Category Archives: Scams and Fraudulent Business Practices

Scammers Top 10 List

From the classics to the innovative, this top ten list includes the most popular scams and fraud schemes of the year with some new additions to look out for in the coming months!

#10 Sweepstakes Scam: You’ve won a contest! Or the lottery! Or the Publishers Clearinghouse Sweepstakes! All you have to do to claim your prize is to pay some fees or taxes in advance so they can release your prize… This is not a new scam, but it is a perennial problem.

#9 Romance Scam: Romance scammers contact their victims through online dating websites or sometimes Facebook. They will quickly request to communicate outside of the avenue in which you met, either through personal email or text messaging. These scammers will start by asking for a small favor in order to gauge whether the victim will be likely to help in the inevitable emergency that will occur in the future and require a much larger sum of money that they will request be sent by Western Union or Money Gram.

#8 Robocall Scam: The notorious “Rachel from Cardholder Services” made a resurgence in 2016. This scam claims to be able to lower your credit card interest rates and takes personal information – including your credit card number – and then charges fees to your card. Robocalls will always give you the option to be removed from their call list by pressing a certain number. Hang up and do dot press anything! This will only confirm that there is a live person on the other end of the phone and they will keep calling back.

#7 Government Call Scam: Scammers will call claiming to be a representative from some government agency (the IRS, Medicare, etc.). They will then either inform you that you owe their agency money and request immediate payment or they need you to verify some sensitive information over the phone that they will then use to do further damage.

#6 Emergency Scam: This one is sometimes called the “grandparent scam” because it often preys on older consumers. You get a call or email from your grandchild or other relative who was injured, robbed or arrested while traveling overseas and needs money ASAP. Do not send money!!

#5 Can You Hear Me Scam: You get a call from someone who immediately asks “Can you hear me?” Their goal is to get you to answer “Yes.” These phone calls are recorded and edited to make it sound like you authorized a major purchase.

#5 Medical Alert Scam: Another one that preys on older folks. You get a call or a visit from a company claiming a concerned family member ordered you a medical alert device in case you have an emergency. They take your credit card or banking information but you never receive anything.

#4 Door-to-Door Scam: These scams vary but often include one of the following situations. Your safest course of action to avoid getting caught up in one of these scams is to not open your door to strangers.

  • Magazine sales include groups of travelling sales people who hit whole neighborhoods hard and fast offering magazine subscriptions that never get delivered.
  • Utility scams happen when fraudulent utility companies hire and train door-to-door sale representatives to come to your home and convince you they can save you money on your electricity or gas bill. They will either try to gain access to your account information to switch your service without permission, or offer low-low rates for the first couple of months then hit you with a steep price hike.
  • Alarm system scammers enter your home under the guise of upgrading your current alarm system, then negotiate you into a long term service agreement (2-5 years) that is very costly to break.

 #3 “Are You Calling Yourself?” Scam: Scammers can make a call look like it’s coming from anywhere. The latest trick puts your number in the Caller ID, which piques your curiosity and gets you to pick up the phone or return the call… and then they’ve snagged you in whatever scam they are running.

#2 Tech Support Scam: You get a call or a pop-up on your computer claiming to be from Microsoft (or Norton, or Apple) about a problem on your computer. They say if you give “tech support” access to your hard drive, they can fix it. Instead, they install malware on your computer and start stealing your personal information.

And the top Scam of the Year, because it’s just so terrifying, is:

#1 Arrest Scam: You receive an ominous phone call from someone claiming to be a police officer or government agent (often the IRS). They are coming to arrest you for overdue taxes or for skipping out on jury duty… but you can avoid it by sending them money via a prepaid debit card or wire transfer. Another variation on this is that you’ll be arrested for an overdue payday loan. Whatever the “violation,” it’s scary to be threatened with arrest, and many people pay out of fear.

These are the scams that have been proven to be successful year after year, because scammers are professionals who have tried and true techniques to swindle you for big bucks. They do things like build relationships and connections and play on your emotions to get you to make hasty decisions, and they often go through extensive measures to make themselves appear credible. Remember, they are actual pros at what they do.

