Headlines like this one on the radio, TV or Internet should
raise eyebrows and cause your defenses to go up. It sounds too good to be true, so it probably
is. They make it sound like you can sit
back with your feet up and watch the money roll in. What I always wonder is: If it’s that easy, why are they trying to
sell CDs or starter kits instead of doing it themselves? If they know all the secrets to making money
in the stock market or in real estate, why are they giving those secrets
away? If I knew how to make money on my
computer at home, why wouldn’t I pay a bunch of people to sit at computers in
a big building and keep most of that money myself? Maybe it’s easier (and less risky) to sell
books, CDs and kits than it is to actually make the money. Maybe if it sounds too good to be true,
there’s a hidden catch.
Making easy money is not the only promise that lures
unsuspecting citizens. Another magic
answer many people are desperate for is how to lose weight easily. In the Federal Trade Commission’s recently
released report, Consumer Fraud in the United States, 2011, fraudulent
weight-loss products are cited as the number one issue. An estimated 5.1 million Americans over the
age of 18 bought and used such products including nonprescription drugs,
dietary supplements, skin patches, creams, wraps, and earrings that were found
to deliver little or no benefit while promising easy, substantial weight loss
or weight loss without diet or exercise.
It was too good to be true!
Other areas for fraud included prize promotions, buyers'
clubs, work-at-home programs, credit repair, debt relief, credit card
insurance, business opportunities, mortgage relief, advance-fee loans, pyramid
schemes, government job offers, counterfeit checks, and grants (see page 22 of
the report). In some of these area there
are legitimate organizations offering services.
The best way to avoid possible fraud is to understand that the valid ones don’t sound
too good to be true; they require effort.
The source that led me to this report suggests measures
to combat fraud including: a task
force of regulators, consumer advocates, and legislators to promote new laws
and regulations; more accountability for media outlets and communication
channels that "profit from the frauds responsible for the losses suffered by
victims" and more government regulatory power.
Do we really need (or want) more laws, penalties and advocates to
protect us from too-good-to-be-true schemes? As long as we keep looking for the easy answers and abdicate
responsibility by claiming to be victims, that becomes the commonly proposed
solution. The real answers are changes
in behavior, which require the discipline to get in physical and financial shape
and the responsibility to own our problems instead of claiming to be victims.