Top Ten Scams of 2006

Chances are that if you owned a telephone, computer, or mailbox in 2006 you were a potential victim of a scam. It seems that with the advent of so many technological advances there were just as many illegitimate organizations, waiting to cash in on an unsuspecting public. Some scams were discovered early into their conception. But some slipped through the cracks, destroying credit profiles, emptying bank accounts, leaving hundreds of angry consumers in their wake. Below are a few of the most popular scams unveiled in 2006.

10- THE FAKE LOTTERY SCAM : This was the ploy in which an illegal international organization convinced hundreds of people that they had won a lottery. Letters mailed out to victims advised them that they had won $35,000 (or more) and would be mailed a check. The catch? The "release fee" that was required to obtain the monies. The bottom line is that in order to have won a lottery, one would have had to purchase a ticket.

9- THE OPRAH SCAM : Watch out Oprah fans! If you received an email stating that you'd won a ticket to a special taping of this wildly popular talk show, then you've probably been duped. The popularity of this show encouraged many people to provide personal information (purportedly for the mailing of tickets), and even money for travel arrangements. Scammers would then take this information and use it for "evil"...

8- THE CRAIGSLIST SCAM : The reputation of Craigslist for being the ultimate online classifieds board was something of a buffet for scammers. Persons looking to buy and sell goods were prime targets for these sneaky guys. The most popular ruse was that which involved the offering of an apartment for rent. The scammer would locate a potential landlord, and then would offer a check for rent and deposit. Said scammer would then request the "balance" be sent back to the proposed renter. The catch here is that the check sent is phony. Landlords cashing them would then be subject to illegal check fees, and would be required to give the money back to the bank. By the time the phoniness of the check is discovered, the scammer is long gone.

7- PHONY JOB SCAM : The rise in unemployment during the year 2006 drove crooks to achieve yet another way to con unsuspecting victims. Through CareerBuilder.com and other employment websites, scam artists posted false "Donations Processor" jobs. Applicants "hired" were then asked to accept [mostly foreign] donation checks by depositing them into a personal bank account. The "Processor" would then deduct his/ her wages from the donation check, and wire the balance to the scammers. Again, these checks were phony. But by the time the bank and the victims discovered this, it would have been too late.

6- WORK AT HOME SCAM : Yet again, scam artists used the desperation of job seekers to line their own pockets. In 2006, the internet was literally fraught with all sorts of "Work-at-Home" opportunities. These jobs usually offered positions stuffing envelopes, doing simple data entry, processing orders, or even doing mystery shopping. Supposedly, there was a good deal of money to be made. But the only ones making the money were the scam artists. They instructed job seekers to purchase an inexpensive "Get Started" kit, which would provide them all the tools they needed to get going. Some never received kits at all. And some who sent funds received only a list of names or connections to other websites.

5- FAKE STOCK TIPS : The economy in 2006 was such that many people who never thought of investing decided to do so. With that in mind, con artists decided to buy millions of shares of a particular stock, and then email unwitting victims advising them that the stock was about to jump significantly. After the victims purchase the stock, the scammers would immediately sell their shares, making the stock essentially valueless.

4- THE NEGATIVE OPTION SCAM : Here's a scam that slipped through the cracks on more than one occasion. With the proliferation of internet sales, and online subscriptions, scam artists found yet a new way to bilk consumers out of their hard earned cash. In essence, the victim goes online to order a trial subscription for some online service. The victim is under the assumption that after the "free" trial is over, that there is no obligation to purchase anything. However, most of these "free trials" require that one provide a credit card number and/or other financial information. Once the trial period is over, scam artists begin billing the credit card for services. Most victims were unaware of who was billing them, or how they even incurred charges. Con artists claim that their billing methods were legitimate, and that the customer would have to contact the merchant in order to cancel the billing process.

3- NIGERIAN 419 SCAM : The continent of Africa was a hotbed of civil unrest and strife in the year 2006. With so many celebrities taking to the "Motherland" in an effort to ease the woes, it's no wonder that con artists found a way to get gullible consumers to get in on the action. Letters from the son of a rich diamond miner began circulating, instructing victims that they needed to accept and "hold" millions of dollars, 35% of which would be given to them for their cooperation. The scope of the scam is all downhill from there.

2- RECOVERY ROOM SCAM : This is perhaps one of the dirtiest scams of 2006. No, this scam actually has nothing to do with hospitals or anything of the kind. In fact, the "Recovery Rooms" in this con are nothing more than groups of individuals who claim to help previous scam victims "recover" the money they've lost in preceding scams. These lists of victims are bought by scam artists. The crooks then contact these people, telling them that for a small advance fee, they will have their lost monies returned to them.

1- CAR DEALER SCAMS : There are perhaps too many car dealer scams to name. Surely, the public is familiar with the tried and true scams that have existed for years. But with major shifts in the economy, and rising gas prices, [some] car dealers took advantage. One incredibly popular scam was the "We'll Pay Off Whatever You Owe" scam. This deal looks great to a potential car buyer who is looking to get out of his contract, and into a fresh new ride. But the catch is that the penalties for doing so are often extremely high. When the dealer takes your trade-in, he/she offers you less than market value, leaving you upside down. Plus the remaining amount you owe is tacked onto the new financed vehicle you've just purchased. In this scam, the dealer has successfully scammed you into paying for two cars, while you're only riding in ONE.

Additionally, Hurricane Katrina provided an excellent opportunity for sleazy car salesmen to turn a profit. In the aftermath of the storm, many vehicles were sent from New Orleans to various locations throughout the country. Many of these cars were damaged by flood waters, and then "refurbished" for sale at dealerships. In many cases, the damage was concealed by great paint jobs, mediocre repair work, and a slick-talking salesperson. The victim would then end up with an "As-Is" hunk of junk, and perhaps another ding on his/her credit report.