Avoiding the scam rules to live by:

  • Don’t be pressured into making fast decisions.
  • Take time to research the organization. Check them out on bbb.org, search online, etc.
  • Never provide your personal information (address, date-of-birth, banking information, ID numbers) to people you do not know.
  • If you are unsure about a call or email that claims to be from your bank, utility company, etc., call the business from the number on your bill or the back of your credit card.
  • Never send money by wire transfer or prepaid debit card to someone you don’t know or haven’t met in person.
  • Never send money for an emergency situation unless you’ve been able to verify the emergency.
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Scams Targeting College Students

The first year of college brings new challenges and opportunities. College opens doors for you that may be life changing, but it may also open the door to scammers that want to take advantage of you. Better Business Bureau serving Eastern Oklahoma warns college students to be aware of scams targeting unsuspecting young adults.

Here are several scams targeted at those attending college and our advice on how to avoid them:

  • Roommate/Rental scheme – If you post an ad for a roommate on Craigslist, beware of “fake roommates” who are out of the country, but can provide the rent upfront in the form of a money order. When you receive it, the amount is higher than the amount requested. You are asked to cash it and wire back the rest. This is a scam!
  • Employment – Beware of ads that pop up near campus offering jobs with “no experience necessary.” Often, these “opportunities” are bogus! If you are interviewed in a hotel lobby or required to sign a contract, or have to pay for everything, including training, travel, lodging, food, etc. associated with the job, forget it! Check out a company first at bbb.org.
  • Scholarship/Grants – Scholarship-finding services “guarantee” grants or scholarships. They sell lists to students of potential scholarship or grant opportunities. However, nearly all available financial aid comes from the federal government or individual colleges. Go to grants.gov for more information.
  • Online Shopping Deals – You see a much-wanted item for a steep discount online. One you could not usually afford. The catch? The site asks you to wire payment to them instead of using a credit card – a huge red flag. Once the money is sent, the item is never received.
  • Cheating Supplies – Students can find term papers and test questions and answers, but universities are increasingly using new software like Turnitin, fake websites, and spy cameras to track down dishonest students. Don’t cheat yourself out of learning!
  • Illegal Downloads – It may be tempting to save money by downloading free music, movies, or textbooks, but many contain spyware that can end up causing financial havoc.
  • Locksmith Scams – College students may accidently themselves out of their homes or cars. If this happens to you, you probably will use your cell phone or the local yellow pages to find a nearby locksmith. The problem is, some disreputable locksmiths will post bogus addresses in their yellow page ads to make them appear local when they’re not.

Here are a few other ploys to watch out for:

  • Credit Cards – While it is important to build credit, it is more important to maintain good credit. Many of these cards have annual fees or charge high-interest rates on purchases. Shop around for the best rate and pay off your credit card bills every month.
  • Trial Offers – From fitness club memberships to magazine subscriptions to acne medicine, diet pills, or free DVDs and CDs, know how much these products and services are going to cost you once the “Free Trial Offer” expires.
  • Safeguard Your ID – Keep your personal information, including your driver’s license, student ID, debit cards, credit cards, and bank information in a SAFE place. Be wary of any online solicitations, emails, social media sites, or phone calls asking for your personal information. NEVER give out personal information to someone you do not know.

New Twists on an Old Scam

Beware! Scammers are up to their old tricks in brand new ways. The Grandparents Scam has been around for years, but it seems with all of our vigilant work to spread the word about this classic, the fraudsters have adapted and thought up new ways to exploit the unyielding love you have for your grandchildren.

In the original scam the fraudster would call in a panicked state claiming to be a grandchild in trouble on vacation far away, usually in a foreign country. They wouldn’t sound like themselves, but of course that was because they were injured, a broken nose from the car accident in which they were just involved and jailed for, so they needed money to bail them out right away! They would be so embarrassed and plead with you not to tell their parents. Grandchildren hold the sweetest spot in your heart, so of course you don’t want to get them in any more trouble. You oblige and wire the $3,000 they need for bail and to cover damages. After all, you just want them home safe.

Scam artists involved in this scheme tug right at the heartstrings of caring and loving grandparents. Now we know you still love all your grandkids the same, but you’ve become so savvy to the old tricks, you’ve shared your stories, and you’ve warned your friends about what to look out for when they get these suspicious calls. Now, the scam artists have had to get more creative and are once again targeting grandparents with new twists on this old scam.

