(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.
Monday, October 26, 2009
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.
Tuesday, October 13, 2009
The Ten Best Ways to Waste Money
We all spend money on things we do not really need. You frequently see lengthy articles in magazines and newspapers telling you ways to save money. Here are ten things you can easily do to waste your hard earned cash. They are certainly not in any particular order.
1. Buy a soda at a restaurant. Including the soda itself, the ice, and the salaries they pay for cleaning and serving, a typical 12-ounce soda costs under ten cents. What you are getting is 4 ounces of beverage and a lot of ice. If you must purchase soda, ask for it with no ice (or one cube at the most), or ask for a separate glass of ice and put it in as needed.
2. Buy something on impulse. Stores are set up so that you most readily see things that they want you to purchase. Today, in a Best Buy, I saw two end caps with their highest profit ear buds (for iPods) three aisles over were similar products, possibly better quality, and most at lower cost.
3. Believe an advertisement. Stop, go back to my Advertising Blog #1. Start reading.
4. Don’t bother reading contracts, bills or disclaimers. Who needs all that small print? You do. The typical person gets billed for almost $500 a year s/her did not purchase.
5. Accept what other people tell you. I have just the product for you. This natural remedy will cure your headaches, prevent cavities, and get rid of shoe odor.
6. Purchase nostrums, vitamins, and vanity items. Why not? In the United States alone people spend over $80 billion a year hiding wrinkles, dying hair, whitening teeth, and taking over-the-counter cures for things they might not even have.
7. Don’t bother checking store prices. What a pain. Just because something that’s marked “on sale” at $4.99 is more than twice what the supermarket down the street usually gets for the same product, and you’re going there anyway, believe them. Hey, if it’s on sale it must be a great price. They won’t lie, would they?
8. Pay in advance for a service. Everyone is honest. There is no need for contracts. They guy says he’ll surface your driveway for $80 – hey, believe him. Give him the money and … why is he driving away?
9. Accept products and services without asking questions. Get a free home alarm. Get pest control coverage for a year. Buy an extended warrantee. Besides the fact that more than 60% of such things are either scams or nearly useless, go ahead, get it.
10. Do not seek alternatives. See an item, like an item, buy it. There is never any need to check out reviews or look online to see what other stores are getting for the same product. Just because my wife found the same surge protector online at Amazon for $49.99, I might as well pick this one up at XYZ Electronics for $129.00.
This ends our lengthy run of advertising scams, but certainly not the end of the line for examining ways people cheat you. Next, we’ll look at education-related cons.
1. Buy a soda at a restaurant. Including the soda itself, the ice, and the salaries they pay for cleaning and serving, a typical 12-ounce soda costs under ten cents. What you are getting is 4 ounces of beverage and a lot of ice. If you must purchase soda, ask for it with no ice (or one cube at the most), or ask for a separate glass of ice and put it in as needed.
2. Buy something on impulse. Stores are set up so that you most readily see things that they want you to purchase. Today, in a Best Buy, I saw two end caps with their highest profit ear buds (for iPods) three aisles over were similar products, possibly better quality, and most at lower cost.
3. Believe an advertisement. Stop, go back to my Advertising Blog #1. Start reading.
4. Don’t bother reading contracts, bills or disclaimers. Who needs all that small print? You do. The typical person gets billed for almost $500 a year s/her did not purchase.
5. Accept what other people tell you. I have just the product for you. This natural remedy will cure your headaches, prevent cavities, and get rid of shoe odor.
6. Purchase nostrums, vitamins, and vanity items. Why not? In the United States alone people spend over $80 billion a year hiding wrinkles, dying hair, whitening teeth, and taking over-the-counter cures for things they might not even have.
7. Don’t bother checking store prices. What a pain. Just because something that’s marked “on sale” at $4.99 is more than twice what the supermarket down the street usually gets for the same product, and you’re going there anyway, believe them. Hey, if it’s on sale it must be a great price. They won’t lie, would they?
8. Pay in advance for a service. Everyone is honest. There is no need for contracts. They guy says he’ll surface your driveway for $80 – hey, believe him. Give him the money and … why is he driving away?
9. Accept products and services without asking questions. Get a free home alarm. Get pest control coverage for a year. Buy an extended warrantee. Besides the fact that more than 60% of such things are either scams or nearly useless, go ahead, get it.
10. Do not seek alternatives. See an item, like an item, buy it. There is never any need to check out reviews or look online to see what other stores are getting for the same product. Just because my wife found the same surge protector online at Amazon for $49.99, I might as well pick this one up at XYZ Electronics for $129.00.
This ends our lengthy run of advertising scams, but certainly not the end of the line for examining ways people cheat you. Next, we’ll look at education-related cons.
Sunday, October 4, 2009
Consumer Safety & Awareness Part 36
Advertising Scams (Part 10 – Words that Deceive, part 2)
More words that advertisers love to use and what they really mean. Continued from last week.
Free Trial Offer – Many companies do provide free offers or coupons for a free product. Do not, though fall for the scam where you get something for free yet have to give your credit card number for shipping and handling. In almost all cases these are membership club scams. In the small print you’ll find that by getting the free sample you are agreeing to accept more each month at an unrealistic price (plus more shipping and handling).
