The two of course are completely different. Medical insurance coverage provides the assurance that agreed treatments and procedures will be covered as long as a monthly premium is kept in good standing. In the event of a health care emergency, medical insurance companies will cover the full bill if the expense met with the terms and conditions of the insurance agreement.

Discounted medical plans on the other hand do not offer to cover any expenses. Instead, the company takes a fee in exchange for granting access to a list of pre-approved doctors, other health care providers and drug companies that have agreed to offer discounts to plan members.

The difference here is critical and could mean the difference between getting the necessary treatment or not.

This is why state officials in California have joined the ranks of those who went before them in Massachusetts last September, to fight those companies who are ambiguous or even purposefully misleading consumers regarding the health care product they are offering for sale.

So far over 150 complaints have been filed against unlicensed discount health and dental plans in California over the past four years.

The frightening reality is that these unscrupulous companies target the most vulnerable group of people. Those who are struggling to find ways to cover all the bases tend to fall for the hope of purchasing health care coverage at lower rates, so they readily believe when the medical plans are sold as insurance policies, only to face the ugly truth in times of crisis when it matters the most.

Companies that sell legitimate discount medical plans though take umbrage with the allegation that all of these plans are akin to scams. They argue that medical discount plans provide relief from expensive health care costs for a vast number of people and they should not be pushed aside as irrelevant.

One thing is for sure the battle for fair practices in the health care industry has only just begun. But the state’s hands-on interest in consumer rights within the health care industry will lead to a better informed public and an increase in the awareness of available products and services.

Consumers Warned About Discount Medical Plans was created by and is property of American Consumer News.

The Better Business Bureau organization is warning consumers about a new scam that has been showcasing the organization’s own name in order to steal thousands from unsuspecting consumers who are led to believe they have won a lottery prize. The scammers are posing as representatives and employees of the BBB have been using phone and email contact to solicit the money. Consumers are being asked to wire money to the so-called organization in order to collect their prize. Many victims do not realize they are being scammed because the con artists are using the real names and biographical information from BBB employees, which were likely obtained from the organization’s website. When consumer do a search for a BBB employee, the names and information are often consistent, making the scam appear more believable.

As more people are struggling to make ends meet and many more are still looking for work, a lottery win is a tempting offer. The Better Business Bureau is hoping to get the word out that by no means are they associated with a lottery. The company is also supplying consumers with a list of tips to help thwart scammers from getting consumer information. These tips include:

Gut Instinct is Usually Right
Many people will receive a warning from their subconscious about situations that do not feel right. As the old adage goes ‘if it looks too good to be true, it probably is.’

Money Doesn’t Bring More Money
Any situation that asks for money in exchange for a free prize or cash prize should be avoided. Victims are often easily convinced that just a few bucks will net a few thousand bucks. However, once the money is sent via a wire transfer, there is no way to track it or get it back.

Don’t Cash Checks
Scammers have been using the fake check for years to dupe consumers. Even popular sites like ebay and craigslist where people sell to other people have brought on fake check schemes. Typically a check is sent to the victim as payment for an item or with instructions to cash the check, retain a certain amount for themselves, and wire the rest back. In the case of online sales, the check is made out for more than the amount of the item purchased with instructions to ‘keep the rest’. Once a victim deposits the check into their own account, they become responsible for the money. When the check bounces or is identified as a fake, the victim has usually already used funds from the check to wire to scammers, leaving them responsible for the cash. Essentially, victims are sending money to scammers they don’t have in their own pockets. The checks being used look incredibly real.

Double-Check Red Flags
Even if a solicitation appears to be from the most reliable of companies, contact the company directly to inquire about the claim. If contacted by phone, hang up and contact the organization back by dialing the number yourself. Anyone on the phone can say anything they want to convince you of falling for the scam. One phone call to the company being represented may save you from financial ruin.

BBB Warning Public About Lotto Scam was created by and is property of American Consumer News.

Loan Scam

One young woman wanted to secure a loan from an online source.  As she was considered a high risk, it was difficult for her to get the money from conventional sources.  She went online and found a business in Baltimore that just so happened to specialize in high risk loans.

She happily completed the application complete with private Social Security numbers.  She was very excited to have been approved for the loan and was told the money would be coming soon.  She was then asked to make monthly payments as collateral and then the scammers topped up the account with fees. 

Becoming suspicious when the money was not forthcoming, she contacted local law enforcement.
 
