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Fraud

Uh, Oh, Identity Theft by a Friend or Relative — What to Do?

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identity theft by a friend or relative

According to a 2018 survey, nearly 60 million Americans have dealt with identity theft at some point in their lives. While many people assume that strangers are the only threat, some people have their identities stolen by someone they know.

Since friends and family typically have access to intimate details about your life, it’s easier for them to accomplish identity theft than many would like to believe.

Being a victim of identity fraud is always hard, but, when the identity theft is by a friend or relative, the blow is crushing. Luckily, you can move forward from this event by following the steps below.

1. Get Your Credit Reports

One of the first things you need to do is review your credit reports from all three bureaus. The easiest way is through AnnualCreditReport.com.

The process is fairly easy. You’ll need to confirm your identity and request your report from each bureau. You’re entitled to one free credit report from each bureau per year.

2. Set up a Fraud Alert

You’ll also need to contact at least one of the three credit bureaus and add a fraud alert. This locks down your account for 30 days, during which time no one can open new credit in your name.

However, if you can provide a police report documenting the issue, you can get a longer-lasting fraud alert; alternatively, you could just set up a reminder on your phone to renew the alert every 30 days.

Even if you aren’t sure if you’re a victim yet, a fraud alert gives you time to sort out the situation safely.

3. Notify the FTC

While federal authorities only pursue larger cases, the FTC monitors all incidents of identity theft. Let the agency know about your situation by filling out an ID theft complaint and affidavit form.

Doing so helps the government spot patterns and find ways to create a more robust system.

4. Call Creditors

Once you know which companies have fraudulent accounts or activity, you need to reach out quickly. Ask to speak with their fraud department and let them know your identity was stolen.

You can request they close or freeze the accounts, ensuring no new charges will occur. In some cases, they’ll require an FTC identity theft report to document your case, so you want to handle that first.

5. Change Your Passwords

Regardless of whether you can confirm any fraudulent activity taking place using your identity or accounts, you’ll want to be proactive about security.

Change all of your online passwords, along with personal identification numbers associated with any cards you might have.

6. File a Police Report

The person who stole your identity isn’t automatically pursued by law enforcement. For that to happen, you need to file a police report.

Bring a copy of your FTC report along with your identification, proof of address (like a utility bill), and any evidence of the theft to your local police department and ask to file a report.

Once the report is complete, make a copy. That way, if a creditor requires that document, you have it available.

7. Monitor Your Credit Report

Signs of identity theft might not show up in any of your credit reports right away — so you’ll want to check them on a regular basis and follow up on anything you dispute.

Consider signing up for any of the free services that enable you to keep tabs on all three bureaus’ reports in one place.

Carefully read your credit reports to see whether any information changes and notify the bureaus of anything that’s amiss.

Provide them with a copy of your FTC identity theft report (if you haven’t done so already). Once they have this document, they have to block any new changes to your records.

8. Contact the Social Security Administration

In some cases, an identity thief uses a person’s Social Security Number to secure employment. If that happened to you, contact your local Social Security Office for assistance.

9. Watch for Crimes in Your Name

Unfortunately, it’s not uncommon that an identity thief might supply your identifying information after being arrested for a crime.

This is why it’s a good idea to file that police report as soon as you learn of the identity theft — but if you learn of additional crimes being perpetrated with your contact information, you should file an additional report regarding the impersonation.

Provide law enforcement with copies of your ID, a photograph, and your fingerprints. Request that officers compare your information to the criminal’s and remove your name from the records once they confirm you didn’t commit the crime.

With each visit to the police department, make a point of recording the name and contact information of every officer you speak to while resolving the issue.

Request a clearance letter or certificate of release as well. This document says you were innocent. Keep the letter in a safe place.

10. Watch for Tax Theft

Be prepared for the possibility that the identity thief might try to file a fraudulent tax return on your behalf and attempt to claim your refund — file your taxes early so that no one else can horn in on what’s yours.

It’s also a good idea to complete an IRS identity theft affidavit to further prevent any would-be thief from claiming your return.

11. Watch for New Account Openings

Identity thieves may try to open new accounts in your name. They could be credit cards or utilities, for instance.

You can find a comprehensive list of steps to take in these scenarios at IdentityTheft.gov.

