• If the offer of an "opportunity" appears too good to be true, it probably is. Follow common business practice. For example, legitimate business is rarely conducted in cash on a street corner.
• Know who you are dealing with. If you have not heard of a person or company that you intend to do business with, learn more about them. Depending on the amount of money that you intend to spend, you may want to visit the business location, check with the Better Business Bureau, or consult with your bank, an attorney, or the police.
• Make sure you fully understand any business agreement that you enter into. If the terms are complex, have them reviewed by a competent attorney.
• Be wary of businesses that operate out of post office boxes or mail drops and do not have a street address, or of dealing with persons who do not have a direct telephone line, who are never "in" when you call, but always return your call later.
• Be wary of business deals that require you to sign nondisclosure or noncircumvention agreements that are designed to prevent you from independently verifying the bona fides of the people with whom you intend to do business. Con artists often use noncircumvention agreements to threaten their victims with civil suit if they report their losses to law enforcement.

Impersonation fraud occurs when someone assumes your identity to perform a fraud or other criminal act. Criminals can get the information they need to assume your identity from a variety of sources, such as the theft of your wallet, your trash, or from credit or bank information. They may approach you in person, by telephone, or on the Internet and ask you for the information.

The sources of information about you are so numerous that you cannot prevent the theft of your identity. But you can minimize your risk of loss by following a few simple hints.

• Never throw away ATM receipts, credit statements, credit cards, or bank statements in a usable form.
• Never give your credit card number over the telephone unless you make the call.
• Reconcile your bank account monthly and notify your bank of discrepancies immediately.
• Keep a list of telephone numbers to call to report the loss or theft of your wallet, credit cards, etc.
• Report unauthorized financial transactions to your bank, credit card company, and the police as soon as you detect them.
• Review a copy of your credit report at least once each year. Notify the credit bureau in writing of any questionable entries and follow through until they are explained or removed.
• If your identity has been assumed, ask the credit bureau to print a statement to that effect in your credit report.
• If you know of anyone who receives mail from credit card companies or banks in the names of others, report it to local or federal law enforcement authorities.

Nigerian letter frauds combine the threat of impersonation fraud with a variation of an advance fee scheme in which a letter, mailed from Nigeria, offers the recipient the "opportunity" to share in a percentage of millions of dollars that the author, a self-proclaimed government official, is trying to transfer illegally out of Nigeria. The recipient is encouraged to send information to the author, such as blank letterhead stationery, bank name and account numbers and other identifying information using a facsimile number provided in the letter. Some of these letters have also been received via E-mail through the Internet. The scheme relies on convincing a willing victim, who has demonstrated a "propensity for larceny" by responding to the invitation, to send money to the author of the letter in Nigeria in several installments of increasing amounts for a variety of reasons.

• If you receive a letter from Nigeria asking you to send personal or banking information, do not reply in any manner. Send the letter to the U.S. Secret Service or the FBI.
• If you know someone who is corresponding in one of these schemes, encourage that person to contact the FBI or the U.S. Secret Service as soon as possible.
• Be skeptical of individuals representing themselves as Nigerian or foreign government officials asking for your help in placing large sums of money in overseas bank accounts.
• Do not believe the promise of large sums of money for your cooperation.
• Guard your account information carefully.

An example of a Nigerian Fraud Letter:

Date: 8 Mar 2005 19:18:35 -0000
Subject: Re:
From: "SA" 
 This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
 

La Traducción española Abajo.
------------------------------------------------

Sir/Madam,

I am Dr. Seyi Ajibola, a consulting auditor of prime banks here in
Nigeria. I have the courage to crave your indulgence for this
important business believing that you will never let me down either
now or in the future.

On June 6,1998, there was an South African Mining
consultant/contractor with the Nigerian Mining Corporation, Mr.
Jeffrey A. Tutu, who made a numbered time (fixed)deposit with my bank
here for twelve calendar months,value US $16.5M (Sixteen Mill ion,
Five Hundred Thousand US Dol lars) in an account. On maturity, the
bank sent a routine notification to his forwarding address but got no
reply from him.

