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Criminals are busy these days, and they have to thank the present global financial crisis for that. The schemes of these creative and resourceful criminals are what’s featured in the latest issue of Kiplinger’s Personal Finance magazine.

Just as the hard times bring out the best in every individual who are forced to rise to the occasion, so it does too to the criminals. Just think of today’s headline about the financial crisis and the criminals have found ways to exploit it.

Here are some of them, which are quite familiar to many of many of us, although some are quite new:

Foreign Currency

Banking in on the volatility of the US dollar, the scammers offer outrageous returns on investments in foreign currency. As the Kiplinger magazine said “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.

Energy

Because of the soaring prices of energy related products, scammers are pitching in cold-calls offering propositions involving oil-and-gas deals. This scams involved energy-related limited partnership that was conceived in one state, drilling in another, and were sold to investors to still other states. The complicated set-up makes it hard for investors to check out the proposal, tough for law enforcements to identify and expose the fraud.

Kiplinger says “If you’re temped by such a pitch, NASAA suggests you start by checking the registration of the deal. Ask which state the offering is registered, and then contact that state’s securities agency to confirm that a security is really being offered and whether it can be sold in your state.”

Debt negotiation

With the bankruptcy rates rising and the average household being hounded by creditors left and right, they often reach out to people offering help with their debts. They pay these companies who promises to make the creditors go away, unfortunately, instead of helping they pull them more into financial ruin.

Debt negotiating companies promises their clients that they could reduce their debts by up to 60%. Unfortunately, they also advised clients not to pay their bills, while they do the negotiation, without telling them that can be sued.

For legitimate credit-counseling agency, Kiplinger advises consumers to check at www.nfcc.org or www.aiccca.org

Mortgage-foreclosure rescue

Just like people who are into regular debts, more than of homeowners are also late on their mortgage payment. In this situation, the panic of the house being foreclosed sets in, without knowing that lenders have programs to help avoid foreclosure. Because of that, they fall prey to scammers who charge $1,000 or more for fraudulent foreclosure-avoidance services.

For mortgage problems, Kiplinger advises to discuss these with the lender. If they can’t help, find a housing-counseling agency which is approved by the US Department of Housing and Urban Development, with website at www.hud.gov for concerns about foreclosure, contact the Hope Now Alliance at www.hopenow.com

Bank phishing

US bank depositors should be feel better now with the deposit insurance being increased from $100,000 to $250,000. But with all the news about bank mergers and an increasing number of banks being under the Federal Deposit Insurance Corp’s “watch list,” the increased insurance seems to be insufficient to secure the depositor.

This is where popular phishing schemes come in, the send emails to get private security information including Social Security number, telling depositors that their bank has been acquired, and for safety reasons and continuing service, they will give a link that they would follow to give their information.

For this type of e-mails, you can contact your bank directly for verification or you may just choose to ignore them.

Reverse mortgages

Not really an outright fraud, but the unsuspecting retiree who wants to cash in on their home equity through reverse mortgage might end up paying more than he should. The common problem is that reverse-mortgage applicants are required to buy additional product or service as part of the loan agreement, an example is deferred annuities, an insurance product that come with high fees. Another move is when advisers charge for providing applicants information on reverse mortgage or referring him to lender.

HUD provides mortgage information for free and they prohibit lenders from linking reverse mortgage with other products. For more information, check out their website of you can call 800-569-4287.

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