Unfortunately, there are also con artists out there who are willing to take advantage of vulnerable people during these difficult times. These scams often leave the victims facing a far worse financial predicament, making it more difficult for them to recover financially. Furthermore, the thieves not only rob their victims of money, but also of their pride.
Currently, the Federal Trade Commission (FTC) is warning consumers to be on the lookout for several scams that come in different forms. In one case, scammers are sending emails that appear to come from the federal government. These fraudulent emails inform recipients that they are eligible for economic stimulus funding or government grants if they provide personal information, such as bank account numbers. Others have set up phony websites claiming to sell grant information or provide other mechanisms for accessing stimulus funds. The scam artists then use the personal information that they obtain to withdraw funds or steal a person's identity. In addition, some of these emails and websites contain links that, if accessed, could download malicious spyware to a user's computer and send that user's personal information to the scam artist without the user's knowledge.
The FBI is also warning unsuspecting homeowners that there are con artists who are trying to take advantage of their dire financial situation. Right now, it is aware of three popular scams targeting struggling homeowners.
In one case, a person approaches a homeowner with an offer to help restructure their mortgage for an upfront cash payment. Once the homeowner makes the payment, the person disappears with the victim's money. In another scam, a con artist approaches a homeowner struggling to pay a mortgage and offers to purchase the home and allow the current owner to live there and pay rent. The con artist promises that once the original homeowner can qualify for a better mortgage, he will sell the house back. Once the con artist owns the home, however, he either sells it to someone else for a higher price or never sells it back to the original homeowner. Once the con artist has the deed to the home, he can force the original owner to leave at any time. Finally, another scam also tricks homeowners into signing the deeds to their home over to con artists. The scammer convinces the homeowner to sign documents that are supposedly for a new home loan. In reality, the documents are fake, and the homeowner is actually signing over the house to the con artist.
These honest homeowners are just trying to do what it takes to save their home. Unfortunately, they are being lured into a trap that could ruin their credit rating, strip away their equity, and could result in the loss of their homes. Clearly, this would be devastating to any individual homeowner or family.
If you have concerns about any offer you receive, you should ask questions and fully investigate the person and organization behind the deal. And remember, you should never give your personal information, including bank account numbers and social security numbers, to someone you do not know or trust. If you receive a suspicious offer regarding the economic stimulus funding or a mortgage deal, you should contact local law enforcement immediately. You can also report it to the FTC at www.ftc.gov or by calling 1-877-FTC-HELP (1-877-382-4357). The FTC is working with local law enforcement to stop and prevent financial scams.
It is shameful that criminals are adding to the distress of hardworking, honest Americans with fraudulent offers of aid during these difficult economic times. We must constantly be aware that there are crooks out there trying to take advantage of unsuspecting people. As the old adage goes, if an offer appears to be too good to be true, it probably is.