2012
Timeshare Marketing Scams
Timeshare owners across the country are being scammed out of millions of dollars by unscrupulous companies that promise to sell or rent the unsuspecting victims’ timeshares. In the typical scam, timeshare owners receive unexpected or uninvited telephone calls or e-mails from criminals posing as sales representatives for a timeshare resale company. The representative promises a quick sale, often within 60-90 days. The sales representatives often use high-pressure sales tactics to add a sense of urgency to the deal. Some victims have reported that sales representatives pressured them by claiming there was a buyer waiting in the wings, either on the other line or even present in the office.
Timeshare owners who agree to sell are told that they must pay an upfront fee to cover anything from listing and advertising fees to closing costs. Many victims have provided credit cards to pay the fees ranging from a few hundred to a few thousand dollars. Once the fee is paid, timeshare owners report that the company becomes evasive—calls go unanswered, numbers are disconnected, and websites are inaccessible.
In some cases, timeshare owners who have been defrauded by a timeshare sales scheme have been subsequently contacted by an unscrupulous timeshare fraud recovery company as well. The representative from the recovery company promises assistance in recovering money lost in the sales scam. Some recovery companies require an up-front fee for services rendered, while others promise no fees will be paid unless a refund is obtained for the timeshare owner. The IC3 has identified some instances where people involved with the recovery company also have a connection to the resale company, raising the possibility that timeshare owners are being scammed twice by the same people.
If you are contacted by someone offering to sell or rent your timeshare, the IC3 recommends using caution. Listed below are tips you can use to avoid becoming a victim of a timeshare scheme:
- Be wary if a company asks you for up-front fees to sell or rent your timeshare.
- Read the fine print of any sales contract or rental agreement provided.
- Check with the Better Business Bureau to ensure the company is reputable.
To obtain more information on Internet schemes, visit www.LooksTooGoodToBeTrue.com.
Anyone who believes they have been a victim of this type of scam should promptly report it to the IC3’s website at www.IC3.gov. The IC3’s complaint database links complaints together to refer them to the appropriate law enforcement agency for case consideration.
Courtesy:
Federal Bureau of Investigation
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2012
The Better Business Bureau has been informed consumers are receiving suspicious order confirmation e-mails purportedly from Zappos, an online shoe retailer and an Accredited Business with the BBB. The BBB has determined these e-mails are fake, and do not originate from Zappos. Consumers are advised not to click on any links in these e-mails and to contact Zappos directly if you’ve ordered shoes from them recently and have questions about your bill.
In all likelihood, this is a phishing scam designed to steal passwords or install a virus or malware on users’ computers. Because the message is fraudulent, the BBB advises that anyone who receives this e-mail take the following steps:
- Do not click on any links or reply to the message.
- Completely delete the message from your inbox.
- Run a full virus scan on your computer if you did click on any links.
If you ever have any questions about an e-mail you receive, caution is always the best approach. Check online with the BBB at Better Business Bureau.
Courtesy:
Better Business Bureau
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2012
BBB Warns of Scammers Offering Cheap Home Exercise Equipment
The Better Business Bureau is hearing from consumers who have lost money on offers they found on Craigslist advertising home exercise equipment at 50% off in some cases. They say that after paying for their exercise equipment with Green Dot MoneyPak gift cards, the merchandise they ordered was not delivered and the scammers dropped out of contact.
According to consumers and information in BBB files, these scammers are moving from Craigslist ad to Craigslist ad, website to website, making the same fraudulent offer. The most recent bogus site -- allegedly offering discounted home exercise equipment -- reported to the BBB was www.directhomefitness.com. (Which, as of latest check, is closed down for maintenance, or has moved on. ~ Doc Jim)
To avoid falling for this scam, consumers should:
- Be wary of websites or Craigslist advertisements linking to websites where home exercise equipment is offered at steep discounts.
- Be suspicious of websites that ask customers to wire money or pay with a MoneyPak gift card. Consumers should never give their MoneyPak number to someone they don't know.
- Beware of websites requesting MoneyPak as a form of payment even if they display the MoneyPak or Green Dot logo. Consumers should check www.moneypak.com for a list of approved MoneyPak partners.
- Treat your MoneyPak card like cash. Transactions cannot be reversed.
Consumers who have been scammed by fraudulent offers like this should contact their local law enforcement and file a claim, as well as file complaints with the FTC, Doc Jim's
Scam Report Form or at www.IC3.gov.