Mystery Shopper Scam

Another savvy consumer became wise when he got an invitation to become a “Mystery Shopper”.  A legitimate business where companies higher a ‘secret shopper’ to pose as a customer to record how customer service and products are displayed and then report back to the corporation.  Recording things like how long before you were acknowledged, how long you have to wait in line and if they check in the lower rack of the shopping buggy can be assessed.

This scam however, was no such thing.  In a legitimate situation you do the analysis and then submit the review and any receipts before getting paid.  This was not the case.  And this sceptical person was given a check for $2,980.00 to do a $100 shop at a variety of retailers, fill out an evaluation and then mail it back.  The second step in the scam was to wire $2,000 via Western Union to a New York bank to check to see if Western Union was conducting themselves in a proper fashion.  This is what prompted the consumer to involve the police and shut them down. 

Some Mystery Shopper scammers are even developing relationships by establishing trust through a series of smaller paid audits before asking for the larger Western Union transfer.  The big hole is that once you pass on the money you are on the hook for it. 

Remember that if it is “too good to be true, it usually is”.

Consumers Beware – This is The Holiday Scam Season was created by and is property of American Consumer News.

The FBI’s press releases states “Within the last several months, the FBI has seen a significant increase in fraud involving the exploitation of valid online banking credentials belonging to small and medium businesses, municipal governments, and school districts. In a typical scenario, the targeted entity receives a “spear phishing” e-mail which either contains an infected attachment, or directs the recipient to an infected website. Once the recipient opens the attachment or visits the website, malware is installed on their computer. The malware contains a key logger which will harvest each recipient’s business or corporate bank account login information. Shortly thereafter, the perpetrator either creates another user account with the stolen login information or directly initiates funds transfers by masquerading as the legitimate user. These transfers have occurred as both traditional wire transfers and as ACH transfers.”

The money that is transferred from one account is typically then moved into the accounts of others in the know but often into the accounts of the unsuspecting. Criminals who are looking to transfer funds into an account will often use work-at-home propositions to lure individuals into doing the crime for them. The job advertisements are often planted on respected job boards. The general idea of the job entails processing payments for a company. The job seekers agree to receive wire transfers into their own bank accounts and then forward the stolen money to accounts oversees using services like Western Union.

The FBI advises consumers to keep their computers updates with anti-virus software and install a personal firewall. Consumers can visit this website to learn more about the proper software and prevention measures that can be taken to prevent risk. It may also be beneficial to speak directly with your bank about precautions and security measures needed when conducting banking online.

Consumers are also advised to report suspicious activities involving their bank accounts to the Internet Crime Complaint Center. Consumers who have been solicited to work at home on jobs that require transferring funds or sending money overseas should also file a complaint with the center.

FBI Warns Consumes of Cyber Scam Robbing Bank Accounts was created by and is property of American Consumer News.

The reason for that these schemes work for the criminals is that there is a lag between the time in which the check is deposited and when it clears the system all the way back to the originating bank. In this manner the bank into which the check is deposited “loans” the money on the genuine-looking check to the one who is cashing or depositing it.

Then the victims do what they are told and forward on the lion’s share of the check to third-party perpetrators. Once the original check bounces and comes back through the system, those who deposited the check are liable for the full amount.

The checks look real. Banks often cannot tell if the checks are real or not. This compounds the problem. Added to this is the fact that banks are required to make the money available to you in 5 to 7 business days. This means that you can take the money out or move it even though the original check is still working its way through the system.

What to watch out for. If you are ever approached by someone who wants to give you a check to deposit from which you pay them a lesser amount and allow you to keep the rest for your trouble, then you should be instantly suspicious. Anyone who does business in this manner has something to hide.

Other tactics include an announcement that you have won a lottery and a check is being sent to you but you need to pay out taxes on the amount. Cash grants are issued via check but there is a processing fee. You have a buyer of something that you are selling and they ask you to take a check for payment and return the overage to them.

Who to contact. Contact your local police agency in order to alert them to what you have witnessed – especially if you have become a victim. You will want to file an official police report that can be used in your defense. This will also alert authorities that the scheme is occurring in the area so that others can be warned about its existence. Then, contact your bank and let them know about the situation, too.

Unfortunately, these fake check schemes are operated for either Canada or other countries around the world, so it is almost impossible to pursue and prosecute those responsible. The best method in protecting yourself is to heed the tips above and question the motives and intentions of those who make these kinds of offers to you. You can also visit www.fakechecks.org to give you additional advice on this topic.