The first frightening twist involves the alleged kidnapping of a grandchild. Naturally, we would want to do anything and everything to keep our loved one’s safe, so if someone calls threatening to harm your grandchild unless you wire them the ransom money it’s tempting to spring into action, no questions asked. This is exactly what the scammers are banking on. Hang up and call the police immediately. If someone has been kidnapped you want professionals handling such a serious matter, but in the more likely event that it’s a scam you can save yourself hundreds or thousands of dollars.

The next new twist on the grandparents involves exploiting the military status of our service men and women. This tactic works so well because it is harder to determine the whereabouts or get in direct contact with someone deployed overseas. Calling your grandchild directly to confirm details of a story as we encourage you to do is a less plausible option when they are serving in the military, so it’s an excellent opportunity for scammers to convince you they are in trouble and the only way to help is to send them money immediately. As if that isn’t bad enough, these scam artists have caught on to the fact that we all know when someone asks for a wire transfer or green dot money card it sends up a big red flag. Now, they have taken to demanding cash concealed in magazines to be sent overnight to supposed legal help. Sometimes they even increase the sense of urgency by putting a six hour time limit on payments sent within the U. S.

The Federal Trade Commission has also reported scammer are calling grandparents and telling them their grandson or granddaughter has defaulted on a loan and they will either lose their job, go to jail, or something equally as bad unless a payment is made immediately. They will proceed to ask for credit card information for payment or offer other payment options such as a wire transfer or a prepaid card. There are a few important things to remember in this situation. First, unless you have co-signed a loan for the grandchild in question you are not responsible for someone else debt. In fact, it is illegal for a debt collector to even tell you about someone else’s debt, even if it is your grandchild. If you do receive one of these calls hang up! Do not confirm any personal or financial information. You may also report such calls to the Federal Trade Commission at www.ftccomplaintassistant.gov.

Even if the Grandparent Scammers are using new schemes all the old rules still apply. Screen all your calls. If you do get a call from someone claiming to be your grandchild from an unfamiliar phone number just hang up and call back to verify on their personal cell phone. Taking the few extra minutes to verify their story can save you thousands of dollars and a lot of heartache. In scenarios like the ones listed above it is best to get as many people involved as possible to deter these thieves. Continue to share your stories and pass along the information you know to raise awareness. Feel free to contact the BBB Education Foundation at 713-341-6141 if you have any questions or want to share your experience.

Tax Season Scams

It all starts with a phone call. The caller ID reads “IRS” and the agent on the other end of the line provides you with his name and badge number. He may even know personal details about you as he claims you owe back taxes, which you must pay immediately by pre-paid debit card or wire transfer before he sends local law enforcement to your home to pick you up and haul you off to jail!

When you read the above scenario you may think there is no way you’d ever fall for such a farce. We are warned year after year of scams and schemes that come along every tax season, but still these con artists continue to make victims of well-meaning taxpayers. They are professionals scammers, experts at creating a sense of urgency, and all too convincing of the threats they concoct to scare us.
Don’t fall victim to scammers calling claiming to be IRS employees. Impersonators will call, demand payment, and even threaten legal action if you refuse to cooperate in their scheme. Remember, the IRS will NEVER:
• Call to demand immediate payment—the IRS will first mail you a bill and then allow for opportunity for you to question or appeal the amount owed
• Require specific methods of payments such as a prepaid debit card
• Ask for credit or debit card numbers over the phone
• Threaten to bring in local police to have you arrested for non-payment
We have to be increasingly vigilant in this ever advancing technological age as these imposters now have more avenues than ever to swindle us out of our money and personal identifying information. The IRS has reported a new phishing scam where unsuspecting victims receive an email, apparently from the IRS, and are then lead to a bogus website resembling the official IRS website to “update your IRS e-file immediately.” Beware: these emails are not from the IRS and the websites closely resemble the legitimate site making the scam hard to detect. Look for mention of USA.gov or IRSgov (without a dot between “IRS” and “gov”) in the message.
Though the IRS offers a completely safe and convenient e-filing option for us to file our taxes, they will NOT initiate contact with taxpayers by email to request person or financial information. If you suspect you are receiving these messages do not respond or click on any links! Instead, you can forward these emails directly to the IRS at phishing@irs.gov.
For free tax help and preparation you can contact the Volunteer Income Tax Assistance (VITA) program help line at 800-906-9887 to find a location nearest you.
If you are unsure about the authenticity of any call or email you receive this tax season please don’t hesitate to call us here at the BBB at 713-331-6141.

