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Jordan Goodman is the author of Everyone's Money Book, available at 888-201-6300. This is the third edition of the book. You can also visit his Web site at www.moneyanswers.com. He talks with us on Thursday mornings.
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July 10, 2003
"War and Terrorist-Related Charity Scams"
The combination of the war in Iraq, violence in the Middle East, and actual
and threats of terrorism from the World Trade Center to Bali has crooks and
scamsters working overtime to come up with new ways to separate you from
your money. They do it by manipulating your emotions, ranging from fear and greed to
sympathy. Crooks always follow the news and tailor their rip-offs for what
will appeal to people at the moment.
So, here is a look at some recent terrorist- and war-related scams:
- Protection from attack: Fears of terrorist attacks give fertile ground to
capitalize on people's fears of biological, chemical and nuclear
devastation. For example, in New York, a company called Laboratories of
BioFend was selling a "crisis kit" containing potassium iodide: pills to counter radiation. They marketed the kits by leaving frightening
phone messages on people's voicemails warning of imminent danger, particularly in the Buffalo area after six suspected al-Qaeda suspects were arrested in the area.
- Charitable chiseling: Groups play on sympathy to get money out of you for
purported Iraqi homeless victims of the war, families of war casualties, and
victims of terrorist incidents, including 9/11, the Bali bombing and
Israeli-Palestinian violence. Phony charities appeal to you by phone, direct
mail and e-mail, and play heavily on your heartstrings, but offer little
information about the legitimacy of their organization or their plans for
the funds raised. If you want to check out a charity to see if it is legit,
go to www.give.org, a clearinghouse of information about charities run by the Better Business Bureau. The military has a Web site at
www.army.mil/operations/oif/FAQ.html that provides information about
various legitimate military relief societies.
- "Get rich quick" deals: Everyone is trying to figure out how to profit
from terrorism, war and destruction, and the scamsters offer you the inside
track to quick wealth. When oil prices soared before the war, they sold oil
and gas exploration deals. Now, small companies are coming up with
revolutionary anti-terrorism products and technologies that increase
security or will prevent you from being killed by weapons of mass
destruction. Often, these products are worthless and, sometimes, the
"companies" that make them are bogus.
When hearing or seeing a pitch for any of these war- and terrorism-related
products, ask yourself: "If the person selling me this deal thinks it is so
good, why are they telling little old me about it instead of doing it
themselves?"
For More Financial Tips From Jordan Goodman
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