After a month, the bank sent another reminder and finally his contract
employers,the Nigerian Mining Corporation wrote to inform the bank
that Mr.Jeffrey A.Tutu died from an automobile accident, and he died
without MAKING A WILL attached to the account, and all attempts by the
South African Embassy to trace his next of kin was fruitless.

In July 1999, A committee was setu up by LionBankPLC to trace the
background of Mr. Tutu and in the course of our enquiries we
discovered that Mr.Jeffrey A.Tutu was in fact an immigrant from
Jamaica and only recently obtained South African Citizenship. He did
not declare any next of kin or relations in all his official
documents, including his Bank deposit paper work. The total money, US
$16.5 Million, is still sitting in the bank and the account is now
dormant.

No one will ever come forward to claim it and according to Nige rian
banking policy, after 5years, the money will revert to the ownership
of the Federal Government if the account owner is certified dead and
there is no beneficiary to come forward to claim it. This is the
situation, and having spent three years planning I am now looking for
a foreigner who will stand in as the next of kin to Mr.Jeffrey A.Tutu
and open a Bank Account abroad to facilitate the transfer of this
money as the beneficiary/next of kin. I am in touch with Mr. Tutu's
lawyer and he is ready to verify whoever I present as the rightful
beneficiary.

This is simple, all you have to do is to OPEN an account anywhere in
the world and send me its detail or send an existing account (The
account need not have any money in it) detail for me to arrange the
proper money transfer paperwork and facilitate the transfer.The money
will then be paid into this Account for us to share in the ratio of
60% for me, 30% for you and 10% for expenses that might come up
during transfer process. I plan to invest most of my share in your
organisation or any other place in Europe you advise. There is no risk
at all, and all the paper work for this transaction will be done by me
using my position and connections in the banks in Nigeria.

This business transaction is guaranteed and the first phase of the
transfer will be US$5M (FIVE MILLION DOLLARS) as advised by our
insider in the bank. If you are interested, please reply immediately
through my personal email sending the following details:

(1) Your Full Name/Address

(2) Your Private Telephone/fax Number.

(3) Your Full Account Details. (Again, this account need not have any
money in it)

Please observe utmost confidentiality and be rest assured that this
transaction would be most profitable for both of us because I shall
require your assistance to invest most of my share in your country.

I will give to you my Private Telephone and Fax Number upon your
positive response for discussion and once I am convinced that you are
capable will send you an access code with which you will be able to
verify the money from the bank's website and will also introduce you
to a key bank official who is deeply involved with me in this
business. I really need your strong assurance that you will never let
me down now or in future. This is a great chance for investment in
your company.

I look forward to your earliest reply.

Best Regards,

Dr. Seyi Ajibola
C/O LIONBANKPLC
Lagos, Nige ria
===================

La señor/señora,

Soy Dr. Seyi Ajibola, un auditor consultador de bancos principales
aquí en ria de Nige. Tengo el valor para anhelar su indulgencia para
este negocio importante que cree que usted nunca me permitirá abajo ni
ahora ni en el futuro.

El 6.1998 de junio, había un sudafricano Minando a
consultor/contratista con la Corporación de la Minería de rian de
Nige, Sr. UN.TUTU de Jeffrey, que hizo un depósito numerado de tiempo
(fijó) con mi banco aquí por doce meses civiles, el valor EEUU $16.5M
(Dieciséis ion del Molino, Quinientos Mil lars de EEUU Dol) en una
cuenta. En la madurez, el banco mandó una notificación rutinaria a su
dirección delantera pero no obtuvo contestación de él.

Después que un mes, el banco mandó otro recordatorio y finalmente sus
empleadores de contrato, la Corporación de la Minería de rian de Nige
escribió para informar el banco que UN.TUTU de Sr.Jeffrey murió de un
accidente de automóvil, y él murió sin HACIENDO TESTAMENTO conectado a
la cuenta, y todo procura por la Embajada sudafricana trazar a sus
parientes más cercanos eran inútiles.

