Top Ten Scams of 2012

Top Overpayment/Fake Check Scam: Car Ads

The online ad says something like “Get Paid Just for Driving Around” – a prominent company is offering $400+ per week if you’ll drive around with their logo all over your car. They send a check to you, which you are supposed to deposit in your account and then wire part of the payment to the graphic designer who will customize the ad for your vehicle. Whoops! A week later, the check bounces, the graphic designer is nowhere to be found, and you are out the money you wired. The Internet Complaint Center (www.ic3.gov) says they saw this one a lot in 2012.



Top Emergency Scam: Grandparents Scam

The “Grandparents Scam” has been around a while, but it’s still so prevalent we need to mention it again: grandchild/niece/nephew/friend is traveling abroad and calls/texts/emails to say he or she has been mugged/arrested/hurt and needs money right away (“…and please don’t tell mom and dad!”). Plus the FBI says that, thanks to social media, it’s getting easier and easier for scammers to tell a more plausible story because they can use real facts from the supposed victim’s life (“Remember that great camera I got for Christmas?” “I’m in France to visit my old college roommate.”). Easy rule of thumb – before you wire money in an emergency, check with the supposed victim or their family members to make sure they really are traveling. Odds are they are safe at home.


Top Employment Scam: Mystery Shopping

If you love to shop, working as a secret shopper may sound like an ideal way to supplement your income. But scammers have figured that out, too, and many job offers are nothing more than a variation on the Overpayment/Fake Check Scam (above). Sometimes they even tell you that evaluating the wire service company is part of the job, which is why you need to send back part of the money. The Mystery Shopping Providers Association says it’s not the practice of their members to pre-pay shoppers, but if you have your heart set on this type of job, you can find a legitimate gig through their website at www.mysteryshop.org.

Top Advance Fee/Prepayment Scam: Nonexistent Loans

Loan scams continued to fester in 2012. It seems for every legitimate lender out there, there is a scammer waiting to prey on people in desperate situations. Most of the scams advertise online and promise things like no credit check or easy repayment terms. Then the hook: you have to make the first payment upfront, you have to buy an “insurance policy,” or there is some other kind of fee that you have to pay first to “secure” the loan. This year, we heard a new, aggressive twist on loan scams: consumers who were threatened with lawsuits and law enforcement action if they didn’t “pay back” loans they said they had never even taken out in the first place. Some got calls at their workplace, even to relatives. The embarrassment of being thought of as a delinquent caused some victims to pay even when they knew they didn’t owe the money.


Top Phishing Scam: President Obama Will Pay Your Utility Bills

Of all the politically-related scams, this one seemed to be the most prevalent. At the peak of summer with utility costs soaring, consumers got emails, letters and even door-to-door solicitations about a “new government program” to pay your utility bills. Hey, the president wants to get re-elected, right? Maybe he’s just trying to win votes. Victims “registered” with an official-looking website and provided everything scammers needed for identity theft purposes, including bank account information.



Top Sweepstakes/Lottery Scam: Jamaican Phone Lottery

This is an old one that flared up again this year. We consider it flattering (in a weird way) that BBB is such a trusted brand that we “star” in so many scams! In this one, the calls come from Jamaica (area code 876) but the person claims to represent BBB (or FBI, or other trusted group). Great news: you’ve won a terrific prize (typical haul: $2 million and Mercedes Benz) but you have to pay a fee in order to collect your winnings. There are lots of variations on this; sometimes it’s a government grant. Best just to hang up and then file a phone fraud report with the appropriate government agency (see below).


Top Identity Theft Scam: Fake Facebook Tweets

Two top social media sites were exploited in one of this year’s top scams. You get a Direct Message from a friend on Twitter with something about a video of you on Facebook (“ROFL they was taping you” or “What RU doing in this FB vid?” are typical tweets). In a panic, you click on the link to see what the embarrassing video could possibly be, and you get an error message that says you need to update Flash or other video player. But the file isn’t a new version of Flash; it’s a virus or malware that can steal confidential information from your computer or smart phone. Twitter recommends reporting such spam, resetting your password and revoking connections to third-party applications.


