6/2010

Rent-to-Own Home Scheme

    A scammer urges you to surrender the title of your home as part of a deal that will let you stay in your home as a renter, and then buy it back in a few years. He/she may tell you that surrendering the title will permit a borrower with a better credit rating to get new financing—and keep you from losing your home. However, the scammer will have no intention of ever selling the home back to you.

    The terms of these deals usually make buying back your home impossible. And here's the clincher: Should the new borrower default on the loan, you're evicted.

Furthermore:

• The scammer raises your rent over time to the point that you can’t afford it. After missing several rent payments, you'll find yourself facing eviction, leaving the "rescuer" free to sell your house.

• The scammer offers to find a buyer for your home, but only if you sign over the deed and move out. The scammer promises to pay you some of the profit when the home sells. But simply rents out your home and keeps the profits while your lender proceeds with the foreclosure. You lose your home and are still responsible for the unpaid mortgage, because transferring the deed does not negate your mortgage obligation.
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      As part of a consumer education campaign, the below Website is aimed toward helping consumers manage their money and learn to recognize scams.

      When they visit it, consumers will enter the fictitious world of Esteemed Lending Services, where a loan for every situation is guaranteed.

      The site then claims that qualified loan specialists will help you find a loan for any purpose, or consolidate your high-interest debt - regardless of your credit history.

      But when consumers click to learn more, or to apply for a loan, they will discover that Esteemed Lending is not a real company - but a fake! The Website reached provides information warning consumers of scammers masquerading as lenders; where these scammers start by promising loans and ultimately reveal an up-front fee [fees the consumer must pay "before a loan is considered"]. If they pay the fee, it's unlikely they will see the promised loan; while running the risk of their personal information ending up in the hands of identity thieves.

      Visit Esteemed Lending Services.

      The site also gives consumers tips to help spot an advance fee scam, and includes links to more information from the FTC.

  Courtesy:
  Federal Trade Commission

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  5/2010

      Aimed at seniors on Medicare, the caller asks for personal information so a new Medicare card can be issued. If the Medicare recipient refuses, a second person posing as a supervisor gets on the line and says the information must be provided to remain in the Medicare program. Once they have the info, they use it to steal identities and tap into bank accounts.

      Consumers can protect themselves by not giving out personal information over the phone. Think logically and ask why a Medicare representative would need something like a Social Security number when the agency would already have that information on file. Be wary anytime a stranger asks for personal information

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  Top 10 Scams to Watch Out for in 2010

       Not surprisingly, with our wish to save and make money during our tough economic times, the top 10 scams of 2009 will continue into 2010. These rip-offs had sought to take advantage of people who were suffering under hard economic circumstances. Furthermore, the use of free-trial offers to lock consumers into recurring credit and debit card charges was widespread online, and will continue to be so.

      Below are the top scams and rip-offs that took advantage of consumers and small business owners across the U.S. in 2009, and are predicted to persist throughout 2010:

  1. Ads presenting trial offers for teeth whiteners, acai anti-aging pills and other miracle supplements have blanketed the Internet in 2009 - and are likely to last through 2010 - bearing false endorsements by such trusted TV personalities as Dr. OZ, Rachel Ray and Oprah. Thousands have complained that the free trial actually cost them a recurring bank deduction of as much as hundreds of dollars per month.

  2. Even before President Obama announced the stimulus plan in February of 2009, scammers had already set up schemes for misleading consumers and small business owners into thinking they could get a piece of the pie. Offers for worthless assistance and advice on how to get government grants bombarded consumers online, over the phone and via mail and e-mail. This trend is anticipated through 2010.

  3. Possessing a cell phone or having a phone number on the Do-Not-Call list did not stop harassing robocalls [automated telemarketing calls] across the US in 2009. The prevalence of robocalls violating federal telemarketing laws prompted the Federal Trade Commission to increase restrictions on the practice in 2009. However, if you find yourself harassed in 2010, we suggest that you contact the FTC given above.

