Compiled by Zan Deery, Communications/Investigations
11/2/09
zan@spokane.bbb.org
800-356-1007 or 509-455-4200
www.bbb.org
Readers of these tips should take into consideration the importance of the practice in question and the total performance of a company.
For complete information and BBB reports, please visit www.bbb.org
TIP NUMBER ONE
BEWARE FAKE GRANT LETTERS FROM SCAMMERS POSING AS FIDELITY INVESTMENTS
FIDELITY INVESTMENTS
US Office
London Office
Beijing Office
Head Offices 1050 Connecticut Ave. NW
Washington DC 20036
425-341-4980
Fax aka “Global Document Centre” 800-358-7681
There is a mailing including a fake check circulating misusing the Fidelity Investments (FI) logo. Fidelity Investments is a very well known company name. The letter begins, “Congratulations, we are pleased to inform you that you have been approved to receive a US Government grant in the amount of $15,000.” It talks about how you have taxes to pay on the grant of about $2,000---of which you are to pay from having cashed the enclosed fake check (aka money laundering).
Red flags:
1) You needn’t pay an upfront fee whatsoever for having received a grant, especially if you haven’t yet secured the grant. This is a red flag “upfront fee.”
2) Have you even applied for a grant? If not—STOP right there and consider this, or any other mailing to this effect, to be questionable.
3) 1050 Connecticut Ave NW DC Is posted as the “Head Office.” Fidelity Investments doesn’t have a headquarters at this location.
4) Washington State phone number being utilized
5) Loan coming from an address that is non-descript, and has out of country offices displayed on its letterhead, too, including London and Beijing, China.
6) The mailing is being randomly sent. Don’t believe it. Nobody can get a grant randomly. Grants take a lot of time and effort to obtain.
BBB ADVICE
If you decide to respond to such mailings, be aware that you are 100% liable for whatever you wire transfer/spend, and risk compromising your personal information and/or profile.
Obtaining a grant is a complicated process, requiring proper documentation, application forms and research. Although there may exist private foundations whose requirements are based on an individual's personal preference, the vast majority of grant-making foundations (governmental and non-governmental) require that applicants for funds meet very specific guidelines that the foundation has established, and that the funds be used for specific projects that the foundation wishes to support.
Be aware of the following advice:
• Watch out for phrases like "free grant money". Grants do not have to be repaid; thus there is no need to use the word "free." When you hear word like "free" and "guaranteed" be extremely skeptical. When was the last time you had to pay for a "free" item?
• Be aware that organizations do not usually give out grants for personal debt consolidation, or to pay for other personal needs, and most of all, grants aren’t randomly given “to stimulate grassroots economic recovery.”
• Check out any company you plan to do business with by contacting your Better Business Bureau (BBB). Also check with a regional, provincial or state economic development office to see if they know of grant programs for which you might qualify.
• Visit your public library. Ask a librarian to help you find reference books describing foundations and the criteria they use in awarding grants.
• Be wary if you are asked to provide money up-front to an unknown company before the company will provide the services promised.
• If you are having financial problems, there are local non-profit credit counseling services that may be able to assist you with your problem at no charge.
• The government does not call people to offer them grant money over the phone.
• Be wary of hard sell tactics. Why would anyone giving away money use these tactics?
Real grants do exist. These grants are awarded for specific reasons. To receive this money you must show that the criteria for the grant have been met. Proving this requires submitting lengthy documents. Once you receive a grant administrators will ask for frequent status reports. It's a difficult process and rightly so. These grants are our tax dollars and we should hope that our money isn't being doled out for trivial reasons.
If you would like information on government grants, we suggest that you go to: www.grants.gov to read all about the process and to educate yourself about how to obtain them safely.
TIP NUMBER TWO
FDIC WARNS: MONEY MULE SCHEMES DISGUISED AS LEGITIMATE ONLINE JOB OFFERS
Recent Alert posted here: http://www.fdic.gov/news/news/specialalert/2009/sa09185.html
Transfer Agent Fraud
The term money mule is used to describe a person who knowingly or unknowingly agrees to a questionable job of money laundering (being a go-between) on behalf of scammers to move money throughout the system in a fraudulent manner. The pawn in the game (aka mule) is YOU if you fall for this type of offer. Realize that you may be prosecuted if you are caught working such a scheme. Beware: Money mule schemes can take many different forms, but most involve setting yourself up to receive unauthorized EFTs (electronic funds transfers) into a deposit account and then withdrawing the funds or forwarding them on to another party via another EFT. The following are common scenarios:
• Online job posting Web sites are used by criminals to locate individuals seeking employment with flexible work hours that can be performed from home. These work-at-home schemes often involve written employment contracts, job descriptions and procedures to legitimize the scam.
• Advance fee scams promising large monetary rewards for acting as a financial intermediary can entice individuals to participate in this activity.
• Mystery shopping jobs may be used that require the employee to assess the performance of money service businesses by completing EFTs and then evaluating the service using customer satisfaction forms.
