Internet Assignment

Principles of Accounting 2101

8 April 2004

Businesses and people alike lose millions of dollars each year as a result of telemarketing scams. Due to the ease creating a telemarketing scam many people are skeptical to even hear what an actual telemarketer is trying to sell. People can help protect themselves by learning the fundamentals of detecting a potential fraud. The most important thing to do if victimized by fraud is to contact law enforcement agencies promptly. This way they can try to shut down the organization or underground operation as quickly as possible. Some widely used telemarketing scams are for fraudulent credit cards, supposedly free vacations, and pyramid selling schemes. Another type of fraud is Internet fraud. With the rapid growth of the Internet there is likewise a growth in Internet scamming. Many of the telemarketing scams are also scams to beware of on the Internet. Scams like the pyramid scheme, fake credit cards, and free vacations are also on the Internet.

A general rule of thumb, when dealing with a telemarketer, is to make sure the company is legitimate. If someone is unsure he or she should contact the Better Business Bureau to find out. If the agency will not disclose key information about their business or the details they do give don’t sound right then once again contact the Better Business Bureau. Also, telemarketing scams often promise “easy money” that can be received with doing next-to-nothing. If people could truly receive money for doing nothing then everyone would be involved in this lucrative operation. Something to keep in mind about credit card issuing companies is that most legal agencies will not deal with people that have bad credit. So if a company guarantees a credit card no matter the credit rating then more often than not the operation is a scam.

Many of the scams perpetrated by telemarketers are the same ones down on the Internet. Some tips to avoid having money stolen because of a scam are to make sure the company is a legitimate company. Like with telemarketing scams, contact the Better Business Bureau about anything suspicious. Also, try to look for information on how complaints are filed and handled. While it may be tedious to find information about companies located in foreign countries, most companies actively participate in programs that have standards for dealing with complaints. Another thing to look out for is that just because they have no complaints doesn’t mean they satisfy all their customers. Most scam operations open and close quickly to avoid detection. When reading much e-mail don’t take it for granted that one saying it is from a legitimate company actually is. Anyone can say they are from a company; make sure they are really from the company they claim before sending any personal information.

Basically, this web site offers valuable information on different types of scams and ways to avoid being scammed. With four main types of scams, this web site goes in depth on different scams out there to watch out for. Within each category of fraud there are many examples and tips on what they claim to offer and what they really do offer. Lastly they have different ways to report potential and actual fraud. The site lists a number to call to report the incident and also has an online form to fill out to report the fraud. After looking over this web site no one should fall victim to any type of fraud.