Top 10 scams bilking citizens out of millions

The Federal Trade Commission’s Bureau of Consumer Protection has announced this year’s list of the top 10 fraudulent or deceptive offers that bilk consumers out of millions of dollars each year. This might be a good column to clip out and stick on your refrigerator next to the school lunch schedule, coupons, and homemade Mother’s Day cards. The following list is random, and not in order of frequency or importance.

. High on the list is telephone fraud, which includes “slamming” (changing of your long distance carrier without your approval or knowledge) and “cramming” (billing for premium services – such as call waiting and voice messaging – again without authorization). Read your bills closely, report any mysterious entries to your usual carrier, and notify authorities.

. Direct mail and mail order scams, including undelivered or unordered merchandise, negative-option magazine, book, music, or video solicitations (where the company assumes you have bought the item unless you notify them otherwise). This category also includes fraudulent billing (billing for items you never ordered and-or never received).

. Telemarketing offers, such as advance-fee loans, bogus lotteries, pyramid schemes and phony investments (such as Ponzi schemes).

. Student-related fraud. The National Association of Student Financial Aid Administrators estimates that 350,000 or more people lose $5 million a year through financial aid schemes, including money-back-guarantee pitches for help with college applications and financial aid.

. Internet schemes, including phony auctions, credit card fraud, work-at-home scams, unauthorized long-distance charges, deceptive rebate offers and deceptive advertising.

. Travel scams, such as unusually inexpensive holiday and spring break packages aimed at students.

. Motor vehicle sales and repairs. From deceptive sales practices to unnecessary repairs and overcharging for service, millions of consumers are duped each year. Best defense? Unless you are dealing with a well-known and reputable company, get a second opinion before you authorize work.

. Home contractor scams, including unnecessary repairs, misrepresentation, bill padding, shoddy workmanship and door-to-door scams such as paving, yard work and “free” service inspections. Same as above. Get references and comparative estimates.

. Credit repair, including scams that promise to clean up your credit record, deceptive marketing of debt consolidation services, home mortgages and equity loans. Talk to your bank, credit union, or nonprofit Credit Counseling Services instead.

. Identity theft. New technologies make it much easier for crooks to steal your credit card, Social Security and account numbers and other personal information so they may obtain unlawful access to your cash or credit line. The FBI estimates there are 350,000 to 500,000 incidents of identity theft in the United States each year.

If you think you’ve been the victim of any of these … write to “Consumer Forum” at the address listed at the end of this column.

To alert Maine households and businesses immediately of scams such as those above as they occur, COMBAT has established a Maine Center for the Public Interest. The centerpiece of this project is a full service Web site, which is under construction. The Web site will be launched as soon as adequate funds are raised to cover operational expenses.

If you would like to be notified when the Web site – consumerprotect.org – is activated, e-mail NeCOMBAT@aol.com and we will put you on the e-mail notification list. This temporary address will not be able to answer requests for advice or assistance.

To learn how you can become part of the effort to create a Maine Center as a donor or volunteer, write requesting “Maine Center information” to the “Forum” address below. Please enclose a stamped, self-addressed legal-size envelope.

Consumer Forum is a collaborative effort of the Bangor Daily News and Northeast COMBAT. Send questions to Consumer Forum, Bangor Daily News, P.O. Box 1329, Bangor 04402-1329. COMBAT is a nonprofit organization with annual dues of $10. For membership information, write to the above address.