En julio 1999, UN comité era setu arriba por LionBankPLC para trazar
el fondo de Sr. Tutú y en el curso de nuestras preguntas nosotros
descubrimos que UN.TUTU de Sr.Jeffrey era de hecho un inmigrante de
Jamaica y la Ciudadanía sudafricana sólo recientemente obtenida. El no
declaró cualquiera parientes más cercanos ni relaciones en todos sus
documentos de funcionario, inclusive su papeleo Bancario del depósito.
El dinero total, EEUU $16,5 millones, se sientan todavía en el banco y
la cuenta está ahora inactivo.

Nadie avanzará jamás reclamarlo y según rian de Nige la política
bancaria, después de 5years, el dinero volverá a la propiedad del
Gobierno federal si el dueño de cuenta es certificado muerto y no hay
beneficiario de avanzar a reclamarlo. Esto es la situación, y pasó
tres años planeando yo ahora busco un extranjero que se parará en como
los parientes más cercanos al UN.TUTU del Sr.Jeffrey y abrirá una
Cuenta bancaria para facilitar al exterior la transferencia de este
dinero como los parientes más cercanos de beneficiario. Estoy en
contacto con Sr. abogado de Tutú y él está listo para verificar
quienquiera que yo presento como el beneficiario con derecho.

Esto es sencillo, todo usted tiene que hacer DEBERA ABRIR una cuenta
dondequiera en el mundo y me manda su detalle o manda una cuenta
existente (La necesidad de cuenta no tiene dinero en ello) detalle
para mí arreglar el papeleo apropiado de la transferencia de dinero y
facilitar el dinero de transferencia el entonces se pagará en esta
Cuenta para nosotros compartir en la proporción de 60% para mí, 30
%Para usted y 10% para los gastos que quizás suban durante el proceso
de la transferencia. Planeo invertir la mayor parte de mi acción en su
organización o cualquier otro lugar en Europa que usted aconseja. Hay
ningún riesgo, y todo el papeleo para esta transacción serán hechos
por mí utilizando mi posición y las conexiones en los bancos en
Nigeria.

Esta transacción del negocio se garantiza y la primera fase de la
transferencia será (CINCO MUÑECA de ION de MOLINO ARS) como aconsejado
por nuestra persona enterada en el banco. Si usted es interesado, por
favor contestación inmediatamente por mi personal correo electrónico
que manda los detalles siguientes:

(1) Su Dirección de nombre y apellidos

(2) Su número de fax Telefónico Privado.

(3) Sus Detalles Repletos de Cuenta. (Otra vez, esta necesidad de
cuenta no tiene dinero en ello)

Observe por favor confidencialidad suprema y sea el descanso aseguró
que esta transacción sería muy provechosa para ambos de nosotros
porque requeriré su ayuda a invertir la mayor parte de mi acción en su
país.

Daré a usted mi Teléfono y número de fax Privados sobre su respuesta
positiva para la discusión y una vez yo tengo la convicción de que
usted soy capaz le mandará un código de acceso con que usted será
capaz de verificar el dinero del sitio web del banco y también le
introducirá a un funcionario bancario clave que es implicado
profundamente conmigo en este negocio. Necesito realmente su certeza
fuerte que usted nunca me permitirá abajo ahora ni en el futuro. Esto
es una gran oportunidad para la inversión en su compañía.

Espero su contestación más temprana.

Mejores Consideraciones,

Dr. Seyi Ajibola
C/O LION BANK PLC
Lagos, Nigeria

When you send money to people you do not know personally or give personal or financial information to unknown callers, you increase your chances of becoming a victim of telemarketing fraud.

