BetterBusiness Bureau (BBB) investigates thousands of scams each year, from thelatest gimmicks to those that linger for decades. In order to increase the public’sawareness, BBB’s new Scam Source (www.bbb.org/scam)is a comprehensive resource on scam investigations from BBBs around the countrythat includes tips from law enforcement and others. The public can also sign upto receive BBB’s Scam Alerts by email, and is encouraged to report scams they discover.
“Althoughwe are in a new year, it does not mean that the scams prevalent in 2011 are nolonger a threat. For this reason, BBB encourages the public to share our scamwarnings with family and friends to ensure their identity, money and time areprotected,” BBB President Matthew Fehling said.
Thefollowing is a list of the top nine scam categories as well as the Scam of theYear.
Top Job Scam
BBBsees lots of secret shopper schemes, work-from-home scams, and other phony joboffers, but the worst job-related scam can dash your hopes and steal your identity. Emails, websites and online applicationsall look very professional and the candidate is even interviewed for the job(usually over the phone) and receives an offer. However, in order to start thejob, the candidate has to fill out a “credit report” or provide bankinformation for direct deposit of their “paychecks.” The online forms arenothing more than a way to capture sensitive personal data – Social Securitynumber, bank accounts, etc. – that can easily be used for identity theft. And,of course, there is no job, either.
Top Sweepstakes andLottery Scam
Sweepstakesand lottery scams come in all shapes and sizes, but the bottom line is almostalways this: “You’ve won a lot of money, and in order to claim it you have tosend us a smaller amount of money. Oh, and keep this confidential until we’reready to announce your big winnings.” This year’s top sweepstakes scam wasundoubtedly the email claiming to be from Facebook founder Mark Zuckerbergannouncing that the recipient was the winner of $1 million from the popularsocial networking site. These kinds of scams often use celebrities or otherfamous names to make their offer seem more genuine. If you aren’t sure, don’tclick on the link but instead go directly to the homepage of the companymentioned. If they are really giving away $1 million, there will be some kindof announcement on their website.
Top SocialMedia/Online Dating Scam
Onthe Internet, it’s easy to pretend to be someone you are not. Are you reallyfriends with all of your “Friends” on Facebook? Do you have a lot of personal informationon a dating site? With so much information about us online, a scammer can soundlike they know you. There are numerous ways to use social media for scams, butone really stood out in 2011 because it appeals to our natural curiosity…and itsounds like it’s coming from a friend. Viral videos claiming to show everythingfrom grisly footage of Osama bin Laden’s death to the latest celebrity hijinkshave shown up on social media sites, often looking as if they have been sharedby a friend. When you click on the link, you are prompted to “upgrade yourFlash player,” but the file you end up downloading contains a worm that logsinto your social media account, sends similar messages to your friends, andsearches for your personal data. The next time you see a sensational headlinefor the latest viral video, resist the urge to peek.
Top HomeImprovement Scam
Alwaysnear the top of BBB complaint data are home improvement contractors who oftenleave your home worse than they found it. They usually knock on your door witha story or a deal – the roofer who can spot some missing shingles on your roofor the paver with some leftover asphalt who can give you a great deal ondriveway resealing. Itinerant contractors move around, keeping a step ahead ofthe law…and angry consumers. The worst are those who move in after a naturaldisaster, taking advantage of desperate homeowners who need immediate help andmay not be as suspicious as they would be under normal circumstances. A largepercentage of BBB’s Accredited Businesses are home contractors who want to makesure you know they are legitimate, trustworthy and dependable. Find one at www.searchbbb.org.
Top Check CashingScam
Twolegitimate companies – Craigslist and Western Union – are used for aninordinate amount of scamming these days, especially check cashing scams. Here’show it works: Someone contacts you via a Craigslist posting, maybe for alegitimate reason like buying your old couch or perhaps through a scam likehiring you as a secret shopper. Either way, they send you a check for more thanthe amount they owe you, and ask you to deposit it into your bank account andthen send them the difference via Western Union. Since a deposited check normallytakes days to clear, fake checks will eventually bounce leaving you responsiblefor the missing funds. Additionally, you will be out the money wired to theindividual posing as a buyer or employer.