Watch for Fake Check Schemes that Cost You Money was created by and is property of American Consumer News.

These sales people are often recruited by companies looking to hire college or even high school-aged kids whom they send in groups to different neighborhoods around the country. The premise of the causes ranges from supporting charities, paying for a school trip, helping the soldiers fighting overseas, or even just a story about how they are rebuilding their personal lives. The sales people are often known for employing hard-edged sales tactics to sell you magazines. Consumers who feel obligated to purchase these magazines find out a few weeks later that their magazines will never be delivered.

The misleading sales people are usually not properly licensed and can be quite believable, especially by the elderly who want to be helpful. There have even been reported incidents where consumers felt threatened by sales people who became angry and violent, leading to police intervention. Sadly, in many cases, the sales people themselves will find that their employers have taken them advantage them too by requiring long working hours, poor living and traveling conditions, and lowered or withheld wages.

Consumers who encounter such sales representatives can do some things to protect themselves from potential harm and loss of their money.

If someone comes to your home to sell something :

• Make sure you ask for identification. Perhaps once you ask for a sales license and picture identification, the sales person will leave willing. If they can not provide proof of who they are, do not continue the conversation.

• Never let intimidation tactics talk you out of your money. You are not required to make any purchase or donation that you don’t want to make.

• If a sales person does make a visit to your home and you do not feel comfortable or are even threatened by them in any way, contact your local authorities and report the incident. Your information could prevent other people from having to endure the same situation.

• If you have made a purchase and later feel duped by the sales person, you have the right under the laws of the Federal Trade Commission’s Three -Day Cooling Off Rule, to cancel any order that totals over $25 if the purchase was made in their home or outside the seller’s place of business. Sales people should be giving receipts as well as a cancellation option to contact the company. Law requires that a company receiving a cancellation notice has 10 days to refund the money upon receiving the cancellation notice.

Consumers are working harder than ever to get out and stay out of debt. Losing money in a fraudulent sales scheme is not going to help anyone’s finances. Keep an eye out for such scams and if worse comes to worse, don’t answer the door for people you do not know.

Don’t Believe the Door-To-Door Salespeople was created by and is property of American Consumer News.

If you qualify for this special payment you should know that no action is required on your part to secure your payment. This means you do not have to fill out any applications, forms, or pay any fees to process your payment. Scammers are sending out mass emails hoping to find someone who will take the bait and provide them with personal information that will be undoubtedly be used to perform identity theft or credit card fraud. Similar to other email scams found in your inbox, this scam claims to have “urgent news” regarding your stimulus payment. Consumers unaware of this scam may be tempted to click on a link provided which will then direct them to a bogus website. Unfortunately email scams have become quite sophisticated in that con artists are able to create websites that look like the real thing. In this case the website will look very much like a government website which may lead individuals to disclose personal information such as bank account numbers, date of birth or social security numbers. The best way to avoid being victim of a scam is to never disclose sensitive information in response to unsolicited correspondence.

The following information provides answers to commonly asked questions regarding this one time payment.

• Eligible individuals include certain individuals who receive Social Security or SSI, Railroad Retirement or Veterans benefits. To qualify for the payment you must have been eligible for benefits in the final two months of 2008 or January of 2009 with an address of record in one of the 50 states or its territories.
• As previously stated there is no action required on your part to receive this payment. Eligible individuals should receive the payment by the end of May 2009 in the standard form they usually receive benefits (direct deposit or paper check). The payment will be seperate from your regular benefit payment and consumers are urged to not contact the Social Security Administration regarding your payment unless you have not received it by June 4, 2009.
• This economic recovery payment will not count as income or earnings for Social Security disability benefits.
• Individuals will only receive this payment one time. This means if you receive more than one type of qualifying benefit you will only get one $250 payment, not one payment for each benefit you currently receive. If both you and your spouse however collect benefits you will each receive one payment.

No Action Needed To Receive Social Security Stimulus Check was created by and is property of American Consumer News.

Here is some of the mind-bending money matter that getcha’ all of the time. Learn about them and then learn how to avoid them.

1. Show Me the Bargain

Imagine you are looking to buy a house. The nice real estate lady shows you several houses that cost $300,000. The next several house she brings you to visit cost $100,000. You mind automatically processes the “bargain” deal you are getting with the latter homes and you fall for the cheaper prices without doing your homework. Our minds tend to hang on to the first price we hear as the comparable price without researching other options.