Courtesy:
Better Business Bureau
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2012
BBB Warns of Latest Lottery Scam
Better Business Bureau warns that a new scam is fraudulently using the organization’s name in order to steal tens of thousands of dollars from victims who are led to believe they have won a lottery. BBB has been notified an individual was contacted over the phone by someone claiming they were with the Council of Better Business Bureaus (CBBB). The caller used the name Jacob Chasen and offered his phone number; however, it is not a BBB number. The caller indicated the individual had won a BBB lottery, but to receive the winnings, taxes and fees must be paid in advance.
“Many people are struggling in the current economy and when someone tells you that you’ve won millions in a lottery, it can seem like an answer to a prayer,” said Stephen A. Cox, President and CEO of CBBB. “Every year, tens of thousands of people contact BBB about a suspicious lottery and instead of cashing in, many lose thousands of dollars they don’t have. This one involves our name and so we want to get the word out right away that this is a scam.”
Better Business Bureau reminds consumers that anyone who receives a call, letter or e-mail about winning a lottery should consult the following checklist to avoid falling victim to a lottery scam:
- Make sure the story checks out
Always confirm the facts directly with the organization the representative claims to be from—whether it’s Better Business Bureau or any other organization. Use contact information that you found on your own from the organization’s website; don’t rely on phone numbers or web links provided by the representative. Scammers often pretend to be from legitimate businesses or non-profits and a quick call directly to the organization can help set the record straight.
- Never pay money to get money
Lottery scammers make their money by convincing victims that they have to pay money up front—to cover such costs as taxes or fees—in order to receive their winnings. Because it is extremely difficult for the victim to track or retrieve money sent via wire transfer, scammers will often use this as their payment method of choice.
- Don’t fall for the phony check
Scammers will often send a check in the mail to the victim with the instructions that—in order to receive the full prize—he or she must deposit the check and wire back a portion of the funds to cover fees or taxes. This gives the victim a false sense of security because the check will clear initially but eventually be discovered as a fake. Once the money is withdrawn from a victim’s account, he or she has lost the funds sent to the scammer.
If you have been contacted by someone indicating they are a Better Business Bureau employee and have money to offer you, we urge you to contact your local BBB immediately to report the incident
Courtesy:
Better Business Bureau
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2012
Latest ATM Scam
In this latest ATM scam, thieves use a cunning new trick based on old technology - glue! - to rob their unsuspecting victims. They stick down a number of keys, halting the transaction after users have inserted their cards and keyed in their PIN numbers. Then, while the victim goes to report that the machine has jammed, the crook sneaks up and completes the transaction by using the ATM's touchscreen. This works because the scammers glue down the "Enter," "Cancel"and "Clear" buttons, which are not needed until after entering the PIN, and most people don't realize that the machine can be operated by touching the screen (though not all have this feature).
As of this writing, this new ATM scam has found its way only throughout sections of California, but it is probably just a matter of time before it pops up elsewhere. And although the incidents are a first for the US, it's not the first time glue has been used for ATM .
Actions:
If keys appear to be jammed after you've inserted your card, check to see if the machine has the touchscreen feature and use that to complete your transaction, then report it.
Whether or not the ATM machine has a touchscreen, if you have a cellphone call your bank while remaining by the machine. If you don't have a phone, borrow someone else's. Or ask someone you trust (don't trust the person behind you in line!) and ask he/she to go into the bank for help. If you're not near your bank - such as a convenience store ATM machine - it's even more important for you contact the bank to cancel your card and any transaction before you leave the machine. Then, even if the crook does manage to get some money, your bank will likely cover you for the loss.
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2012
Latest Scams to Watch For
The ever-evolving technology that makes our lives easier has an unfortunate flip side, giving the con artist an endless stream of options for tricking us out of our hard-earned money, racking up debts on our accounts and even stealing our identities.
Here’s a look at some of the latest scams to watch for and protect yourself from:
- Infant Identity Theft
This unbelievable scam involves stealing the Social Security numbers of children and selling them. Once the buyers receive the “clean” numbers, they can run up debts they have no intention of paying back, allowing for serious trouble for the children down the road. The most frightening part? It’s possible that nobody would discover the scam for years; as when the child applies for a driver’s license, the parents open a savings account for him or her, or when he/she applies for college.
- Fake Timeshare Relief
As many financially struggling Americans look for ways to shed debts, many have sought to unload their timeshare properties. Unfortunately, scammers have caught on to the trend and are reportedly posing as sales agents, demanding upfront fees to help sell the homes, and running away with the money without offering any real help. As with other types of scams, proceed with caution any time a seller approaches you and/or demands payment before performing services.
