Small business owner Dion Chavis couldn't figure out how $900 disappeared from his checking account. Chavis, also known as "Showtime,†the radio personality heard throughout the Hampton Roads area in Virginia, checked his bank statements and noticed a withdrawal had been made at an ATM some 120 miles from his home, yet his debit card was still in his possession. Chavis discovered the missing monies in July, after a $50 purchase at Macy's was declined. That morning he had paid $200 to install a new CD player in his car, but his account still should have had a balance of $1,500. A fraud representative at Bank of America told Chavis that the bank had frozen the account when withdrawals totaling $1,100 were made in less than 24 hours. Chavis was baffled. He later found out he'd been a victim of ATM skimming, a high-tech scam in which thieves attach an innocent-looking card-reading device over an ATM's card scanner. The reader captures the person's banking information; installed above the ATM is a hidden camera that records the user's PIN number. Chavis wasn't the only victim. "When I spoke to the police in Richmond, they had 50 cases of ATM skimming that were actively being investigated,†he says. Although the thieves haven't yet been caught, Chavis was lucky. Within 48 hours the bank refunded the full amount that had been pilfered from his account. When the economy flattens, scammers are known to come up with innovative ways to separate hardworking folks from their money. In uncertain financial times, consumers are more willing to take risks to relieve the burdens of unemployment, foreclosure, and debt. That's generally when opportunistic fraudsters step in. Since the recession began in December 2007, financial scams have increased, says John Breyault, director of the National Consumers League's Fraud Center, a nonprofit in Washington, D.C., that advocates on behalf of consumers. Results of a recent UNISYS survey reveal that three in four Americans are concerned about increased vulnerability to identity theft and fraud in light of the economy. "[Scammers] look for things on the news that will help them connect with their victims,†says Breyault. "They have learned that a good lie is based in truth–which is why some scams are especially confusing.†Some of the timely topics scammers exploit: identity fraud protection efforts by banks, urging customers to keep their account and Social Security numbers private. Scammers also use topics such as bank closings, tax breaks, and government giveaways related to the Obama administration's economic stimulus plan to incite interest from potential victims. Identity thieves are using these news stories to their advantage, setting up Websites that imitate those of official government agencies, like the Federal Deposit Insurance Corp. or the Internal Revenue Service. Scammers known as pretexters (because they contact you under a false pretext) call or e-mail consumers and urge them to fill out forms on these sites in order to receive bogus tax refunds, recover money lost in a bank closing, or recoup investments stolen from them in a scam. Employment scams are also on the rise. With unemployment reaching nearly 10%, the highest since 1983, enticing job offers and advertisements have become a way to cheat consumers out of their money. All federal positions are listed and available free to the public on www.usajobs.gov, but several recent scams offer "previously undisclosed†federal government jobs–for a fee. These promotions usually mention the federal stimulus plan in an effort to anchor the scam in something legitimate. The housing foreclosure crisis is yet another high-profile news story that scammers use to prey on consumers, says Breyault. In some instances, con artists tell a homeowner they can prevent the home from going into foreclosure–for a fee; in others, scammers promise to pay the mortgage for homeowners who sign over their deeds and pay rent. In both instances, owners are advised not to contact their lenders because any interference could jeopardize the new mortgage terms. "They claim they'll negotiate on your behalf, but even if they do, it's nothing you can't do for yourself by dealing directly with your lender or mortgage servicer,†says Frank Dorman, a spokesman for the Federal Trade Commission. "People in financial trouble at all socioeconomic levels can be misled by the promise of high reward for low effort.†The outcome of most foreclosure scams? The homeowner loses the house and no longer owns the deed, yet remains responsible for the mortgage. Such victims take the credit hit while the scammer gets away with the fee and, in some cases, rent money. Here's how you can avoid the latest cons. Avoid high-pressure sales pitches that require you to buy now or risk losing out on an opportunity. A request to wire money immediately is also a sign of fraud. Never provide a company with personal banking information before receiving the products or services you are contracted to receive. "Generally speaking, reputable companies don't ask for payment in advance,†says Dorman. Thoroughly research any financial investment on your own before you open your wallet. Don't rely solely on referrals from friends or family, says Ken Fisher, author of How to Smell a Rat: The Five Signs of Financial Fraud (Wiley; $24.95). Instead, ask about credentials and licenses, and consult your local office of the Better Business Bureau. Any company should be able to explain to you in 30 seconds or less how they make their money, says Breyault. Don't let anyone brush off your questions or tell you their business is too complicated to explain. Talk to your lender or creditor first. It should be your first point of reference. Also, the U.S. Cooperative Extension System provides personal finance education through local workshops, seminars, and home study opportunities and online at www.extension.org/personal_finance. To find an Externsion office near you, go to www.csrees.usda.gov/Extension/index.html. Be wary of all unsolicited offers of assistance with foreclosure rescue, credit repair, or job placement, Breyault advises, especially if they ask for bank account information or Social Security numbers. Remember, government agencies will never contact you by e-mail to offer assistance. Place a fraud alert on your credit report if you believe your Social Security number has been compromised. Also file a complaint with the FTC. Be discreet. Limit the information you reveal about yourself when making purchases. Consider removing your phone number and address from your personal checks, for example. This article originally appeared in the November 2009 issue of Black Enterprise magazine.