Identity Theft by a Friend or Relative

While you typically have to deal with a lot of red tape when trying to minimize the damage caused by identity theft, don’t take any shortcuts: You might not be able to see the full effects of this crime until it’s way too late — because someone who already knows you can cause a lot more problems than a stranger.

When the perpetrator’s a friend or relative, you really need to put in more effort to tamp out the crime. If you can stay the course and be thorough about following all of the steps listed above, you’ll eventually get it taken care of.

Readers, have you ever been a victim of identity theft or fraud — if so, what were your experiences in combatting it? If you haven’t experienced it, what sorts of things are you doing to protect yourself, if anything?

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Looking for more information about identity theft? Give these articles a try:

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What Is Synthetic Identity Fraud?

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Synthetic identity fraud is

People who don’t exist held $355 million in outstanding credit card balances last year. So-called synthetic identity fraud is one of the fastest growing types of credit-related crimes, increasing eightfold since 2012, according to TransUnion.

While this represents a small part of the estimated $16.8 billion in annual identity theft losses, the share is growing.

Known as synthetic-identity fraud, it’s almost like the credit industry’s version of antibiotic resistant viruses: Criminals have developed craftier methods in an attempt to get around the defensive measures used by card issuers.

What Is Synthetic Identity Fraud?

Synthetic-identity fraud occurs when a criminal creates a fictional identity from scratch – complete with a made-up Social Security number – or uses one snippet of real information such as a child’s stolen Social Security number and fabricates the rest.

Once the identity gains credibility, thieves can rack up charges without fear of discovery by a legitimate account holder. Creditors will eventually crack down on the overdrawn and overdue accounts – but there is no legitimate account holder to hold responsible.

How does a completely made-up identity get legitimacy? Criminals take advantage of seams in the credit application system. When an unknown applicant applies for a source of credit, a new credit file is created.

Creating Fake Credit Files

Without a credit history to go with that file, the lender is likely to deny the application – but the creation of the credit file alone provides a basis for future legitimacy.

The scammer simply applies for more credit, targeting sources that are tolerant of limited credit histories. As more applications are received, the credit file grows. Lenders can become convinced that the applicant is a real person with no credit history.

All it takes is one approved application to convert the credit file into a credit report. The approved use will probably be for a credit-building card with a relatively low limit.

Raising the Limits

Fraudsters make legitimate purchases and pay them off in order to get higher limits before maxing out the card. An instantaneous means of cross-checking Social Security numbers would prevent synthetic fraud. Unfortunately, no such method exists currently.

Ironically, the Social Security Administration (SSA) accelerated the problem with a policy designed to reduce identity theft. Prior to 2011, Social Security numbers were issued in a pattern relating the first several digits to the assignee’s zip code.

The SSA switched to random numbers, hoping to stop scammers from hacking numbers using information available through public sources.

No Quick Way to Verify

Randomization does make it difficult for scammers to reconstruct a Social Security number – but it also gives the SSA no quick way to verify that a Social Security number has been issued and who the recipient was. Banks must sift through enormous amounts of information to spot synthetic fraud.

You can’t do anything to stop synthetic-identity fraud, but you can make it more difficult for a thief to make off with your identity.

Protect your information and check your accounts regularly. Make it so difficult a criminal would rather make up new identities than try to steal yours.

This article was provided by our partners at moneytips.com. Photo ©iStockphoto.com/BrianAJackson

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8 Reasons Why You Need to Read Your Bills Every Month

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The mail comes, you glance at your bills and drop them in the “To Be Paid” pile. Then, on the appointed day, you write out the checks or direct the online bill pay to do its thing and then you forget about it until next month. In the process of paying your bills, do you really read them? Do you look at all the inserts and read the line by line breakdown of what you owe? Do you look for anything that seems odd? If you just pay your bills on auto-pilot without reading them thoroughly, you may be wasting money that you don’t have to waste. What should you look for? Here’s a list.

Fraudulent charges: Any charge you didn’t authorize has the potential to be fraudulent. Sometimes such charges are big and obvious, like the $3,000 charge at Best Buy for a big screen TV that you didn’t purchase. But sometimes they are much smaller and can go unnoticed for many months, especially when you don’t take the time to read every line of your bill. Then, when you finally do notice, you’re shocked to realize that you’ve paid hundreds of dollars that you never authorized.