Feel Better! Look Younger! – Ponce de Leon’s descendants are still searching for the Fountain of Youth and such products make huge promises and sell for up to over a thousand dollars. Never believe an ad that promises to make you look better or feel better. For about what they cost you can go to a doctor specializing in what you need “cured” and have a realistic assessment. Almost all of these products are no better than snake oil or eye of newt.
The Miracle Solution – Since ancient times people have been pushing cure-alls or solutions to ailments. In the Dark Ages there were longevity potions, arthritis magnets, and prayers for invalids. In the 1800s, peddlers sold tonics, elixirs, salves, and pills. Whatever ailed you, they had a cure for. In the 1980s, we had cures for all sorts of cancer, menstrual cramps, impotency, and hair loss. Actually some drug companies have made limited break-throughs with some of these concerns, but the side effects may be worse than the original problem.
All Natural – (or No Artificial Ingredients) – All things are derived from nature. It used to be that anything could use this term, and many products still do. But look closely at the ingredients – all natural preservatives, food colorings, flavors… and none of them are any better for you than the old-fashioned stuff.
One Time Offer – Buy it right now, I’ll give you the best deal ever. Walk away. Don’t even talk to the guy. It’s stolen, a fake, or junk.
Includes Omega 3 - (or Fish Oil, or Antioxidant, or Secret Ingredient, and 200 other or more other supposedly health items) – Whatever the most recent nutritional study discovers, within weeks products will contain the ingredient. The worst is Acia, a useless product that has been advertised for weight loss, diabetic cure, cancer cure, and dozens of other things. The Food and Drug Administration and dozens of independent labs have found no value in these products. So why do people buy them? Read on….
Listen to What Our Users Have to Say – Testimonials are phony. The people in them are actors and paid to say what they declare is the latest best product. The actors will never be fined or sent to jail because they are just playing a role. The companies do not mind getting a $4 million fine after making a profit of $50 million.
Multi-level marketing companies (for a list see Wikipedia) use testimonials to sell their overpriced useless products. They get your friends, neighbors, and relatives hooked on one of their products and tell them they can get their supply at a discount if they become a representative.
Improve Your Sex Life – (or Natural Male Enhancement) – Sexual aides have been around for centuries and every time there is a real breakthrough phony products follow. In the 1990s there were products that stated they “contained an ingredient found in Viagra.” Yes – their pill used the same solvent or thickener, or coloring agent. Also watch out for sale of these items on the Internet at a discount – most of them are phony.
More words that advertisers love to use and what they really mean. Continued from last week.
Free Trial Offer – Many companies do provide free offers or coupons for a free product. Do not, though fall for the scam where you get something for free yet have to give your credit card number for shipping and handling. In almost all cases these are membership club scams. In the small print you’ll find that by getting the free sample you are agreeing to accept more each month at an unrealistic price (plus more shipping and handling).
Feel Better! Look Younger! – Ponce de Leon’s descendants are still searching for the Fountain of Youth and such products make huge promises and sell for up to over a thousand dollars. Never believe an ad that promises to make you look better or feel better. For about what they cost you can go to a doctor specializing in what you need “cured” and have a realistic assessment. Almost all of these products are no better than snake oil or eye of newt.
The Miracle Solution – Since ancient times people have been pushing cure-alls or solutions to ailments. In the Dark Ages there were longevity potions, arthritis magnets, and prayers for invalids. In the 1800s, peddlers sold tonics, elixirs, salves, and pills. Whatever ailed you, they had a cure for. In the 1980s, we had cures for all sorts of cancer, menstrual cramps, impotency, and hair loss. Actually some drug companies have made limited break-throughs with some of these concerns, but the side effects may be worse than the original problem.
All Natural – (or No Artificial Ingredients) – All things are derived from nature. It used to be that anything could use this term, and many products still do. But look closely at the ingredients – all natural preservatives, food colorings, flavors… and none of them are any better for you than the old-fashioned stuff.
One Time Offer – Buy it right now, I’ll give you the best deal ever. Walk away. Don’t even talk to the guy. It’s stolen, a fake, or junk.
Includes Omega 3 - (or Fish Oil, or Antioxidant, or Secret Ingredient, and 200 other or more other supposedly health items) – Whatever the most recent nutritional study discovers, within weeks products will contain the ingredient. The worst is Acia, a useless product that has been advertised for weight loss, diabetic cure, cancer cure, and dozens of other things. The Food and Drug Administration and dozens of independent labs have found no value in these products. So why do people buy them? Read on….
Listen to What Our Users Have to Say – Testimonials are phony. The people in them are actors and paid to say what they declare is the latest best product. The actors will never be fined or sent to jail because they are just playing a role. The companies do not mind getting a $4 million fine after making a profit of $50 million.
Multi-level marketing companies (for a list see Wikipedia) use testimonials to sell their overpriced useless products. They get your friends, neighbors, and relatives hooked on one of their products and tell them they can get their supply at a discount if they become a representative.
Improve Your Sex Life – (or Natural Male Enhancement) – Sexual aides have been around for centuries and every time there is a real breakthrough phony products follow. In the 1990s there were products that stated they “contained an ingredient found in Viagra.” Yes – their pill used the same solvent or thickener, or coloring agent. Also watch out for sale of these items on the Internet at a discount – most of them are phony.
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