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BBB announces Top Ten Scams of 2007

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N. IDAHO/E. WASH. - Schemes and scams take various forms but they all share common traits. The Better Business Bureau says knowing the danger signs and how to protect yourself can save you time and money.

Here are the Top Ten Scams for 2007 from the BBB Serving Eastern Washington, North Idaho & Montana.

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1. Prize Pitches with a Catch Including SWEEPSTAKES/LOTTERY FRAUD
 
By now you should know the drill - some sweet-talking person calls or writes to you claiming you have won some great prize, such as an all-expenses paid trip or a huge sum of cash. The only thing is that you must send them money, be available for a home delivery or a special presentation, or provide them with some very personal information such as your bank account number. In the end, you don't get the prize and the scammer gets your money with little or no chance that you will get it back. 

There's a chance for a 'sequel' to this scam - in a "Recovery Pitch," the scammer takes this a step further. He has the money and now he wants more by calling previous victims telling them he's law enforcement and that he's found the victims' money, but of course the victims have to send money to get their money back.
 
QUICK TIP: If there's a catch or condition, you haven't won. If it sounds too good to be true, or you're not sure, check the offer out further. Contact your BBB for advice on how to file formal complaints with the correct agencies. To reduce the amount of telemarketing calls you receive register with the FTC's National Do Not Call Registry at www.donotcall.gov or via phone at 888.382.1222.

NOTE: THERE is NO OTHER! This free service WILL ask for your social security number.

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2. Check Overpayment Schemes

In this scam, fraudsters typically target people selling a product through classified ads, online bulletin boards or people looking for work on employment postings. The scammer sends a check for the listed product or service that is more than the negotiated price. The original check is usually stolen or is bogus, and by the time the victim has cashed and returned the excess funds, the scammer has disappeared with the money and the product.

Another check overpayment scheme can be under the guise of working as a mystery shopper. The victim believes that they will be paid to mystery shop a wire-transfer service. They are sent a check, told to deposit it, keep a small percentage of the money as their wage, wire the rest, and then complete the survey on the service they encounter. The address turns out to be bogus, the money wire-transferred to another unknown location and the victim is out the money transferred.

QUICK TIP: Never accept payment for more than your selling price. Never agree to refund the excess to a buyer or wire-transfer money to another location. A legitimate buyer or employer would never ask you to do so. Consider using an independent online payment service. Speak to your credit card service provider to determine what avenues it has to guarantee payment processing.

If you have been told the check you have is phony ONCE, information will be collected. If you continue down the street to try and cash that check TWICE, you are no longer a potential victim, but a criminal. Take the advice first that they are not real and tear those checks up!

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3. Door-to-Door Marketing

They come to your door at home or place of business uninvited, offering to renovate, to repair, to sell you a great deal on a product that turns out to be overpriced or lacking in quality, or they request your help in contributing to a worthwhile cause. Consumer complaints about high pressure and misleading sales practices of some door-to-door sales people, including advertising opportunities to businesses, magazine sales, charitable solicitations and fly-by-night contractors, put this topic on the list. Be very careful when agreeing to do business via a door-to-door offer.
 
QUICK TIP: Know what you need and take the time to do your research. Any legitimate salesperson or contractor will give you the time to make the best decision. Start with the BBB to check the business out. The FTC's Three Day Cooling Off period applies to any sales conducted outside of a place of business. Contact the BBB or FTC for more info on this rule.

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4. ID Theft

What do social networking sites like Facebook and MySpace have in common with unsolicited e-mails, PIN Pad machines and credit card skimmers? They are all being used as a means to steal your personal information for fraud. Whether you innocently set up a detailed profile on a website that anyone can access, respond to "phishing" emails, click on a link to access what appears to be your bank or another reputable agency, or respond to an unsolicited call, by providing personal information you could inadvertently be giving a criminal your identity.

QUICK TIP: Control your information - limit what information you provide on websites, and shred any documents that contain your personal information. Never give out banking, credit card or other personal information to someone who has contacted you. Make sure to check your bank statements regularly, and check your credit report annually with all three major credit reporting agencies: Equifax, Experian and Trans Union at www.annualcreditreport.com For more information about identity theft, go to: www.ftc.gov.

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5. Advance Fee Loans

Looking to borrow a little extra cash? You have probably read a classified ad or an online pop-up that provides you the opportunity to borrow thousands of dollars despite your credit rating. If so, did it also state that it will only cost you a small fee to do this? Before you jump up and send in that processing fee or security deposit, be warned that this is likely a scam and advance fee loans are illegal in the United States as well as Canada. You should never have to pay cash in advance for a loan. Many people have filled out their application for their loan, sent in their hard-earned money and then have never heard back from the company. Now, the consumer is out the anticipated "pre-approved" loan but also the processing fee as well.

QUICK TIP: Never pay money to get money. If it is a legitimate loan or lender, the fee will be added to the total amount owed on the loan as required by law. For information about disclosure requirements when you are applying for a personal loan speak with your financial institution or contact your state Department of Finance or Financial Institutions.

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6. Foreclosure Rescue

These scams involve thieves who steal your home and equity after promising to help you save your home from foreclosure.

QUICK TIP: Know the red flags of this scam. Do your homework and know that who you are dealing with is legitimate and a properly registered lender. Read your contract before signing, and know what it will require of you. If you are unable to understand a contract put before you, don't sign it, and find someone who can translate it for you so you know what you are getting into. Search for tips online and arm yourself with education before diving in.

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7. Health Claims and Cure Alls

Beware of too-good-to-be-true advertisements claiming "rapid" and "effortless" weight loss, stop smoking or "miracle cures" with "newly discovered" treatments for disease and illness. These scams may put your health at risk if proper medical treatment is delayed or compromised.

QUICK TIP: Before buying any treatment or medication, consult your physician, pharmacist or other health care professional. Report any bogus health and wellness claims to the Federal Trade Commission at: www.ftc.gov

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8. Phony Online Sales

You find a puppy or car on an online auction site. You pay, but never receive what you paid for. It never existed. The scammer poses as a legitimate seller but is merely out to get your personal information and/or to get you to part with your cash and not deliver you a product.

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9. Bogus Credit Offers

Promising substantial lower interest rates on credit card debt, these offers appear to be a legitimate debt consolidation or counseling service. The catch is that they ask for a substantial fee to help you reduce your debt. In exchange, they promise to contact your credit card companies to negotiate lower interest rates on your credit cards.

In reality, the company sends you information on how you can lower your interest rates by contacting your credit card companies directly and negotiating. In some situations, the consumer is not even eligible or able to use these services.

QUICK TIP: If you have credit problems, you can improve your credit profile on your own at no charge or consult with local services that offer debt counseling and other related services. If considering such an offer, understand what services the debt consolidation company is providing and get these terms and conditions in writing. If the company will be collecting funds from you and making payment on your behalf, ensure that they are properly licensed to conduct business and check them out at www.bbb.org

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10. Unscrupulous Moving Practices

Some moving companies have unethical practices that tarnish the industry: charging hidden fees or providing low estimates and then, at delivery, charging more or holding your goods in storage until you pay.

QUICK TIP: Have the moving company provide a detailed estimate in writing and request a firm quote. Check the company out with the Better Business Bureau.  Find out what protection the company will provide you in the case of damaged or missing items and make sure that this information is added to your written agreement.