FTC FACTS for Consumers

FOR THE CONSUMER 1-877-FTC-HELP

ftc.gov FEDERAL TRADE COMMISSION

Putting a Lid on International Scams: 

10 Tips for Being a Canny Consumer 

1 Keep in mind that wiring money is like sending cash: the sender has no 

protections against loss. Con artists often 

insist that people wire money, especially 

overseas, because it’s nearly impossible to 

reverse the transaction or trace the money. 

Don’t wire money to strangers, to sellers who 

insist on wire transfers for payment, or to 

someone who claims to be a relative in an 

emergency (and wants to keep the request a 

secret).

2 Don’t send money to someone you don’t know. That includes an online 

merchant you’ve never heard of — or an 

online love interest who asks for money or 

favors. It’s best to do business with sites you 

know and trust. If you buy items through an 

online auction, consider a payment option that 

provides protection, like a credit card. Don’t 

send cash or use a wire transfer service. 

3 Don’t respond to messages that ask for your personal or financial 

information, whether the message comes as 

an email, a phone call, a text message, or an 

ad. Don’t click on links in the message, or call 

phone numbers that are left on your answering 

machine, either. The crooks behind these 

messages are trying to trick you into giving 

up your personal information. If you get a 

message and are concerned about your account 

status, call the number on your credit or debit 

card — or your statement — and check it out.

4 Don’t play a foreign lottery. First, it’s easy to be tempted by messages 

that boast enticing odds in a foreign lottery, 

or messages that claim you’ve already won. 

Inevitably, you’ll be asked to pay “taxes,” “fees,” 

or “customs duties” to collect your prize. If you 

send money, you won’t get it back, regardless 

of the promises. Second, it’s illegal to play 

foreign lotteries.

M ass marketing fraud is a significant source of income for international crime rings. Con artists ignore geographic boundaries 

to reach out to potential victims by phone, email, postal mail, and through 

the Internet, and then trick them into sending money or giving out personal 

information. According to the Federal Trade Commission, the nation’s 

consumer protection agency, Americans report losses of more than a billion 

dollars a year to these frauds. 

To be sure, con artists can be clever, but many can be foiled by 

knowledgeable — and equally canny — consumers. Here are 10 things you 

can do to stop a scam: 

May 2010
Facts for Consumers 

5 Don’t agree to deposit a check from 

someone you don’t know and then 

wire money back, no matter how convincing 

the story. By law, banks must make funds from 

deposited checks available within days, but 

uncovering a fake check can take weeks. You are 

responsible for the checks you deposit: When 

a check turns out to be a fake, it’s you who is 

responsible for paying back the bank. 

6 Read your bills and monthly statements regularly—on paper and online. 

Scammers steal account information and then 

run up charges or commit crimes in your name. 

Dishonest merchants sometimes bill you for 

monthly “membership fees” and other goods or 

services you didn’t authorize. If you see charges 

you don’t recognize or didn’t okay, contact your 

bank, card issuer, or other creditor immediately.

7 In the wake of a natural disaster or another crisis, give to established 

charities rather than one that seems to have 

sprung up overnight. Pop-up charities probably 

don’t have the infrastructure to get help to the 

affected areas or people, and they could be 

collecting the money to finance illegal activity. 

Check out ftc.gov/charityfraud to learn more.

8 Talk to your doctor before buying health products or signing up for 

medical treatments. Ask about research that 

supports a product’s claims—and possible risks 

or side effects. Buy prescription drugs only 

from licensed U.S. pharmacies. Otherwise, 

you could end up with products that are fake, 

expired or mislabeled — in short, products 

that could be dangerous. Visit ftc.gov/health

for more information.

9 Remember there’s no such thing as 

a sure thing. If someone contacts you 

promoting low-risk, high-return investment 

opportunities, stay away. When you hear 

pitches that insist you act now, guarantees of big 

profits, promises of little or no financial risk, or 

demands that you send cash immediately, report 

them to the FTC. For more information about 

investment fraud, visit cftc.gov. 

10 Know where an offer comes from and who you’re dealing with. Try to find 

a seller’s physical address (not just a P.O. Box) 

and phone number. With VoIP and other webbased technologies, it’s tough to tell where 

someone is calling from. Do an internet search 

for the company name and website and look for 

negative reviews. Check them out with the Better 

Business Bureau at bbb.org. 

One bonus tip: Visit OnGuardOnline.gov to 

learn how to avoid internet fraud, secure your 

computer and protect your personal information. 

File a Complaint

If you believe you’ve been scammed, file a 

complaint with the FTC. Watch a new video, 

How to File a Complaint, at ftc.gov/video to 

learn more. 

The FTC works to prevent fraudulent, deceptive 

and unfair business practices in the marketplace 

and to provide information to help consumers 

spot, stop and avoid them. To file a complaint 

or get free information on consumer issues, 

visit ftc.gov or call toll-free, 1-877-FTC-HELP 

(1-877-382-4357); TTY: 1-866-653-4261. 

The FTC enters consumer complaints into the 

Consumer Sentinel Network, a secure online 

database and investigative tool used by hundreds 

of civil and criminal law enforcement agencies in 

the U.S. and abroad.