You may have some protection or rights of appeal if the charge is within the last 60-90 days, but anything much older than that is going to be your problem. If the charges are the result of identity theft, the longer you let it go on, the harder it becomes to stop it. Read your bills every month, question every charge and if something doesn’t seem right, report it immediately.

Mistakes: Billing mistakes happen, and pretty frequently, too. Sometimes you’re double billed for things (medical bills are legendary for this), utility meters are misread, charges are posted to the wrong account, your charges don’t match your receipts and on and on. If you catch these mistakes early, you can ask to be re-billed for the correct amount and refuse to pay until you get a correct bill. Or you can dispute an incorrect charge and have it corrected. However, if you go ahead and pay the bill or fail to notice the mistake quickly, you can have a much more difficult time getting it corrected because the company may take the fact that you paid as acceptance of the mistake and may make you go through more hoops to fix the problem. Mistakes may also become permanent, such as when you are billed the wrong amount for a service, you fail to challenge it, and then the next month the computer spits out the same wrong bill. This can go on for months and cost you big money if you don’t catch it.

Fat (also known as things you’re paying for but never use): It’s a good idea every month to comb your bills and look for the fat you can cut. How much stuff are you being billed for that you never use? Are you paying for an unlimited texting plan and you send two texts per month? Are you still paying for that website subscription and you haven’t visited the site in six months? Are you paying for features on your phone bill like call waiting that you never use? Find the fat and cut it. There’s no sense in paying for stuff you aren’t using.

Changes in terms: Banks, credit cards, and loans all notify you of changes in their terms and most do it via your billing statement. It may come along as an insert with your bill, or it may be two lines of text wedged at the bottom that says, “Next month you’ll be charged fees for X, Y, and Z.” Fail to read your bill carefully and you’ll miss this helpful bit of information and you’ll lose your ability to opt out, switch billing/account types, or challenge the new terms. Silence is considered acceptance, so if you don’t notice and you don’t question it, you’ll be paying more next month.

Promotional offers: Sometimes your bill comes with ways to actually help you save money. It may be a flyer telling you about the refer a friend program, or that you can receive a credit if you opt for paperless statements. It may be a line of text on the bill itself telling you that you can try something for free, or that taking a simple action (such as opting for time of use rates at the electric company) can cut your bill. Whatever it is, if you don’t read your bills thoroughly, you could miss out on some valuable promotions.

Fees: Everything seems to have a fee these days, even things you thought were free. If you don’t read your bills, you could miss the fact that your previously free checking now charges a fee, or that you are being charged for receiving your checks with your statement. There are plenty of fees you can’t escape, but sometimes you can dodge a fee simply by switching account types or taking some other action. But if you don’t know about the fee, you can’t do anything about it, and after a while those $1, $2, and $3 fees can really add up. Read your bills and question any fees that you are charged.

Due dates: It’s not just credit card companies that like to change due dates. Utility companies, loan companies, and cable companies all may change their due dates without telling you. Well, they do tell you, but it’s on the billing statement. Fail to read it and just pay your bill as you usually do and you could be late, costing you huge late fees. Read the statement and note the due date.

So you know what you owe and to whom: This one sounds like a no brainer, but it’s amazing how many people, when asked, can’t name their bills or how much each one usually is. If you don’t know how much you owe and to whom, how can you make a good budget or have sound financial practices? You can’t. Reading your bills every single month gets you familiar with what you owe, to whom, and how often. It lays the foundation for budgeting and keeping yourself afloat.

It also means you can quickly identify when things are wrong. If the cable bill is always $100 and it suddenly turns up at $500, you’ve got a problem and you know it. Some people just blindly pay because it doesn’t seem odd to them because they have no knowledge of what “normal” is.

Reading your bills every month can save you hundreds of dollars a year, particularly if you’re the victim of fraud or a big mistake. Don’t just blindly assume that the bills you receive are correct. Look for mistakes, and match your charges with your receipts or your meter usage. Take the time to question anything that seems funny and do it immediately. Errors caught early are easier to fix than those that have become permanent.