2. Misplaced Money Myths

Imagine you have an old car. It breaks down every week and you just keep sinking more and more money into getting it fixed instead of facing reality. Allocating more money into something that you should have walked away from is a money mess. While it’s a nice feeling to know you own your car outright, it doesn’t prove rational to keep driving a deathtrap instead of buying a more reliable, safer car.

3. The Instant Satisfaction Factor

Imagine the times in your life you have come up with idea you just had to do right away such as take a vacation, get a bigger television, or make a daily trip to the coffee shop. For most people, saving up money is hard to do. It feels better to just go out and get what you want – that is, until you actually do it. After the initial thrill, you may feel guilty for not waiting. Impulsive buying is not good for any budget. Make it a rule of thumb to wait a day before making purchases beyond daily living needs.

4. The Free Falsehoods

Rarely in life do we find that what is advertised as “free” is really and truly free, without strings or other obligations. Too many people make the mistake of jumping on the free bandwagon without reading the fine print. When you hear the word free, you should learn to stop jumping. Instead think about how free it could really be and what consequences might occur based on free. For example, a “free credit card” with no annual fee, isn’t exactly free. It can be a temptation that instead leads you to big debts you can not afford.

Looking for a a decent credit card cash back? Checkout CreditRoom.com and compare cash back credit cards such as the Advanta business card and the Citibank Platinum Select Visa and find the best deal.

4 Mind-Bending Money Mazes – Don’t Be a Sucker was created by and is property of American Consumer News.

1. The Post Office: The Post Office is a common place where scams can be run. It has nothing to do with the people there, it is simply the way the Post Office was set up to be accommodating to the general public. Here are two common scams and what you can do to protect yourself.
   1. Stamps: If a letter has too many stamps on it, the post office will happily offer a refund of excess postage. Unfortunately, that means that if too much postage is purposefully put on one item, anyone can take that item to the Post Office for a refund in cash. Again, it is an easy scam to pull off and can be easily hidden if a company sends out a lot of marketing mail or bills.

<!–[if !supportLists]–>· <!–[endif]–>Protect Yourself By: Keeping track of how many stamps your bookkeeper has at any one time and how many stamps are given out to other employees. This can be done by simply keeping the stamps in your own desk. If you have a postage machine and cannot monitor stamps given out, take items to the Post Office yourself or give those items to someone in the office who has no access to the machine. This way, there is some accountability in the office and offers some protection to you.

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1. 2. Money Orders: In case you were not aware, the Post Office does offer money orders for sale. Unfortunately, this means that an embezzling bookkeeper can take any check written to the Post Office and have it turned into a Money Order made out to themselves. That money order is as good as cash and can be put into any bank account without a Small Business Owner ever knowing.

<!–[if !supportLists]–>· <!–[endif]–>Protect Yourself By: Demanding to see receipts from the Post Office immediately. The Post Office always gives a receipt when it makes a sale, no matter what. If a money order is purchased from the Post Office, that money order is going to show up on the receipt. By reviewing receipts every time someone goes to the Post Office, you will know immediately if any money goes astray.

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2. Payroll Taxes: Using Payroll Taxes to embezzle thousands of dollars is one of the most common ways a bookkeeper can steal. It is so simple and so easy, that many people do this year after year without ever getting caught. What they do is pay too much in taxes every single pay period, whether to themselves or a ghost employee. Then, at the end of the year, they file for a refund and get back thousands of dollars instantly.

<!–[if !supportLists]–>· <!–[endif]–>Protect Yourself By: Having your accountant review and/or file the payroll taxes every quarter. Specifically ask them to check for this kind of fraud since accountants don’t look for embezzlement unless you ask them too. If the taxes are too high, an accountant will let you know.

3. Redirected Payments: This is where things can get a bit tricky. Bookkeepers, good or bad, are in charge of writing checks. If an embezzler is smart enough to not forge a check, then an embezzler is also smart enough to get a Small Business Owner to sign a check for them. However, if a signed check gets to the person or company its supposed to get to…well, that is another story. It is very easy for an embezzler to get a Small Business Owner to sign a check to a company, and then deposit it into a different account.
   1. Consider this: You have a Citibank Business Credit Card. You charge on it every month and therefore, every month a payment has to be made. Once a month like clockwork, your bookkeeper comes to you with a check for payment. You think nothing of it and sign it never suspecting possible foul play. You also don’t notice if an account number was or was not listed on that check. Once you’ve signed that check and let it leave your sight, an embezzler could then put their own Citibank credit card number on the check paying off their own credit card instead of yours. Then, they would make the minimum payment on your card so that you would never suspect anything is wrong since you can still charge on your card. This can be done with any number of payment checks whether to credit cards, banks or even the IRS. Even if there is an account number on the check, it may not be yours…afterall, do you have all your account numbers memorized?

