While the majority of those in business deal honestly and fairly with the public, there is a small minority who, through the promotion of unfair schemes, prey upon the public under the cloak of legitimate business. There are somewhere between 800 and 1,000 of the more prevalent frauds and schemes which are being practiced at any one time with hundreds of variations on the basic con games. In every scheme there is both a perpetrator and a victim. Every consumer is a potential victim. This page contains brief descriptions of some prevalent fraudulent schemes, con games and rip-offs which are currently practiced throughout the U.S. in the belief that the consumers best protection against being swindled is consumer awareness of how such swindles operate. But it is not sufficient to know what the schemes are and how they are worked. It is essential to understand human weakness which makes us susceptible to these fraudulent schemes. It is important to remember that the con artists success depends upon universal human desires-such as the desire to be healthy, wealthy, to get something for nothing or to get a lot for a little. In order to make a sale, con artists have to convince their prospects of two things: first, that the victim wants something, and second, that what the con artist has to offer will satisfy that want. For the con artist, the task is often simplified. Almost everyone wants money. Most consumers want health, happiness, to improve themselves, their lifestyle or that of their family. Con artists need only convince their potential victims that their proposition will satisfy that particular desire. They take advantage of the consumer's lack of knowledge. They try to prevent their potential victims from making an investigation of the deal. When this is impossible, they try to discredit what they know in advance will be the outcome of the consumer's investigation. Promises are the stock-in-trade' of the trickster. They are cheap, but effective. They are beguiling, but they fail to materialize. A consumer's best interests lie in making sure that they deal only with legitimate businesses, reliable persons and responsible concerns.

BAIT AND SWITCH FRAUDS usually begin with a newspaper ad which offers a product at an exceptionally low price. You rush out to buy it, only to be told by the salesperson that the advertised product is sold out. Or you might be told, "You really don't want the cheap merchandise." The salesperson will then show you a similar product that costs more. If you buy it, you may have fallen for one of the oldest con games around. You were baited by the ad and switched by the salesperson to a higher priced item. Several business practices are usually indications of bait advertising. The refusal to sell or demonstrate advertised products; criticism by the salesperson of the advertised products; failure to have an adequate supply of the product, unless the ad discloses that supplies are limited; and refusal to take orders for the advertised merchandise. Bait and switch is illegal. It is an unfair and deceptive trade practice. However, there must be sufficient evidence against a business before legal action can be taken. If a salesperson is trying to bait and switch on you, complain to the manager and take your business elsewhere.

EARN-AT-HOME SCHEMES promise high profits for making products such as costume jewelry, artificial flowers, pillows, or toys. The company promises to buy the finished products if the work is up to its standards. Usually the company rejects the finished product as not up to its standards. Or the company is simply not to be found when the time comes for the purchase of the finished products. Anyone tempted to respond to earn-at-home advertisements should keep in mind that the promoters of these schemes will usually require money for instructions or merchandise before explaining how the plan operates, promise high profits and big part-time earnings, assure guaranteed markets and a high demand for your handiwork. Remember, there is no easy way to earn money at home. Most of these schemes are frauds.

LAND INVESTMENT FRAUDS have been prevalent during the last few years as the land development industry has flourished. In many cases the development company neither owns the land nor even has an option on it. Funds are seldom placed in escrow' or the escrow' account may be little more than a checking account and after sales commissions and company overrides are deducted very few of your dollars paid in may ever get to the escrow' account anyway. Amenities such as the clubhouse, golf course, tennis courts, swimming pool or lake may exist only as a rendering on the sales brochure and in the minds of the fraudulent developer.

MEDICAL MIRACLE CURE FRAUDS are prevalent among elderly people, especially those who suffer from arthritis. However, treatment and medications which are sound are known to doctors. There are no miracle patent medicines that can do anything for people that a reputable doctor's care can not do. Trust your family doctor and never use any so-called "miracle cures."

POCKETBOOK DROP FRAUDS begin when a friendly attractive young woman (or man) strikes up a conversation with you on the street. During the chat she says she is a widow who has just collected thousands of dollars in insurance money which she shows you. At that point another woman (or man) appears looking perplexed. She has found a purse (or wallet) containing a great deal of cash and a suspicious letter and isn't sure what to do with it. She is a secretary on her lunch hour but her boss is a lawyer so she suggests the others wait while she goes and asks for his advice. When she returns she says her lawyer-boss thinks the money may be connected with some illegal business and that the three of them should keep the money and share it. But her boss wants to be sure that the three of them have enough money to live on for the 60 to 90 days before it is legally safe to spend the found money. He knows his secretary has her salary, the widow has her insurance money so those two suggest the victim prove her financial responsibility by withdrawing her savings from the bank. It sounds reasonable, the cash is withdrawn and added to the envelope for the boss to hold. The secretary returns and says her lawyer-boss is counting the money and wants to see you at a certain address. But when you get there you find the lawyer doesn't exist and your money is gone.

TRADE AND CORRESPONDENCE SCHOOL FRAUDS use a consumer's belief in education as a key to better and higher paying jobs and general self improvement. Tuition is usually high, schools are seldom accredited, and the training jobs may be no easier to get after training because the training does not meet company standards or the field may be overcrowded with applicants. Refunds from such schools are virtually unknown.

VANITY PRESSES are publishing houses which publish books for a price. Some such publishers extract large amounts of money, especially from elderly consumers who dream of publishing a book they, their spouse or some beloved and deceased relative has written, convinced it will become a best seller. Most vanity press books do not recover a fraction of their publishing cost. Consumers should also beware of publishing books yourself. Even working with legitimate printers, a would be writer could lose thousands in printing and efforts to promote and sell privately published books.