Never Pay Someone to Protect Your Identity

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protect against identity theft

You’ve probably seen the ads for LifeLock, an identity theft protection service, where the CEO gives out his Social Security number and claims that he can do that because he has such confidence in his company’s ability to protect his identity. It turns out that his confidence may have been misplaced. In recent days, stories have surfaced that people have been able to receive driver’s licenses using the CEO’s SSN and one person has even succeeded in getting a payday loan using the pilfered SSN.

Now, anyone with a basic knowledge of credit reporting and identity theft probably realized that this guy was setting himself up for trouble. Under the best circumstances, LifeLock and other “identity protection” services can only prevent a few forms of identity theft. That’s because the protections they offer only operate at the credit bureau level, which reports on transactions related to credit cards, loans, mortgages, renter approval, certain utilities and some insurance. Things like obtaining fake driver’s licenses, receiving medical care under a false name, and giving a fake SSN to avoid arrest typically don’t go through the credit bureaus so they can’t be stopped by a service like LifeLock.

The problem with any sort of “identity protection” is that nothing is fool proof. Protecting yourself at the credit bureau level only works as long as the agency issuing the credit actually goes through the bureaus. If they don’t, they have no idea that you’ve put protective measures in place so they may go ahead and issue credit to an impostor.

That’s what happened to the LifeLock CEO. The payday loan company didn’t run the right checks and issued credit to the impostor. It’s almost impossible to protect yourself against driver’s license or medical fraud because most state agencies and healthcare providers run no checks at all, assuming that the information presented is legitimate. It’s also very easy for a thief to steal a credit card or bank account number and treat themselves to a shopping spree that you learn about only after the funds are gone. These types of transactions cannot be stopped by a protection service. Only constant vigilance and some proactive steps on your part can help to prevent identity theft, and even that isn’t 100% guaranteed.

So if it’s so hard to protect your identity, what can you do and should you pay someone else to do it for you? The answer to the second question is a definitive “No.” The things that companies like LifeLock claim to do can all be done on your own for free. You’ll get the same level of protection and have control over the process (and you won’t be giving out your personal information to yet another company, which puts you at risk if their database is ever compromised). As for what you can and should do, below are the four main protections that LifeLock employs and how to do them yourself. Then I have some ideas that go beyond their protection.

Set a fraud alert with the major credit bureaus

This is free to do. All you have to do is call one of the bureaus or visit their website and answer the questions. You don’t even have to speak to a person. The alert is then passed from the bureau you contacted to the other two — you don’t even have to contact the other two, it’s done for you. The alert is good for 90 days and lets credit issuers know that you may have been the victim of fraud and that they should request additional information or documentation before issuing credit. It doesn’t stop the issuance of credit but it does, if followed correctly by the issuer, cut down on incidents of identity theft. You can renew the alert every 90 days.

Remove your name from pre-approved credit card offers

Contact Opt-Out PrescreenDirect Marketer’s Association to be removed from many junk mailing lists. The DMA is the largest database used by solicitors, so opting out with the DMA greatly reduces junk mail. Read the privacy policies of companies you do business with and find out how to let them know that you don’t want your information shared. If you get junk mail with a prepaid mailer, you can stuff their materials into the envelope and write, “Remove me from your list” on the material. This usually works, although it may take awhile. Make certain when doing business online that you uncheck any boxes that say, “Contact me with future offers,” or similar. Many websites pre-check these for you in the hopes you won’t notice, leaving it to you to opt out of their crap.

Order your free credit reports and set up a monitoring cycle

You are entitled to one free credit report per year from each of the three major credit reporting agencies, Experian, TransUnion, and Equifax. You get these reports through AnnualCreditReport.com. Only use this site. Others that sound similar require you to pay. But don’t request them all at once. Since you can get one per year from each service, you can request one every four months to keep a constant eye on your credit. So, for example, if you request from Equifax in January, wait until May to request one from TransUnion. Then request one from Experian in September. Then, when January rolls around, you request from Equifax again and keep the cycle going. This means you’re seeing your credit report once every four months which lets you catch potential problems quicker than if you look at it only once a year or less often.

Keep Important Records

Keep records of your credit card numbers, bank accounts, insurance cards, and driver’s license information (and contact information for each agency) separate from your wallet or purse. Make photocopies of sensitive items that you carry and keep them in a secure location separate from your wallet. If your wallet or purse is stolen, you can quickly contact each bank and card issuer and notify them of the theft so they can shut down your accounts and open new ones.