<!–[if !supportLists]–>· <!–[endif]–>Protect Yourself By: Always be the first to look at the mail…especially bank statements and credit account statements. If listed payments are less then what you remember making, you have an excuse to go and find the check. If checks have account numbers crossed out and new ones written out, you will be the first to know by simply opening your bank statement first. Anything that has white out or has been crossed out should set off alarm bells. Check these items closely right away to catch an embezzler as soon as theft occurs.

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While there are many other ways that embezzlers steal, this is just a few of the most common ones. Also check out the other articles in this series about Protecting Your Small Business from Embezzling Bookkeepers. Part 1 will teach you how to protect your Checking Account, Part 2 lists ways to stop Credit Card and Identity Theft fraud, and Part 3 discusses Ghosts in the Company. 

Protect Your Small Business from Embezzling Bookkeepers Part 4: Common Scams was created by and is property of American Consumer News.

According to the Arizona Republic, both the Better Business Bureau and the Federal Trade Commission have been receiving complains at a much higher rate about fraudulent business opportunities being advertised. In response to the increased number of scams being pitched, the FTC launched a program called “FAL$E HOPE$” in an attempt to protect investors from being scammed.

These pitches are frequently advertised in local newspapers and on the internet. They will come with all sorts of promises about the money you can make and very little detail as to how that money is supposed to be made. Some of the scam artists are even pitching their “business plans” in high-scale places such as hotel ballrooms in an attempt to make you believe that they have gained some sort of wealth from their “system.”

If you were to respond to one of these advertisements, you and a number of other potential victims would be invited to a presentation of the alleged business system or investment strategy. If you actually attended one of the meetings, you would find yourself in the middle of a pep-rally. There would be a lot of excitement and very little substance.

If you find yourself hearing a pitch that just sounds absolutely amazing, head on over to eBay and search for the name of the company. You might be able to find the same material being sold to you for just pennies on the dollar. These are often protest auctions from people who got ripped off by the company and don’t want anyone else to suffer their fate.

Don’t get pulled into one of these “business opportunities.” If the idea or system was extremely profitable, the people pitching them would be making use of the system to make money, not trying to sell the idea to other people!

Business Scams Heat Up as Economy Cools Down was created by and is property of American Consumer News.

The way Citibank was able to pull this off legally is that they bought Macy’s credit card portfolio. If you open a credit card with a bank or retailer, they have the legal right to transform your card with them to another type of card if their program changes. A common example of this might be when a bank switches from issuing Visa Credit Cards to MasterCard Credit Cards. Citibank used this loophole to purchase 3.5 million inactive Macy’s credit accounts and then opened up Macy’s branded Citibank credit cards for the customers.

Citibank made a statement to the Boston Globe about this business practice. Their public relations people had the audacity to claim that they had received “positive feedback” from customers about these new cars and that there were no privacy or security issues to be concerned about.

The truth is that Citibank is opening up a second credit line for people without them ever asking. If you receive a new Citibank Macy’s branded credit card in the mail, your credit score will actually go down! Customers who receive one of these will likely perform a hard-credit pull and have the age of their card reduced significantly. These two factors could easily lower your credit score by 25 points or more.

If you receive one of these cards in the mail, don’t make use of it. It might even be a good idea to move your credit cards from Citibank over to another financial institution. Citibank needs to hear from consumers that they are not happy and will not stand for this practice.

Citibank Busted Issuing 3.5 million Credit Cards to People Who Never Even Applied was created by and is property of American Consumer News.

One of the worst things that can happen to you is credit card fraud. This is even worse if you don’t pay very much attention to your credit reports, since you may not find out about the fraud until there are very serious problems to deal with. Even if it’s possible to get out of paying for most of the fraudulent purchases that are made on your card, you will often have to pay for some of them – and you will have to go through the hassle of dealing with a stolen credit card if you’re not careful.

