— The old axiom, “If it seems too good to be true, it probably is,” is still the best protection against being taken in by scammers, according to a panel of fraud experts at a Better Business Bureau Fraud Summit Tuesday.

“We’re seeing a lot of scams in the county,” said Limestone County Sheriff’s Chief Investigator Capt. Stanley McNatt. “One e-mail going around contains a death threat to a family member. It tells the person they can stop the killing for X-number of dollars. There are also lottery scams. The best advice we can tell people is to use some common sense.”

McNatt was one of three local lawmen at the summit, with the others being Athens Police Capt. Floyd Johnson and Sheriff’s Investigator Lt. Brad Curnutt, who joined representatives of the Alabama Securities Commission, the U.S. Postal Inspection Service, Top of Alabama Regional Council of Governments, Alabama Attorney General’s Office, BBB, and Federal Trade Commission.

According to Tricia Pruitt, regional vice president of the Better Business Bureau serving Morgan, Limestone and Lawrence counties, scammers thrive in times of economic downturn because many residents have fallen on financial hard times and let their guard down out of desperation.

And there’s always someone there to take advantage of vulnerable people.

According to Securities Commission Education and Public Affairs Manager Daniel Lord, it might not be bogus products or fraud perpetrated on the public, but there is such a thing as “inappropriate” products of which retired or elderly people need to be aware.

“You will see people reinvesting pensions and the advice is never put all your eggs in one basket,” said Lord. “Investments might not be necessarily fraudulent, but they don’t reflect your risk tolerance. Always check with services such as Morningstar, which most libraries subscribe to, that rates mutual funds by number of stars. Shop it out at the library.”

Lord said one product of which elderly people should become educated is variable annuities. He said these products should always be checked out with the Securities and Exchange Commission.

“People typically have a nest egg,” he said. “We see people putting as much as 90 percent into a variable annuity. These are not suitable for someone who can’t hold on for 10 years. Most have a 15-to-20-percent penalty if you want to get your investment back.”

Kathy Jodoin of the State Health Insurance Program said Medicare recipients are being inundated with offers for supplemental drug insurance. She said beware of anyone using the term “Obama Care.”

“It is called the Affordable Care Act,” she said.

She said if in doubt that a drug plan is legitimate, residents should visit www.Medicare.gov, which has listed some 46 state-approved plans.

Telemarketers

As to annoying telemarketers, U.S. Postal Inspection Service representative Tony Robinson advises getting put on a “Do Not Call List” every five years, including one for cell phones.

“If it is a company you regularly do business with, write and ask them to limit their calling,” said Robinson.

However, political candidates are exempt from Do Not Call Lists, he said.

Other advice from Robinson is to put mail on hold if you are going out of town, which can be done online or by a phone call. He also advises renting a post office box in which to receive checks or other important documents that contain clues to identity.

He said, likewise, all envelopes containing checks should be carried to the post office and mailed rather than leaving them in the mailbox with the red flag up. Also, invest in a cross-shredder, which makes destroyed documents nearly impossible for identity thieves to piece back together.

Being harassed by bill collectors? Gideon Simasohn of the Federal Trade Commission advised the audience to visit FTC.gov to learn about their rights under the Fair Debt Collection Practice Act.

“If you’re having trouble paying your mortgage, as many people are right now, and wondering if a mortgage loan re-modification is legitimate, then be aware that no one should have to pay any money up front,” said Simasohn. “On our website there are HUD-approved counseling services listed.”

Local scams

According to Capt. Floyd Johnson, some of the frequent local scams now circulating involve limb cutting and resurfacing of driveways. McNatt said these scams are also prevalent in the county.

“Typically, they will have a South Carolina or North Carolina tag on a big 4-door, 4-wheel-drive vehicle,” said McNatt. “They’ll come in a put down maybe a quarter-inch of gravel on a driveway and then come back and say the owner needs 10 times as much as they thought they needed.”

McNatt said it is common for relatives to find that an elderly family member is being charged $5,000 to $10,000 and the perpetrators are out of the county.

Curnutt advised against check-cashing schemes and he advised people to close accounts if they feel their personal banking information has been compromised. He also advised churchgoers or shoppers to not leave purses in their cars.

Michelle Mason, CEO of the BBB of North Alabama, said current scams to be on the lookout for are air-duct cleaning services, which quote low prices but then say they found mold and jack up the prices. Also roofing companies who are “storm chasers,” coming in after damaging winds or hailstorms and charging exorbitant prices for substandard work.

Also common, said Mason, are phishing scams in which people are told by phone or e-mail that their bank accounts are “frozen” and tricked into giving account numbers to get them reactivated.