If you want to go beyond these services (and you should), here are more steps you can take to help secure your identity.

Use a cross-cut shredder

Shred anything with your SSN, bank account numbers, address, or other personal information. Be especially sure to shred pre-approved credit card offers and balance transfer checks. Get a cross-cut shredder or “confetti” shredder because these reduce your papers to tiny bits that are almost impossible to put back together. Some shredders make strips which are too easy for a thief to put back together.

Freeze your credit

This isn’t free, but the peace of mind is worth it. It is similar to a fraud alert except that it cannot be ignored by a lender. A fraud alert merely tells a lender that you may have been a victim of fraud and that they should request proper identification and verification before issuing credit. However, a freeze locks your credit file so that it cannot be viewed at all unless you “unfreeze” it. There is a fee to freeze your credit and another fee when you want to unfreeze it, so if you’re actively pursuing loans this option isn’t for you. Freezing your credit also means that you can’t be spontaneous about getting credit. If you’re shopping and see a great same as cash deal or want a store credit card, you’ll have to wait because you’ll have to unfreeze your credit before you can apply. Freezing and unfreezing aren’t instant — there are a few days of processing time — so be prepared to wait if you need credit in a hurry.

Don’t let your credit or debit cards out of your sight

It is common for restaurants to take your card away and run the payment at a register out of your sight. Unfortunately, some servers are dishonest and run your card through a “skimmer” that captures the card’s information so a new one can be made. Bring cash to restaurants that you know will take your card away. Also don’t let a clerk in a store take your card out of your sight. Some dishonest clerks will say they have to get manager approval of your transaction, then go to a back room and skim your card.

Be wary of ATM’s that look altered

Thieves will attach skimmers to ATM slots to capture card information and PIN’s. You may notice that the slot looks lumpy or not firmly attached to the machine, or as if there is another piece of hardware attached to the front. If it looks fishy, don’t use it. This is less likely to happen at bank ATM’s since they are more aware of the problem and may be more religious in checking their machines. However, it can happen anywhere so be vigilant.

Protect your PIN

When at an ATM, cover the keypad with your hand and do the same as you tap in the information on pads in stores. In a store you can avoid entering your PIN altogether by running the transaction as “credit” rather than “debit.” It doesn’t change anything about how your money is withdrawn, only that you don’t have to enter your PIN.

Don’t get caught by phishing scams or phone scams

You hear it all the time, but it bears repeating: Never give personal information out over the phone unless you initiate the call and never enter information into a form you reached by a link in an email. Always type the website directly into your browser and navigate from there. If in doubt, call the company that sent the email or made the phone call and ask if it’s legitimate.

Spring for an unlisted phone number

Having an unlisted phone number cuts down on the number of phone solicitations you receive and cuts down on people just pulling a phone number and address out of the book and giving it as their own. It also cuts down on some junk mail solicitors that compile their lists from phone listings.

Don’t give out your SSN unless you have no other choice

Many places that ask for your SSN (except banks or those issuing credit) will accept another identifier if you ask. Many are aware of the problems of identity theft and may be willing to work with you. If asked for your SSN, ask why they need it and if there is an alternative and, if you’re not satisfied with the answer, consider whether or not you’re willing to take the risk.

Don’t carry your SNN with you

Don’t carry anything with your SSN in your wallet or purse unless you are going to need it that day. If your wallet or purse is stolen it’s a pain to cancel and reissue credit cards and bank accounts, but it’s so much worse if the thief gets your SSN in the bargain. While you’re at it, purge your wallet of any credit cards, insurance cards, or other identifying information you don’t use on a regular basis to cut down on the items a thief has access to.

Protect your computer

Install antivirus and anit-spyware protection on your computer to prevent anyone from installing malicious software that can capture your personal information or transmit it to another party. Make certain websites are secure before entering personal information (look for “https” in the web address and/or a lock icon in the browser window). Don’t enter personal information when using public computers at schools, universities, libraries, coffee shops, etc. You don’t know what kind of protection, if any, they have in place.

