There's a new story on Newsok.com about a consumer scam involving an Oklahoma company. The article details the events of a South Carolina woman who paid more than $2,000 for a "mortgage", only to find out that the "mortgage company" was a sham.
There has been a recent increase in these types of stories. I saw a news broadcast about an elderly man who lost more than $25,000 because of a similar scam. I've written about this type of scheme before (see this post and this post). These scams seem to affect everyone, regardless of their financial status, or their presumed intellect. In fact, the problem is so prevalent that that the Oklahoma Bar Association is offering an educational class to attorneys because many lawyers a falling victim to these scams.
Our firm's general email address gets at least 5 scammer emails per day from "desperate" foreigners seeking assistance with their legal problem. The email follows the same line: the scammer wants to hire our "esteemed" firm because of our experience handling these cases, and they want us to take a high percentage of the total amount for our attorney fee.
What sets these emails off as scams is the fact that they want us to handle their overseas case (we don't do international legal work, aside from immigration), and the email always contains significant grammar errors and generalities.
You should be wary of the same things when you're dealing with scammers like those discussed in the news story. Don't let your financial situation override your common sense. IF IT SOUNDS TOO GOOD TO BE TRUE, IT PROBABLY IS.
The Federal Trade Commission offers some "red flags" to identify scammers:
- The company doesn’t care about your credit: Be careful of lenders that are not interested in credit history and offer loans despite bad credit or no credit record.
- Undisclosed fees or up-front payment: Legitimate lenders never guarantee or say you will receive a loan before you apply. And they can’t ask for money before the loan is delivered. Fees for applications, appraisals or credit reports can be paid after approval.
- Phone offers: It is illegal for companies doing business in the United States by phone to promise you a loan and ask you to pay for it before they deliver.
- A lender who uses a copycat name, a post office box or an unlisted phone number: Lenders should be registered with the state, and they should be easy to find in a telephone directory.
- Never give your Social Security, credit card or bank account numbers over the telephone unless you are familiar with the company and know why the information is necessary.
Source: Federal Trade Commission
Don't get taken by these con artists. If you feel you've been scammed, get help immediately. Contact the state Attorney General's office, your local police department, and an attorney for advice.
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