Friday, February 28, 2014

Scam Thrives on Greed

The prospect of making easy money by working from the comfort of your home is a dream come true to anybody. Just think about it; no more traffic woes, no more hassle of catching the bus or train on time, no more stress of getting a cab to agree to take you to your work place and home, etc.

So when work-at-home business opportunities "knock" on your door offering you the chance to become financially independent or some extra income, most would jump at the opportunity, especially in these hard times. But beware. The Internet today is brimming with a variety of cyber scams from multi-level marketing schemes, selling cosmetics, investments, health care, diet plans, diet pills, energy boosters, to anything that is part of the most current craze.

To entice people into the scam, these Internet sites utilise headings such as "make money now", "Earn Cash in a few hours," and similar hoopla. Some even try to make themselves look more legit and convincing by cautioning you about the various scams.

The basic rule is, if it sounds too good to be true, then it is likely to be a scam. But in spite of so many warnings by Bank Negara, other government bodies and NGOs, many people continue to fall for these "Get-Rich-Quick" schemes.  According to law enforcement agencies, the number of scams has risen by 27 per cent this year alone.

Just stop and think about it for a moment. If it is so easy to get rich by just sitting at home in your pajamas, the world would finally be ridding itself of poverty. Two people have learnt this the hard way.

Taxi driver Rama, 33, ended up losing about RM30,000 after “investing” in a scheme which promised exceptionally attractive returns. A friend had persuaded him to part with the money to be his "down line", promising him returns of up to fifty per cent within 30 days with a Mini car to boot.

All he had to do was to write out a cash cheque of RM30,000 and get three down lines to part with RM2,000 each. Rama found the offer too good to resist. As in any scams, those recruited would be given a large return as promised on their initial investment, thereby motivating them to "invest" more.

Certain scams are specifically fashioned to take advantage of the way the Internet operates. Like in the case of retired teacher Ms Chong. Chong got an email message declaring she had won a foreign lottery or an online sweepstake from an American bank amounting to US$30,000, but in order for her to claim her supposed winnings, she had to pay US$80 for the processing fee via a wire transfer.

"I did precisely what they requested and that was the last I heard from them," said Chong, who a few weeks later noticed that an additional RM10,000 was wired from her account to the said bank without her knowledge. Chong lodged a police report but the authorities couldn't do much because "no such bank" existed. There are many reports of people getting ripped off and left with nothing but the sad experience to share.

There are also numerous Internet scams that happened without the victims even realizing it. It is only when their bank or credit card statements arrived that they found out that they had been cheated. There are, however, several ways to protect yourself from Internet scams. They are simple but essential precautions you can take because you often cannot be sure exactly who you are dealing with on the Internet.

How you access the Internet can also make a difference. But if you take the right measures, the likelihood of being scammed can be significantly reduced. You need to protect yourself by using antivirus programmes. Never leave your personal data on unknown sites.

Do not download anything dubious. Don't simply click on unknown links or suspected spam emails. Never open any email attachments if you have any doubts about the sender. Do not "unsubscribe" a spam email especially if the spam email has an "unsubscribe" link.

And lastly, never fall for any outwardly eye-catching offers, especially if they promise easy money. The online scams know no national borders or boundaries; they adhere to no investigative jurisdictions.

Nothing is easy in life and so, if you receive offers that sound too good to be true, bear in mind that if you have to pay, it's a purchase, not a prize.

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