Willie Crawford's Marketing Insights: Holiday Scams

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December 19, 2005

Holiday Scams

Here's a nice article by Bob Osgoodby....

Holiday Scams

I got a phone call the other day from a Sergeant Harris who said he was calling from the Police Department. He said he was soliciting funds for the PBA (Police Benevolent Association) to buy gifts for needy children. Now most of us know that the PBA is a reputable organization, and provides great support for our Law Enforcement Employees.

Something just didn't ring true however, so I told him I couldn't talk as I was busy, but to call back later. I then called our local Police Department and asked if this was on the up and up. I found out that there is no Sergeant Harris in our Police Department, and there was no fund raising activity taking place at that time. He never called back.

This is just one of the many scams being perpetrated and I thought it might be appropriate to review some of the others we face every day on the Internet. Con artists have gone high-tech and are using the Internet to defraud consumers in a variety of clever ways.

Internet Auctions allow you to shop in a "virtual marketplace" that offers a huge selection of products at great deals. It has been reported by some, that after sending their money, they've received an item that is less valuable than promised or, worse yet, nothing at all. When bidding through an Internet auction, particularly for a valuable item, check out the seller and insist on paying with a credit card or using an escrow service - never send cash or a personal check.

Internet Access Services and Long Distance Service Providers may send you a check, and this is prevalent during Holiday Season when folks could use a few extra dollars. But be careful, you might be "trapped" into a long-term contract for Internet access or phone service, with big penalties for cancellation or early termination. If a check arrives at your home or business, read both sides carefully and look inside the envelope to find the conditions you're agreeing to if you cash the check.

Web Crammers promise a free custom-designed website for a 30-day trial period, with no obligation to continue, and Internet Service Providers might promise free Internet Access for a trial period. Beware that you may be charged for the service after the trial period, even if you asked to be removed from their program. You should review your telephone and credit card bills to be sure you are not being charged.

M-L-M Scams and Pyramids have been around a long time. They promise that you can make money through the products and services you sell, as well as those sold by the people you recruit into the program. Many have found that after they've bought into a plan or programs, that in reality, their customers are other distributors, and not the general public. Some programs are actually illegal pyramid schemes. When products or services are sold only to distributors like yourself, there's no way to make money. You should avoid plans that require you to recruit distributors, buy expensive inventory or commit to a minimum sales volume.

Travel and Vacation plans offer a luxurious trip with lots of "extras" at a bargain-basement price. Some companies however, deliver lower-quality accommodations and services than they've advertised or no trip at all. Others have been hit with hidden charges or additional requirements after they've paid. You should always get references on any travel company you're planning to do business with. Then, get details of the trip in writing, including the cancellation policy, before signing on. Many of these cruise ships are of foreign registry, and you may not have legal recourse if they don't deliver.

Business Opportunities - Be your own boss and earn big bucks. Most of these make extravagant offers, and if it sounds too good to be true, it most likely is. The same applies to investing in a day trading system or service that promises huge earnings. Big profits always mean big risk. Programs that claim to be able to predict the market with 100 percent accuracy should simply be avoided.

Be wary of extravagant claims about performance or earnings potential. Get all promises in writing and review them carefully before making a payment or signing a contract.

Read the fine print and all relevant links. Fraudulent promoters sometimes bury the disclosures they're not anxious to share, by putting them in tiny type or in a place where you're unlikely see them. Look for a privacy policy. If you don't see one - or if you can't understand it - consider taking your business elsewhere. Be skeptical of any company that doesn't clearly state its name, street address and telephone number.

Can you avoid getting caught by a scam artist working the web? Not always. But prudence and due diligence usually pays.

-----

Did you know that subscribers to Bob Osgoodby's Free Ezine the "Tip of the Day" get a Free Ad for their Business at his Web Site? Great Business and Computer Tips - Monday. Wednesday. And Friday. Instructions on how to place an ad are in the Newsletter. Subscribe at: http://adv-marketing.com/business/subscribe2.htm

Posted by Willie Crawford at December 19, 2005 09:32 PM

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