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Hispanics More Likely to be Victims of Fraud

Tips to Recognize and Avoid a Scam

In a recent survey on fraud, the Federal Trade Commission (FTC) found that Hispanics were more likely to have been victims of fraud than non-Hispanic whites. The three frauds reported most by Hispanic consumers were weight-loss products that make false claims, work-at-home schemes, and deceptive buyers’ club memberships.

One way frauds like these happen is over the phone. In fact, telemarketing fraud affects millions of people every year. The FTC offers these tips on how to determine a caller’s intentions and avoid these scams:

Weight-Loss Product Promises

Nonprescription drugs, dietary supplements, skin patches, creams, wraps, or earrings that promise easy, substantial weight loss — often without diet or exercise — topped the list in the FTC’s fraud survey. Avoid wasting your money and risking your health with these products. You should know:

You won’t get miraculous results without the effort. At best, products making these claims won’t work. At worst, they could harm your health.
There’s no “all-you-can-eat” weight-loss product. Claims that you can eat all the high-calorie food you want and still lose weight are false.
It won’t last. When you do lose weight, you can’t have once-and-for-all results without exercise or changes to your diet.

Work-at-Home Schemes

Ads for work-at-home opportunities may promise you earnings of thousands of dollars a month, but what they don’t mention is that you may have to spend your own money on ads, supplies, equipment, or instructions, or work countless hours without pay. Or, you may find your only job is to recruit other people for the “opportunity.” Some consumers have lost thousands of dollars to these schemes. Before you sign up for a work-at-home opportunity, remember:

Stuffing envelopes won’t earn you thousands a month. The same goes for home-based medical billing or craft work opportunities. Promises of big earnings fast are a sign it’s a scheme.
Big payoffs almost always require big risks. A guarantee for a large payout with little or no risk is a telltale sign of a fraud.
Real home-based businesses take work. If it were easy and highly profitable, wouldn’t everyone be doing it?

Buyers' Club Memberships

Whether they promise you a free trial, special deal, or a discount on products and services, a buyers’ club membership becomes a fraud when you’re billed for something you didn’t agree to purchase. Callers sometimes enroll consumers without their knowledge, or offer a membership as a free gift, not mentioning they’ll be automatically enrolled and charged a fee once the free trial period is over. Before you sign up, be sure to:

Ask questions and read the terms and conditions before you join. Will you be charged if you don’t cancel after a free trial is up? Will you be obligated to buy certain products or spend a certain amount each year?
Do your research to make sure a “free” offer really is free. Sometimes free trials turn into paid subscriptions.
Compare costs. When you factor in shipping and the cost of products after any initial discounts, is it still a good deal?

The FTC’s new consumer education campaign — Who’s Calling? Recognize & Report Phone Fraud — uses videos, articles, and other resources to educate consumers about how to recognize telemarketing scams. To learn more about how to protect yourself from phone fraud and report a scam, visit ftc.gov/phonefraud. The website is also available in Spanish at ftc.gov/fraudetelefonico.

This article was developed by the FTC as part of its ongoing work to educate consumers about telemarketing fraud. It can be reprinted, posted, or adapted by any business, community, or social organization to help its members, employees, or audiences learn more about fraudulent telemarketing.

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