Archive for the ‘Scam Watch’ Category
Fake Check Scams
March 10th, 2010
by Guest Blogger
[Today's guest blogger is Susan from the Consumer Federation of America.]
An official-looking envelope arrives in the mail with a check or money order for $20,000 inside. The letter says you have won $4 million in a sweepstakes or lottery. You just need to wire $3,000 for taxes to claim the rest of your winnings. Is this your lucky day?
No! It’s a fake check scam that will cost you thousands. These scams take many forms. You might unexpectedly receive notice that you are getting a grant or that a company wants to hire you to work at home as a mystery shopper. You might be selling something and the “buyer” sends you more than your asking price with instructions to wire the extra money back to him or to someone else.
- A fake check from an FTC investigation
No matter the story, fake check scams always involve someone giving you a genuine-looking check or money order and asking you to wire money somewhere in return. After you deposit the check and send the money, you will learn that it was phony. The crook will have the money, and you will owe it back to your bank or credit union.
According to a survey by the Consumer Federation of America, many people mistakenly believe that banks and credit unions confirm that checks are good before posting that money to the account. That’s not how it works. Funds from deposited checks are available within days, but a counterfeit check can take weeks to detect. You’re responsible for checks you deposit because you’re in the best position to know if the person who gave it to you is trustworthy.
Believe it or not, losing thousands of dollars might not be the worst part of a fake check scam. If there isn’t enough money in your account to cover the check, you could face collection or be sued. Your account may be frozen or closed, and you could be reported to a database of checking account abusers, making it difficult to open another account. Some victims are even charged with check fraud.
Remember, there is no legitimate reason for anyone to give you a check or money order and ask you to send money somewhere in return. If that’s the deal, it’s a scam. Check out our website for more information about these scams and how to protect your hard-earned money.
Tags: check, lottery, money transfer, mystery shopper, wire transfer
Posted in Banking, Scam Watch | No Comments »
What Have You Got to Complain About?
February 25th, 2010
by Amy
One of my favorite things about online shopping is reading user reviews, whether it’s for a pair of jeans or a digital camera. I still read articles and talk to friends, but it can be useful to see if a lot of people have the same kinds of complaints about the product I’m pondering. While there are obvious differences, I think filing a complaint with the FTC is similar — you’re helping the FTC and the 1,700 other federal, state and local law enforcement partners that have access to the information spot patterns and identify not only the scams and frauds that are happening, but the people behind them.
So what do you complain to the FTC about? And how do you do it? The FTC has a new animated video (also in Spanish and at the FTC’s YouTube channel) that shows just that, including examples of the kinds of experiences you might share with the FTC. Complaints can help stop scams, rip-offs and fraudsters, so I hope you’ll share this video and encourage people you know who’ve been ripped off or spotted a scam to file a complaint with the FTC.
On a related note, check out the FTC’s just-released top complaints from consumers for 2009.
Tags: complain, Federal Trade Commission, Money, scams
Posted in Scam Watch | 12 Comments »
BBB Lists Top Scams of 2009 and New Year’s Resolutions for 2010
February 22nd, 2010
by Guest Blogger
[Today's guest blogger is Alison from the Council of Better Business Bureaus.]
The Better Business Bureau has released its list of the top scams and rip-offs of 2009. Free trial offers capped the list, including online offers for acai berry diet supplements and teeth whiteners.
If you were ripped off by a free trial offer last year, you’re not alone. According to a survey by Visa, 29% of Americans believe that they have been deceived by a free trial offer online.
Other high ranking scams were grant assistance scams, robocalls, and lottery sweepstakes scams.
With the economy still climbing out of a slump and the unemployment rate still in the double digits, consumers literally can’t afford to waste money on scams or with untrustworthy businesses.
This year, resolve to be a savvier consumer. The BBB can help. For simple ways to become a savvier consumer in 2010, check out this list of top ten New Year’s Resolutions.
Tags: BBB, scams, tips
Posted in Money, Scam Watch | 2 Comments »
FTC Announces Operation Bottom Dollar
February 18th, 2010
by Guest Blogger
[Today's guest blogger is Monica Vaca, Assistant Director, Division of Marketing Practices, Federal Trade Commission.]
For most of us who have friends or relatives looking for jobs, the reports about unemployment figures make our hearts sink. But for some, the news that tens of millions of people are searching for something hard to find – a paying job – is just what they need to cook up a scam.
My new friend Cathy told me a story recently. She came across a job listing in the classifieds that seemed right for her and called the number on the ad. The woman on the other end promised to place her in a job for an $89 placement fee. In exchange for a job paying $14 to $19 per hour, that seemed okay, so Cathy borrowed the money to pay it. You can probably guess the end — there was no job.
Today, the FTC, with federal and state partners, announced Operation Bottom Dollar, a law enforcement effort to shine a light on job fraud. For its part, the FTC filed 7 new cases against individuals and businesses that allegedly tricked people into paying money for jobs or other chances to earn income.
What are some types of job scams involved in Operation Bottom Dollar?
