JUST SAY NO : SCAMS FIND EASY PREY IN NEEDY AND GREEDY.

Byline: Deborah Adamson Daily News Staff Writer

In July, Dan DeBruno saw a newspaper ad that gave a glimmer of hope to solving his debt problems: ``Money to lend. Great deals on loans and debt consolidation. $2K to $70K. Good/bad credit.''

He dialed the toll-free number and applied for a $17,000 loan, which he wanted to pay off his debt and catch up on his mortgage payments.

It was a desperate time for him. Lenders turned him down for loans because of his credit history, which included a few missed mortgage payments. The bank that held his mortgage refused to let him pay by installment.

``Here I am, vulnerable. I have all this debt and I'm about to lose my house,'' DeBruno said. He saw the ad and decided: ``All right. I'll take a chance.''

DeBruno sent a check for $750 that, according to the representative on the other end of the phone line, would cover the first and last payment of the loan.

But there was no credit relief. Instead, the Thousand Oaks engineer became the latest victim of fraud, one of tens of thousands nationwide. They are victimized by advertisements they see in publications, on television or the Internet, and in most cases they have no way of getting their money back.

It's of little condolence, but DeBruno is not alone. In 1996, the National Fraud Information Center in Washington, D.C., received 16,335 fraud reports. The U.S. Postal Service received 85,263 complaints relating to mail fraud last year.

``I was robbed. I was taken advantage of,'' DeBruno said. ``It's sad that people will prey on other people's vulnerabilities like this.''

The ads promise fantastic opportunities, appealing to people who are in desperate circumstances, are greedy or are too trusting.

The ads claim people can make thousands of dollars stuffing envelopes at home, that they can fix credit problems or help people get into high-paying government jobs. Many also promise thousands of dollars in income via home computers or even offer loans for consolidating debt.

``These ads take advantage of what consumers don't know, and they're telling you what you want to hear,'' said Cleo Manuel, a spokeswoman for the National Consumers League in Washington, D.C.

While these scams vary in their insidious creativity, they generally operate by first appealing to a consumer need, persuading victims to send money upfront and then disappearing with the money or giving customers only a shadow of what they expect.

``If it's too good to be true, then you'd better be suspicious,'' said Pastor Herrera Jr., director of the Los Angeles County Consumer Affairs Department.

For instance, consumers who want to make money by stuffing envelopes will find that there's an upfront fee for the privilege.

What do they get? In one instance, victims received a letter telling them they can make the promised money by doing what the letter-writer did - place ads about stuffing envelopes.

Also, don't trust ads that promise a quick fix on credit problems.

Credit repair companies typically ask for $500 to $1,000 upfront to ``fix'' a victim's credit history. They claim to do so by finding an error and disputing it with the credit agency. The agency will erase the record of a flawed credit entry, con artists tell their victims.

That's not true, said Steve Baker, director of the Federal Trade Commission's regional office in Chicago.

Consumers can't repair their credit. If there's a mistake in their credit history, they can call the credit reporting agency themselves to correct it. But they can't make a bad but true listing go away, authorities said.

A bad credit event will stay on the consumer's credit history for seven to 10 years, Baker said. It will not be erased beforehand.

Sometimes, fraudulent credit repair agencies tell their victims to apply for a tax identification number - used by businesses to report taxes - and use it instead of their Social Security number. That way, their credit history is hidden.

That's illegal, Baker said. In addition, government computer systems are set up to recognize an invalid Social Security number.

What about ads that promise listings of high-paying postal worker jobs for a small upfront free? Consumers who send money for those lists frequently just get a job application form in return, a document they could have gotten for free at any local post office, Baker said.

Manuel has heard of work-at-home computer scams in which victims are told they'll need to buy a scanner from the company before the work is sent. The company says the scanner will be used for projects it provides and which the company will buy back for $100 each.

They never do, she said.

``Once con artists get the money upfront, they disappear,'' Manuel said.

In DeBruno's case, they stalled.

After he called the Toronto-based company, a representative asked for personal information such as his Social Security number, his income and the amount he wanted to borrow.

Three days later, DeBruno was told he had been approved for a five-year loan at 11 percent. The payment would be $375 a month.

A consultant who said her name was Maria Anderson asked him to fax more personal information such as a copy of his driver's license and paycheck stubs as well as a voided check or deposit slip for the transfer of funds. DeBruno complied.