• Social networking sites may be used to recruit individuals to act as money mules. Criminals conjure up various imaginative stories to befriend and persuade individuals to receive and forward stolen funds.
• Some hesitant or skeptical money mules have been intimidated, harassed and threatened by their criminal "employers" to process the funds transfers quickly and with secrecy.
• The personal identifiable information provided by the money mule might later be used to commit identity theft or account takeover.
TIP NUMBER THREE
BEWARE OF QUESTIONABLE AND VAGUE DEBT REDUCTION TEXT MESSAGE OFFERS
"Are you 10k or more in debt?...
If you are in the position where you truly need help reducing debt you have, don’t make rash or hasty decisions about it. You need to trust the company you are working with because you are placing them in charge of a lot of sensitive and personal information about your account activity. It seems only smart to know exactly who you are dealing with before just taking whatever comes your way. If you are seeking debt relief, seek a legitimate debt negotiation counselor, make sure they are properly registered to conduct business, and check their rating with the BBB.
Bottom line: Don’t respond to such offers without first doing research on what type of company is making the offer. If you receive a questionable text message (aka SPAM) and feel that you shouldn’t pay for having received it, dispute it ASAP with your provider. Protect your personal information.
Another precautionary measure to combat receiving SPAM text messages via your cell phone is to register your cell # with the National Do Not Call Registry at: https://www.donotcall.gov/
TIP NUMBER THREE
National Grants Conference Holding Seminars in Region
NATIONAL GRANTS CONFERENCE
6400 Park of Commerce Blvd., #2
Boca Raton, FL 33487
Tel: (888) 809-5074
Fax: (585) 464-6781
www.nationalgrants.com
The ad is full of promises: FREE money to invest in real estate! FREE money for your business! FREE money to buy a house or pay your monthly rent! FREE money to improve your property!
BBB files contain a pattern of complaints from consumers who report they are led to believe they are entering the program at an approximate cost of $1,000. After paying the fees and entering the program, they are told they need to purchase additional software ranging from $3,000 to $5,000 to continue on towards success. Consumers feel misled about the actual costs of the program. The company responds to complaints by issuing a refund or an explanation of its terms agreement.
BBB ADVICE
If you have an unresolved issue concerning this group, we advise you to file a formal complaint with BBB as well as your state AG’s office.
TIP NUMBER FOUR
SENIORS PLAGUED WITH CALLS FROM 876 AREA CODES THAT STATE YOU’VE WON, ARE ASSOCIATED WITH BBB
CALLS REPORTED IN MANY REGIONS
A few weeks ago, we warned our area about a similar call misusing the BBB name stating you’ve won. In recent weeks, another Better Business Bureau has received several calls from local seniors who are reporting the same type of telemarketing sweepstakes scam.
One woman told the BBB she received several calls from David Barnes who said she had won $850,000 in a sweepstakes because she had “done business” with the BBB in the past year. She was instructed to go to WalMart and wire $755 to Ricardo Grant in Montego Bay to get her prize. He gave her two telephone numbers to reach him. Both had 876 area codes.
The day after hearing from Barnes, she got a call from Global International. This time, she was told she had won $5 million and needed to wire $200 to Jamaica to get her prize. The caller said he was calling from Pittsburgh and would arrive at her house by private jet in 45 minutes to hand over her check as soon as she wired the funds. She was instructed to not tell anyone about her good fortune, “Not even the BBB.”
An 876 area code can easily be confused as being one of the area codes used for toll-free codes, such as 866 or 888. In reality, 876 area codes originate from Jamaica.
The BBB offers these warnings:
*Never wire money or provide any personal information or account numbers in order to receive sweepstakes, lottery or contest prizes.
*Never deposit a check that you receive from an unfamiliar source who instructs you to withdraw the deposited funds and wire all or most of it to them. These checks are counterfeit. It will take several weeks for your bank to discover the check is a fake and you will be responsible to return the money to the bank and pay any bank fees.
*Don’t believe someone who tells you that you are required to pay taxes on your winnings before you receive them, customs fees, legal fees or any other type of fees. This is the hugest red flag.
*Always check with the BBB. You can access BBB company reports at www.bbb.org
TIP NUMBER FIVE
LIBERTY ROAD OILING AND ASPHALT SEALING of Coeur d’Alene & Post Falls, ID Non-Responsive to BBB Complaints
LIBERTY ROAD OILING AND ASPHALT SEALING
1044 Northwest Blvd. Coeur d’Alene, ID 83815
PO Box 2151 Post Falls, ID 83877
Customer complaints reflect poor workmanship, specifically, that the first oil lay is of inferior quality, a second oil lay is promised by the business but never fulfilled.
Consumers have attempted to follow up with Liberty Road Oiling and Asphalt Sealing; however, they are unable to speak to someone and they do not receive any return phone calls.
BBB ADVICE
We urge you to file complaints with BBB as well as the ID Attorney General’s Office if you have an unresolved issue.