for Consumers

Catch the

Bandit in

Your Mailbox

FTC FACTS

TELEMARKETING

1-877-FTC-HELP

FEDERAL TRADE COMMISSION FOR THE CONSUMER

www.ftc.gov

olicitations are among the 180 billion pieces of mail the U.S.

Postal Service delivers each year. While most are for legitimate

products, services and charities, others definitely are not.

They’re the scams, sent by bandits to capitalize on your financial

needs, naivete, optimism — or everyone’s fantasy of hitting the jackpot.

How can you tell the difference between an offer from a legitimate organization

and one from an outfit that’s just out to steal your money? It’s no easy task.

Sham solicitations are slick looking, skillfully written, and can be very convincing. But according to the Federal Trade Commission, the U.S. Postal Inspection

Service, and your state Attorney General, a savvy consumer can learn to see

through a scam, and boot the bandit right out of the mailbox. That’s because

most mailbox scams are just variations on the same themes: promises of easy

money or easy credit or guarantees that you’re a winner of a fabulous or valuable prize.

Everyday Mailbo Everyday Mailbox Scams x Scams

Magazines Magazines

You get a postcard that says nothing about subscriptions but asks you to call a

telephone number about a contest, prize or sweepstakes entry. If you call, you

may get information about contest prizes or drawing dates; you’ll definitely get a

sales pitch for magazine subscriptions. The problem: Offers for “free,” “prepaid,” or “special” magazine subscription deals often leave you with years of

monthly payments for magazines you may not want or could buy for less elsewhere. These are deals you can do without.

S
Facts for Consumers

Prize Offers Prize Offers

The mail announces your eligibility for a

contest or says you may have won a fabulous

prize, but you’ll need to pay, at the very least,

for a 900 phone number and shipping and

handling, before you can enter the contest or

collect the prize. Toss any solicitation that asks

for money up front. The problem: Sham solicitations describe the prizes as being far more

valuable than they really are.

Foreign Lotteries otteries

U.S. law prohibits the cross-border sale or

purchase of lottery tickets by phone or mail.

It’s that simple. However, if you’ve ever

bought a foreign lottery ticket, you will receive

more solicitations for lotteries or foreign investments in your mail. The reason? Fraudulent

marketers buy and sell lists of people who have

already fallen for scams. You also may receive

solicitations that refer to secret systems to make

you a winner. Toss them first; then ask yourself two key questions: If there was a secret

system, why would a stranger want to share it

with you? Why are you hearing about it for the

first time through the mail?

Pyramid Schemes yramid Schemes

You get solicitations in the mail for schemes

that pay commissions for recruiting

distributors, not for making

sales. The solicitations usually

ask new distributors to pay

for high-priced products

and claim that you’ll make

money from the sales of

the distributors you’ve

recruited. These are

pyramid schemes.

The problems: First, pyramid schemes are

illegal; they collapse when no new distributors

can be recruited. Second, only those at the very

top make money, at least until the law catches

up with them.

Bogus Cr Bogus Credit Car edit Card Offers and Advance Fee Loans

You receive offers for credit cards or promises

or guarantees of loans on easy terms, regardless

of your credit history. The fees for these “guaranteed” offers start around $100. The problems: Legitimate lenders never guarantee

credit. If you get anything, it will be a list of

lenders who will reject your application if you

don’t meet their qualifications.

Pitches for Cr Pitches for Credit Repair

Your mail is filled with offers from credit

repair companies and credit clinics that claim

they can clean up your credit history — for a

fee — so you can qualify for a credit card, auto

loan, mortgage, or job. The problem: It's

illegal to charge an upfront fee for credit

repair.There’s nothing a credit repair company

can do for you for a fee that you can’t do for

yourself for free. You can correct genuine

mistakes or outdated information yourself by

contacting credit bureaus directly.

