‘Tis the season for giving and for being thankful. And every store in the country is being thankful for the tricks they have learned to use to rip us off. We’re simply going to list some examples.
1. The most popular independent grocery store in the community is noted for its fresh produce, fish, and meat. Four days before Thanksgiving, knowing that customers anticipate their relatively stable and moderate prices and outstanding quality, they raise prices and put out “Sale” tags through the store.
a) Iceberg lettuce had been selling for 89 cents to $1.29 – today’s special was $1.99
b) Romaine was also 89 cents last week. This week it’s $2.99.
c) The most they sold broccoli crowns for during the last year was $1.39 a pound. For this week’s special it’s “on Sale” at $1.69.
There were more than 200 similar examples throughout the store.
2. “Discount” outlet malls bring out the big guns, listing mark-downs of over 50%. Look carefully – all the price tags are new. The brand-name handbag that was selling for $50 for the last three months now has an “Originally sold at $199” or “Compare at $249” and has been marked down to only $89.
3. Sticking with outlet malls…. Many of the products sold there are manufactured specifically for the outlets. They may have the same brand names and styles, but may also be poorly made, seconds, or worse. Yet the prices are, in many cases, the same or just slightly lower than what you would pay for the high-quality merchandise at a department store.
4. You’ll even see signs for “Up to 90% off.” That means items can be anywhere from no discount to 90% and you can bet that most of the stuff is priced for profit. Going through a major department store’s Black Friday ad, we compared the prices with their weekly ads for the last month: not one item was lower and most was at normal retail or slightly higher.
5. Stores tend to spend the week before Thanksgiving repricing their products upwards from 10 to 50%. Then, when they discount them 30 to 50% you may be paying even more than before they went on sale. Weekly sales during the year are almost always better buys than the prices between Thanksgiving and Christmas.
We have spent the last 40 weeks discussing tricks merchants use to trick people. Just to summarize:
1. Shop around. Even when items are marked with such terms as on sale, at the lowest price of the year, or deep discount, you probably can get it for less elsewhere. Compare store ads with the prices at Amazon.com. (And Amazon usually ships for free.)
2. When you see signs that offer great deals, do not be fooled. ‘Tis the season to be skeptical.
3. Avoid gift cards. Read back through past blogs on this site for an explanation as to why. They are almost always money losers.
4. Read the return and refund policies. Some stores give only 3 or 5 days and demand a receipt be included even for exchanges. On occasion items marked as “discounted,” even if they really are not, may not be returned or exchanged.
Some advanced thinking now can save you from the post-holiday credit card bill blues.
Thursday, November 26, 2009
Wednesday, November 18, 2009
Education Scams (Part 4)
(Consumer Safety & Awareness article: Part 41)
Learn at Home & Tech Schools
Many high school students, lacking the grades or the interest to go on to college, seek to get technical training. With a long history of advertising, on matchbooks, in pulp magazines, and now on the Internet, hundreds of companies provide technical training for such people. Scammers, seeing financial gain, have moved in.
Pennco Tech is a good example. Pennco Tech is an actual school, located in Bristol Pennsylvania, with a satellite unit in Blackewood New Jersey. If you go to their web site you will find, “You have goals for your future. Strong ideas about what you want to do, and how you want to live. The problem is that the steps to achieve these goals aren't always clear. Pennco Tech helps you bridge the gap between dreams and reality. We work with you to formulate a solid plan, and then give you the training and employer connections you need to accomplish that plan.”
Sounds good? Yet why do we see things like this posted on the Internet? “Pennco Tech guarantees they will help you find a job. That’s all a sales pitch to get you into their “programs". I am over $10,000.00 in dept for the student loan that I cannot pay back! They will leave you with nothing. Don’t let your fate be the same.”
Here are some more complaints about this school:
“I earned an Associates Degree, which I believe is invalid because the degree has the Bristol, Pennsylvania campus on it. I only was there for the last two weeks of the 18 months I attended. When I asked Pennco Tech why was this, I was informed because the Blackwood, New Jersey campus was not an accredited school and they cannot legally give degrees. I received a diploma also at that time, which had the Blackwood campus on it. The course had to take place the last two weeks in Bristol to make the degree ‘good'. I paid 18 months for a two-week degree.”
“Licensed teachers did not teach the courses that were taught. When we traveled to Bristol the same teachers were sent to teach us. Now there is a case of unlicensed teachers teaching in an accredited school.”
“The course taught outdated computer languages that no one is using.”
“I was just informed by Pennco Tech when I called to get the figures that I paid that the Computer Programming course that I studied was discontinued a few years back due to poor job placement for perspective employees in that field.”