Top Home Improvement Scam: Sandy “Storm Chasers”

BBB spends a lot of time investigating and reporting on home improvement scams, but this year we saw an unusual amount of “storm chaser” activity following Super Storm Sandy. Tree removal, roofing, general home repairs – some were legitimate contractors who came from other areas for the volume of work available; others were unlicensed, uninsured and ill-prepared for the work; while some were even out-and-out scam artists who took the money and never did the work. In an emergency, it’s tempting to skip reference checking, but that’s never a good idea. BBB has tens of thousands of Accredited Businesses in the home contracting field who are committed to upholding our mission of trust. Next time you need home repairs, find a contractor at www.bbb.org/search.


Top Sales/Rental Scam: Real Stars, Fake Goods

Sports memorabilia and phony tickets always make the list of top counterfeit goods. From the Super Bowl to the World Series, counterfeiters manage to have their hands in your pocket all year long. With the London Olympics added to the mix, it appears that 2012 was a good year for sports fakes. Some scammers were selling cheap knock-offs in front of stadiums. Others set up websites that just stole your money and never had any goods to begin with. Counterfeit goods are not only a rip-off for you because the merchandise is usually shoddy, but they are also a rip-off for the teams, athletes, designers and artists who create, license and sell the real thing. Buy directly from team stores and websites, or from legitimate retailers. You’ll pay a little more, but it will be the real deal. Remember, if a deal sounds too good to be true, it probably is.



Scam of the Year: Newtown Charity Scams

Within hours of the horrific shooting at Sandy Hook Elementary School in Newtown, Connecticut, social media pages dedicated to the child victims began cropping up…and some of them were scams asking for money. The FBI has already arrested one woman for posing as the aunt of one of the children killed, and state and federal agencies are investigating other possible fraudulent and misleading solicitations. In response to these reports, BBB Wise Giving Alliance offered tips for donors to understand how and when to best support those dealing with such a tragic crisis. Although the number of people defrauded and the total dollars stolen is most likely low, the cynicism and sheer audacity of these scams merits our selecting it as the “Top Scam of 2012.”


More information for consumers:

For more information on these and other scams, go to BBB Scamstopper. Sign up for our Scam Alerts and learn about new scams as soon as we do.
To search for a business in the U.S. or Canada, or to find your local BBB, go to BBB.org.
For information on charities, go to Give.org.
For information on U.S. government services, go to: USA.gov.
For information on Canadian government services, go to Service Canada.

Better Business Bureau Names “Top Ten Scams” of 2012 - BBB News Center

New Wave of Phishing Scams Uses Facebook Info for Personalized Spam

New Wave of Phishing Scams Uses  Facebook Info for Personalized Spam

Check your privacy settings. Scammers are tapping into the personal data available through Facebook, Google+ and LinkedIn to pose as your friends in fraudulent emails. Watch out for these personalized scam messages and take steps to prevent them.    How the Scam Works: You receive an email that appears to be sent by a friend or family member. The message addresses you by name, but the content is strange. Usually, it's just a link to a website. If you click on it, you could end up downloading malware to your computer.    What's going on here? The scammers are exploiting the fact that you're more likely to click on a link if it was sent by a friend.    Scammers find your information through Facebook or other social media accounts. Some set up fake accounts and send out friend requests. When you accept the request, they can view your friends and personal and contact information. Other scammers rely on social media users not locking down their privacy settings, so basic information, such as your name, email address and friends' names, is publicly available.    How to Protect Your Facebook Account from Spammers?    Review your security settings. Check out Facebook's information on setting your privacy settings to be sure you aren't sharing personal information with strangers. Look here for information on what can be found publicly in search engines.  Don't accept Facebook friend requests from unknown people.   Report scam profiles and other suspicious activity to Facebook by following these instructions.  Consider enabling login notifications, so you will know when someone uses a new device to access your account. When accessing Facebook from public wi-fi in places like hotels and airports, text "otp" to 32665 to receive a one-time password to your account.  What to do if You Receive a Suspicious Email:   Don't click on strange links, even if they're from friends. Notify the person who sent you the email if you see something suspicious. Check the "header" field. Even though a friend's name is in the "from" field, spam email won't be from their email address.  If you click the link, be sure to run a virus scan on your computer.   For More Information    Visit Facebook's privacy section for more information about protecting your account.

