Better Business Bureaus have issued an international alert to warn about individuals who are fraudulently using the BBB name to extort money from online shoppers seeking to purchase "big-ticket" items advertised at "low-ball" prices.
BBBs in Arizona, California, Florida, Georgia, Ohio, South Carolina, Tennessee, Indiana and Texas have received queries from online shoppers who were directed to use bogus Better Business Bureau services or received bogus BBB invoices when pursuing jet skis, cars, motorcycles and similar items that were advertised on auction, classifieds and other Web sites. Sites where such items were allegedly listed include eBay, Craigslist, Carbuyer.com and Motorcycletrader.com.
Complainants reported that the merchandise was briefly posted on the online shopping site, and that when they attempted to buy the item by communicating directly with the seller, they were advised that their financial payment would be "handled securely through the Better Business Bureau Company’s insurance service." Buyers were told to e-mail the seller, whom, they were advised, would send their e-mail to "the BBB." "The BBB" would let them know if they were preferred customers and could start the transaction.
Next, the approved buyers received electronic invoices instructing them to wire thousands of dollars to a Western Union in another country to one of "the BBB’s" agents. Signed "Better Business Bureau Customer Support," the e-mail states that "the Better Business Bureau will hold the transferred money until the merchandise is inspected and received by the buyer." To date, consumers have been instructed to wire money to Greece, Ireland or England.
There are other permutations of this scam. One purchaser was sent an invoice, signed by the "Better Business Bureau Finance Department" and featuring the BBB name and logo on "International Trading" letterhead. Another buyer received an e-mail purporting to be from the Better Business Bureau and containing a "verified BBB Seal Member Profile" for the online seller. One consumer in Florida reported being told to use a "BBB Auto Buyers Protection Program."
"These thieves are falsely using the BBB name to inspire trust and confidence on the part of the buyer," said Ken Hunter, president and CEO of the Council of Better Business Bureaus, Inc. "The CBBB has reported the fraudulent activity to several law enforcement authorities and has taken steps to prevent others from being victimized by demanding that the individuals involved cease and desist from using the BBB name to pursue their extortion schemes."
He advised consumers to take note of the following:
1. The BBB does not operate a "Better Business Bureau Insurance
Service", and it does not offer a "BBB Auto Buyers Protection
Program".2. The BBB is not a ‘preferred insurance provider’ for eBay or any
other entity.
3. The BBB does not manage financial transactions for online
merchants.
4. The BBB does not issue profiles or reports on individuals. BBBs
report on businesses.
The fraudulent e-mails attempt to encourage buyers to proceed with the "Better Business Bureau Managed Transaction" by emphasizing that the BBB is an objective third party; protects online buyers and sellers; is highly effective in completing a successful transaction; resolves thousands of cases each month from eBay and other marketplaces; treats your personal information with the utmost care; and, has a Privacy Policy designed to protect you and your information.
One such e-mail assured the buyer that "once your payment has been verified by our specialized department, you will be liable for 100% refund." Another e-mail promised that the seller would not be paid until the buyer accepted the merchandise, or the three-day inspection period had expired.
When advised of the false BBB representations and the nature of the transactions that were occurring on eBay, the company told CBBB: "On our Web site and in e-mails to users, eBay consistently warns against being lured off the eBay marketplace to complete a transaction, as well as against ever using a wire transfer service, such as Western Union, to pay for products. The perpetrators in this scam appear to be encouraging victims to engage in both of these unsafe trading activities."
E-mail addresses affiliated with the scam include support@bbb-paysafe.com, support@bbbsafe.com and support@inc-bbb.com. One consumer said the e-mail she received from "Better Business Bureau Customer Support" had a BBB Torch logo that, when clicked on, transferred her to the bbb.org Web site. In some of the e-mails, "Square Trade Better Business Bureau" or "Better Business Bureau Financial Department" appears as the name of the sender.
The amount of money involved in the transactions ranged from $3,500 to $10,000. Prospective buyers report they were lured by the "great prices." One seller boasted that the watercraft he was selling was "in perfect condition," but he was asking "a little" because he was "passing through a divorce with my wife and need to get rid of the watercraft."
The BBB advises consumers to:
1. Always contact the BBB when there are questions concerning the
legitimacy of an offer.2. Always check with the BBB when its name is being used in an
unusual or questionable fashion.
3. "Click to check" BBBOnLine Reliability or BBBOnLine Privacy
program seals displayed on merchant Web sites or go to
www.bbbonline.org for a list of merchants meeting BBBOnLine
standards.
BBBs are listed in local phone directories and contact information for individual BBB is also available on the BBB Web site at www.bbb.org.
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