Leave information off your checks

Don’t put your SSN, phone number, or driver’s license number on your checks. In the old days the advice was to put this information on checks to speed processing and verification. But now this is just more information that can be used against you if your check goes awry. Only put your name and address on a check. If the person taking the check requests additional information, you can give it if you feel comfortable (but don’t give the SSN — they don’t need that), but otherwise don’t give it out.

Monitor your accounts online

Many banks and credit cards now offer online access to your accounts. Take advantage of this and monitor your accounts daily or every other day to check for suspicious activity. This gives you a chance to quickly catch a thief before too much damage is done. If you only wait for the monthly statement, you may be too late.

Sign up for e-billing and e-statements

Receiving bills and account statements electronically cuts down on the chances of someone intercepting your information in the mail, either through intentional theft or because your mail was delivered to the wrong place.

Buy a safe

Keep sensitive documents (tax returns, bank statements, passports, Social Security cards, etc.) in a safe. If your home is broken into, a safe may keep your information out of the wrong hands. Alternatively, you can rent a safe deposit box at your bank but this can be inconvenient if you need the documents and the bank is closed. And don’t keep documents any longer than necessary. Shred or burn statements, tax returns and old bills when they are no longer needed.

Be careful with your mail

Opting out of junk mail and signing up for e-billing and e-statements where possible will greatly cut down your risk of mail-related identity theft, but you can go further. Don’t leave sensitive outgoing mail in your mailbox for pickup. It can easily be stolen while you’re not looking. Take it to the post office. If you’re going to be out of town, either have your mail held at the post office or have a trusted friend pick it up. Don’t let it pile up in the box where thieves can get to it. Retrieve your mail as soon as possible. If you aren’t home when the mail comes, get it out of the box as soon as you get home. Don’t leave it there overnight. You might also consider a locking mailbox. These are designed so that they can be opened and closed once for the mail delivery, but after that they must be opened with a combination or a key and then reset for the next day’s delivery.

Don’t leave personal information out in the open

More and more you’re hearing stories about people who had their identity stolen by contractors or delivery people who came to their home. Maybe they left their checkbook out in the open, or an old bank statement, or an insurance claim with their SSN on it. However it happened, the contractor picked up the information or copied it while the homeowner wasn’t looking and then stole their identity. If you’re having work done or deliveries made, make certain that any compromising information is out of sight and preferably locked up. And be sure to keep an eye on the people who are in your home.

Yes, you can pay a service to do some of these things for you, but if the protection you’re paying for is no better, or possibly worse, than what you can do yourself for free, why pay for it? Taking some simple steps and using some common sense can go a long way toward protecting your identity. However, nothing can be guaranteed, even for the CEO of a company that charges you for protection. If you’re the victim of a particularly savvy or determined thief you may still have your identity stolen. However, if you are proactive about protecting yourself, the related problems are likely to be more confined and more quickly identified than if you do nothing.

(Photo courtesy of B Rosen)

Learning Valuable Lessons By Being Scammed

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sun setting rose

I would be willing to bet that most of the people who read these blogs are pretty financial savvy — or at least are trying to be. But everyone once in a while people can get duped into spending money on something that is either a scam or simply a waste of money. I admit that I have been suckered into a few of these things in the past and was reminded of these times when I recently escaped one such scam.

I somehow stumbled upon the website picture.com which is run by the International Library of Photography. On this site they have the chance to enter their photo contest, which gives out cash prizes for exceptional photos. My husband had recently taken a very beautiful photo of a rose with the sun setting in the background at a local park and I thought this photo was truly remarkable. I decided to enter it into this photo contest because I thought it had a good chance of winning and thought it would be great if my husband could get some exposure. I submitted 2 of his photos, and because I didn’t know if 2 photos could be submitted under the same name, I submitted one under my own name.

About a month later I received an e-mail from this website stating that one of those photos was voted as a semi-finalist in the contest. I was pretty excited and e-mailed all our friends. Luckily my gullibility ended there this time. The rest of the e-mail told about how this photo would be featured in this coffee table book and even though we were under no obligation to buy, we had the chance to purchase this book for only $70 and see our photo displayed.

