Have you ever received an e-mail touting a fast and easy way to make money? Then you've been the recipient of an e-mail scam, the 21st-century version of chain letters. This scam works like a pyramid scheme, where you are asked to send $1 - $5 to a number of people — such as the first 10 people at the top of the list. Then, in order to make your name rise on the list, you need to send the same letter to more and more people, asking them to send money to the highest names on the list. Never send any money in response to an e-mail of this nature.
They go by a variety of names — current popular scams are "dinner party" and "woman to woman." But they all have the same format. To join, you have to "invest" money — sometimes as much as $5,000 — and give that money to those at the top of the pyramid. In order to keep the scheme going, more and more people need to join. Eventually, the scheme collapses, and those who are left lose their money.
"Get Rich Quick" advertisements usually entice you to call or write for special information. The scam has two versions: |
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Invest in a lot of products and sell them with so-called qualified leads and a money-back guarantee. |
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Get paid to stuff envelopes. |
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Once you make an investment in the products or envelopes, you find out that you either have to drum up your own customers or that the leads they give you are worthless. Now you're stuck with products you can't get rid of. |
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Before you sink money into anything, follow these steps:
- Check out the company with the state securities agency or attorney general's office, both in the state where you live and the state where the company is based. They can tell you if the company is registered and if any complaints exist.
- Request names of current employees or owners and ask them what they think of the company.
- Get all promises in writing.
- If you're required to purchase products, ask for the company's refund policy in writing.
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