How Do People Get My Information?

By Barbara Parrott McGinity, LMSW

This is one of the most frequent questions I get from people, and my response to is always “we give it to them.” Here are some examples of the many different ways we freely provide information to scam artists.

1) Endless robo calls asking you to press 1 for more information or press 2 to get off their list. The typical reaction is to press 2 to get off the list, but in reality you are confirming that this is a good phone number with someone who answers the phone and follows instructions. Your number is added to a list then sold to the actual scammer who makes a live call to someone they perceive as a potential victim.

2) Legitimate looking spam offering the ability to unsubscribe. When you click that option and put in your email address you are actually putting yourself on a list to get alot of unsolicited offers that never stop. The other trick is receiving emails that purport to be from UPS or Fed Ex, referencing a failed delivery, and you have to click “here” for more information. The bottom line is never click on any link in an email until you have verified the validity of the source.

3) The Internet should come with a the daily warning “Use with Caution.” We surf and search for information but schemers are also searching for us. Far too often, when people are looking for specific information on issues related to insurance quotes or home equity loans and mortgages, they are asked to complete information in a pop up window to be allowed access to the information. Never put in a phone number or other personal information in a pop up window or on a website until you understand how this information will be used.

3) Using Craigslist to trick people into providing contact information. You have an item for sale and receive an email from an interested party asking if you will send your private email address for communication purposes. If you are familiar with Craigslist there is no reason not to use their encrypted service. So why are they asking for your email? They want it to put on a list to sell to spammers and scammers.

4) Then there is the old fashion way, reaching folks via mail. To find individuals vulnerable to sweepstakes scams letters are sent out promising riches for just a return of $10. The group that sends in $10 gets a letter asking for $20. Then the individuals who sent $20 are compiled into a list sold to telemarketers who then call the victims on the phone, gain their confidence, and start asking for money to get their millions.

It is important to stop and think before responding to any situation that requires you to provide any personal information. It will come back in some way you are likely to regret.

Top Ten BBB Scams for 2015

by Barbara Parrott McGinity, LMSW

Drumroll please….the Number 1 scam in the top 10 list for 2015 is…tax scams! The Better Business Bureau revealed that 24% of the first 10,000 scam reports processed through the BBB Scam Tracker was related to imposters pretending to be from the IRS. The remaining scams in the top ten were all some form of imposter scam including: debt collection, sweepstakes, tech support, and government grant scams.

The good news, 85% of those reporting scams to BBB recognized them as frauds before any money was stolen. Bad news, these scams still account for more than $1 million dollars lost from those who filed complaints with BBB. Here is a recap of the Top Ten and how they work:

1. Tax Scam: You receive a phone call from someone who claims to be with the IRS claiming you owe money in back taxes and will be arrested if you do not pay. The number on the caller ID is fake and appears to be from Washington, DC.

2. Debt Collection Scam: You receive a phone call from someone claiming that you have an unpaid debt and they threaten you with garnishments, lawsuits, even jail time if you don’t pay right now.

3. Sweepstakes/Prizes/Gifts Scam: You receive a call, letter, or email claiming you’ve won a prize in a sweepstakes and in order to receive the prize, you must send money to cover expenses associated with delivery, processing, or insurance. The prize is not real; you should never have to pay money to claim a prize you have won.

4. Tech Support Scam: You are contacted by “technicians” claiming to have detected a virus or security threat on your computer and, for a fee, can log-in and correct the problem remotely. These hackers are trying to steal money or sensitive computer passwords.

5. Government Grant Scam: You receive a phone call, email, or letter informing you that you qualify for a government grant. To receive the grant, you are instructed to send money as a processing or delivery fee, usually by wire transfer or prepaid debit card.

6. Advance Fee Loan Scam: While searching for loan information on the Internet, you see an ad and click through to the website. When you complete the application you will receive an email or phone call stating you are approved for the loan, but you must first send a processing fee, security deposit or insurance.