One of the major places where credit card fraud happens now is online. Therefore, you should be very careful about the companies that you give your credit card number to. Ideally, you should figure out a way to avoid giving out your credit card number at all. There are several payment services online that will help you make your online payments without giving out your credit card number to unauthorized parties.

You should also make sure that if you are entering your credit card number that it is being entered into the right field on the right page, and that it is being sent over a secure connection. If the connection is not secure, then anybody online might be able to find the information that you sent.

Another place where credit card fraud is common is over the phone. For this reason, you should avoid giving your credit card number to people or companies over the phone if at all possible. You should also listen to your instincts regarding the phone and internet. If you have any doubts about the safety of giving your credit card number, then you should probably not do so. After all, when it comes to things like fraud, you’re much better off safe than sorry.

If you do find that there are charges on your credit card that you don’t remember making, then you might be a victim of credit card fraud. Luckily, there are a lot of options to people who think that their credit card might be stolen. The first thing you should do if you think that your card or card number has been stolen is to call up your credit card company and immediately cancel the card. This will keep the person who has stolen your card from using it anymore. While you’ll still have to deal with what has already been done with your card, you will at least have limited the damage.

To keep yourself from being a victim of credit card fraud, however, the most important thing to do is just to use common sense. If something seems shady, then it probably is, and you shouldn’t risk your credit card number if you are unsure of the situation.

Featured Link: Many people find the amount and types of mortgages available to be completely bewildering. At the moment there are over 8000 mortgage plans on offer ranging from basic 100% mortgages to the more popular remortgages. Take time to analyze your options and even better, use a broker to do the hard work.

Don’t Become the Next Victim of Credit Card Fraud was created by and is property of American Consumer News.

If you were to list a car, a new computer, or another item that cost in the range of $500 to $10,000 dollars, chances are you will be contacted by a number of “potential customers” who seem to be very excited to purchase the item up for sale and want to pay you with a cashier’s check. It might not even be an item you have for sale. You might be renting out an apartment or anything where someone would send you money because of a listing on Craigslist. They will tell you that the cashier’s check has already been cut for more than the amount that you are charging for the item.

The scam artist will send you the cashier’s check and your bank will cash it, even though it’s a bad check. Chances are they will tell you that it’s a good and perfectly legitimate check even though in all reality it’s almost certainly a fake. You’ll deposit the check, find the money in your account, and since you think you have their money, you happily send them the difference, you might even give them the item. It might be three of four months later before you find out that the check you were sent is fraudulent and then the back will take the whole amount of the cashier’s check out of your account.

The criminal now has the item that you had for sale and the money you sent to them on top of the cashier’s check! Chances are you won’t be able to track down the criminal and get justice, as they are often overseas and you’re just out of luck. If you get an offer like this on Craigslist, have absolutely no contact with the individual offering you the cashier’s check!

Don’t Become the Next Victim of a Craigslist Scam. was created by and is property of American Consumer News.

In response to this fiasco, the Department of Education has come down hard. New rules in place prevent financial aid offices from taking any gifts greater than $10.00 from banks or other financial institutions. These include things such as gifts, cash, prizes, trips and the like. Financial aid offices will also have to put at least 3 preferred lenders on their student loan marketing material and tell their students why those preferred lenders were chosen.

A number of different colleges have taken individual actions to clean up their financial aid offices. For example, the financial aid directors of Columbia University and Johns Hopkins University have both been fired. Since colleges are under very close watch right now, chances are the financial aid offices will treat you a little bit better and make sure that you’re getting a good deal.

If you’re going to apply for a Federal Stafford Loan, make sure to research the banks you’re choosing from thoroughly. Don’t just look at the 3 options your financial aid office will give you, look around online and see if you can’t get a better deal. Find one that won’t charge you an origination fee and one that will give you a discount for paying on your loan on time after you graduate. Make sure you’re going with a reputable bank that hasn’t had any string of complaints about how they treat their student loan holders. Do your due diligence to make sure you’re getting a high-quality and low-fee student loan.

Colleges Caught Red Handed Taking Kickbacks from Banks was created by and is property of American Consumer News.

What Protection Do You Have? – Before putting an item up for auction or bidding on any auction item on any auction site, make sure you understand how the auction works, and what the obligations and rights you have as a buyer and a seller. Make yourself familiar with the fraud protection that the auction sites offer. eBay offers a buyer protection service for $25.00 which will pay you up to $200 for items that you win and never receive, or that you do receive and have been misrepresented. Unfortunately, this doesn’t cover high-ticket items.

