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You've heard it many times before: If it sounds too good to be true, it probably is. Yet every year, many intelligent, honest people lose money to scam artists and illegal schemes. The question becomes, "How do you avoid being a victim of one of these schemes?"

No protection is foolproof, but several financial agencies have put together information and advice to help you spot fraud and illegal schemes. They want to help you protect your hard-earned assets. Some of the agencies also provide instructions on how to file a complaint. CFP Board has provided the resources below so you can be better prepared to know if a deal is too good to be true.

AARP

AARP is a nonprofit membership organization of persons 50 and older dedicated to addressing their needs and interests. The AARP Web site offers information on a broad range of topics, including AARP's public policies, answers to financial planning questions, guidance on health and wellness, and tips for coping with difficult life transitions.
> Web site - www.aarp.org

AARP Consumer News (May 2009):
Class-Action Lawsuits Generate Scams
Few notifications can get your attention faster than those from a lawyer—especially when you get word that you’re entitled to a piece of a recent settlement. But beware: Consumer watchdogs are warning of a flurry of scams by self-described legal beagles whose real goal is to put the financial bite on you.

The class-action lawsuit ruse has re-emerged to take advantage of today’s economic troubles. In this scam, consumers are notified out of the blue—usually via incoming e-mail or an unsolicited telephone call—that they are entitled to thousands of dollars because of a recent settlement. The catch, you must pay a fee in advance in order to collect the settlement. To read more about protecting yourself and your hard-earned cash, visit the AARP Web site at: http://bulletin.aarp.org/yourmoney/scamalert/articles/scam_alert_phony_lawsuits_settlements_rob_victims.html

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)

FDIC's Web site provides practical guidance on how to become a smarter, safer user of financial services. The Web site offers helpful hints, quick tips and common-sense strategies to protect and stretch your hard-earned dollars.
> Web site - www.fdic.gov/consumers/consumer/news/

FDIC Consumer News (March 2009):
Make the Most of Your FDIC Guarantee
If you have more than $250,000 at one insured institution, find out if it is fully insured. It’s especially important to take a closer look at your deposit insurance coverage after an unusually large deposit, such as after a home sale, an inheritance, or if you “roll over” a large company pension into an IRA at a bank. To learn more about the rules visit the Federal Deposit Insurance Corp. Web site at www.fdic.gov/news/news/financial/2008/fil08102a.html

FEDERAL RESERVE BOARD

On the Federal Reserve Board Web site you will find publications with advice on how to file a complaint about a bank, as well as tips on other consumer topics.
> Web site - www.federalreserve.gov/consumers.htm

Federal Reserve Update (May 2009):
Privacy Choices for Your Personal Financial Information
We all receive privacy notices from banks and other financial companies. It’s important to read these privacy notices—they explain how the company handles and shares your personal financial information. Keep in mind that not all privacy notices are the same. The Federal Reserve has an online guide that tells you about the other steps you can take to help protect the privacy of your personal financial information. Visit the Fed's page at: http://www.federalreserve.gov/pubs/privacy/default.htm

FEDERAL TRADE COMMISSION (FTC)

On the FTC Web site you will find publications with advice on avoiding scams and rip-offs.
> Web site - www.ftc.gov/bcp/consumer.shtm

FTC Update (January 2009):
Foreclosure Filings Up 81% in 2008, Mortgage Relief Scams Up Too
More than 2.3 million American homeowners faced foreclosure proceedings last year, an 81 percent increase from 2007. Many observers say the worst is yet to come as consumers grapple with layoffs, shrinking investment portfolios and falling home prices. Sadly, as home values across the country continue to plummet, authorities say a new breed of swindler is preying on homeowners desperate to avoid foreclosure. The latest wrinkle: the swindlers claim to be “foreclosure rescue companies” that charge upfront fees to modify loans but often do nothing to stave off foreclosure. To learn more about these swindles, visit the Federal Trade Commission Web site at www.ftc.gov/bcp/edu/pubs/consumer/credit/cre42.shtm

FINANCIAL INDUSTRTY REGULATORY AUTHORITY (FINRA)

Knowledge is the best defense against investment fraud. Reading FINRA's (formerly NASD) investor alerts will give you the information you need to protect your money and avoid scams and other investing problems.
> Web site - www.finra.org/InvestorInformation/InvestorAlerts/index.htm

FINRA Update (March 2009):
Scam Meter
We've all heard the timeless warning "If it sounds too good to be true, it probably is." It’s great advice, but the trick is figuring out when "good" becomes "too good." And if you have a good salesperson—or worse, a dishonest one—it gets really hard. While there's no clear way to know, the Financial Industry Regulatory Authority (FINRA) offers a four-question “Scam Meter” to help you tell if an investment you are thinking about might be trouble. Scan what may be a scam at apps.finra.org/meters/1/scammeter.aspx.