“I am writing this letter to report a fraudulent misrepresentation made by Pennco Tech in Blackwood, NJ. Senior Admissions Representative Karl Mancuso "Guaranteed" lifetime job placements for the Heating, Air Conditioning, Ventilation, and Refrigeration (HVAC) class with a starting salary of $15-28 dollars an hour. He also said if I had good attendance, kept good grades, and participated in class my chance of earning the highest salary of $28 an hour would be more likely.”
“After speaking with Donna, the Career counselor, we were told there are NO jobs for ANY class in the salary range quoted to us by Mr. Mancuso. The actual starting salary is only $9.50 an hour. With a slim possibility, Donna may be able to find me a job paying up to $13. She said she had never heard of an entry-level position paying as high as $28 an hour. Donna also stated that because of equal opportunity employment, everyone’s resume must be sent to prospective employers, not just the people in the top of the class. Everyone must be given the same employment options for every paying job available.”
“I believed at the signing of my enrollment contract with Pennco Tech that I would be earning a full time starting salary of over $20 dollars an hour. I would have never given up my $14 dollar an hour plus commission position, take out $15,000 (plus interest) in student loans, and sacrificed my families (we have 3 kids) future for a job only paying $9.50 an hour. We were lied to and taken advantage of and I would like the school, and Mr. Karl Mancuso held firmly responsible! We relied on him to factually represent Pennco Tech, and it was his lies that we put our future on the line for and enrolled with this school” (Grammar errors in the original maintained.)
More on this topic next week.
Learn at Home & Tech Schools
Many high school students, lacking the grades or the interest to go on to college, seek to get technical training. With a long history of advertising, on matchbooks, in pulp magazines, and now on the Internet, hundreds of companies provide technical training for such people. Scammers, seeing financial gain, have moved in.
Pennco Tech is a good example. Pennco Tech is an actual school, located in Bristol Pennsylvania, with a satellite unit in Blackewood New Jersey. If you go to their web site you will find, “You have goals for your future. Strong ideas about what you want to do, and how you want to live. The problem is that the steps to achieve these goals aren't always clear. Pennco Tech helps you bridge the gap between dreams and reality. We work with you to formulate a solid plan, and then give you the training and employer connections you need to accomplish that plan.”
Sounds good? Yet why do we see things like this posted on the Internet? “Pennco Tech guarantees they will help you find a job. That’s all a sales pitch to get you into their “programs". I am over $10,000.00 in dept for the student loan that I cannot pay back! They will leave you with nothing. Don’t let your fate be the same.”
Here are some more complaints about this school:
“I earned an Associates Degree, which I believe is invalid because the degree has the Bristol, Pennsylvania campus on it. I only was there for the last two weeks of the 18 months I attended. When I asked Pennco Tech why was this, I was informed because the Blackwood, New Jersey campus was not an accredited school and they cannot legally give degrees. I received a diploma also at that time, which had the Blackwood campus on it. The course had to take place the last two weeks in Bristol to make the degree ‘good'. I paid 18 months for a two-week degree.”
“Licensed teachers did not teach the courses that were taught. When we traveled to Bristol the same teachers were sent to teach us. Now there is a case of unlicensed teachers teaching in an accredited school.”
“The course taught outdated computer languages that no one is using.”
“I was just informed by Pennco Tech when I called to get the figures that I paid that the Computer Programming course that I studied was discontinued a few years back due to poor job placement for perspective employees in that field.”
“I am writing this letter to report a fraudulent misrepresentation made by Pennco Tech in Blackwood, NJ. Senior Admissions Representative Karl Mancuso "Guaranteed" lifetime job placements for the Heating, Air Conditioning, Ventilation, and Refrigeration (HVAC) class with a starting salary of $15-28 dollars an hour. He also said if I had good attendance, kept good grades, and participated in class my chance of earning the highest salary of $28 an hour would be more likely.”
“After speaking with Donna, the Career counselor, we were told there are NO jobs for ANY class in the salary range quoted to us by Mr. Mancuso. The actual starting salary is only $9.50 an hour. With a slim possibility, Donna may be able to find me a job paying up to $13. She said she had never heard of an entry-level position paying as high as $28 an hour. Donna also stated that because of equal opportunity employment, everyone’s resume must be sent to prospective employers, not just the people in the top of the class. Everyone must be given the same employment options for every paying job available.”
