The BBB’s
top ten scams are ranked based on number of specific inquiries made by
consumers to provide insight on the trending illegal and certainly deceptive
business practices in 2011.
"In 2011, some consumers
were trying to improve their financial situations in these challenging economic
times,” said Steve J. Bernas, president & CEO of the Better Business Bureau
serving Chicago and Northern
Illinois. "That opened the door to scammers who were ready to
capitalize on this vulnerability."
Bernas
explained, “Being aware these scams exist is the most important way to avoid becoming
a victim and losing money.”
The
complete list of Top 10 Scams in 2011 from the BBB includes:
- Work-At-Home schemes. There are certainly
legitimate telecommuting jobs, but many work-from-home opportunities are
scams. Promising convenient work always attracts attention; however, when
the requirement is to send money for materials first, consumers should
always be on guard. Do not purchase services or products from a firm
that’s reluctant to answer your questions and be cautious of any company
that offers an exceptionally high salary requiring few skills and little
work. Check offers out thoroughly with the BBB at www.bbb.org
- Credit Repair Services with Advance Fees. Consumers with bad credit
ratings are particularly vulnerable to this scam. Everything a
credit-repair operation offers an individual can do personally at little
or no cost. Credit repair operations cannot ask for money in advance and
they cannot automatically remove legitimate negative reports from your
credit history.
- Advance Fee Lenders. Often these appear to be very
professional operations with attractive websites and advertisements. However,
it is illegal
for a business to charge a fee prior to providing a loan. Typically, after
wiring money to the scammer, the victim never receives the loan. These “lenders”
will use fake physical addresses or the addresses of real companies that are
victims of identity theft.
- Foreign Lotteries. Any lottery from a foreign country is illegal
in the United States.
Stating a person can win, or is a winner already provides a strong
incentive; however, people should never send money to obtain lottery
money. Scammers using fictitious addresses will request you send “fees and
taxes” to them through a wire service, they take the cash and never provide
any winnings because there are no winners.
- Ponzi/Pyramid Schemes. Both Ponzi and pyramid
schemes are frauds because they pay returns to investors
from their own money or the money paid by the newest investors, rather
than from any actual profit earned by the individual or organization
running the operation. These scams collapse because payouts exceed
investments, or because the legal authorities prosecute the organizers for
sale of unregistered securities. Often the organizers simply disappear
with funds sent to them.
- Prize Promotions. There are several variations of this scam, but
most include some aspect that requires people who are identified as
“winners” to provide money or some type of personal information, such as a
credit card or social security number, to verify being a winner. In the
end, no prize is awarded and the personal information is then used to
withdraw a victim’s money from accounts or for identity theft.
- Office Supplies - Sale by Deceptive Telemarketing. This scam features fake invoices
for office supplies being sent to a business, often for only a couple of
hundred dollars. This relatively low amount makes it easier for company
personnel to quickly sign off and feel it is not worth their time to check
the invoice’s validity, which would be done if it was for a larger amount.
- Paving, Painting, Home Improvement by “Traveling”
Workers. Never
pay upfront to a “traveling” contractor who just happens to be in the
neighborhood, is doing work nearby, or has extra materials. The technique
to get your money often requires you to pay for added materials. Once you pay
the contractor, he disappears with the money and no work is ever done. Having
access to your property also provide an opportunity for these people to
check what valuables you may have for a future burglary or ID theft.
- Sweepstakes. If you don’t remember entering a sweepstakes, be very
suspicious about being declared a winner. If the prize provider wants you
to send money or give your social security number to receive your prize,
take no action. If you send money you will likely never receive a prize,
or you will get a prize of lesser value than the money you’ve sent.
- Online Drug & Prescription Services from
Unapproved Foreign Locations. Buying any type of drug or product from a foreign
location bypasses the protections that are part of the drug delivery
system used by the medical community in the United States. You may risk
your health and your life by using unapproved drugs from
out-of-the-country locations.
“Remember, before giving
any company credit or debit card information, the BBB recommends reviewing the business
fully to avoid potential billing nightmares,” said Bernas. “As always, if an
offer seems too good to be true, it probably is.”
For more
information on these top 10 scams, visit www.bbb.org
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As a
private, non-profit organization, the purpose of the Better Business Bureau is
to promote an ethical marketplace. BBBs help resolve buyer/seller complaints by
means of conciliation, mediation and arbitration. BBBs also review advertising
claims, online business practices and charitable organizations. BBBs develop
and issue reviews on businesses and nonprofit organizations and encourage
people to check out a company or charity before making a purchase or donation.