- Phony Online Car Sales
This scam advertises used cars at steep discounts, claiming the vehicles have been repossessed to explain the low prices. Interested buyers are prompted to wire part of the purchase price up front and send the remainder when the car is delivered a few days later—but, of course, the car never is delivered, because the whole thing is a scam. This one can be especially deceptive because scammers apparently use information from the web sites of legitimate auto dealers to make themselves look more credible.
- Busy Phone Lines
If you begin to notice that your phone lines are inexplicably busy (i.e. dead air, prerecorded messages, etc.), you could be the victim of a scam. It works like this: fraudsters collect personal information (such as bank account numbers, passwords or other sensitive info), usually by trolling social networking sites, using phishing emails or calling your number and posing as someone else. Then, they tie up your line and drain your accounts of money by asking for transfers or other transactions—usually the bank calls to verify such activity, but it cannot when your phone is busy. In some cases, the scammers even call the banks pretending to be their victims and ask for the transactions to go through. By the time you realize what has happened, it can be too late, so take a tied-up phone seriously—get to a free line and call your bank and credit card issuers!
For more details concerning these scams, and how to protect yourself and your money, visit the FTC Website and check out the consumer protection information.
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2009 - 2012
Judge Imposes Ban on Marketers of “Detox” Foot Pads!
Advertising Claimed “Ancient Japanese Secret” Could Treat Medical Conditions!
At the request of the Federal Trade Commission, a federal judge has banned marketers of Kinoki “Detox” Foot Pads – that would purportedly remove toxins from the body through a person’s feet – from selling a wide variety of products. The FTC charged that the marketers falsely claimed the pads could treat numerous illnesses and medical conditions. In a settlement announced today, the judge banned the marketers from promoting or selling any dietary supplement, food, drug, or medical device, and from assisting others in doing the same.
As part of its efforts to crack down on bogus health claims, the FTC last year charged the promoters of the foot pads with running deceptive ads on television and the Internet that touted the “ancient Japanese secret to perfect health” for treating wide-ranging medical conditions.
The defendants – Yehuda Levin and his company, Xacta 3000, Inc. – sold a two-week supply of Kinoki Foot Pads for $19.95, plus $9.95 for shipping and handling.
The defendants falsely claimed to have scientific proof that the foot pads removed toxic materials from the body, according to the FTC complaint. The defendants also advertised that when applied to the soles of consumers’ feet at night, the food pads could remove toxins, metabolic wastes, heavy metals, and chemicals from the body; treat headaches, depression, parasites, fatigue, insomnia, diabetes, arthritis, high blood pressure, cellulite, and a weakened immune system; and cause weight loss. In its complaint, filed in the U.S. District Court for the District of New Jersey on January 27, 2009, the FTC charged that these advertising claims were false or unsupported.
The defendants agreed to a judgment of $14.5 million, which represents the total revenues from the sale of Kinoki Foot Pads. The entire judgment is suspended based on the defendants’ inability to pay, but will become due if they are found to have misrepresented their financial condition.
The Commission vote authorizing the staff to file the agreed-upon settlement was 4-1, with Commissioner Rosch dissenting. A judge in the U.S. District Court for the District of New Jersey signed the stipulated final order on October 28, 2010.
NOTE: A stipulated final order is for settlement purposes only and does not constitute an admission by the defendants of a law violation. A stipulated final order requires approval by the court and has the force of law when signed by the judge.
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant at ftc.gov. or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics.
MEDIA CONTACT:
Betsy Lordan
Office of Public Affairs
202-326-3707
STAFF CONTACT:
Victor F. DeFrancis
Bureau of Consumer Protection
202-326-3495
Sydney M. Knight
Bureau of Consumer Protection
202-326-2162
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2012
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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2012
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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2012
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 2012
Not surprisingly, with our wish to save and make money during our tough economic times, the top 10 scams of 2009 will continue into 2012. 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 2012:
1. Ads presenting trial offers for teeth whiteners, acai anti-aging pills and other miracle supplements had blanketed the Internet in 2009 - 2011 - and are likely to last through 2012 - 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 2012.
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 2009-2010. However, if you find yourself harassed in 2012, 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 2011, and are expected to continue in 2012 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 2012 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 2012, 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 upfront for the assistance they desperately need but ultimately never receive. This is another one destined to remain throughout 2012, 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 2012, 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 grad 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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2012
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 grad 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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