SCAMS
Introduction
Scams mean fraud, Scam is when tricks people into
doing something, making the people think they are getting something in return,
when they’re getting nothing and will probably be a lot worse off afterwards.
Scams itself is generally a illegal actions committed
by The people from within or outside the organization, with a view for personal
gain or group that directly harm others. There are many kinds of scam on
internet.
Nature
and Psychology of Scams
I found discovery Donald R. Caressey that explains about why
people commit scams, which was developed in 1950. According Caressey, there are
three elements are present in every scams: motivation, opportunity, and
rationalization.
Ø Motivation
In
these elements Caressey said that, a person feels depressed or feel the need to
commit fraud. May be forced by their financial or addicted to gambling or drugs
Ø Opportunity
When
there is an opportunity, fraudsters will look for opportunities to commit
scams.
Ø Rationalization
Fraudsters
will always rationalize themselves, that scams is a good. They rationalize
themselves, For example ‘’I just borrow the money, and I will return some
day’’.
Scammers use the following tricks
v Reciprocation
Scammers
give you something, such us a ‘free’ gift or assistance, to get something in
return, such us your agreement later on.
v Commitment and consistency
Someone
will get you to commit to something early in the piece, and later recall that
initial agreement to get you agree to something further.
v Liking
Good
looks, similar interests or background, humour and other attractive
characteristics are standard tools for the con-artist as well as of course for
honest people who want to generate good rapport with you.
v Authority
Authority,
in or out of uniform, will cause an automatic response in almost everyone.
The Major Categories (Of Types)
Of Scams Being Offered
These are the most common scams types
with many different forms:
v Advanced
fee frauds
Advanced
fee frauds are very common and vary in type, style, and delivery but all are
after the same thing. The people who operate these scams are professional at it
and will provide you with what appear to be plausible and realistic scenario.
v Bank
scams
These
scams aim to steal your account information and your money.
v Buying,
selling and online sales scams
Scammers
are advertising non-existent goods, hoping to use their so-called bargain to
fleece you of your hard-earned money.
v Charity
Scams
The
way the scam works is a scammer posing as a genuine charity approaches you in
order to collect money. Scammers may also set up false websites which look
similar to those operated by real charities. Some scammers may call you or
email you with spam emails requesting donations.
v Directory
Listings and registry schemes
These
scammers are referred to as “blowers” because they often telephone their
victims, posing as publishers of magazines, directories or Internet sites.
v Door
to door
The
way the scam works is a scammer promoting a real or false goods and services.
v Email
Scams
The
way the scam works is a spammers send fraudulent emails to all address on them
victims and can cover millions of internet subscribers very quickly. Spam can
be used to transmit malicious software that represents an added threat and
therefore demands more vigilance.
v Pyramid
Schemes and Chain Letters
Pyramid
Schemes and chain letters operate by recruiting people to make money rather
than by selling a legitimate product or service.
This
is part of the types of scam, there are many more types of other types, eq,:
Travel scam, Virus spreading or hacking, romance scam, social networking scams,
prizes and lotteries, Tax scam, energy saver scams, etc.
Ways to Identify Scams
Scammers are scheming, crafty, aggressive and malicious operators who are experts in conning people out of their money. Their use the same hooks to convince you their offer is real.
To
avoid the scams, I give you some tips on how to identify a scam or fraud.
v The
name of the company is listed on this website somewhere as a scam.
v The
email matches one of the definition or formats on this website.
v The
organization has no website and cannot be located in Google.
v The
email or requestor asks for bank account information, credit card numbers, passport numbers, or
other personal information.
v The
email claims you won a lottery
v The
literature contains a lot of
hype and exaggerations, but few specific details about costs, your obligations,
how it works, etc.
v The
prize promoters ask for a fee to paid in advance. A legitimate lottery simply
deducts that from the
winnings!.
Modern
Scams
(I).Phishing scams
Phishing scams are typically fraudulent email messages appearing to.
Phishing usually comes from the office, your bank, or your internet service
provider. They usually send you a message that directs you to a fake website or
otherwise get you to divulge personal information. They do it to steal your
identity Such as passwords or credit card on you. They create a message false
for caused your panic. These scams attempt to trick recipients for responding
or they usually ask you to'' click here'' to declare verify your information.
These you will lose something like email, bank accounts, etc.
These ways to
avoid phishing:
v Reputable
organizations will never use email to request that you reply with your password
or confidential personal information.
v Never
reply to or click the links in a message.
v When
you recognize a phishing message, delete the email message from your inbox.
v Always
read your email as plain text.