“I believed at the signing of my enrollment contract with Pennco Tech that I would be earning a full time starting salary of over $20 dollars an hour. I would have never given up my $14 dollar an hour plus commission position, take out $15,000 (plus interest) in student loans, and sacrificed my families (we have 3 kids) future for a job only paying $9.50 an hour. We were lied to and taken advantage of and I would like the school, and Mr. Karl Mancuso held firmly responsible! We relied on him to factually represent Pennco Tech, and it was his lies that we put our future on the line for and enrolled with this school” (Grammar errors in the original maintained.)
More on this topic next week.
Monday, November 2, 2009
Education Scams (Part 3)
(Consumer Safety & Awareness article: Part 40)
When money is needed and people are desperate, scammers move in. Phony scholarships are not common, but high interest and misleading loans for education can ruin a person’s economic future.
Scholarships.com reports, “Scholarship scams are so common that one could easily think they’re a new form of art. Don’t allow yourself to be duped by a scholarship scam artist; you’ll end up spending valuable time and unnecessary amounts of money for absolutely nothing. Luckily, these scams are fairly easy to avoid as long as you recognize the warning signs.”
The U.S. Department of Education suggests, “If you’re searching the Internet for scholarships and visit a site that asks for your credit card or another form of payment before it’ll help you find funding, you might want to keep searching. Similarly, if you or your parents are contacted by an unfamiliar organization that invites you to an “interview” or “seminar” about preparing and paying for college, do your homework. Ask your high school counselor or a college financial aid administrator whether they’ve heard of the organization and know whether it’s legitimate. In many cases, such invitations are a way to get you and your parents to come listen to a sales pitch. The company wants you to pay for advice on scholarships and other funding that you can get free elsewhere.”
FinAid.com, a legitimate financial aid information center, has reports of these types of scams:
1. Scholarships that Never Materialize. Many scams encourage you to send them money up front, but provide little or nothing in exchange. Usually victims write off the expense, thinking that they simply didn't win the scholarship.
2. Scholarships for Profit. This scam looks just like a real scholarship program, but requires an application fee. The typical scam receives 5,000 to 10,000 applications and charges fees of $5 to $35. These scams can afford to pay out a $1,000 scholarship or two and still pocket a hefty profit, if they happen to award any scholarships at all. Your odds of winning a scholarship from such scams are less than your chances of striking it rich in the lottery.
3. The Advance-Fee Loan. This scam offers you an unusually low-interest educational loan, with the requirement that you pay a fee before you receive the loan. When you pay the money, the promised loan never materializes. Real educational loans deduct the fees from the disbursement check. They never require an up-front fee when you submit the application. If the loan is not issued by a bank or other recognized lender, it is probably a scam. Show the offer to your local bank manager to get their advice
4. The Scholarship Prize. This scam tells you that you've won a college scholarship worth thousands of dollars, but requires that you pay a "disbursement" or "redemption" fee or the taxes before they can release your prize. If someone says you've won a prize and you don't remember entering the contest or submitting an application, be suspicious.
5. 419 Scam Scholarship. In a variation of other scams we have seen, some prize scholarship schemes can get you into deep trouble. The sponsor sends the student a check for the scholarship, but requires the recipient to send back a check or cash for the taxes or some other fees. Or the sponsor sends a check for more than the scholarship amount and asks the recipient to send back a check or cash for the difference. The scholarship check ultimately bounces, as it is a forgery, but by then the recipient’s funds are long gone.
6. The Guaranteed Scholarship Search Services. Beware of scholarship matching services that guarantee you'll win a scholarship or they'll refund your money. They may simply pocket your money and disappear, or if they do send you a report of matching scholarships, you'll find it extremely difficult to qualify for a refund.
7. Investment Required for Federal Loans. Insurance companies and brokerage firms sometimes offer free financial aid seminars that are actually sales pitches for insurance, annuity and investment products. When a sales pitch implies that purchasing such a product is a prerequisite to receiving federal student aid, it violates federal regulations and state insurance laws.
8. Free Seminars. You may receive a letter advertising a free financial aid seminar or "interviews" for financial assistance. Sometimes the seminars do provide some useful information, but often they are cleverly disguised sales pitches for financial aid consulting services (e.g., maximize your eligibility for financial aid), investment products, scholarship matching services and overpriced student loans.
The College Board reports on a number of different scams:
9. Our scholarship is guaranteed or your money back. No one can guarantee that they'll get your child a grant or a scholarship. Refund guarantees often have conditions or strings attached. Get refund policies in writing—before you or your child pays
10. You can't get this information anywhere else. There are many free lists of scholarships available. You and your child should start researching scholarships at the high school or library before you decide to pay someone to do the work for you.
