Scams Ripped from Today's Headlines

Foreign Currency

The dollar's volatility has led to a rash of currency con games. The hook is simple: A criminal promises high -- and often outlandish -- returns from foreign-currency trading. For example, in May 2008 the SEC charged Las Vegas-based Gold-Quest International with running a Ponzi scheme that raised more than $27 million from 2,100 investors by promising profits of 87.5% from trading foreign currency.

Next: Energy

Energy

As energy prices soared for most of this decade, scams involving oil-and-gas deals made a big comeback, says the North American Securities Administrators Association. In one such case, the SEC recently charged Donald Allen of Colorado Springs and his two companies of defrauding investors by diverting for his personal use more than $2.3 million raised in a series of oil-and-gas deals.

Next: Debt Negotiation

Debt Negotiation

With average household debt at record highs and personal bankruptcy rates rising, it's no wonder more people are reaching out for help with their debts. It's tempting to pay someone who promises to make creditors go away. But some debt-negotiation companies counsel their clients to ruin. For example, the Federal Trade Commission last fall censured four companies that falsely claimed they could reduce clients' debts by up to 60%. The companies had also advised clients to stop paying their bills without telling them they could be sued by creditors. You can find a legitimate credit-counseling agency at www.nfcc.org or www.aiccca.org.
Next: Mortgage-Foreclosure Rescue

Mortgage-Foreclosure Rescue

More than half of homeowners who are late on their mortgage payments aren't aware that lenders have programs to help avoid foreclosure. People who don't know their options can fall prey to crooks who charge $1,000 or more for fraudulent foreclosure-avoidance services. If you have mortgage problems and your lender can't help, you have alternatives. Find a housing-counseling agency approved by the U.S. Department of Housing and Urban Development (links are listed at www.hud.gov). If you're worried about foreclosure, contact the Hope Now Alliance (www.hopenow.com or 888-995-4673).
Next: Bank Phishing

Bank Phishing

Popular phishing schemes -- e-mails designed to get you to relinquish private security information, including your Social Security number -- falsely tell you your bank has been acquired. The FTC gives this example: "We recently purchased ABC Bank. Due to concerns for the safety and integrity of our new online-banking customers, we have issued this warning message ... Please follow the link below to renew your account information." Phishers also target mortgage accounts using similar pitches.

Next: Reverse Mortgages

Reverse Mortgages

Their stock portfolios eviscerated, retirees may be tempted to tap their home equity for cash through a reverse mortgage. It can be a good move, but regulators warn of several pitfalls. Outright fraud is rare, although it does occur; one adviser pocketed $42,000 from a reverse-mortgage payout without his client knowing. HUD provides mortgage information for free and can hook you up with counseling agencies that can provide advice and a list of HUD-approved lenders. Call 800-569-4287 for the name and location of a HUD-approved counseling agency near you.

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10 New Scams for Troubled Times

The current financial crisis has unleashed a new torrent of scam artists who are working overtime to get their hands on your money. Many of these scams prey on current fears about bank safety, mortgage foreclosure, and the credit crisis.Click through our gallery as personal finance experts Ken and Daria Dolan expose 10 popular scams being run right now -- and learn how to protect yourself from them.

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10 New Scams for Troubled Times