If something sounds too good to be true, it probably is. Beware of claims of high return at “no risk”. Generally, the greater the rate of return, the higher the risk.
1. The foreign money fraud: We have numerous copies of solicitations which have been faxed or mailed from Nigeria. They claim to give a participant the opportunity to receive millions of dollars for allowing someone to run money through his/her checking account. According to the FBI, American citizens have been defrauded out of millions of dollars with variations of this scam. All of the solicitations we’ve seen contain hints that the supposed funds were obtained by unethical means such as over-billing, or money-“cleaning”.
2. Up-front loan fee scams: These are advertised as though they help people get consumer loans or credit cards. They are usually fraudulent, especially if they involve sending or wiring money to an out-of-state location, and almost certainly if they involve wiring money to an out-of-country location.