11. Need Your Financial Information. “I just need your credit card or bank account number to hold this scholarship.” No one should give out a credit card or bank account number on the phone without getting information in writing first. It may be a set-up for an unauthorized withdrawal from your account.
12. We'll do all the work. Don't be fooled. There's no way around it. Your child must apply for scholarships or grants himself.
13. The scholarship will cost money. Don't pay anyone who claims to be "holding" a scholarship or grant for your child. Free money shouldn't cost a thing.
14. You've been selected by a national foundation to receive a scholarship, or - You're a finalist, in a contest you never entered. Before you or your child sends money to apply for a scholarship, check it out. Make sure the foundation or program is legitimate.
Fraudulent scholarships can take many forms; some of the most common types have been presented here. If you receive an offer that uses one of these tactics, be suspicious. If you believe the offer is a scam, report it. Sometimes a scam persists for years before people catch on to it. Even when people realize they've been cheated, few file a complaint.
When money is needed and people are desperate, scammers move in. Phony scholarships are not common, but high interest and misleading loans for education can ruin a person’s economic future.
Scholarships.com reports, “Scholarship scams are so common that one could easily think they’re a new form of art. Don’t allow yourself to be duped by a scholarship scam artist; you’ll end up spending valuable time and unnecessary amounts of money for absolutely nothing. Luckily, these scams are fairly easy to avoid as long as you recognize the warning signs.”
The U.S. Department of Education suggests, “If you’re searching the Internet for scholarships and visit a site that asks for your credit card or another form of payment before it’ll help you find funding, you might want to keep searching. Similarly, if you or your parents are contacted by an unfamiliar organization that invites you to an “interview” or “seminar” about preparing and paying for college, do your homework. Ask your high school counselor or a college financial aid administrator whether they’ve heard of the organization and know whether it’s legitimate. In many cases, such invitations are a way to get you and your parents to come listen to a sales pitch. The company wants you to pay for advice on scholarships and other funding that you can get free elsewhere.”
FinAid.com, a legitimate financial aid information center, has reports of these types of scams:
1. Scholarships that Never Materialize. Many scams encourage you to send them money up front, but provide little or nothing in exchange. Usually victims write off the expense, thinking that they simply didn't win the scholarship.
2. Scholarships for Profit. This scam looks just like a real scholarship program, but requires an application fee. The typical scam receives 5,000 to 10,000 applications and charges fees of $5 to $35. These scams can afford to pay out a $1,000 scholarship or two and still pocket a hefty profit, if they happen to award any scholarships at all. Your odds of winning a scholarship from such scams are less than your chances of striking it rich in the lottery.
3. The Advance-Fee Loan. This scam offers you an unusually low-interest educational loan, with the requirement that you pay a fee before you receive the loan. When you pay the money, the promised loan never materializes. Real educational loans deduct the fees from the disbursement check. They never require an up-front fee when you submit the application. If the loan is not issued by a bank or other recognized lender, it is probably a scam. Show the offer to your local bank manager to get their advice
4. The Scholarship Prize. This scam tells you that you've won a college scholarship worth thousands of dollars, but requires that you pay a "disbursement" or "redemption" fee or the taxes before they can release your prize. If someone says you've won a prize and you don't remember entering the contest or submitting an application, be suspicious.
5. 419 Scam Scholarship. In a variation of other scams we have seen, some prize scholarship schemes can get you into deep trouble. The sponsor sends the student a check for the scholarship, but requires the recipient to send back a check or cash for the taxes or some other fees. Or the sponsor sends a check for more than the scholarship amount and asks the recipient to send back a check or cash for the difference. The scholarship check ultimately bounces, as it is a forgery, but by then the recipient’s funds are long gone.
6. The Guaranteed Scholarship Search Services. Beware of scholarship matching services that guarantee you'll win a scholarship or they'll refund your money. They may simply pocket your money and disappear, or if they do send you a report of matching scholarships, you'll find it extremely difficult to qualify for a refund.
7. Investment Required for Federal Loans. Insurance companies and brokerage firms sometimes offer free financial aid seminars that are actually sales pitches for insurance, annuity and investment products. When a sales pitch implies that purchasing such a product is a prerequisite to receiving federal student aid, it violates federal regulations and state insurance laws.
8. Free Seminars. You may receive a letter advertising a free financial aid seminar or "interviews" for financial assistance. Sometimes the seminars do provide some useful information, but often they are cleverly disguised sales pitches for financial aid consulting services (e.g., maximize your eligibility for financial aid), investment products, scholarship matching services and overpriced student loans.