  4. The victim receives a letter in the mail pertaining to be from Reader’s Digest, Publisher’s Clearing House or a foreign lottery claiming that he or she has won millions of dollars. The letter comes with a check that represents only a portion of the total winnings. In order to get the rest, the victim has to deposit the check and then wire several hundreds dollars back to the scammers, supposedly to cover taxes or some other bogus fee. The victim wires the money, but the prize never arrives. These lottery schemes were prevalent in the late 1970s to 2009, and are expected to continue in 2010 and beyond. Beware!

  5. Scams targeting job hunters vary, and include attempts to gain access to personal information [ bank account, social security numbers, etc.]; the person seeking employment is also required to pay a fee in order to even be considered for the job. This has been going on since the 1960's, and is expected to continue throughout 2010 and beyond. We suggest that you deal only with legitimate employment agencies. Or hire out through a temporary job agency [daily pay]. (Note: It may take awhile to secure a position through the temporary agencies, and you may have to work several part-time jobs. But, believe me, it can be done!~ Doc Jim)

  6. Numerous Web sites cropped up in 2009 that claimed you could learn how to make money from home using Google or Twitter. The Web sites often included the Google or Twitter logos and fooled many people into believing they were getting a job with Google or Twitter when, in fact, they were lured into a misleading free-trial offer and billed every month for materials and several mystery charges that added up to hundreds of dollars. This is expected to continue through 2010, if it remains profitable to the scammers.

  7. Many families struggling in today's economy are approached, or answer ads by, scammers who offer to help them save their house from foreclosure or help them get out of credit card debt. Unfortunately, victims are paying hundreds of dollars up front for the assistance they desperately need but ultimately never receive. This is another one destined to remain throughout 2010, unless we refuse to panic and do our homework before submitting to these fast talking peddlers.

  8. Consumers across the country thought that they could make some extra money by becoming a secret shopper and evaluating the customer service of various stores. The victim is asked to evaluate their shopping experience at a few stores as well as a money wiring service such as Western Union or MoneyGram by wiring money back to the scammers. A realistic looking, but fake, check is supposed to cover the costs. The victim is out hundreds, if not thousands, of dollars. This is expected to continue throughout 2010, or as long as we fail to do our homework.(There are legitimate mystery/secret shopper programs available. (I worked part-time as a mystery shopper team leader in Los Angeles, while working my way through school in the 60s. There is honest money to be made in this type of work, but research the legitimacy of companies hiring mystery shoppers. Legitimate companies will not charge an application fee and will now accept applications online.~ Doc Jim)

  9. Over-payment scams typically target small business owners, apartment landlords or individuals with rooms to rent, who advertise through classifieds or such Websites as Craigslist. Typically the scammer pretends to be a customer, possible renter or interested buyer, respectively. The victim receives a check for more than the amount requested. The scammers then ask the victim to deposit the check and wire the extra amount elsewhere, such as to a shipping company. Ultimately though, the check is fake and the victim is really wiring money back to the scammers. This type of scam has been going on for many years and is, unfortunately, expected to continue for many years to come - unless you post a complaint with our Scam Report Form or at www.IC3.gov for investigative action.

  10. A perennial problem, phishing e-mails pop up in inboxes and can take various forms such as appearing to be from a business, a government agency or official - or even a friend. Whatever the case, the goal of any phishing e-mail is the same: to trick victims into divulging sensitive financial information, or to infect the victim’s computer with viruses and malware. Although there is no foreseeable closure to these e-mails, there are ways to prevent becoming a victim:

  • Do not respond to unsolicited (spam) e-mail.
  • Do not click on links contained within an unsolicited e-mail.
  • Avoid filling out forms contained in e-mail messages that ask for personal information.
  • Always compare the link in the e-mail to the link you are actually directed to and determine if they match and will lead you to a legitimate site.
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  1/2010

  The 2010 Census is Safe! Here are the Facts!

      An e-mail, falsely claiming to be from the Better Business Bureau regarding the upcoming 2010 Census, is inaccurate and the BBB is advising consumers to get the facts:

      In March, census forms will be delivered to every residence in the United States and Puerto Rico. When you receive yours, just answer the 10 short questions and then mail the form back in the postage-paid envelope provided. If you don’t mail the form back, you may receive a visit from a census taker, who will ask you the questions from the form. A census taker must follow-up in person with every address that does not mail back the form, in order to obtain the responses.

