Lottery Scams Target Seniors

One day’s worth of mail for one victim.

Better Business Bureau sees scams reported to us by individuals in all age groups, but I have particularly noted that lottery scams appear to prey on seniors. Or maybe seniors are more susceptible to this type of scam because of their age.

Just in the past few months, I have had reports of three different individuals, ranging in age from late 60s to early 90s, who have fallen victim to lottery scams. We’re not talking a few hundred dollars, either. Two of these victims have sent more than $30,000, and the third has wired more than $100,000 to scammers. And they haven’t just been scammed once, but several times. Who knows if it was the same or different con artists that scammed these individuals multiple times?

It appears that once someone falls victim to a scam, their name ends up on a list. These lists of “easy targets” are often sold or traded between scammers.

I spoke to one woman who sent checks to alleged charities that requested money for sick children. She received phone calls as well as letters asking for her help. She told me it was difficult to turn down these requests because they involved children. Now she receives upwards of 40 pieces of mail a day from fake lotteries and charities. She wonders if the money she sent really went to any sick children. I don’t think so.

So why are seniors more vulnerable to these types of scams? There is evidence that as we age, we lose cognitive ability, and we may process information more slowly. These scammers are skilled at convincing the elderly that they must act now or they will lose out on their winnings. They are coerced into making instant decisions, leaving the individual no time to think, research or talk to family members. Additionally, seniors may be isolated and living alone. They react emotionally rather than rationally.

Seniors are prime targets for financial exploitation for other reasons, too. They may have a significant nest egg, although plenty of low-income victims are at risk. At an older age, this is especially devastating because there is no time to recoup financial losses. Once victims realize they have been scammed, they may be too embarrassed to tell family members or friends. They also may not remember details to help with investigation and prosecution. In two of the cases I mentioned, the victims were eventually threatened with bodily harm to themselves or their families if they did not continue to send money to the scammers.

Some important reminders:

• You can’t win a contest you didn’t enter.
• It is illegal for U.S. citizens to participate in foreign lotteries.
• You do not have to pay money in order to receive a legitimate prize.
• Never wire money or put money on a pre-paid debit card – both are the same as sending cash. There is no way to trace the money or to get it back once sent.

One helpful note I received while doing this research: Due to multistate settlements with Western Union and Moneygram, the Attorney General’s office can request that a fraud victim be blocked from wiring money. If you have a family member who has been a victim, call 206-464-6684 (WA), 503-229-5576 (OR) or 907-269-5200 (AK) for help. Also contact your local Better Business Bureau office at 206-431-2222 (WA), 503-212-3022 (OR) or 907-562-0704 (AK) to report the experience.

Top 3 Scams Targeting Businesses

Reposted from my column in the Portland Business Tribune.

Since I began working at Better Business Bureau more than four years ago, I have learned a lot: how to be a smarter consumer, how a business ought to handle complaints, the warning signs of a scam and what various government agencies can do to help people. I do still make mistakes—for example, I certainly did not choose the best repair shop when my car broke down last year! But I am much more confident and calm in how I handle troubling situations, thanks to the knowledge I’ve gained from BBB. (And I was able to resolve the car situation.)

Education is key when it comes to protecting yourself and your business from fraudsters. To avoid falling victim to three of the most common business scams, everyone in your office needs to be alert and aware.

Labor law poster scam: An important-looking letter addressed to your company informs you that you need to order new versions of some labor law posters. Attached is an order form for you to fill out and return along with payment, which can be up to several hundred dollars. The wording in the letter implies that failure to pay for these posters will result in your company being out of compliance with state and federal labor laws—and there could be legal ramifications.

• How to protect your business: There are, in fact, certain posters that need to be displayed in every workplace according to the law. However, the posters can be obtained for free from your state labor department. In Oregon, contact the Bureau of Labor & Industries at (971) 673-0761 or oregon.gov/boli for details on which posters you need and how to order them.

Office supplies scam: A delivery of office supplies arrives on your company’s doorstep, and an employee pays for them, assuming a colleague must have placed an order. But it turns out the box contains items you didn’t order and don’t need, or it’s completely empty.

• How to protect your business: Make sure your company has a formal process for ordering office supplies, paying for them and accepting deliveries. If you keep track of all orders placed, the employee responsible for accepting deliveries should be able to match any shipment to the tracking sheet before accepting it.

Directory listing scam: You receive a phone call asking to update or confirm your company’s contact information in a business directory listing, and you’re led to believe it’s the Yellow Pages. A short time later, you receive an invoice for hundreds or even thousands of dollars for a listing in a directory you’ve never heard of—and, typically, one that doesn’t even exist. Unsuspecting employees may pay the bill, not realizing you never agreed to the charges. If you refuse to pay or try to cancel your listing, the scammers threaten you with legal action and aggressive collection tactics. They may even play back a doctored recording of your phone conversation as “proof” of your agreement to the charges.