Scam Alert -- How to Tell Scam Coupons from Real Deals

"Bait and Switch" Coupon Scams Promise Savings, Deliver Spam January 11, 2013

Searching for coupons online is an easy way to save money. Unfortunately, it's also an easy way to give your name and contact info to scammers. Be sure to verify a coupon deal is real before sharing your information.    How the Scam Works: Scam coupon sites often ask for your contact information. You need to make a purchase, but you hope to save money by finding a coupon online. A Google search turns up dozens of websites. Most of the online coupons promise a modest 10%-15% discount. But one offers a significantly better deal: 50% off your purchase.  You click the link, and the website looks official. It uses the logo of the business. It asks you to enter your email address and telephone number, promising that your coupon will be sent to you. When you complete the form, you may be taken to a promotion for an unrelated (and untrustworthy) product. It may be anything from car loans to pharmaceuticals. Other sites do provide fake coupons to print, meaning that consumers don't know they were scammed until the store clerk rejects their coupon. This "bait and switch" is a way for unscrupulous businesses to collect names and contact info for resale. If your information is sold, you will start receiving spam calls, text messages and/or emails to the contact information you provided.   How Can I Tell Fake Coupons from Real Ones?    It is easy to copy a business' logo and make a fake coupon look real. Identify fake coupons by the following warning signs:   It's the only website with that great deal. If most websites offer a code for 10% off, a 75% off offer is likely a scam. Be wary of all high value offers. A promo for a $500 gift card is nearly always fake. Look for legal language and expiration dates. Online coupons need to match manufacturer requirements.   Never pay for coupons. Don't be tricked into paying for something that's actually free. Watch for "bait and switch" tactics. This scam offers you online coupon codes and, once you agree, requires you fill in a form with personal information.    If you suspect that a coupon is fake, check it against this list. The non-profit Coupon Information Center maintains a list of fraudulent coupons.

Fake "Facebook Security Team" account asks for your credentials

An account posing as that of the Facebook Security Team has been spotted sending warnings to page administrators, trying to fool them into believing that their Facebook account will be suspended due to a violation of the social network's Terms of Service:



The message offers a link for verifying the account, and it takes users to a third party Facebook application that requests them to enter their Facebook page name, email or phone and password.

If entered and submitted, that information is automatically sent to the scammers behind this phishing scheme and used to hijack the account.

If you have fallen for the trick, try to access your account. If you are able to do so, change your password immediately. If you have already been locked out, report the compromise and Facebook will help you regain control of the account.

"Anytime you see a Facebook page in the following format: apps.Facebook.com/app_name_here/, you should know that you are NOT dealing with an application created by Facebook," Facecrooks advises. "Scammers use official sounding page names, applications and links to make their schemes appear legitimate to unsuspecting and ill-informed users."


Fake "Facebook Security Team" account asks for your credentials

Text Message Gift Card Scam is Back for the Holidays

The gift card text message scam is back with a vengeance this holiday shopping season. Shoppers across the country are reporting receiving spam text messages, called smishing, saying they won pricey gift card. 

 

How the Scam Works:

You receive a text message. When you open it, you are surprised by a message informing you that you've won a Best Buy gift card (or Target, Wal-Mart or other major retailer). You just need to go to a website and enter a PIN, and the card is yours. 