The College Board reports on a number of different scams:
9. Our scholarship is guaranteed or your money back. No one can guarantee that they'll get your child a grant or a scholarship. Refund guarantees often have conditions or strings attached. Get refund policies in writing—before you or your child pays
10. You can't get this information anywhere else. There are many free lists of scholarships available. You and your child should start researching scholarships at the high school or library before you decide to pay someone to do the work for you.
11. Need Your Financial Information. “I just need your credit card or bank account number to hold this scholarship.” No one should give out a credit card or bank account number on the phone without getting information in writing first. It may be a set-up for an unauthorized withdrawal from your account.
12. We'll do all the work. Don't be fooled. There's no way around it. Your child must apply for scholarships or grants himself.
13. The scholarship will cost money. Don't pay anyone who claims to be "holding" a scholarship or grant for your child. Free money shouldn't cost a thing.
14. You've been selected by a national foundation to receive a scholarship, or - You're a finalist, in a contest you never entered. Before you or your child sends money to apply for a scholarship, check it out. Make sure the foundation or program is legitimate.
Fraudulent scholarships can take many forms; some of the most common types have been presented here. If you receive an offer that uses one of these tactics, be suspicious. If you believe the offer is a scam, report it. Sometimes a scam persists for years before people catch on to it. Even when people realize they've been cheated, few file a complaint.
Monday, October 26, 2009
Education Scams (Phony Degrees, Part 2)
(Consumer Safety & Awareness article: Part 39)
Phony or purchased degrees are far more pervasive than most people think. They usually make the headlines only when a medical practitioner or educator is revealed to have no true degree.
BlogingStocks.com interviewed Barry Minkow, whose company, ZZZZ Best (pronounced "Zee Best") appeared to be an immensely successful carpet-cleaning company but collapsed in 1987, costing investors an estimated $100 million. He was convicted of fraud and several other offenses and sentenced to 25 years in prison, but served only seven years, getting a probationary release from prison in 1995. The interview in part stated:
“Minkow released the names of seven public company executives caught lying about their degrees. The former head of the fraud known as ZZZZ Best Carpet Cleaning has been working hard to verify the credentials of 358 public company executives and directors. The names put through the ringer were generally in industries he suspected were filled with "hype." Upon identifying executives whose degrees weren't listed in a large database of college graduates, schools were contacted directly to verify if the executives earned degrees or not.
”I've been investigating corporate fraud for over a decade, and have generally found that when there's a small fraud being committed by an upper-level executive, chances are greater there's a much larger fraud being perpetrated at the same time. My evidence is only anecdotal, but I've become a believer based on what I've witnessed -- that small frauds are often only the tip of the iceberg when it comes to wrongdoing by upper management.”
A search on the internet for doctors, dentists, and other professionals who, after obtaining jobs using offshore college degrees and eventually causing injury of death due to their lack of proper education turns up over 140,000 hits.
Burleson Consulting, a major computer assistance company, has seen hundreds of people applying for positions in their own company with false or improper degrees, and thousands in corporations they have assisted. They report that, “Verifying a college degree is especially problematic for foreigners, some of whom count on the Human Resource department’s inability to speak a foreign tongue. Many HR departments automatically discard resumes with foreign degrees because some diploma mills set-up a fake registrar’s office to verify graduation from phantom schools.”
The FTC has found that, “Diploma mills may claim to be “accredited.” Colleges and universities accredited by legitimate organizations undergo a rigorous review of the quality of their educational programs. Although many diploma mills claim to be “accredited,” their accreditation is from a bogus, but official-sounding agency that they themselves created.”
They recommend that you look out for sound-alike names. Some diploma mills take on names that are very similar to well-known colleges or universities. A “dot edu” Web address is no guarantee of legitimacy, either. Keep in mind that some diploma mills use credible-sounding foreign names. Researching the legitimacy of a foreign school can be a challenge, but is clearly worth the time. If you’re having a tough time checking out a particular school, call the registrar of a local college or university and ask if it would accept transfer credits from the school you are considering.”
You can use the Internet to check if a school is accredited by a legitimate organization at the database of accredited academic institutions posted by the U.S. Department of Education at www.ope.ed.gov/accreditation
You can also easily spot a phony school through these signs:
No Studies, No Exams — Get a Degree for Your Experience. Diploma mills grant degrees for “work or life experience” alone. Accredited colleges may give a few credits for specific experience pertinent to a degree program, but not an entire degree.
No Attendance. Legitimate colleges or universities, including online schools, require substantial course work.
Flat Fee. Many diploma mills charge on a per-degree basis. Legitimate colleges charge by the credit, course, or semester, not a flat fee for an entire degree.