Top Phishing Scam
“Phishing”is when you receive a suspicious phone call asking for personal information oran email that puts a virus on your computer to hunt for your data. It’s almostimpossible to avoid them if you have a telephone or an email account. But themost pernicious phishing scam this year disguised itself as officialcommunication from NACHA – the National Automated Clearing House Association –which facilitates the secure transfer of billions of electronic transactionsevery year. The email claims one of your transactions did not go through, andit hopes you react quickly and click on the link before thinking it through. Itmay take you to a fake banking site to “verify” your account information, or itmay download malware to infiltrate your computer.
Top Identity TheftScam
Thereare numerous ways to steal someone’s identity. One particular scam has become soprevalent that many hotels are posting warnings in their lobby. Here’s how itworks: You get a call in your hotel room in the middle of the night. It’s thefront desk clerk. The clerk is very apologetic, saying their computer hascrashed and they need to get your credit card number again. In another scenariothey claim to have captured the credit card number wrong because thetransaction won’t go through. They then ask you to read the number back so theycan fix the problem. Scammers are counting on you being too sleepy to realizethat the call isn’t from the hotel at all, but from someone outside who knowsthe direct-dial numbers for the guest rooms. By the time morning rolls aroundand you are clear-headed, your credit card has been on a major shopping spree.
Top Financial Scam
Inchallenging economic times, many people are looking for help getting out ofdebt or hanging on to their home, and almost as many scammers appear to takeadvantage of desperate situations. Because the federal government announced or
expandedseveral mortgage relief programs last year, many similar sounding programwebsites have popped up to try to fool consumers into parting with their money.Some may sound like a government agency, or even part of BBB or other nonprofitconsumer organization. Most ask for an upfront fee to help you deal with yourmortgage company or the government (services you could easily do yourself forfree), and almost all leave you in more debt than when you started.
Top Sales Scam
Salesscams are nothing new, but the Internet has introduced a whole new way to rippeople off. Penny auctions are very popular because it seems like you can getsomething useful - cameras, computers, etc. – for way below retail. Yet, youpay a small fee for each bid (usually $.50 to $1.00) and if you aren’t thewinner, you lose that bid money. Winners often are not even the top bidder,just the last bidder when time runs out. Although not all penny auction sitesare scams, some are being investigated as online gambling. BBB recommends youtreat penny auction sites the same way you would legal gambling in a casino –know exactly how the bidding works, set a limit for yourself, and be preparedto walk away before you go over that limit.
Scam of the Year
Hundredsof thousands, perhaps millions, of people have received fraudulent emails thatlook like an official notice from BBB. The subject line says something like“Complaint Against Your Business,” and the instructions tell the recipient toeither click on a link or open an attachment to view the details. If therecipient does either, a malicious virus is launched on their computer - avirus that can steal banking information, passwords and other critical piecesof information needed for cyber-theft. BBB is working with security consultantsand federal law enforcement to track down the source of these emails, and hasalready shut down dozens of hijacked websites. Anyone who has opened anattachment or clicked on a link should run a complete system scan usingreputable anti-virus software. If your computer is networked with others, allmachines on the network should be scanned, as well.
If you receive an email saying your business has a complaint filedagainst it with BBB, there are several things you can do to authenticate it:
- Look for typos, grammatical errors, etc. in the text that could indicate it originated overseas.
- Check to see who it says it is from. Complaints go out from the local BBBs, not from the headquarters office.
- Hover your mouse over the link to see if its destination is really a bbb.org address.
- If you still are not sure, go to www.bbb.org to find your local BBB, and send them a new email to ask if you have a complaint (do not Reply to the email you received, or forward it to them).
Formore information on these and other scams, go to BBB Scam Source (www.bbb.org/scam) and sign up for our ScamAlerts and learn about new scams as soon as we do.
About BBBServing Central, Northern & Western Arizona
BBB is an unbiasedorganization that sets and upholds high standards for fair and honest businessbehavior. Businesses that earn BBB accreditation contractually agree and adhereto the organization’s high standards of ethical business behavior. Incorporatedlocally in 1938, today your BBB serves communities in Central, Northern andWestern Arizona, supported by over 9,600 BBB Accredited Businesses. BBBprovides objective advice, free business BBB Business ReviewsTM andcharity BBB Wise Giving ReportsTM, and educational information ontopics affecting marketplace trust.