  

The text's URL leads to a website that has the company's colors and logo. It looks authentic with the company's name as the site's sub-domain (example: www.bestbuy.scamwebsite.com). 

  

You are asked to enter the PIN and an email address. Then, you are taken to a form and instructed to fill out your name, cell number, mailing address and answer unrelated personal questions, such as "Are you interested in going back to school?" and "Are you diabetic?" When you reach the page to "claim your gift card," you instead find yourself directed to another site to apply for a credit card. 

  

The texts are just a way to collect personal information for shady advertisers. Scammers often change the store names and cash amounts of the gift cards. A typical text message is below: 

  

"Black Friday Winner #88323! You have WON the Best Buy Gift Card for $1000! Get your prize at WEBSITE now! Use the code 5417." 

  

What Can I Do About Scam Text Messages:     

• Ignore instructions to text "STOP" or "NO" to prevent future texts. This is a common ploy by scammers to confirm they have a real, active phone number. 
• Forward the texts to 7726 (SPAM on most keypads). This will alert your cellphone carrier to block future texts from those numbers. 
• If you think your text message is real, be sure it's directing to a web address like Bestbuy.com or Target.com, not www.bestbuy.otherwebsite.com.   
• And as always, if you think getting a free $1,000 gift card seems too good to be true, it probably is. 

For More Information

  

Learn what your cellphone carrier has to say about stopping spam. Click here for advice from ATT, Verizon, T-Mobile and Sprint.

FBI issues warning of real estate scam in SC

The FBI is warning homeowners and prospective renters in South Carolina of a new scam.

Special Agent David Thomas said “Potential victims are contacted by an individual in a foreign country by either email or phone then asked to wire money to a third person in an overseas location.”
Thomas said, perpetrators are searching for homes listed for sale on public search sites on the Internet. They copy the pictures and descriptions of the homes and then post the information on Craigslist under available housing rentals, without the consent or knowledge of Craigslist and the true owner.
The FBI warns renters to never wire funds to any unknown person and should only conduct business with individuals they can meet in person. In addition, renters should request to see the property in person and preferably be shown the interior of a property prior to signing a contract and transmitting any payments.
The FBI is requesting people who have similar complaints to file an Internet crime complaint on www.ic3.gov.


FBI issues warning of real estate scam in SC - Local News - Greenville, SC | NBC News

Scam Alert -- Websites Selling Fake Goods Lure Cyber Monday Shoppers

This Cyber Monday, be extra careful when buying online. Even the most savvy online shoppers are finding themselves stumbling onto websites selling counterfeit goods. A recent study conducted by Nielsen discovered one in five online bargain hunters browsed sites selling counterfeit products.

How the Scam Works:

Your holiday shopping list is long, but money is short. So instead of hitting the mall, you pull up Google. You type in terms like "cheap," "discount" and "outlet" followed by the name of a product. Hit the search button, and there's a one in five chance you'll end up at a website selling counterfeit goods. Make a purchase from such a site, and you end up with a fake rather than a great deal.

Many of these counterfeit sites are hard to distinguish from legitimate online retailers that sell overstocks and end-of-season clearance. Like those sites, the discount is usually 25 to 50 percent below regular price, and they use real photos of the items. Below are tips for spotting a fake... before you make a purchase.      

I'm Not Sure This Website is Legit. What Should I Do?    

• Look for the BBB seal on the website and check out the business' review on BBB.org.  
• Make sure the site has a contact page with a physical address and phone number. You can also check whois.net to see who owns the website. Be very wary of web registrations that are private.    
• To ensure your payment info is secure, look in the address box for the "s" in https:// and in the lower-right corner for the "lock" symbol. 
• When shopping online, pay with a credit card. Under federal law, you can dispute the charges if you do not receive the item and contest unauthorized charges. Many card issuers have "zero liability" policies which will protect you if your credit card number is stolen.    

For More Information

  

For the details, read Nielsen's blog post on the study or download a PDF of entire research paper.