SPAM SCAMS

SIX COMMON E-MAIL SCAMS
1. Pyramid schemes: These often masquerade as opportunities to make a lot of money with little work and cash outlay. One scheme offers you a computer or some other electronic item if you pay to join a club and then recruit other participants. Another variation is the chain letter. Chain letters are almost always illegal. Most of those who invest in them lose their money.
2. Work-at-home schemes: In one form of this scam, you are offered the opportunity to assemble such things as jewelry, toys, or craft kits. You invest money in the materials and time in assembling the product, only to find that your work cannot be sold to the promoters because it does not meet their standards.
3. Health and diet scams: Flooding the Internet are offers of such things as pills that help you lose weight without exercising or dieting, cures for impotence, and creams to counter hair loss. These offers are sometimes accompanied by testimonials from satisfied customers. Common phrases that appear in these ads include expressions such as “scientific breakthrough,” “miraculous cure,” “secret formula,” and “ancient ingredient.” The truth is, most of these products don’t work.
4. Investment opportunities: These schemes typically offer high rates of return with little or no risk. A common version involves investment in an offshore bank. Investors are lured by assurances that those handling their money have high-level financial connections and possess inside information.
5. Credit repair: These scams offer to remove negative information from your credit file so you can qualify for a credit card, an auto loan, or a job. Despite the assurances, promoters can’t do what they promise.
6. Vacation prize promotions: You receive an E-mail congratulating you on winning a vacation opportunity for a rock-bottom price. Some say that you have been specially selected. Keep in mind that the same notice may have gone out to millions of others and that the accommodation you receive will offer far less than what was advertised.
Source: U.S. Federal Trade Commission