Here is what you need to know about job fraud:
- Don’t pay money for the promise of a job.
- Federal government jobs and jobs with the U.S. Postal Service do not require any application or other fees.
- Be very skeptical of anyone who asks for money in exchange for a so-called “opportunity” to work from home.
- Before paying money, check out the business with the Better Business Bureau.
- Report fraud to the FTC.
What’s the takeaway for job seekers from Operation Bottom Dollar?
Learn more at ftc.gov/jobscams.
Tags: classifieds, employment, job search, jobs
Posted in Scam Watch | No Comments »
Job Scams
February 17th, 2010
by Amy
Many people looking for work are being ripped off by scam artists. These are people who say they’ve got jobs to fill, promise you access to special job listings or interviews, or guarantee to place you in a job. All you have to do is pay them a fee or give them your credit or debit card information. Unfortunately, once you pay, you find out there is no job.
That’s why the Federal Trade Commission has produced Job Scams (also in Spanish), a new video warning job hunters not to pay for the promise of a job. The video tells you how to spot a job scam, and how you can stop them — by reporting them to the FTC.
Tags: classifieds, employment, job search, jobs, scams
Posted in Scam Watch | No Comments »
A Behind-the-Scenes Look with a Convicted Business Opportunity Scam Artist
February 1st, 2010
by Alvaro
During uncertain economic times like these, a lot of people are looking for ways to earn some extra money and make ends meet. If you’re among them, maybe you’ve noticed ads on TV, in the papers or online that tout business opportunities. They guarantee you can make a lot of money, in a short period of time, with little to no effort. The offers can be awfully tempting, but many of these operations are run by scam artists who take your money up front and never deliver on the earnings they promised.
Fraud: An Inside Look is a video from the Federal Trade Commission that takes you behind the scenes with a convicted business opportunity scammer as he reveals the tricks he used to cheat people out of their money. You’ll also hear first-hand from two people who got caught up in bogus business opportunities and learn what questions to ask to tell if a business opportunity is a scam or the real deal.
If you’re considering buying into a business opportunity, do your homework first. Our publication Could ‘Biz Opp’ Offers Be Out For Your Coffers? tells you how. And if you think you’ve seen a business opportunity that is a scam, report it to the FTC.
Tags: business, franchise, invest, opportunity, scams
Posted in For Business, Money, Scam Watch | No Comments »
Helping Haiti? Give Wisely.
January 14th, 2010
by David Vladeck, Guest Blogger
Sometimes, the most difficult situations bring out the best in people. In the aftermath of the earthquakes in Haiti, many people are making financial contributions to support charitable organizations helping with the recovery and reconstruction.
In the past, the FTC has investigated and prosecuted scammers who pretended to represent charities during a crisis. Given this experience, we hope you’ll put some thought into choosing which charity to support.
Our Charity Checklist consumer alert offers tips to ensure that donation dollars benefit the people and organizations you want to help. Be wary of appeals that tug at the heart strings, but are short on details about how disaster victims will benefit.
You don’t have to give to someone who calls, writes or emails you out of the blue. It’s a good idea to give through a website or phone number that you know is legitimate.
To help with relief efforts in Haiti, the U.S. Department of State advises that you can visit InterAction to contribute. Or text “HAITI” to “90999″ and $10 will be given automatically to the Red Cross, charged to your cell phone bill.
Fake-charity scammers are among the most despicable rip-off artists we encounter. It’s difficult to comprehend how someone could see a catastrophe affecting millions as an opportunity to steal, but it happens. So before you give, take a moment to ensure that you’re supporting a legitimate charity.
And if you think you’ve seen a scam, please report it.
Tags: charity, scams
Posted in Scam Watch | 3 Comments »
Today’s Fortunate Youngsters
January 14th, 2010
by Nicole
The kids today have it so easy. When I was kid, we couldn’t just google something to find information. We had to walk to the library and use the card catalog. If we wanted to watch cartoons, we had to wait until Saturday morning—there was no Cartoon Network. And if we wanted to learn about avoiding frauds and scams, we couldn’t visit the FTC’s online mall.
If the internet had existed, I’m sure my friends and I would have headed to the East Terrace to learn how to spot and avoid frauds and scams. We could have started at Maggie’s Miracle Cart, where visitors examine the claims of several “miracle” products and learn that they don’t live up to the hype.
Then, we could have wandered over to the Clothing Co, where Isaac nearly falls for a modeling scam. With the help of his friends, he realizes that he shouldn’t be fooled by flattery and shouldn’t pay for the promise of success.
At Kablamo! Comics, we could have commiserated with poor Keno, who tells visitors how he lost twenty bucks to a job scam. Across the store, we could have helped Captain Noscam by blasting keywords and phrases that are used frequently in scams.
Finally, at the vacations kiosk, we could have won a free vacation only to learn that there’s a catch. We wouldn’t have gotten that free trip to Smithington Castle, but we certainly would have been wiser after our trip to the mall.
Tags: children, internet, kids, scams, teaching, YouAreHere
Posted in For Kids, Scam Watch | No Comments »