  The Census is Safe!

  • The 2010 Census will ask for name, gender, age, race, ethnic origin, relationship, and whether you own or rent your home – just 10 simple questions that will take about 10 minutes to answer.

  • The Census Bureau safeguards all census responses to the highest security standards available.

  • Your answers are protected by law and are not shared with anyone. The census taker who collects your information is sworn for life to protect your data under Federal Law Title 13. Those who violate the oath face criminal penalties. Under federal law, the penalty for unlawful disclosure is a fine of up to $250,000 or imprisonment for up to 5 years, or both.

  When Will Census Takers Go Door-to-Door?

  • From April to July, the Census Bureau will knock on the door of every household that does not mail back a completed 2010 Census form.

  • It’s critical that you take just 10 minutes to fill out and mail back your form rather than wait for a census worker to show up on your doorstep. About $85 million in taxpayer dollars are saved for every 1% in mail response.

  • The Census Bureau must get a census form to – and a completed form back from – every residence in the United States. That’s more than 130 million addresses, which is the largest domestic mobilization our nation undertakes.

  How to Identify a Census Taker

      If a U.S. Census Bureau employee knocks on your door, here are some tips to help assure the validity of the employee:

  • The census taker must present an ID badge that contains a Department of Commerce watermark and expiration date. The census taker may also be carrying a bag with a Census Bureau logo.

  • The census taker will provide you with supervisor contact information and/or the Local Census Office phone number for verification, if asked.

  • The census taker will ONLY ask you the questions that appear on the census form.

  What the 2010 Census DOES NOT Ask

  • 2010 Census takers will not ask you for your social security number, bank account number, or credit card number.

  • 2010 Census takers also never solicit for donations and will never contact you by e-mail.

      For more information on the upcoming 2010 Census, visit the United States 2010 Census Website.

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  1/2010

  Mystery/Secret Shopper Schemes

      Employment schemes pertaining to mystery/secret shopper positions are on the rise again. Many retail and service corporations hire evaluators to perform secret or random checks on themselves or their competitors, and fraudsters are capitalizing on this employment opportunity.

      Victims have reported that they were contacted via e-mail and U.S. mail to apply as a mystery/secret shopper. An applicant is asked to send a processing fee, a resume and is allegedly subject to an extensive background check before being accepted. The employee is then sent a large check with instructions to shop at a certain retailer for a specified length of time and to spend a specific amount of money for merchandise from that store. The employee receives further instructions to take note of the store's environment, payment methods, shopping/carrier bags and report back to the employer. The second portion of this job is the ease and accuracy of wiring the change money received from the retail location. The money to be wired is also included in the check sent to the employee. The remaining balance is the employee's payment for the completion of the assignment. After the merchandise is purchased and the money is wired, the employee is advised by his/her bank that the check cashed was counterfeit, and he/she is responsible for the money lost, in addition to bank fees incurred. Needless to say, the employee has already lost his/her "processing fee and is obligated for the merchandise bought."

      In other versions of this scheme, an applicant is requested to provide his/her bank account information in order to have money directly deposited into their account. The scammer then has acquired access to the victim's account, which would make the applicant a victim of identity theft.

  Tips

      Below are a few tips you can use to avoid becoming a victim of mystery/secret shopping employment schemes:

  • Do not respond to unsolicited (spam) e-mail.

  • Do not click on links contained within an unsolicited e-mail.

  • Avoid filling out forms contained in e-mail messages that ask for personal information.

  • Always compare the link in the e-mail to the link you are actually directed to and determine if they match and will lead you to a legitimate site.

  • There are legitimate mystery/secret shopper programs available. (I worked part-time as a mystery shopper team leader in Los Angeles, while working my way through school in the 60s. There is honest money to be made in this type of work, but research the legitimacy of companies hiring mystery shoppers. Legitimate companies will not charge an application fee and will now accept applications online. ~ Doc Jim)

  • No legitimate mystery/secret shopper program will send payment in advance and ask the employee to send a portion of it back.

      Individuals who believe they have information pertaining to mystery/secret shopper schemes are encouraged to file a complaint with our Scam Report Form or at www.IC3.gov.

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