Don't Be A Victim of Consumer Fraud
Texas CPAs Recommend Six Steps to Avoid Fraud

DALLAS — Consumer fraud is big business. An estimated 13.5% of American adults were identified as fraud victims in one study by the Federal Trade Commission. There are many different types of crimes involved, including tax refund scams, fraudulenst weight-loss programs, phony lottery or prize schemes and bogus work-at-home scams. You don’t have to be a victim, however. The Texas Society of CPAs recommends steps you can take to avoid being taken advantage of.

DON’T BE TAKEN IN BY APPEARANCES
Scam artists and phony organizations are very good at presenting a professional image. The person at your door may be clean cut and friendly, the voice on the phone may be well spoken and the mail offer you receive may be glossy and appealing. The person you speak to may also have very reasonable answers to any tough questions you ask. In some cases, the group that he or she represents may have a name that is similar to a well-known business or charity, making it seem as though they are affiliated with a legitimate organization. But remember that looks can be deceiving, and don’t make any decisions or commit any money based on a good first impression alone.

BEWARE OF HIGH-PRESSURE TACTICS
Con artists like to take the money and run. If you’re being pressured to sign up or commit money immediately, then that’s a warning sign of possible consumer fraud. Instead of committing yourself right away, take the opportunity to consider the offer. Scam artists don’t want you to do this, because you may start to ask too many questions. But you should take time to be sure you understand what kind of commitment you’re making and how credible the offer seems. Consult experts, including your local CPA, an attorney or bank officer, for their advice.

GET IT IN WRITING
Don’t commit immediately to an offer made over the phone or in a door-to-door solicitation. Ask for some kind of documentation describing the offer being made, then read the materials and make sure you understand them.

REQUEST REFERENCES
Someone representing a legitimate organization should be able to provide references or some other verification about the group and what it does. Ask also for contact information where you can call the person making the offer. If they’re reluctant to provide this information-—or if they insist that they’ll call you instead-—you have good reason to be suspicious. However, don’t assume that someone who does supply contact information is necessarily reliable. They may simply be a con artist with a cell phone.

NEVER MAKE A PAYMENT UP FRONT
In many scams, the thieves insist that you have won a prize, can have a new credit card or might qualify for a guaranteed job-—if you turn over a fee in advance. Legitimate businesses do not ask for processing fees up front for prizes or business opportunities, so this request is a sure warning sign of trouble.

TURN TO THE FTC
The Federal Trade Commission is a great resource for questions about possible consumer fraud. You can find information on their Web site on www.ftc.gov or call 877-FTC-HELP (877-382-4357).

ASK YOUR CPA
Your local CPA can work with you to consider any questionable offers you receive and help you spot possible fraud. Consult him or her on any financial question facing you or your family.

PERSONAL FINANCE INFORMATION
For additional personal finance tips, visit www.ValueYourMoney.org. While there, sign up to receive a free monthly electronic newsletter with personal finance tips on a variety of topics.

ABOUT TSCPA
TSCPA (http://www.tscpa.org) is a nonprofit, voluntary, professional organization representing Texas CPAs. The society has 20 local chapters statewide and has 28,000 members, one of the largest in-state memberships of any state CPA society in the United States. TSCPA is committed to serving the public interest with programs that advance the highest standards of ethics and practice within the CPA profession.