What is Cross Border Fraud?
Cross-border fraud is one
crime increasingly on the rise.
Consumers in the United States and beyond are losing billions of dollars
ever year to criminals who operate these scams from across the border. These crimes initiate in what are known as "boiler
rooms", the facilities from which they pitch an array of bogus investments,
products and services. The most common
instance of cross-border fraud involves foreign lottery scams, phony prize
winnings, advanced fee schemes and irrelevant loss protection offers for credit
cards.
The psychology of international fraud
The scams behind cross-border fraud are based on lies and scare tactics to trap on unknowing victims. Some of these con artists are bold enough to portray themselves as government officials, informing you of substantial winnings or federal money you're entitled to. Posing as someone related with a government agency adds legitimacy to the solicitation, making the criminal appear more believable.
Cross-border fraud is difficult to eliminate because victims generally have no clue of where these telemarketing calls originate. The criminals are rather crafty, sometimes having their mail forwarded from the U.S. while using phone numbers based in Canada or the U.K., causing them to resemble basic long-distance numbers. Most of the time, those attempting cross-border fraud want you to wire funds to them. This allows them to quickly pull off the scam while making the crime difficult to trace. Once they have your funds and personal information, you are then wide open to an array of dangerous crimes, including identity theft.
Protecting yourself from becoming a victim of cross border fraud
The best defense against this type of fraud is to remain weary of suspicious phone calls and emails. If a stranger suddenly offers you prize winnings or money for no reason, more than likely, it's all too good to be true. Falling victim to such a tempting ploy could spell financial disaster in the end.
The United States Federal Trade Commission recently created a new website dedicated to helping consumers detect, prevent and completely elude cross-border fraud: www.ftc.gov/crossborderhttp://www.ftc.gov/crossborder/ This site provides information on legal action taken by the FTC against the perpetrators of cross-border fraud. It also contains details on the FTC's relationship with foreign law enforcement agencies to collectively combat this costly problem.
The new FTC website allows consumers to download useful publications such as "Border-line Scams are the Real Thing", "Hang Up on Cross-border Phone Fraud" and "Straight Talk About Telemarketing". You will also find a downloadable poster in full color entitled "Foreign Lotteries: The Games You Can't Win". This poster includes a list of legitimate lottery vendors and warns consumers of those costly scams that should be avoided. The FTC's "Five-Point Plan for Attacking Cross-Border Fraud" is another feature that provides improved interaction amongst public and private sectors along with more involvement from law enforcement.
Aside from the wealth of information provided by the Federal Trade Commission, you can also learn more ways to defend against cross-border fraud by visiting www.fraud.org, the online home for the National Fraud Information Center. For advice on other fraudulent crimes, you can place at toll free call at: (800) 876-7060.
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