I thought the book idea was pretty cool, but there was no way I was going to spend $70 on it! But I did want to make sure that my husband got credit for the photo he took since it was featured on their website and apparently would be featured in this book. However when I tried to reply to the e-mail I received from them (using the reply-to e-mail address they provided) my e-mail came back undeliverable. So I went back to their website and found an e-mail address where questions were to be sent too and that e-mail also came back undeliverable. Red flag — I realized that if I can’t get a hold of them, this has a very good chance of being a scam.

Since I hadn’t sent any money to them, it wasn’t a huge deal and I was still pretty excited that our photo got recognized. A week later we received a second e-mail informing us that this photo was chosen as “Editor’s Choice” and that we had the offering us this special pin that depicted this honor. This was at a price of course. In addition we could buy a special plaque to go with the pin to showcase how special our photo was (of course, at an even higher price). I stopped reading at that point and I no longer believed that this photo was the Editor’s Choice.

Then I decided to do a google search of International Library of Photography and found message threads and discussions full of how people had gotten ripped off by this company. Many people had sent in money for books and kept getting empty promises that their books were delayed but would be shipped soon and the few that had actually received books noted that their picture was so small in the book that it was hardly recognizable.

The only price I ended up paying for this scam was a little embarrassment at the fact that at first I thought it was a real honor that my husband’s picture was chosen. That and we already had plans for what we’d do if we won one of the $1000 prizes. I was lucky, but many others were not so lucky with this company and lost hundreds of dollars. Some would say it’s because they were gullible, others would say they were tricked or simply misinformed. Whatever the reason, it wasn’t right.

Here are some ways that you can help prevent yourself from being suckered into internet scams like this in the future:

Do some research before handing over your credit card number.

I was so surprised at the number of discussion threads (and the length of them) regarding the misleading practices of this company. Not only had they tricked many people with their photo contest, they also had a similar poetry contest with which they had tricked many more people with. A simple google search of this company revealed all this information and it’s pretty hard to argue with hundreds of people who weren’t happy with what was going on with this company.

Make sure you understand what you are paying for.

A couple years ago when I was job hunting, I was also looking for ways I could make money by working at home. You want to see scams? Hit a search engine for “Work at Home” and you’ll find your fair share of them. I happened to find the one I fell for on Craigslist. “You can make up to $500 a week!” the ad said. “All you have to do is answer e-mails and process applications!” The start up cost was only $10, so I decided to e-mail the contact person on the ad for more information. I received an e-mail with basically the same spiel that was on the ad. When I asked what exactly “processing applications” entailed, I received the following reply:

This business is loosely based on replying to inquiring minds, similar to what we’re doing right now — simple, right?! You would also be promoting a website, that you’d have exclusive access to (included in the training material) and recruiting others to advertise as well. The $10 is one source of income, however, it also grants you access to the site that has unlimited earning potential. I hope you decide to join our team! Best wishes.

I admit that I still did not fully understand it but thought I’d give it a shot. When I received all the information it was still confusing, but the one thing I did understand about it was that the money I would make would be from gullible people like myself wanting a valid way to make money at home. I decided that I didn’t want to be that person and chalked it up that that $10 was gone forever — a small fee for learning a valuable lesson: don’t get involved with things until you fully understand them.

Check with friends.

Ask people you know if they have ever heard of what you are looking into or about to do. Chances are if you know anyone who has been burned by that or something similar, they will let you know.

Go with you gut.

If you’re pretty financially savvy, you can smell a scam coming from a mile away. The main reason I didn’t buy that photo book was because it sounded fishy that they were trying to sell me something and make me pay when they were one’s that wanted to print my husband’s photo. That just didn’t settle right and chances are, if you are about to be scammed, something won’t settle right within you and things will just seem odd.

Get scammed.

I don’t recommend this one, but if you go through all the steps above and can’t find anything negative about what you want to do or buy and you still get scammed, I guarantee you that you’ve learned a valuable lesson. You may be out some money, but chances are this experience will keep you from wasting money on things like this in the future because you’ll remember your mistake and what it ended up costing you. And if this happens to you, please, for the sake of thousands of other people out there who are trying to avoid the very thing you fell into, make your experience known. Tell your friends, post a blog, start a message thread, file a complaint with the Better Business Bureau — whatever it takes to get the word out so that others don’t have to get cheated too.

Image courtesy of mrjorgen