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Fraudulent home repairs and online phishing schemes are no match for the current number one scam, which preys on the sorriest of victims -- people who are out of work, out of cash and out of luck.

"The so-called 'debt settlement' industry is now the single greatest fraud of the year," says Department of Consumer Affairs Commissioner Jonathan Mintz.

These "debt settlement" firms ask for an upfront fee for their services, and Mintz says they then give advice that will destroy credit instead of rebuild it.

"They urge you to stop paying the people you owe money to. They you to stop talking to the people you owe money. Instead, what they say is, 'Give us a fee and start putting money into an account that we will manage for you.' And the idea is they're urging you to play chicken," says Mintz. "You don't pay, you don't pay, your creditors become more and more desperate, and then they tell you they're going to call up the creditors and offer them pennies on the dollar, the creditors are going to accept and everything's going to be great. But in fact, the opposite is what happens, almost every single time."

It's a game of chicken the consumer rarely wins. Thousands of debt settlement customers report being left in worse financial shape after settlement process.

Rogue dept settlement companies operate around the country, and they give off a couple of tell-tale signs.

"Anybody who makes you a promise about how they can reduce your debt is lying. They can't promise to reduce your debt because you don't owe them the money. So you really want to stay away from people who are making those kinds of bold promises," says Mintz. "The other red flag is anyone who's asking for money from you before they have helped you. Again, you want to get out of there as fast as possible."

Debtors in need of counseling can get help from several nonprofit organizations. The Department of Justice has a list of pre-approved organization in every state at www.justice.gov