IDENTITY THEFT RESOURCE CENTER® (ITRC)

Identity Theft Resource Center® (ITRC) is a nonprofit, nationally respected organization dedicated to the understanding and prevention of identity theft. The ITRC provides consumer and victim support as well as public education. The ITRC also advises governmental agencies, legislators, law enforcement, and businesses about the evolving and growing problem of identity theft.
> Web site - www.idtheftcenter.org/index.html

ITRC Prevention Tips (October 2008):
Signs Your Personal Information Has Been Compromised
The Identity Theft Resource Center (ITRC) reports 449 reports of data breaches in the first eight months of 2008, topping the full year list of 446 in 2007. As a result, the ITRC estimates that more than 30 million people will receive a breach letter this year. Though unnerving, a breach letter does not mean you are a victim of identity theft. A breach letter is just that—a notice that some data has been lost or stolen. To learn more about data breaches, and how to tell if your personal information has been compromised, visit the ITRC web site at: www.idtheftcenter.org/artman2/publish/m_press/Breach_Letter_Blues.shtm

INTERNAL REVENUE SERVICE (IRS)

The Internal Revenue Service (IRS) is the United States federal government agency responsible for collecting taxes and enforcing internal revenue laws. The IRS Web site provides taxpayers easy access to tax forms, instructions, and tax-related publications. The IRS is part of the Department of the Treasury.
> Web site - www.irs.gov

IRS Update (January 2009):
IRS Expands Free Online Filing Program
If you are looking for a quick tax refund, consider filing your federal tax returns electronically. The Internal Revenue Service said last week it is expanding a program that enables taxpayers to file returns online at no charge, promising refunds much faster than for those who mail in paper forms. Taxpayers who file electronically using the IRS e-file system can receive refunds in as few as 10 days, compared to six to eight weeks for those filing paper returns, according to the IRS. More information about the IRS e-file system can be found at: www.irs.gov/newsroom/article/0,,id=202537,00.html?portlet=6

NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS (NAIC)

The NAIC Web site provides consumers the latest alerts about insurance products and services including, "Tips for Buying Life Insurance," and "Protect Yourself: How to Avoid Deceptive Sales Practices." The Web site also allows you to file a complaint with the Consumer Information Source.
> Web site - www.naic.org/consumer_home.htm

NAIC Consumer Alert (April 2009):
Going Green for Homeowners: What insurance Questions Should You Ask?
From recycling to solar panels, the green movement is taking over the nation as Americans are doing more to help protect the environment. For many homeowners, that includes plans to make their home more green with renovations. If you are considering environmentally friendly updates to your property, it’s also important to understand how those modifications are covered under your homeowners insurance policy. The National Association of Insurance Commissioners (NAIC) provides these tips to help make your home – and your insurance – more green. Read more at:
www.naic.org/documents/consumer_alert_earth_day.htm

NORTH AMERICAN SECURITIES ADMINISTRATORS ASSOCIATION (NASAA)

NASAA's Web site offers investors a wealth of resources to help them protect their savings. Some of the articles include "Top 10 Scams, Schemes and Scandals" and "How to Spot a Con Artist."
> Web site - www.nasaa.org/investor_education/NASAA_Fraud_Center/ or www.nasaa.org/Investor_Education/Investor_Alerts___Tips/

NASAA Investor Alert (February 2009):
Sandwich Generation Caught in the Middle
You've probably heard the “Sandwich Generation” those adults who are responsible for their own needs as well as the care and support of both their dependent children and elderly family members. Member of the Sandwich Generation can also be affected by the financial security of both their children and their parents. Members of this generation face difficult financial considerations when balancing their own economic needs with the needs of their families. The North American Securities Administrators Association has recently launched a new investor education program to provide members of the Sandwich Generation with the tools they need to be financially prepared. Read more at www.nasaa.org/investor_education/9589.cfm.

U.S. SECURITIES AND EXCHANGE COMMISSION (SEC)

The SEC Web site provides articles for investors on how to avoid fraud, including Internet Fraud: How to Avoid Internet Investment Scams," "Guide to Identifying and Avoiding Securities Fraud," "Stock Market Fraud 'Survivor' Checklist" and many more.
> Web site - www.sec.gov/investor/pubs_subject.shtml#fraud

SEC Update (August 2007):

The U.S. Securities and Exchange Commission has issued two investor alerts that address internet investment scams and investment-related junk faxes. The former informs you about how to spot different types of Internet fraud, what the SEC is doing to fight Internet investment scams, and how to use the Internet to invest wisely, while the latter tells you what you should know about investment-related junk faxes, including the steps you can take to try and stop them. Learn more about internet investment scams at www.sec.gov/investor/pubs/cyberfraud.htm and junk faxes at www.sec.gov/investor/pubs/junkfax.htm.

SOCIAL SECURITY ADMINISTRATION (SSA)

The Social Security Administration (SSA) is an independent agency of the United States federal government responsible for administration of social insurance programs. The agency covers a wide range of social security services, such as disability, retirement and survivors' benefits. The Social Security Administration Web site provides resources forms, instructions and publications related to retirement, disability, and survivors' benefits.
> Web site - www.ssa.gov

SSA Update (January 2009):
Social Security Unveils New Online Application for Benefits
The Social Security Administration, anticipating the not-to-distant prospect of 10,000 baby boomers applying for benefits every day, has put together a new online service that will allow people to get their benefits without ever traveling to a Social Security field office. The agency, in introducing the program earlier this months, said most people will be able to apply for their retirement or disability benefits in 15 minutes or less. To apply only, go to the Social Security retirement benefit application at: https://secure.ssa.gov/apps6z/iRRet/rib.
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