DANCE INSTRUCTION FRAUDS do not usually involve the dance lessons themselves which are often taught by well qualified instructors. However, some studio personnel use unethical high pressure salesmanship and questionable selling techniques to entice the unwary. These include bogus contests, fanciful testimonials and sales techniques in which teams of salespersons work in relays to batter down sales resistance.

DEATH VULTURE FRAUDS is possibly one of the lowest forms of all con games. They visit close members of a bereaved family and attempt to collect sums of money for items which they maintain were purchased by the deceased before his death. Sometimes they render bills when nothing is owed, or claim partial payment has been made by the deceased and attempt to collect the alleged balance.

ENVELOPE STUFFING FRAUDS usually begin with an ad in the Business Opportunities section of a newspaper or magazine. The headline usually jumps out at you. "We'll pay you 25 cents for each envelope you stuff and return to us" or for the reader to "Earn $250 for stuffing 1,000 envelopes." Such advertisements are deceptive and misleading and should be ignored by consumers. When you respond to their earn-money-stuffing-envelope-pitch you envision that the company making the offer will send you brochures which you will fold, stuff into envelopes, seal and return to the company for which you will receive payment of 25 cents each. But that's not the way the scheme works. In order to receive any information you will have to send them some sort of initial non-returnable payment, usually between $10 and $25. By return mail you receive some information and an agreement form which you are asked to read and sign. Step one, which they suggest, is that you place an ad in your local newspaper which reads: Address-Mail commission circulars at home and be flooded with offers. For offer and details rush stamped self-addressed envelope and 25 cents service fee to a particular address and you are asked to insert your name. You are expected to pay for the classified ad. When work-hungry consumers in your area read your ad and respond, you are allowed to keep the quarter which they send and when you "stuff" the self-addressed envelope your victims sent to you into a larger envelope and return it to the company they will pay you 25 cents for each one you send. You pay the postage for anything you send to them. So in order to make any money yourself you must pay for classified ads and bilk more consumers out of a quarter, a stamp and the time they spent responding to your advertisement. Envelope stuffing schemes are essentially like pyramid schemes or chain letters.

FRANCHISE FRAUDS come in a vast array of guises. There are many franchise operations which can give a person the independence of owning a small business plus the advantage of help from an experienced company. But the advertising literature for some franchises make their offers irresistible through promises of "high" profits from small investments and other misrepresentations. Approach franchise opportunities with extreme caution and investigate thoroughly before' you invest.

IMITATION WHO'S WHO TYPE DIRECTORIES AND PUBLICATION FRAUDS are practiced on millions of unsuspecting business and professional people, high school and college students who pay good money to have themselves listed in such publications which have little or no circulation beyond the victims. A variation of this is to charge nothing for the listing but a high fee paid in advance for the resulting publication which may or may not be published. Also beware of groups offering to print your poetry or short stories in anthologies and for which you must pay in advance to reserve your copy. These are sometimes called "vanity press" publications.

INVESTMENT RIP-OFFS are prevalent in inflationary times when gold, silver, diamonds and other precious metals and stones seem to offer investment stability. If you are offered diamonds or precious stones by mail or phone, you are more likely to get cheap gemstones that have little or no resale value. Reputable diamond dealers may advertise, but they seldom, if ever, sell valuable stones by mail. Don't buy if the dealer won't allow you to get an appraisal first. Gold requires careful assaying. Buy gold only from legitimate dealers and only if you are really knowledgeable about gold investments. There are also phony land and oil lease investment schemes that promise you great wealth very quickly. Always check out investment opportunities thoroughly.

PEST CONTROL fraud is prevalent in the South where you have more problems with insects than some other parts of the country. This con-game usually takes the form of a termite inspector who appears and informs you that termites have infested your home and if you contract for his services today, you will receive a discount. Always avoid such pressures. It is extremely doubtful that your house will start tumbling down around your ears that very day. Besides not applying pesticides properly, the pest control con-artist may not use a recognized or effective pesticide. As a matter-of-fact, they may apply nothing but some chemically smelling liquid. Don't deal with door-to-door pest control operators. If you need their services check the yellow pages, call them and ask for an estimate based on your needs.

PRODUCT TESTING FRAUDS usually begin when you receive a handsome brochure showing dozens of products and a sales pitch asking the consumer to enroll as a product evaluator. The cost for postage and handling' is purported to cost from $5 to $9 and you get to keep the hundreds of gift products you receive for testing. There is usually some sort of enrollment fee ranging from $10 to $25 dollars. Many consumers never receive a response to their enrollment and check. They are the lucky ones. Those who are enrolled and request products for testing may end up paying hundreds of dollars in postage and handling fees. Such frauds are not to be confused with bona fide product testing programs conducted by large companies such as Procter & Gamble through churches and civic organizations. When such product testing is done, however, it is done in person at the church or civic organization (not through the mail) and it does not cost the testing consumer anything.

VENDING MACHINES are one of the most prevalent franchise frauds. The promoters usually offer profits of $1,000-$2,000 per month for a minimum investment of $5,000 and 8 to 12 hours of work each week. Machines are overpriced, prime locations are crowded with competing machines and when you discover the realities you have little or no change of getting your investment refunded.

HOW TO DEAL WITH A CON ARTIST. What's the best way to handle someone who comes up to you on the street or approaches you in some other way and whom you suspect may be working a con game on you? The experts say: Don't be afraid to walk to the nearest police officer or to say "let's find a policeman," or just say "no," - and walk away. Most con artists don't want violence. The profit too much without using it. If you find you have been swindled, contact the police. Don't be embarrassed about it. It has happened to many intelligent people. You might help take a con artist out of circulation. If a con artist who has cheated you is caught, be sure to testify against the individual in court.

MORE FRAUDS