Compiled by Zan Deery, Communications/Investigations
For the Week of 2/1/10
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
Follow Itsy Bitsy Sprinkle as she chases tips through our service area and collects advice from our sage staff!
TIP NUMBER ONE
Omar of Spokane BBB Making Fake Calls Stating You’ve Won—NOT
Just last week, it was brought to this BBB’s attention that a scammer calling himself Omar was calling people nationwide stating that he was with the Spokane BBB using the number 509-262-6679.
FULL STORY HERE:
http://spokane.bbb.org/article/omar-of-spokane-bbb-calling-nationwide-from-509-262-6679-stating-youve-won-not-14952
This week, BBB puts out this national warning regarding such calls, which seem to be rampant, causing others to get confused and trust this call. Also, be wary of some sweepstakes companies airing television or radio commercials urging consumers to watch for their mailings, implying that prizes will be awarded soon. Do your homework first!
FULL STORY HERE:
http://spokane.bbb.org/article/new-lottery-scam-fraudulently-claims-to-be-from-better-business-bureau-15007
ANOTHER BBB Regional SWEEPSTAKES SCAM SCENARIO FROM LAST WEEK: “Lotto Super 7”
Sweepstakes scams take on many dimensions, use many false scenarios, and provide fake info in order to gain your trust to give your personal info to scammers. This following scenario is prevalent and comes through the mail with a fake check. BBB received this report from a regional consumer last week:
Received a call yesterday from a woman whose sister got a lottery scam letter stating it was associated with Northwestern Mutual (an AB since the ‘30s!) and Lotto Super 7.
There was a check for $5,409.88 enclosed. Letter said she had won $820,070. They advised her to call Peter Wilson at 778-858-2755 to arrange a method for transfer. BBB suggested the consumer contact the issuer of the check, Northwestern Mutual to confirm the check’s validity.
They told her they were aware of this scam and that they were in no way affiliated with this mailing.
BBB ADVICE
The BBB offers the following advice for consumers doing business with mail-order or Internet companies offering sweepstakes prizes:
• Do your homework. Ask whether this is, in fact, a legitimate company and whether it has awarded sweepstakes prizes in the past.
• Study your odds of winning. Federal law requires companies to include a notice outlining odds of winning various prizes.
• Understand that making a purchase does not increase your chance of winning. Under law, anyone entering a company’s sweepstakes contest has an equal chance of winning whether he or she orders anything.
• Monitor the activities of loved ones carefully to keep them from spending large amounts of money in attempts to win a sweepstakes.
• By no means should you divulge or confirm ANY personal information to calls such as these. These type of calls attempt to break you down so you give the scammers what they want, usually, that is your financial or other sensitive information. Protect your personal info.
TIP NUMBER TWO
Illegal Pyramid Schemes Can Disguise Themselves as “Legit Seeming” Multi-Level Marketing Opportunities
Educate Yourself about the Red Flags
BBB warns people to get educated about the difference between a "multilevel marketing plan" and an "illegal pyramid plan" because reports to BBBs across the country dictate that during tough economic times, consumers need to be more vigilant in investigating a plan (AND company) before getting involved.
Multilevel marketing plans, also known as “network” or “matrix” marketing, are a way of selling goods or services through distributors. These plans typically promise that if you sign up as a distributor, you will receive commissions – for both your sales of the plan’s goods or services and those of other people you recruit to join the distributors. Multilevel marketing plans usually promise to pay commissions through two or more levels of recruits, known as the distributor’s “down line.”
If a plan offers to pay commissions for recruiting new distributors, watch out! Most states outlaw this practice, which is known as “pyramiding.” State laws against pyramiding say that a multilevel marketing plan should only pay commissions for retail sales of goods or services, not for recruiting new distributors.
Why is pyramiding prohibited? Because plans that pay commissions for recruiting new distributors inevitably collapse when no new distributors can be recruited. And when a plan collapses, most people – except perhaps those at the very top of the pyramid – lose their money.
The BBB offers the following tips when considering such a plan:
• Avoid any plan that includes commissions for recruiting additional distributors. It may be an illegal pyramid.
• Beware of plans that ask new distributors to purchase expensive inventory. These plans can collapse quickly – and also may be thinly-disguised pyramids.
