Describe any episode from your own experiense connected with this kind of fraud. ( 150 words)

FREE PRIZE SCHEMES

It happens every day. Thousands of people are notified by mail that they have won a free prize. Usually, it's a postcard notice that says your prize will be one of four or five "valuable" items--a new car, a vacation, a color television, or a $1,000 savings bond. Major companies sometimes give away expensive items in special promotions, but they usually don't notify winners with a postcard. Typically, these notices are mailed by con artists whose sole purpose is to rip you off.

If you contact the company by phone, as the postcard will tell you to do, your "free" prize could end up costing you hundreds of dollars. The following examples illustrate the point. A man in San Mateo, California, paid $398 for "shipping charges" to receive a "free" 1988 Pontiac automobile. Needless to say, he got nothing. A Bergen County, New Jersey, resident paid a $69 "shipping and handling charge" to get his "free" $1,000 savings bond (with a maturity of some 30 years). He could have bought the same bond from the U.S. Government for only $50.

Often you never get a prize. If you do get one, it typically is an inferior, overpriced, or grossly misrepresented piece of merchandise. For example, an "all terrain vehicle" turned out to be a lawn chair with wheels, a "sport fishing boat" was an inflatable raft, and a "genuine fur coat" was a dyed rabbit pelt worth about $30. Beware if the notice lists nice-sounding prizes like "designer" or "diamond" watches. They are likely to be cheap or practically worthless junk.

Further, the scam artist makes you pay for your "free" item, either by requiring you to order merchandise or by charging a shipping, handling charges, or processing fee. You can almost be certain that the fees required to get the prize will exceed the true monetary value of the prize itself. And the merchandise you are required to buy will be grossly overpriced, as has been the case with the water filters and purifiers and the vitamins that are often marketed to the lucky "winners." Every day, consumers throughout the U.S. lose many thousands of dollars to these unscrupulous free prize promoters. Their operations, known as boiler rooms, are staffed by high pressure sales people armed with sophisticated selling techniques designed to get you to send them money. Don't be swayed by their carefully scripted sales pitches and pressure tactics. Even better, arm yourself in the best possible way against falling victim to these kinds of frauds by knowing how these con men operate and being prepared to ignore their come-ons. If you receive a mailing promising you a free prize, or if you have been victimized in a free prize promotion through the mail, contact your local postmaster or the nearest Postal Inspector.

Task 4:

Read the text “CHAIN LETTERS” and give your judgment on the problem. Discuss it with your classmates.

Describe what do you know about this kind of fraud. Have you ever been envolved in like fraud? ( 150 words)

CHAIN LETTERS

A chain letter is a "get rich quick" scheme that promises that your mail box will soon be stuffed full of cash if you decide to participate. You're told you can make thousands of dollars every month if you follow the detailed instructions in the letter. A typical chain letter includes names and addresses of several individuals whom you may or may not know. You are instructed to send a certain amount of money-usually $5 to the person at the top of the list, and then eliminate that name and add yours to the bottom. You are then instructed to mail copies of the letter to a few more individuals who will hopefully repeat the entire process. The letter promises that if they follow the same procedure, your name will gradually move to the top of the list and you'll receive money - lots of it. There's at least one problem with chain letters. They're illegal if they request money or other items of value and promise a substantial return to the participants. Chain letters are a form of gambling, and sending them through the mail (or delivering them in person or by computer, but mailing money to participate) violates Title 18, United States Code, Section 1302, the Postal Lottery Statute. (Chain letters that ask for items of minor value, like picture postcards or recipes, may be mailed, since such items are not things of value within the meaning of the law.) Recently, high-tech chain letters have begun surfacing. They may be disseminated over the Internet, or may require the copying and mailing of computer disks rather than paper. Regardless of what technology is used to advance the scheme, if the mail is used at any step along the way, it is still illegal.

The main thing to remember is that a chain letter is simply a bad investment. You certainly won't get rich. You will receive little or no money. The few dollars you may get will probably not be as much as you spend making and mailing copies of the chain letter. Chain letters don't work because the promise that all participants in a chain letter will be winners is mathematically impossible. Also, many people participate, but do not send money to the person at the top of the list. Some others create a chain letter that lists their name numerous times - in various forms with different addressee. So, in reality, all the money in a chain is going to one person.

Do not be fooled if the chain letter is used to sell inexpensive reports on credit, mail order sales, mailing lists, or other topics. The primary purpose is to take your money, not to sell information. "Selling" a product does not ensure legality. Participating in a chain letter is a losing proposition. Turn over any chain letter you receive that asks for money or other items of value to your local postmaster or nearest Postal Inspector. Write on the mailing envelope of the letter or in a separate transmittal letter, "I received this in the mail and believe it may be illegal."

Task 5:

Read the text “INTERNET FRAUD” and express your point of view concerning this kind of fraud. Compare it with the opinions of your classmates.