Then the clincher: Anderson asked for a cashier's check of $750 to cover the first and last payment of the loan before she would send the $17,000. She insisted on a cashier's check, not a personal check.

DeBruno was a little anxious, but Anderson waved away his concerns.

``She said: `I have kids of my own. I would never work for a fraudulent company,' '' he recalled.

He sent the check by Federal Express. That was the last time he saw the $750.

He kept calling the company, but couldn't get in touch with Anderson.

Another person looked at his account and told him his loan would arrive in a few days. But it didn't.

DeBruno called again and was told to contact customer service. His file, he was told, had been ``referred.'' The company would not say to whom. This back-and-forth lasted for two weeks.

DeBruno called again, pretending to be a new loan applicant, and gave the operator a fake name and Social Security number. After a few days, a company employee called him back to say he was approved for a $10,000 loan.

Authorities say he probably won't see his $750 again. He could take the company to small-claims court, but he'd have to fly to Canada to do so.

That's time and money DeBruno can't spare.

A wolf in sheep's clothing

Some of the most common fraudalent schemes:

AD: Bronze and copper bust of President Lincoln, $4.95.

WHAT YOU GET: A penny

AD: Solar clothes dryer kit, $36.99

WHAT YOU GET: A clothes line and some clothes pin

AD: Pet baby rattler, $3.98, with photo of a small rattlesnake 

WHAT YOU GET: Plastic baby rattle worth 50 cents

AD: Handy paint mixer, $3.50

WHAT YOU GET: Wooden stick, worth 10 cents

AD: ``How to get a $1,615 a week job in Alaska. Even if totally unskilled, start at $1,020 weekly.''

WHAT YOU GET: Employment and income opportunities are exaggerated.

If you've been conned:

File a written complaint with the California Attorney General's Office, P.O. Box 944255, Sacramento, Calif., 94255-2550. Or call [phone].

If the transaction transpired through the mail, write to the U.S. Postal Inspection Service, Operations Support Group-Chicago, Attn: Fraud Complaints Section, 433 West Van Buren St., 7th Floor, Chicago, Ill., 60607-5401.

File a complaint with the National Fraud Information Center at [phone].

Give authorities the following information:

-- Full name and address of the individual seller or firm

-- Copies of the advertisements

-- Copies of correspondence with the company, including copies of the envelopes they were in, if possible

-- Method of payment, including a copy of the receipt, canceled check or money order.

-- Whether money was required before receiving the merchandise

SOURCE: U.S. Postal Service, Los Angeles County Consumer Affairs Department

You're a winner! Or are you?

Ten common fraudulent schemes:

Sweepstakes and prize offers

Example: Con artist tells victim that he has won the sweepstakes or a prize. But to collect, he has to send money first. Victim loses money, doesn't win anything.

Work at home

Example: In the ``make money by stuffing envelopes'' scam, after sending money for the information, victims get a letter telling them to earn the promised income by placing ads around the country on how to ``make money stuffing envelopes.'' The envelopes they stuff are letters sent to other victims who respond to the ads.

Travel fraud

Example: Victim pre-pays for travel but does not get the promised trip.

Credit card assurance

Example: Con artists offer to help victims get a credit card even with bad credit. But after paying a non-refundable fee, victims don't get a card.

Magazine and book sales

Example: Con artists pretend to represent well-known magazines. They may sell bogus subscriptions and pocket the money, or sign up unwitting victims to as much as five years worth of magazines.

Phony job opportunities

Example: A victim sees an ad selling a list of companies that are hiring for various jobs, often high-paying overseas positions. After buying the list, which often costs $30 or more, victims find out that these companies are not hiring.

Health products

Example: Items that claim an instant cure for arthritis, overnight weight loss and other miracles. But products aren't tested by competent medical authorities and could be dangerous.

SOURCE: National Fraud Information Center, U.S. Postal Service

CAPTION(S):

8 Photos, Box

Photo: (1--Color) Dan DeBruno of Thousand Oaks holds the paperwork from a loan scam that defrauded him of $750.

Tina Gerson/Daily News

(2) no caption (Sheep)

(3--Color) no caption (Pennies)

(4--Color) no caption (Handy paint mixer)

(5--Color) no caption (Sweepstakes/jackpot)

(6--Color) no caption (Travel)

(7--Color) no caption (Magazines)

(8--Color) no caption (Pills)

Daily News photo illustration by Ceasar Quebral

Box: A wolf in sheep's clothing (See Text)