Travel Scams and Vacation Prize Pr acation Prize Promotions omotions

Certificates or faxes that congratulate you on

winning an exotic trip or fabulous vacation

offer may indicate that you are one in a million

or “specially selected.” The problems: These

unsolicited mailings land in millions of mailboxes, and the promoters couldn’t possibly

make good on the promises. Inevitably, the

cruise ship is a ferry, the hotel accommodations

are shoddy, and you usually have to pay for an

upgrade. In addition, scheduling the vacation at

the time you want may require an additional

fee.

Checks

You receive an unsolicited check in the mail.

The problem: By cashing the check, you may

be agreeing to be billed monthly for something

you don't want or need, such as Internet access

or membership in a web directory.
Facts for Consumers

Chain Letters

You receive a letter asking you to send a small

amount of money to a name on a list, replace

one of the names on the list with your own, and

then forward the revised message. The letter

may claim that the scheme is legal or

that it’s been reviewed by a lawyer. The problem: Chain letters

that ask you to send money

are almost always illegal,

and nearly everyone

who participates in

them loses.

Bogus Charities Bogus Charities

Over half a million federally recognized charities solicit for contributions. Most are legitimate, but not all. A legitimate charity sends

information about its mission, how your donation will be used, and proof that your contribution is tax-deductible. The problem: Some

phony charities use names that sound or look

like those of respected organizations. If you

have doubts about the legitimacy of a charitable

organization, check with groups like the Philanthropic Advisory Service (703-276-0100), the

National Charities Information Bureau (212-

929-6300), your state Attorney General, or

your local consumer protection agency.

Booting the Bandit Booting the Bandit

Whether the fraudulent solicitation

takes the form of a chain letter, a

business opportunity, a check,

or another “guaranteed” path

to easy money, it’s best to

beware and prepare. Here’s how to

boot a bandit out of your mailbox:

! Toss any solicitation that asks for payment

for a “free” gift. If it’s free or a gift, you

shouldn’t have to pay. Free is free.

! Toss any solicitation that doesn’t clearly

identify the company and its street address

and phone number. Pay particular attention

if you are directed to call a toll-free number

for more information about a product or

service. Often, when you dial a toll-free

number in response to a bogus solicitation,

you are secretly connected by a telemarketer or sales agent to a pay-per-call 900

number. In that case, you are paying to

listen to a sales pitch for a product, service,

prize, contest, or sweepstakes.

! Toss any solicitation that looks like a

government document and suggests contest

winnings or unclaimed assets are yours for

a small fee. The government doesn’t solicit

money from citizens.

! Toss any solicitation for a “prepaid” or

“special” deal with a nominal monthly

“processing fee.” You’ll save yourself

years of monthly payments for products or

services you no longer want or could pay

less for elsewhere.

! Toss any solicitation that asks for your bank

account or credit card account number.

! If you’re tempted to send any money for a

product or service that’s being touted

through the mail — and it’s a company

you’ve never heard of — take your time.

Check out the company — or the offer —

with the Attorney General or Better Business Bureau in your state and the state

where the company or organization is

located. This is not foolproof, though.

There may be no record of complaints if a

company is too new or if it has changed its

name.

! Watch out for unsolicited checks that, when

cashed, sign you up for products or services

you may not want or need.
Federal Trade Commission

Bureau of Consumer Protection

Office of Consumer and Business Education

October 2000

F C EDERAL RADE OMMISSION T FTC OR HE ONSUMER

1-877-FTC-HELP www.ftc.gov

Facts for Consumers

For More Information e Information

If you think you’ve received a fraudulent

solicitation or been scammed by a mailbox

bandit, the FTC, the U.S. Postal Inspection

Service, and your state Attorney General may

be able to help.

The FTC works for the consumer 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 to get free

information on consumer issues, visit

www.ftc.gov or call toll-free, 1-877-FTCHELP (1-877-382-4357); TTY: 1-866-653-

4261. The FTC enters Internet, telemarketing,

identity theft and other fraud-related complaints

into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal

law enforcement agencies in the U.S. and

abroad.

You also can contact your local postmaster or

call the Mail Fraud Complaint Center toll-free

at 1-800-372-8347 or visit them online at

www.usps.gov/feedback.