Ten Steps to Avoid Being Conned

1. Say NO to aggressive tactics. If you have listened to a salesperson’s spiel but feel uncomfortable or pressured, stand firm – walk away if you are in a shop or market; close your door firmly if you are at home; say goodbye and hang up if you are on the telephone. Uninvited salespeople are not visitors to your home and are legally obliged to leave when you ask.
    
2. Ask for ID. By law, door-to-door salespeople must show company identification if you request it. Do not invite strangers inside unless you have confirmed their identity. Note the person’s name, the name of the company, its address and phone number; ask the salesperson to wait outside and keep your door locked while you confirm his or her identity.
    
3. Ask questions. Don't feel foolish requesting more information, no matter how solid the investment seems – you will feel much more foolish if you lose your money!
    
4. Read the small print. If you are interested in a purchase, make sure, before you sign anything, that you know the whole cost, including delivery. Find out if there is a ‘cooling-off’ period. For any purchase involving a large amount of money, having a solicitor check any documents before you sign.
    
5. Ask about a warranty and request a receipt. Do not purchase unless you get the warranty in writing. Genuine door-to-door salespeople will issue a receipt for goods sold; the receipt should include the name of the company, its ABN (Australian Business Number), its address and phone number.
    
6. Be wary of scam letters or emails, and other 'fabulous opportunities'! Every year, hundreds of gullible people lose money to swindlers. For example, you receive a letter from an overseas company, asking for assistance to bring money into the country; for the use of your bank account, you are promised $1 million dollars. If you provide your bank account details, that account will soon be empty.
    
7. Don’t pay for ‘love’. Con artists target the vulnerable, for example, many lonely and/or elderly people have been conned out of their life-savings by dubious introduction agencies.
    
8. Know what to look for. Scams have common elements – large sums of money are involved, either as deposits or processing fees or payments from you, or promised in return for your bank account or credit card details. Don’t be fooled by flashy, official-looking logos on stationery or the lure of winning a lottery sweepstake.
    
9. Be wary of on-line fraud. It’s hard to resist a good Internet bargain but, according to a recent study by the Australian Institute of Criminology, up to 10 percent of all Net transactions involve fraud. Before investing on line, conduct a safety check on the company seeking your money with the ASIC (Australian Securities and Investment Commission) consumer advisory service.
    
10. Protect yourself. Limit the personal information you disclose as it can readily be misused. Read any privacy statements on Internet web sites to ensure your details are protect. Read the fine print at the end of any forms on which you have given personal details. Ask yourself: Is it reasonable for this company to request this information?

REMEMBER THE GOLDEN RULE – If it seems too good to be true, it probably is.

* These steps are discussed in more detail in Money Management for Women by Sheila Freeman and Helene Richards. Download your FREE chapter, "Breaking Up".

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