No Waiting. Operations that guarantee a degree in a few days, weeks, or even months aren’t legitimate. If an ad promises that you can earn a degree very quickly, it’s probably a diploma mill.
Click Here To Order Now! Some diploma mills push themselves through aggressive sales tactics. Accredited colleges don’t use spam or high-pressure telemarketing to market themselves. Some diploma mills also advertise in newspapers, magazines, and on the Web.
If the school caught your attention through an unsolicited email or pop-up ad, it may be a diploma mill. Legitimate institutions, including distance learning programs, won’t advertise through spam or pop-ups.
Phony or purchased degrees are far more pervasive than most people think. They usually make the headlines only when a medical practitioner or educator is revealed to have no true degree.
BlogingStocks.com interviewed Barry Minkow, whose company, ZZZZ Best (pronounced "Zee Best") appeared to be an immensely successful carpet-cleaning company but collapsed in 1987, costing investors an estimated $100 million. He was convicted of fraud and several other offenses and sentenced to 25 years in prison, but served only seven years, getting a probationary release from prison in 1995. The interview in part stated:
“Minkow released the names of seven public company executives caught lying about their degrees. The former head of the fraud known as ZZZZ Best Carpet Cleaning has been working hard to verify the credentials of 358 public company executives and directors. The names put through the ringer were generally in industries he suspected were filled with "hype." Upon identifying executives whose degrees weren't listed in a large database of college graduates, schools were contacted directly to verify if the executives earned degrees or not.
”I've been investigating corporate fraud for over a decade, and have generally found that when there's a small fraud being committed by an upper-level executive, chances are greater there's a much larger fraud being perpetrated at the same time. My evidence is only anecdotal, but I've become a believer based on what I've witnessed -- that small frauds are often only the tip of the iceberg when it comes to wrongdoing by upper management.”
A search on the internet for doctors, dentists, and other professionals who, after obtaining jobs using offshore college degrees and eventually causing injury of death due to their lack of proper education turns up over 140,000 hits.
Burleson Consulting, a major computer assistance company, has seen hundreds of people applying for positions in their own company with false or improper degrees, and thousands in corporations they have assisted. They report that, “Verifying a college degree is especially problematic for foreigners, some of whom count on the Human Resource department’s inability to speak a foreign tongue. Many HR departments automatically discard resumes with foreign degrees because some diploma mills set-up a fake registrar’s office to verify graduation from phantom schools.”
The FTC has found that, “Diploma mills may claim to be “accredited.” Colleges and universities accredited by legitimate organizations undergo a rigorous review of the quality of their educational programs. Although many diploma mills claim to be “accredited,” their accreditation is from a bogus, but official-sounding agency that they themselves created.”
They recommend that you look out for sound-alike names. Some diploma mills take on names that are very similar to well-known colleges or universities. A “dot edu” Web address is no guarantee of legitimacy, either. Keep in mind that some diploma mills use credible-sounding foreign names. Researching the legitimacy of a foreign school can be a challenge, but is clearly worth the time. If you’re having a tough time checking out a particular school, call the registrar of a local college or university and ask if it would accept transfer credits from the school you are considering.”
You can use the Internet to check if a school is accredited by a legitimate organization at the database of accredited academic institutions posted by the U.S. Department of Education at www.ope.ed.gov/accreditation
You can also easily spot a phony school through these signs:
No Studies, No Exams — Get a Degree for Your Experience. Diploma mills grant degrees for “work or life experience” alone. Accredited colleges may give a few credits for specific experience pertinent to a degree program, but not an entire degree.
No Attendance. Legitimate colleges or universities, including online schools, require substantial course work.
Flat Fee. Many diploma mills charge on a per-degree basis. Legitimate colleges charge by the credit, course, or semester, not a flat fee for an entire degree.
No Waiting. Operations that guarantee a degree in a few days, weeks, or even months aren’t legitimate. If an ad promises that you can earn a degree very quickly, it’s probably a diploma mill.
Click Here To Order Now! Some diploma mills push themselves through aggressive sales tactics. Accredited colleges don’t use spam or high-pressure telemarketing to market themselves. Some diploma mills also advertise in newspapers, magazines, and on the Web.
If the school caught your attention through an unsolicited email or pop-up ad, it may be a diploma mill. Legitimate institutions, including distance learning programs, won’t advertise through spam or pop-ups.