• Don't buy from an unfamiliar company. Legitimate businesses understand that you want more information about their company and are happy to comply.
• Always ask for and wait until you receive written material about any offer or charity. If you get brochures about costly investments, ask someone whose financial advice you trust to review them. But, unfortunately, beware -- not everything written down is true.
• Always check out unfamiliar companies with your local consumer protection agency, Better Business Bureau, state Attorney General, the National Fraud Information Center, or other watchdog groups. Unfortunately, not all bad businesses can be identified through these organizations.
• Obtain a salesperson's name, business identity, telephone number, street address, mailing address, and business license number before you transact business. Some con artists give out false names, telephone numbers, addresses, and business license numbers. Verify the accuracy of these items.
• Before you give money to a charity or make an investment, find out what percentage of the money is paid in commissions and what percentage actually goes to the charity or investment.
• Before you send money, ask yourself a simple question. "What guarantee do I really have that this solicitor will use my money in the manner we agreed upon?"
• You must not be asked to pay in advance for services. Pay services only after they are delivered.
• Some con artists will send a messenger to your home to pick up money, claiming it is part of their service to you. In reality, they are taking your money without leaving any trace of who they are or where they can be reached.
• Always take your time making a decision. Legitimate companies won't pressure you to make a snap decision.
• Don't pay for a "free prize." If a caller tells you the payment is for taxes, he or she is violating federal law.
• Before you receive your next sales pitch, decide what your limits are -- the kinds of financial information you will and won't give out on the telephone.
• It's never rude to wait and think about an offer. Be sure to talk over big investments offered by telephone salespeople with a trusted friend, family member, or financial advisor.
• Never respond to an offer you don't understand thoroughly.
• Never send money or give out personal information such as credit card numbers and expiration dates, bank account numbers, dates of birth, or social security numbers to unfamiliar companies or unknown persons.
• Your personal information is often brokered to telemarketers through third parties.
• If you have information about a fraud report it to state, local, or federal law enforcement agencies.

This article is from an Indian website rediff.com written by Syed Firdaus Ashraf and published on January 18, 2006. Original article  

1. Get real

I, for one, would love to have Rs 1 crore (Rs 10 million) in my bank account by the time I turn 50. It's a great wish to cling to. But is it even vaguely realistic? Do I have any notion of how much I have to save to get that amount?

If I am 25 now and want Rs 1 crore when I turn 55, let's see how much I would have to save, starting now.

Inflation: Assumed at 7% per annum

Time period: 30 years

Current savings: Nil

To reach my target, I will have to save Rs 7,000 every month and it should earn a return of at least 8% per annum. This is not an impossible target, but it does not mean I will be rolling in luxury when I turn 55.

Let's say that my monthly expenses are Rs 15,000 a month. Going by the above example of inflation at 7% per annum, it will shoot up to Rs 1,14,184 in 30 years' time. These figures are not meant to elate or scare you; they are just to give you a reality check and a broad estimate.

You need to figure out what you are saving for, how much you need to save for it and how you are going to do it. 

2. Get cracking

The key is to make your money work for you.

In the above example, we assumed a return of 8% per annum. Keeping your money in a savings bank account will not earn you that kind of interest. Despite occasional rises, interest rates in India are on a gradual decline.

So, let your money work for you. Amongst fixed return investments, the Public Provident Fund is a good option; it offers 8% per annum.

The younger you are, the more you should invest in stocks because time is on your side to ride the lows of the stock market. Over time, stocks give the highest return when compared to other forms of investment.

If you don't want to take the plunge into stocks, try diversified equity mutual funds. These are funds that invest in the stocks of various companies in various sectors. Else, try balanced funds. These are mutual funds that invest in both equity (shares) and debt (fixed return investments). 

3. Learn to save

Investing smart is one thing. Spending wisely is another.

To get something, you have to sacrifice another. No one is asking you to live like a monk, but neither is it healthy to live like there is no tomorrow.

Take a good look at what is really eating away your income.

Is it the incessant partying and pubbing or shopping and eating out? Even if you cut your frivolous expenditure down by just Rs 1,000 a month, you have an extra Rs 12,000 at the end of the year.

My friend claimed that spending on cabs and auto rickshaws was chipping away at his bank account because he did not want to travel by trains or buses.

4. Are you honest?

You must be honest with yourself; with what you want and whether or not it is achievable. If not, see where you can compromise.

You may want to head to the West for a holiday, but can you really afford it? It may work out better for you to substitute it for a holiday in India. Or maybe an Asian destination.

You may want a three-bedroom apartment, but can you afford it? You may be able to if you settle for a city where real estate is not too expensive, or a home in the suburbs if you choose a metro.

Also, you may want to buy a home when you are 22 and have just landed your first job. It may, however, be wiser to wait for a few years till you have a higher salary and more savings to make a larger downpayment.

It's all right to dream. But don't let your dreams cloud reality. Once you get a grip on what you are saving for, you will be able to achieve it.