1) Identity Theft - ID Theft occurs when
thieves steal your personal information from
your mailbox, garbage, recycling box,
computer or by asking you questions via
phone, mail, fax or email about your banking
or credit card information, passwords or
Social Security Number.
Consumer Tip: Never give out your personal
or banking information. Store all documents
containing personal information in a locked
cabinet and shred before discarding. Keep
your passwords and Social Security Number
confidential. Monitor your account
statements monthly and check your credit
report annually. If you suspect you are a
victim of ID theft contact your local police
or the Federal Trade Commission and
financial institutions immediately.
2) Medicare Card Fraud -Illegal door-to-door
or telephone solicitation scams selling
"Medicare-approved" discount drug cards,
have been reported across the country.
Consumers are advised to be suspicious of
any solicitation that asks for their
banking, Social Security, Medicare or credit
card information.
Consumer Tip: You will be able to confirm
that the cards are legitimate by checking
the government's Web site at
http://www.medicare.gov or by calling
1-800-MEDICARE. When considering a drug
discount card, it is best to shop around. Do
not jump at the first offer. Look for the
card that will bring the best discount and
can be used at local pharmacies.
3) Bogus Checks / Overpayment Schemes - In
this scam, fraudsters typically target
people selling a product via classified ads
or online bulletin boards. The buyer/scammer
sends a check for a product or service for
more than the negotiated price. The scammer
then requests that the seller deposit the
money and return the excess funds. The
original check is typically stolen or fake,
and by the time the victim has cashed and
returned excess funds the scammer has
disappeared with the money and the product.
Consumer Tip: Never accept payment for more
than your selling price and never agree to
refund excess money to an unknown buyer.
When accepting a check from a stranger hold
the product and the money in your account
until the check officially clears at the
bank.
4) Internet Fraud - Beware of fake websites,
emails (phishing scams) and Voice Over IP
phone calls (vishing scams) from scam
artists pretending to be legitimate
businesses, asking for your personal or
banking information. Also beware of sellers
from online auctions who try to lure you
outside the security of the online auction
site, or who ask you to download programs
(usually viruses or password stealing
software) in order to transact business with
them. The Internet is open 24 hours a day,
seven days a week and offers shopping that
can be just as safe as stores or mail
orders. However, on the web, cyberspace
crooks have the potential to perpetuate
scams quickly, leaving no paper trails and
bypassing all geographic boundaries.
Consumer Tip: Only enter personal or credit
card information on secured websites. Look
for the letter "s" (https://) and for an
unbroken padlock symbol to determine if the
site is secure. Check for the BBBOnLine
Reliability Seal on each Web site. Never
download programs to your computer from
unknown sources.
5) Health, Beauty & Fitness Claims -
Fraudulent health treatment claims are a
growing concern in the marketplace. Beware
of too good to be true advertisements
promising "rapid & effortless weight-loss,"
"miracle cures," or "newly discovered"
treatments for disease and illness.
Consumer Tip: Before buying any treatment or
medication or joining any health and fitness
program, consult your physician, pharmacist
or other health care professional. Before
signing any contract take the time to read
the fine print and ensure you understand
your contractual obligations and the
cancellation or refund policy.
6) Lottery & Sweepstake Scams - Victims are
informed they have won a large lottery prize
or sweepstake, and often are sent a check
for a few thousands dollars of winnings. The
"winners" then are asked to pay back a small
portion to cover taxes and/or processing
fees, before accessing their winnings. The
victim sends money and never receives his or
her winnings. Any checks sent by the lottery
company are fake or stolen, and do not clear
the bank.
Consumer Tip: Legitimate lotteries and
sweepstakes will not require you to pay
money in order to receive your prize. Do not
respond to lottery or sweepstake scams, as
responding to one solicitation typically
opens the door to dozens more. To reduce
unsolicited marketing offers from such
organizations, register with your state's
Attorney General's "Do-Not-Call" list.
7) Advanced Fee Loans - The scenario is all
too common: a consumer receives a call or
e-mail or sees an advertisement for a
pre-approved loan or credit card and calls
to receive an application. The company says
yes, they can offer you a loan regardless of
your credit history, if you pay an up-front
"insurance," "security," or "processing,"
fee in advance. Too often, those with bad
credit - who can least afford it - end up
losing their up-front fee and never hear
from the company again.
Consumer Tip: It's against the law to ask
you to pay - or accept payment - for
services until you get your loan or
credit..Legitimate lenders never ask you to
pay for processing your application. Never
give your credit card account number, bank
account information, or Social Security
number over the telephone or Internet unless
you are familiar with the company and know
why the information is necessary.
8) Home Repair Rip-Offs - The construction
industry is plagued with fly-by-night scam
artists who show up on your doorstep
offering to do house and yard work for
exorbitant fees. Home repair rip-off artists
typically request that you pay fees up front
before the work is completed, refuse to
provide a written receipt and complete work
poorly. Watch out for companies that knock
on your door offering to do work, regularly
over bill or that charge for services you
have not requested.
Consumer Tip: When you need work completed
around your home get estimates from a
minimum of three contractors who have
permanent addresses in your area. Visit
www.contactbbb.org to check the
company's Reliability Report before agreeing
to do business.
9) Bogus Charities - Scam artists pretending
to represent a charity often contact victims
by phone or show up on the door step during
the same fundraising cycles as legitimate
charities. Watch out for bogus charities
with names that sound like legitimate ones.
Consumer Tip: Ask all fundraisers for their
name, the charity name and their contact
information before considering a donation.
Ask how much of your donation actually goes
to the program. Visit the BBB Wise Giving
Alliance at
www.wga.org for a list of charities that
have been evaluated. Reports on locally
soliciting charities are available at
www.contactbbb.org.
10) Work-At-Home Schemes - Work-at-home con
artists have always preyed most heavily upon
senior citizens, the disabled, mothers who
want to stay at home with their children,
people with low income and few job skills,
and people who just want to get rich quick.
Consumer Tip: To avoid falling for
work-at-home scams, both on- and off-line,
look for the following warning signs:
Overstated claims of product effectiveness;
exaggerated claims of potential earnings,
profits, or part-time earnings; claims of
"inside" information; requirements of money
for instructions or products before telling
you how the plan works; and claims of "no
experience necessary."
11) Resort Vacation Promotions - Free or low
cost exotic vacation packages or prizes
often come with hidden costs and several
hours of high pressure sales meetings.
Consumer Tip: If it sounds too good to be
true it probably is. Don't sign up for any
vacation package promotion without knowing
what you are really getting into. Ask lots
of questions about the realistic costs,
insurance coverage and sales seminar
requirements. Get the details in writing
before you commit to the vacation.
12) Directory Scams - In these scams
businesses are typically invited to submit
their company contact information for
publication in a business directory for
distribution on CD-Rom. By submitting their
contact information, the business
unintentionally has committed to paying an
exorbitant advertising fee to be listed in a
directory that often is only distributed to
other advertisers.
Consumer Tip: Read the fine print before
giving out business information and before
signing any document.
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