Research What You’re Bidding On – When you bid on an auction site, that doesn’t necessarily mean you’re getting the best deal. Always make sure you know exactly what you’re bidding on, and make sure that you can’t get the same item at Wal-Mart or an online retailer for less money.

Bid Cautiously – Before bidding on an item, ask any questions that you have about the item that you don’t know the answer to. Make sure the item has some good photos, and that there’s a solid description of what you’re getting. If the item is being sold “as is”, it’s likely to be broken when it arrives. Make sure the seller has had a very positive feedback rating (at least 98% positive). Get the contact information of the seller and their physical address, and verify them by calling and seeing if they gave you their real information. It’s probably best to bid on items only from people in your country so that you have a better chance to go after them if there’s a problem with the auction.

When You’re Selling Items – It might be best to accept money by PayPal only. Often times cashier’s checks, personal checks, and money orders that you receive are fraudulent. The bank may even cash them and say they’re good, even when they are fake! You might not know it’s a bad check until months later. If you do receive money by PayPal, login to your account and make sure the money’s actually there. Sometimes fraudsters will send a fake email that looks like it’s from PayPal purporting that a payment has been sent. It’s probably also a good idea only to allow bidders from your country of origin so that the item isn’t half-way around the world and you have no recourse if a problem arises.

When Paying with a Credit Card – If you have the option to, use PayPal to pay if you’re going to use your credit cards. If you deal directly with the merchant and give them you’re number, they’ve got it as long as your card is good. You certainly don’t want them to have your credit card number if you have no idea who the seller is. The down-side of using PayPal is that you waive your rights to issue a chargeback, which also puts you out of luck if the seller fails to send the merchandise.

Consider an Escrow Service – If you’re bidding on a rather large item, say more than $1000, use an escrow service. An Escrow Service is an intermediary which will hold your payment until you have received the item, and then after you are satisfied with it, release those funds to the seller. Don’t let the other party suggest an escrow service that you’ve never heard of before, likely it’s a scam for them to take your money. Instead use a reputable escrow service such as Escrow.com and SafeFunds.com that are well established. You can look at Escrow-Fraud.com for a list of fraudulent escrow services. You’ll pay a small fee to use the escrow service, but it’s well worth it.

If a Problem Arises – First, try resolving the issue with the seller (or buyer). If you can’t resolve the dispute, then contact the auction site and your credit card company. Finally, if those two avenues don’t work, make a report to the FTC and the Internet Crime Complaint Center.

How to Protect Yourself from eBay Fraud was created by and is property of American Consumer News.

Identity theft is one of the fastest growing crimes in the United States and Americans now lose over $50 billion a year because of identity theft each year according to the Federal Trade Commission. A number of companies will sell you credit monitoring and credit protection services that claim to help keep you safe from identity theft, but the only way to make sure that you don’t become one of the 9.3 million victims of identity theft each year is to freeze your credit report so that no one my access it, and now the three major credit bureaus are allowing customers to freeze their credit in all fifty states.

Freezing your credit report is the single most effective tool you have available to protect yourself from identity theft. The idea is that you can tell the three major credit bureaus to not give out your credit report information to anyone at all, so no credit inquiries can be done thus making your credit history essentially useless to the identity thief. When you want to apply for a credit card, home loan, or something of that sort you can then go back to the credit bureaus and have them temporarily ‘thaw’ your credit report so that banks can temporarily access them until you tell the credit bureaus that you would like your credit report frozen again.

In some localities, state law makes it so that you can get your credit report frozen for free, but instead of taking the time you research your state law and figure out the exact statute, usually it’s just easier to pay the $10.00 fee to each of the 3 major credit bureaus to freeze each of your credit reports. Each of the three major credit bureaus have a different process to freeze your credit, so you’ll have to check out the credit freeze guides for Equifax, Transunion, and Experian. If you ever want to thaw your credit report so that you can apply for some sort of loan, cell phone contract, or something of the sort, you’ll have to pay another $10.00 fee to each of the three major credit bureaus to make that happen.

The $10.00 fee each of the credit bureaus might seem a little bit much, but when you compare it to the fact that the average victim of identity theft loses $6,000 it’s a very small price to pay.

Don’t sign up with any of the credit monitoring or credit protection services, the only way to stop identity thieves is to freeze your credit.

Concerned About Identity Theft? Put Your Credit Report on Ice was created by and is property of American Consumer News.