How to Avoid Identity Theft Scams

Identity fraud and other scams are not quite as common and usually not as damaging as purveyors of scam-prevention software and services make them out to be. However, they still exist and have the potential to seriously hurt a consumer's finances and credit score.

About 30.2 million adults -- or 13.5% of the adult population -- report falling victim to fraud each year, according to the most recent Federal Trade Commission data.

Scamsters have a few key tactics and targets. They prey on the elderly, vulnerable and naive. They present themselves as "official" bank or government representatives in a convincing way. They pull at heart strings with pleas for aid to help victims of natural disasters or war. They guarantee profits from a too-good-to-be-true money-making scheme.

"Con artists are the only criminals that we call artists," says Steve Weisman, a lawyer and author of The Truth About Avoiding Scams. "They can appeal to our impulses and psychological make-ups."

Smart, skeptical consumers can largely isolate themselves from fraud and identity theft by watching out for certain signals and ignoring the fake pitches for help or money-making schemes. Here are some common schemes that victims are falling prey to today:

Weight-Loss Scams

Don't buy bogus weight-loss products that promise to burn fat without effort.

Americans spend about $30 billion each year on weight-loss products and services, according to the Food and Drug Administration. Many fall victim to claims that a miracle pill or potion can help them "Melt Off 10 Pounds in 7 Days!" or "Shed the Fat Without the Diet!"

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