Monday, October 19, 2009
Education Scams (Part 1 – Phony Degrees, Part 1)
(Consumer Safety & Awareness article: Part 38)
One of the most important things young people can do to improve their lives is to get a good education. Unfortunately, scammers know this and build a variety of frauds to deceptively get money from people who are trying to improve themselves. Thus we get educational scams.
The Nation, a highly respected magazine, presented this information in 2004: “When large amounts of cash and the entrepreneurial spirit intersect with an institution as impoverished and trusting as schools, it's not long before financial scandal strikes. That time is now here.”
These scandals involve construction shortcuts and kickbacks, diverted funds, outright theft, and all the white-collar crimes we associate with Enron, the financial institutes, and other industries. In 2008, in a school in New Jersey that was being constructed, the contractors took so many short cuts and used such substandard material that the building was a disaster waiting to happen. In fact, it was such a horror story that the building had to be totally renovated at a cost considerably higher than the original estimate. Although several people did go to jail, the renovations, the trial and related expenses were all footed by the local taxpayers. The building may not open until 2012.
I once had the honor of working for a man who was proud to display his Doctor of Divinity degree. As I got to know him, during a five-month relationship, he proved over-and-over that his corrupt business methods, his desire to cut corners, and eventually the scam he was perpetrating, showed he was as phony as his degree. He had paid several hundred dollars to purchase it online.
The FTC warns, “Are you ever tempted by an email or an ad claiming you can “earn a college degree based...on life experience”? Don’t be, say attorneys for the Federal Trade Commission, America’s consumer protection agency. “Chances are good that the ad is for a ‘diploma mill,’ a company that offers ‘degrees’ or certificates for a flat fee, requires little course work, if any, and awards degrees based solely on life experience.”
Most employers and educational institutions consider it lying if you claim academic credentials that you didn't earn through actual course work. Federal officials say it’s risky behavior: If you use a so-called “degree” from a diploma mill to apply for a job or promotion, you risk not getting hired, getting fired, and in some cases, prosecution.”
Taking it a step further, USA Today has this story in 2003: “After Marion Kolitwenzew learned her daughter was diabetic, she took her in 1999 to a specialist for care. He seemed impressive, with an office full of medical supplies and a slew of medical degrees from universities. It turns out those diplomas came from degree mills, which are bogus universities that confer degrees for little or no study. When the mother followed his advice and took her daughter off insulin, the 8-year-old girl began vomiting and died.”
“The North Carolina man who treated her, Laurence Perry, is serving up to 15 months in jail for manslaughter and practicing medicine without a license. But questionable degrees aren't just being used by bogus doctors.”
“Employees armed with academic credentials from diploma mills have held jobs as sex-abuse counselors, college vice presidents, child psychologists, athletic coaches and engineers. While some employees simply falsify their résumés and make up degrees, others turn to diploma mills. These bogus colleges and universities make it easier to pull off the résumé charade because they provide fake diplomas and transcripts that often seem legitimate.”
USA Today discovered, “There are more than 400 diploma mills and 300 counterfeit diploma Web sites, and business is thriving amid a lackluster economy — doubling in the past five years to more than $500 million annually, according to estimates. Some fake schools in Europe have made as much as $50 million a year and have as many as 15,000 "graduates" a year. The number of fake accrediting organizations set up by con artists to provide diploma mills an air of legitimacy has swelled from half a dozen 10 years ago to 260 in 2003.”
Alan Contreras, Boston College’s administrator of the Office of Degree Authorization reports, “As recent cases show, the "false approval" problem has become widespread and now occurs in an astonishing diversity of venues. There have been problems with regulatory schemes and bogus colleges supposedly based in Australia, Canada, Malawi, Mexico, and St. Kitts. Of course, the United States is also full of diploma mills. We are now in a period of universal domestic and international portability of bad standards, poor enforcement, and worthless degrees.”
A recent example comes from Singapore and, sadly, concerns an Oregon college. Boston College was contacted by a Singaporean who had “earned" a degree from this school. Unfortunately, no such school exists. The entity was just an incorporated business (now shut down) with a college-like name. The incorporator sold degrees mainly in Asia and used the state-issued business license as proof that the "school" was government approved. Since this diploma mill made no attempt to sell degrees within Oregon, we did not even know it existed.
The true core of this problem is illustrated by the Singaporean’s main concern. The degree holder was troubled not because he had been scammed or because we had not done our job in catching the perp, but because we insisted that the degree was worthless. Under Singapore law, it seems, this was a "U.S.-approved degree" and thus legal for use, and he wanted to use it. So the United States is not only the victim of international falsity in academic credentials, but also the perpetrator, since (unlike Oregon) some states do not prohibit the operation of diploma mills.
