime.”

Agustin said a person’s identity can be stolen in a variety of ways, including phishing, where victims are duped into submitting personal information on fake Web sites.

Identity theft isn’t the only scam on the Internet, and Agustin’s advice is to play it safe by avoiding them.

“The Nigerian scam. The ‘you’ve won the lotto’ scam. Every imaginable type of deal you can find off the Internet,” he said. “The moral of the story is that if it’s too good to be true, it’s still too good to be true.”

Finding scam artists is hard for authorities because they use phony information that is untraceable. It’s also often hard to prosecute the cases, especially if the suspects are overseas.

“There are so many requests and reports we receive on scams. But if it’s Internet, we refer it to a federal agency,” Cafasso said. “The district attorney wouldn’t have jurisdiction because it would be so hard for us to catch somebody in another country.”

Authorities agree prevention is the most effective way to combat any scheme brewed up by scam artists.

The district attorney’s office, on its Web site, lists different scams to alert the public. Cafasso said the office has a program geared toward seniors, and there have been talks of starting one for teenagers.

“They are also subject to scams because of their lack of financial knowledge and on credit cards,” she said. “We talk to schools quite a bit about the different scams going on.”

Katie Carrol, the director of communications and marketing for the Better Business Bureau of Southern Colorado, said the bureau has spent two years teaching people about scams and how to detect them.

“Just don’t give out the information. It’s kind of harsh, but that’s the way it is these days,” she said.

“Besides,” said Johnson, “most of us would already know if we have a wealthy uncle who’s going to die in Nigeria.”

CONTACT THE WRITER: 476-4813 or kim.nguyen@gazette.com

SCAM SAMPLING

Fake cashier’s checks: People selling items on the Internet or through newspaper classifieds are targeted in this scam. A bogus cashier’s check is sent to the seller for the item, but the amount on the check is more than the sale price. The scammer asks the seller to deposit the fake check in his or her personal account and refund the excess. A few days later, the check bounces.

Identity theft: Occurs when someone takes another person’s personal information to commit theft or fraud. The victim is usually led to believe they are giving their personal information to a legitimate business. Thieves can also take personal information by breaking into mail boxes or vehicles.

Investment fraud: Scam artists using false claims persuade people to buy into investments. Victims are promised high returns, tax breaks and no financial risks.

Lottery scams: Victims are randomly selected and notified that they have won a foreign lottery, but they need to pay taxes before they can receive their prize. Victims are asked to wire funds to a foreign address.

Nigerian scams: Scam artists, often based in Nigeria, claim to be a government official or attorney and ask victims for assistance in moving large sums of money into overseas bank accounts. Victims are asked to pay often escalating bribes or legal fees with the promise that they will be reimbursed for their trouble as soon as all of the funds are out of the country. Victims also are asked to disclose banking information.

BETTER BUSINESS BUREAU OF SOUTHERN COLORADO; INTERNET CRIMES COMPLAINT CENTER