RECIPE FOR SUCCESS:

EDITOR’S NOTE: This is the third in a three-part series on identity theft in Newport Beach.

My last two articles covered how street gangs compromise employees in all sorts of companies to sell them your sensitive personal information.

We looked at steps you can take to make yourself a less-attractive target, but identity theft is not the only white-collar crime preying on us.

Newport now holds the title of being the “scam capital” of the country, according to police.

What some call “paper crimes” are backlogging our court systems, and the thieves are devising new scams every day, staying far ahead of the laws actually on the books. Lawmakers are trying to catch up, but they’re losing this race.

Desperate times make people do desperate things. When the economy takes a down turn, embezzlement and investment scams thrive.

The most common embezzlement scam is when an employee creates a fictitious business name, opens a bank account in that name, then invoices your company, and you pay them as if they were a legitimate vendor of yours.

Even if you sign the checks in your business, look at the invoices and occasionally call vendors to make sure they do exist, you still need to check your bank statements.

Time and time again, police are called and the story is always the same. “We trusted our bookkeeper. They were with us for years. They were like family.”

White-collar criminals live in upscale neighborhoods. They blend in; they insert themselves in circles of rich, influential people. They become part of the crowd — gaining confidence. The most common investment scams are overseas land development and product deals.

The con gets one investor initially. Then a second. The first investor quickly gets a return, but in reality it’s the second investor’s money. Once the con has worked several times, he then goes back to the first pool of investors and presents an even more lucrative investment opportunity. The investors bite, only this time, they never see a penny. By the time they realize they’ve been scammed, their money is likely in an offshore account far away.

If it sounds too good to be true, most likely it is. Some defrauded victims are too embarrassed to call police. The con man is then free to strike again. The law states that if you don’t report a crime and others are victimized as a result of your silence, you could be charged with obstruction of justice.

I would like to thank Newport Beach police officer Eric Peterson for help with this series and the confidential informant who provided chilling recounts of crimes that inspired this series.

The NBPD has an outreach program that addresses identity theft and scams. Call Andi Querry, crime prevention specialist, at (949) 644-3699 to schedule a presentation to your office or civic organization.

Knowledge is the best recipe for success against con men. Be smart. Ask questions, and be aware of those who insert themselves in your life and business.

Unfortunately, trust may be a thing of the past when it comes to your money. These are crimes of opportunity. Take the opportunity to protect yourself.

BARBARA VENEZIA is the chairman of the Santa Ana Hts. Redevelopment Project Advisor Committee and was the co-creator of the cooking show “At Home on the Range” with John Crean.