• Be cautious of plans that claim you will make money through continued growth of your “down line” – the commissions on sales made by new distributors you recruit – rather than through sales of products you make yourself.
• Beware of plans that claim to sell miracle products or promise enormous earnings. Just because a promoter of a plan makes a claim doesn’t mean it’s true! Ask the promoter of the plan to substantiate claims with hard evidence.
• Beware of shills – “decoy” references paid by a plan’s promoter to describe their fictional success in earning money through the plan.
• Don’t pay or sign any contracts in an “opportunity meeting” or any other high-pressure situation. Insist on taking your time to think over a decision to join. Talk it over with your spouse, a knowledgeable friend, an accountant or lawyer.
• Do your homework! Check with your local Better Business Bureau and state Attorney General about any plan you’re considering – especially when the claims about the product or your potential earnings seem too good to be true.
• Remember to use common sense. If the offer sounds too good to be true, it probably is.
TIP NUMBER THREE
BEWARE OF INACCURACIES IN SUSAN JOHNSON CENSUS EMAIL (Now Becoming Urban Legend Material): BBB Wants You to Know the Facts!
Have you received the below email being circulated coming from a Susan Johnson in your INBOX lately?
If so, it contains inaccuracies! Beware and don’t forward to others.
INACCURATE EMAIL example:
GOOD INFORMATION TO PASS ON TO EVERYBODY THAT YOU KNOW:
2010 Census to Begin
WARNING: 2010 Census Cautions from the Better Business Bureau
Be Cautious About Giving Info to Census Workers by Susan Johnson
With the U.S. Census process beginning, the Better Business Bureau
(BBB) advises people to be cooperative, but cautious, so as not to become a victim of fraud or identity theft. The first phase of the 2010 U.S. Census is under way as workers have begun verifying the addresses of households across the country. Eventually, more than 140,000 U.S. Census workers will count every person in the United States and will gather information about every person living at each address including name, age, gender, race, and other relevant data.
The big question is - how do you tell the difference between a U.S. Census worker and a con artist? BBB offers the following advice:
** If a U.S. Census worker knocks on your door, they will have a badge, a handheld device, a Census Bureau canvas bag, and a confidentiality notice. Ask to see their identification and their badge before answering their questions. However, you should never invite anyone you don't know into your home.
** Census workers are currently only knocking on doors to verify address information.
Do not give your Social Security number, credit card or banking information to anyone, even if they claim they need it for the U.S. . Census.
REMEMBER, NO MATTER WHAT THEY ASK, YOU REALLY ONLY NEED TO TELL THEM HOW MANY PEOPLE LIVE AT YOUR ADDRESS..
While the Census Bureau might ask for basic financial information, such as a salary range,
YOU DON'T HAVE TO ANSWER ANYTHING AT ALL ABOUT YOUR FINANCIAL SITUATION.
The Census Bureau will not ask for Social Security, bank account, or credit card numbers, nor will employees solicit donations. Any one asking for that information is NOT with the Census Bureau.
AND REMEMBER, THE CENSUS BUREAU HAS DECIDED NOT TO WORK WITH ACORN ON GATHERING THIS INFORMATION.. No Acorn worker should approach you saying he/she is with the Census Bureau.
Eventually, Census workers may contact you by telephone, mail, or in person at home. However, the Census Bureau will not contact you by Email, so be on the lookout for Email scams impersonating the Census.
Never click on a link or open any attachments in an Email that are supposedly from the U.S. Census Bureau.
HERE—instead, is a more accurate BBB “Get the Facts” piece to forward and/or circulate to people about the Census:
http://spokane.bbb.org/article/phony-bbb-e-mail-spreads-fiction-about-2010-census-get-the-facts-14542
TIP NUMBER FOUR
TEXT MESSAGING SCAMS TO WATCH FOR:
Scam #1 US Bank and Wachovia Names Being Misused in TM Scam
Scam #2 877-233-4980, Free WalMart Gift Card TM Opp
Guard all financial and personal information unless you are 100% sure who is on the other end of phone
TEXT MESSAGE SCAM 1: US Bank and Wachovia
If you’ve received a text message allegedly from Wachovia or US Bank telling you there is a problem with your account, contact your bank immediately, do not follow the instructions in the text message.
