By The Survivors Club Staff

Question: What business really booms in a recession?  Answer: Scams and fraud.  

In tough times, law enforcement officials say, criminals go to even greater lengths to steal your money.  And right now, experts say, Internet crooks are working overtime to rip you off.

"I've been doing this for 22 years, and it's by far the most scams I've seen," says Steve Bernas of the Better Business Bureau of Chicago and Northern Illinois. "Everyone's looking for get-rich-quick schemes," Bernas tells The Chicago Tribune.

BEWARE OF SIX SCAMS:

Here are six scams that experts say are on the rise:

1.    Credit Repair: If you can’t make ends meet in these tough times, beware of companies promising to fix or improve your credit.  The Federal Trade Commission warns that it hasn’t been able to find a legitimate business yet that can actually eliminate genuine problems on a credit report.  According to the Los Angeles Times, “one sure-fire indication of a scam: A so-called credit repair company tries to collect an upfront fee or deposit.”  

2.    Foreclosure Rescue:  If you’re struggling with your mortgage payments, watch out for scammers who say they will negotiate with your lender in exchange for an upfront fee or even your monthly mortgage payment.  Another danger sign, according to the Los Angeles Times: “You’re asked to sign documents for a ‘rescue’ loan you didn’t ask for.  Check any such documents carefully to make sure you’re not unwittingly signing over the title to your home.”

3.    Identity Theft:  Look out for bogus emails from your “bank” asking for account information or from the “IRS” inquiring about unclaimed economic stimulus payments.  According to The Chicago Tribune, these e-mails may look authentic with realistic logos and references to legitimate companies.  These emails often ask you to reveal personal information that scammers then use it to steal your identity.

In 2008, the number of identity theft cases increased 22 percent resulting in $48 billion in losses, according to a study by the security firm Javelin Strategy & Research. Nearly 10 million people suffered ID theft with the average cost per case around $500.  (Javelin says those costs have dropped dramatically because of increased protection and consumer awareness.)

"The short story is that criminals are getting more desperate," says Jim Van Dyke, spokesman for Javelin.  Some 43 percent of the cases involved stolen wallets – with women the most likely targets – while 11 percent involved online rip-offs.

4.    Debt Relief:  If you’re mired in debt, experts say, you’re vulnerable to scammers who offer a quick fix. But the “solution” they’re probably offering is personal bankruptcy.  As the Los Angeles Times explains, bankruptcy, is “a legal way to get a breather from debt, but there’s a huge downside – it stays on a credit report for up to 10 years, hindering the chance to get a loan, rent an apartment or even get a good job.  Warning signs, according to the Federal Trade Commission, include ads that say: ‘Consolidate your bills into one monthly payment without borrowing’ or ‘Stop credit harassment, foreclosures, repossessions.’”

5.    “Free” Seminars:  If you hear about an “educational” lunch or dinner at a restaurant or hotel, everything may look legitimate.  But the Securities and Exchange Commission says that these are probably just sales presentations, nothing more.  According to the Los Angeles Times, here are the warning signs: “big promises, such as ‘Immediately add $100,000 to your net worth,’ and any investments said to be ‘guaranteed.’  The SEC report said that about half the seminars it attended featured misleading claims, and 13% appeared to be engaging in outright fraud.”

6.    Home-Based Work:  One growing threat: phony job-recruitment and work-at-home schemes aimed at folks who have lost their jobs, according to The Wall Street Journal.  These scams often require an upfront fee of $40 to $200 or more to receive information.

Beware of other offers that sound appealing: work at home, choose your own hours, be your own boss.  According to the Los Angeles Times, “all too often, such offers are costly dead ends.” After you pay your fee – which could be as much as $8,000 for “training” and “support” – you’re most likely left on your own.”

FIVE WAYS TO PROTECT YOURSELF:

How can you protect yourself from these scams and rip-offs? Here are a few key tips from the experts:

1. Use Common Sense: If it sounds too good to be true, it probably is.

2. Ask for references and check carefully.  Legitimate companies are happy to share additional information and consumer references until you’re completely satisfied.

3. Check with the National Consumers League and the National Fraud Information Center.

4. Say No to Pressure Tactics.  According to Scambusters.org, “scamsters always want your money right now. They don't want to give you time to think about your decision. If you are pressured to decide right now, decide ‘no.’"

5. Say No to Pressure Tactics."Scamsters always want your money right now," according to Scambusters.org."They don't want to give you time to think about your decision. If you are pressured to decide right now, decide 'no'."