One of the most important things young people can do to improve their lives is to get a good education. Unfortunately, scammers know this and build a variety of frauds to deceptively get money from people who are trying to improve themselves. Thus we get educational scams.
The Nation, a highly respected magazine, presented this information in 2004: “When large amounts of cash and the entrepreneurial spirit intersect with an institution as impoverished and trusting as schools, it's not long before financial scandal strikes. That time is now here.”
These scandals involve construction shortcuts and kickbacks, diverted funds, outright theft, and all the white-collar crimes we associate with Enron, the financial institutes, and other industries. In 2008, in a school in New Jersey that was being constructed, the contractors took so many short cuts and used such substandard material that the building was a disaster waiting to happen. In fact, it was such a horror story that the building had to be totally renovated at a cost considerably higher than the original estimate. Although several people did go to jail, the renovations, the trial and related expenses were all footed by the local taxpayers. The building may not open until 2012.
I once had the honor of working for a man who was proud to display his Doctor of Divinity degree. As I got to know him, during a five-month relationship, he proved over-and-over that his corrupt business methods, his desire to cut corners, and eventually the scam he was perpetrating, showed he was as phony as his degree. He had paid several hundred dollars to purchase it online.
The FTC warns, “Are you ever tempted by an email or an ad claiming you can “earn a college degree based...on life experience”? Don’t be, say attorneys for the Federal Trade Commission, America’s consumer protection agency. “Chances are good that the ad is for a ‘diploma mill,’ a company that offers ‘degrees’ or certificates for a flat fee, requires little course work, if any, and awards degrees based solely on life experience.”
Most employers and educational institutions consider it lying if you claim academic credentials that you didn't earn through actual course work. Federal officials say it’s risky behavior: If you use a so-called “degree” from a diploma mill to apply for a job or promotion, you risk not getting hired, getting fired, and in some cases, prosecution.”
Taking it a step further, USA Today has this story in 2003: “After Marion Kolitwenzew learned her daughter was diabetic, she took her in 1999 to a specialist for care. He seemed impressive, with an office full of medical supplies and a slew of medical degrees from universities. It turns out those diplomas came from degree mills, which are bogus universities that confer degrees for little or no study. When the mother followed his advice and took her daughter off insulin, the 8-year-old girl began vomiting and died.”
“The North Carolina man who treated her, Laurence Perry, is serving up to 15 months in jail for manslaughter and practicing medicine without a license. But questionable degrees aren't just being used by bogus doctors.”
“Employees armed with academic credentials from diploma mills have held jobs as sex-abuse counselors, college vice presidents, child psychologists, athletic coaches and engineers. While some employees simply falsify their résumés and make up degrees, others turn to diploma mills. These bogus colleges and universities make it easier to pull off the résumé charade because they provide fake diplomas and transcripts that often seem legitimate.”
USA Today discovered, “There are more than 400 diploma mills and 300 counterfeit diploma Web sites, and business is thriving amid a lackluster economy — doubling in the past five years to more than $500 million annually, according to estimates. Some fake schools in Europe have made as much as $50 million a year and have as many as 15,000 "graduates" a year. The number of fake accrediting organizations set up by con artists to provide diploma mills an air of legitimacy has swelled from half a dozen 10 years ago to 260 in 2003.”
Alan Contreras, Boston College’s administrator of the Office of Degree Authorization reports, “As recent cases show, the "false approval" problem has become widespread and now occurs in an astonishing diversity of venues. There have been problems with regulatory schemes and bogus colleges supposedly based in Australia, Canada, Malawi, Mexico, and St. Kitts. Of course, the United States is also full of diploma mills. We are now in a period of universal domestic and international portability of bad standards, poor enforcement, and worthless degrees.”
A recent example comes from Singapore and, sadly, concerns an Oregon college. Boston College was contacted by a Singaporean who had “earned" a degree from this school. Unfortunately, no such school exists. The entity was just an incorporated business (now shut down) with a college-like name. The incorporator sold degrees mainly in Asia and used the state-issued business license as proof that the "school" was government approved. Since this diploma mill made no attempt to sell degrees within Oregon, we did not even know it existed.
The true core of this problem is illustrated by the Singaporean’s main concern. The degree holder was troubled not because he had been scammed or because we had not done our job in catching the perp, but because we insisted that the degree was worthless. Under Singapore law, it seems, this was a "U.S.-approved degree" and thus legal for use, and he wanted to use it. So the United States is not only the victim of international falsity in academic credentials, but also the perpetrator, since (unlike Oregon) some states do not prohibit the operation of diploma mills.
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