Better Business Bureau is warning US Bank and Wachovia cardholders about a texting scam aimed at securing cardholders' account numbers, expiration dates and personal identification numbers (PINs). Consumers have contacted BBBs in various parts of the country reporting a text message claiming their account has been deactivated or frozen and requires action to reactivate it.
The messages says:
Wachovia Alert Your card starting with 4828 has been deactivated. Please contact us at 804-715-9368." Another message states: “Customer issue, us bank service (sic) frozen. Please call at 888-847-6796.” Both numbers are currently out of service.
According to complaints, customers who dialed the telephone number were asked by an automated answering service to key-in their card number, expiration date and PIN.
The messages are not being sent by Wachovia or US Bank. A spokeswoman from Wachovia said that the bank never asks for personal information in text or e-mail and that any such communication should be considered a scam. Consumers are advised to contact their bank immediately using the phone number listed on the back of their card.
US Bank has instructed BBB to suggest that customers forward any phishing texts or emails misusing their good name to: FraudHelp@usbank.com.
TEXT MESSAGE SCAM 2: 877-233-4980 FREE WalMart Gift Card
TEXT MESSAGE EXAMPLE:
Hi XXXXXX,
Thx 4 visiting our site
Call 877-233-4980 to Claim Your FREE $200
Walmart Gift Card Voucher!
GiftCode: xxxxXXX
Txt StopXXXX 2Unsub
If you’ve received this above text message saying you’ve won a Walmart gift card, ignore the instructions in the text message; you haven’t won anything!
The Better Business Bureau is warning people about a texting scam aimed at securing consumer’s credit or debit card information.
The scam works as follows: Once the consumer calls the 877# they are asked for their debit or credit card information in order to pay $9.80 for shipping.
Walmart has told the BBB they are not involved in any type of text message marketing, nor would they require financial information for a gift card to be redeemed. In all Walmart promotions, the only personal information that is collected is the address, name, and phone number.
BBB ADVICE
To verify such promotions, consumers are advised to contact the company that’s offering the promotion directly, and not the phone number listed in the text message.
Do not divulge personal information to anyone who solicits information over the phone. Before making any purchase, always be sure to obtain a BBB report as part of your decision making process. For reports on businesses and for information about BBB services, visit our website at www.bbb.org.
TIP NUMBER FIVE
National Deed Service, Inc. of Northbrook, IL and Washington, D.C. Sending Misleading Deed Notices
Property owners continue to fall for misleading advertising about their deeds as they pay this above-mentioned Chicago-area company for copies of property deeds that they either don’t need or can be obtained for significantly less from government offices.
The Better Business Bureau (BBB) warns consumers to be skeptical of official-looking notices mailed by National Deed Service, Inc., a company with addresses in Northbrook, Ill., and Washington, D.C.
Notices being mailed offer to provide a certified copy of a deed for property at a cost of $59.50. The company has the BBB’s lowest rating. Most complainants reflect that the company had tried to trick them into paying unnecessarily for copies of deeds.
The truth is, most people have no real need for copies of their deeds, and if they do, they can usually get them for a few dollars from the recorder’s office where they are on file.
The letter National Deed Service sends states, “The U.S. Government Federal Citizen Information Center website recommends that property owners should have an official or certified copy of their deed. If you don’t already have this important document, you may obtain one now.” The mailing ends with a disclosure that, “many government records are available free or at a nominal cost from government agencies.”
The company’s website says, “It is not an easy process to obtain public records from a governmental agency.” It says people often have to lose time from work, locate the proper office and pay for parking. “When considering all of the above, the service provided by National Deed Service, Inc., is a cost- and time-effective service.”
The BBB offers the following tips for persons obtaining property deeds or other public records:
• Make sure that you really need the document.
• Read and understand mail solicitations carefully. If you have questions about whether a mailing is from a government agency or a private company, call the agency and ask.
• Check with local government offices to determine the fastest and cheapest way to obtain a document.
• Check with the BBB for Reliability Reports at www.bbb.org
ONE FOR THE GIPPER
A.P. STORY OFFERING TOYOTA RECALL TOLL-FREE HOTLINE FOR Q AND A QUOTED WRONG NUMBER
There is only ONE Correct Number for the Toyota Recall Hotline and that is: 800-331-4331. The Fresno BBB let AP know about this, and it has been corrected. Make sure you are using the RIGHT number. NOTE: There is NO CHARGE for these calls.