(II). Pyramid Scams
Pyramid schemes are
schemes require a lot of members, promoters at the top of the pyramid get the
money from Their members, They convince other people to join up and to part
with Their Money, by persuading them to join if they would get a lot of money .
After they get a lot of members, members have to pay. Pyramid schemes are
illegal and very risky. Normally pyramid schemes recruit members at seminars,
home meetings, over the phone or even by mail.
These ways to avoid pyramid scams:
v Beware of any scheme that
requires you to invest money in a franchise that gives you commissions for
recruiting other distributors.
v Avoid any plan that requires you
to spend money on high-priced a products
v Find out if the plan involves a
training program.
v Take your time when making a
decision about getting involved in a plan.
WARNING!!!!!
v Not all multilevel marketing
plans are pyramid schemes.
v Pyramid schemes are illegal and
violate federal and state laws.
v Avoid a company offering only one
product.
(III).Charity
scams
Charity scams is act of using deception to get money from
people who believe they are making donations to charities. The charity scams
usually occur after natural disaster such as tsunami, earthquake, flood, etc.
Scammers may set up false websites which look similar to those operated by real
charities.
Some
scammers may send email to you with spam emails requesting donations.
These ways to
avoid the charity scams:
v Carefully check the name of the
company! Charity scams use similar to original names to cause confusion and
obtain your donations.
v If you get a request via phone,
call the charity back and ask if they can send you material about them to your
address.
v Don't pay cash, Instead donate
using a check or credit card, which could give you more protection in case
something goes wrong.
The types and characteristics of
both people or businesses running the scams and the victims involved.
Types business scams
Characteristics of scams businesses
§ Few job requirements, no particular skills,
experience, or education are needed.
§ Job described is so simple that anyone could do
it, or there is no description of the job, only a sales pitch.
§ Little of your time and not much effort are
needed.
§ You are paid a substantial amount for performing
few "duties.
§ The only contact information provided for your
application is not associated with the alleged employer. Contact is only via
e-mail to an address at yahoo.com, hotmail.com, msn.com, gmail.com, etc.
§ No Website, domain name, or other public record of
the employer is available.
§ The jobs don't make sense.
§ Anyone/everyone qualifies for these jobs.
The ways that scams are fought by
agencies and their success rates.
I will explain one agency in the world who are discussing
their success at the Willard InterContinental Hotel in Washington, DC.
Government Officials got the opportunity to share some of Their Success stories
in Preventing waste, fraud and abuse and discuss how technology helped wage a
war on improper payments.
The "unmasking Fraud, Waste, and Abuse: Tools, Techniques
and Technology" event brought together officials from the Social Security
Administration, Office of the Department of Health and Human Services Inspector
General and the Department of Agriculture as well as two industry experts to
discuss what institutions are doing to meet the goals of President Obama to
reduce improper payments by $ 50 billion at the end of 2012. Here are some
highlights that touches on what agencies are doing to fight fraud.
The first step they take is the analysis of data. HHS OIG
Office of Audit Services uses data analysis and data mining to sort through
large volumes of data to identify fraud and waste. They also used geographic
maps to check for outliers and unusual patterns Among the claims of
beneficiaries. For example,'' the high number of claims in the Florida Medicaid
and Medicare will not usually raise suspicions because many retired senior
citizens there. But the high number of claims in areas Such as Utah Could cause
concern and require further investigation'', said Gloria Jarmon, deputy
inspector general for the Office of Audit Services in the HHS OIG.
The second step is continuous monitoring. ''Continuous
Transaction Monitoring is just one type of smart technology that has proven
successful in preventing improper payments and other incidents of fraud and
waste'', said Aubrey Vaughan, managing director of the public sector at
Oversight Systems. Such as technology makes it possible to CTM "monitor
100 percent of your universe, 100 percent of your transactions, and allows your
employees or your Accountants to get back to doing their job," he said.
Vaughan said of the four months can save billions of tax dollars. For example,
the Department of Defense Business Activity Monitoring project saved the
government more than $ 1 billion in the first 15 months of use.
The third step is to match the data.'' the vast amount of data
within the federal government, Data matching is extremely important," said
Jessica Shahin. They used the Electronic Disqualified Recipient System, into
the which states are required to enter the data about disqualified SNAP
recipients. States also must check the database to Ensure recipients Are not in
the system to receive benefits erroneously.
How to treat scams and report them?
If you are a victim of fraud you can treat and report it to police or reported through the Web site was provided by the Government of the country concerned, as for the sites provided by the government of Australia such as:
Before
you report, you must sure and think someone have been scammed you or believe
that someone is Trying to scam you, take your time to report it.
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