7. Credit Card Scam: The scammer pretends to be from your bank or credit card issuer, and claims you are eligible for a lower interest rate, or they want to verify a recent transaction. The consumer provides the scammer with their credit card number and security code for verification.

8. Work from Home Scam: Many people spend time looking for a job from home. While you may see ads promising you riches from a comfortable chair at your computer, they are all schemes to steal money from you. If you complete online applications you are at risk for identity theft, or you may end up as part of a criminal enterprise handling stolen merchandise for organized crime.

9. Fake Check/Money Order Scam: This one usually happens to individuals selling an item through an online service. You receive a check that is larger than the amount owed. Oops their mistake, but they know you are honest so just cash it and send them the difference. The check is a fake and when it bounces, you are out the money.

10. Grandparent Scam: You receive a call from an individual who says they are your grandchild. They assume any name you use to identify them and begin a story about being in jail in a foreign country and needing money. You have to keep it a secret. If you get a call like this, immediately check with family, do not believe the caller. Never keep secrets and never wire money overseas.

Remember, scammers are skilled, trained individuals. This is their job and most of them are very good at their chose profession. They will work to build a relationship with you. They will confuse you by sounding legitimate maybe with fake websites, social media posts or emails that look like they come from friends and family. They will also get angry and threaten you and your family with bodily harm.

What can you do? First, stop answering your telephone and screen all your calls. Better to miss a few calls than to get involved with these thieves. Other ways to save yourself are:

• Do not respond to pressure tactics. Take time to research the organization. Check them out on bbb.org, search online, etc.
• Never provide your personal information to strangers who call you on the phone.
• Do not click on links from unsolicited email or text messages. If you are unsure about a call or email that claims to be from your bank, utility company, etc., call the business directly using the number on your bill or credit card.
• Never send money by wire transfer or prepaid debit card to someone you do not know or have not met in person.
• Never send money for an emergency situation unless you can first verify there is an actual emergency.

Beware of Email Scams during the Holidays

by Barbara Parrott McGinity, LMSW

If you have an email address, you most likely get countless emails from retailers, organizations, and companies. Much of this unsolicited email, or “phishing” email, comes from someone you have done business with through an online purchase.

Falling victim to “phishing” emails is easy if we do not pay attention and exercise caution. When you are instructed to click on a “link” provided in an email, you need to stop and think before taking action. Read the email carefully and make sure you check the source before clicking on anything.

A common trick, is to get you to “unsubscribe” from an email list. Often times, these are scams that are searching for good email addresses. If you click “unsubscribe” then you are actually confirming your email and putting yourself on a list to get even more bogus offers.

Here are a few of the most common email scams you will see over the holidays:

Complimentary Vouchers or Gift Cards
A popular holiday scam is big discounts on gift cards. Don’t fall for offers from retailers or social media posts that offer phony vouchers or gift cards paired with special promotions or contests. Some posts or emails even appear to be shared by a friend (who may have been hacked). Develop a healthy dose of skepticism and “Think Before You Click” on offers or attachments with any gift cards or vouchers!

Bogus Shipping Notices From UPS and FedEx
You are going to see emails supposedly from UPS and FedEx in your inbox that claim your package has a problem and/or could not be delivered. Many of these are phishing attacks try to make you click on a link or open an attachment. If you do click then your computer will be infected with a virus or even ransomware which holds all your files hostage until you pay $500 to release your files.

Holiday Refund Scams
These emails pretend to come from retail chains or e-commerce companies such as Amazon or eBay claiming there is a “wrong transaction” and you are prompted to click the refund link. You are then asked to complete a form with personal information that can be sold to cyber criminals.

Some finals points:
• Never use an insecure public Wi-Fi to shop with your credit card. Only shop with a secure connection at home.
• NEVER pay online with a debit card, only use credit cards. Why? if the debit card gets compromised, the bad guys can empty your bank account quickly
• Microsoft will never call you and say you have a virus on your computer. This is a scam to steal your money and get access to your computer files.

Shopping online is easy and convenient, but be wise and be careful.  Report phishing and spam emails to the Federal Trade Commission at http://www.ftc.gov.