• How to protect your business: Steer clear of solicitations for directory listings. Instead, be proactive and selective about which directories you want your business to be listed in, and contact them yourself to initiate a listing. When the time comes to renew, verify any contact from someone claiming to be with the directory company.

If you are aware of a sketchy company or if you have fallen victim to a scam, report your experience to Better Business Bureau at (503) 212-3022 or oregon.bbb.org and the Federal Trade Commission at (877) 382-4357 or ftc.gov. The knowledge you share could save countless businesses from becoming victims themselves.

Two Ways Tax Scammers Might Target You

Reposted from Federal Trade Commission.

It’s that time of year — tax time. It’s also a great time to get up to speed on tax-related scams. Here are two ways tax scammers might target you:

1. Tax identity theft
This kind of identity theft happens when someone files a fake tax return using your personal information — like your Social Security number — to get a tax refund or a job. You find out about it when you get a letter from the IRS saying:

• more than one tax return was filed in your name, or
• IRS records show wages from an employer you don’t know.

If you get a letter like this, contact the IRS Identity Protection Specialized Unit at 800-908-4490. You can find more about tax identity theft at ftc.gov/taxidtheft and irs.gov/identitytheft.

2. IRS imposter scams
This time scammers aren’t pretending to be you — they’re posing as the IRS. They call you up saying you owe taxes, and threaten to arrest you if you don’t pay right away. They might know all or part of your Social Security number, and they can rig caller ID to make it look like the call is coming from Washington, DC – when it could be coming from anywhere. Leaving you no time to think, they tell you to put the money on a prepaid debit card and tell them the card number right away.

The real IRS won’t ask you to pay with prepaid debit cards or wire transfers, and won’t ask for a credit card number over the phone. When the IRS contacts people about unpaid taxes, they usually do it by mail.

If you have a question about your taxes, call the IRS at 800-829-1040 or go to irs.gov. You can report IRS imposter scams to the Treasury Inspector General for Tax Administration (TIGTA) online or at 800-366-4484, and to the FTC at ftc.gov/complaint.

Don’t Fall for Diet Scams

Image courtesy of https://www.flickr.com/photos/alancleaver

Did you make a New Year’s resolution? Are you making progress?

One of the most popular and common resolutions is to lose weight. Experts say the best way to lose weight is simply to eat fewer calories and increase your physical activity. But everywhere you look, ads promise quick and easy weight loss without diet or exercise! That sounds tempting, but unfortunately, these claims are almost always false.

Here are 7 empty promises to watch out for. And remember, check with your doctor before starting any diet or weight loss program.

“Lose weight without diet or exercise!”
Achieving a healthy weight takes work. You simply cannot get results without effort.

“Lose weight no matter what you eat!”
Losing weight requires sensible food choices. Filling up on healthy vegetables and fruits can make it easier to say no to fattening sweets and snacks.

“Lose weight permanently! Never diet again!”
Permanent weight loss requires permanent lifestyle changes.

“Block the absorption of fat, carbs or calories!”
There’s no magic pill that will do this. The key to curbing your craving for those “downfall foods” is portion control.

“Lose 30 pounds in 30 days!”
Losing weight at the rate of a pound or two a week is the most effective way to take it off and keep it off. Products promising rapid weight loss are false and can harm your health.

“Everybody will lose weight!”
Your habits and health concerns are unique. Your health care provider can help you design a personalized nutrition and exercise program suited to your lifestyle and metabolism.

“Lose weight with our miracle diet patch or cream!”
There’s nothing you can wear or apply to your skin that will cause you to lose weight.

New Scam Targeting Soldiers with USAA Hits Instagram

Reposted from Guardian of Valor.

We received several emails about people on Instagram posing as Soldiers and telling others that they can make them a lot of money if they used USAA Banking. So we went to Instagram and reached out to one of these scammers just to see what they would say.

The person goes by the screen name ladyusaa, and claims her real name is Ciara Taylor and she is currently serving in the Army Reserves. So we looked up the name, and no one by that name is currently serving in the reserves. The account has several photos of a female, one in uniform, more than likely the photos are stolen.

We initiated contact by requesting to follow her on Instagram as her account is private, it took no time for her to approve and we noticed she had more than 3k followers. We took some snapshots of the account which you can see below.

We also found the photo of the female in uniform, which looks to be a legit Soldier, just doesn’t belong to the person running this account. I am sure someone will recognize this Soldier and let her know her photos have been stolen and used in a scam.

The account was full of screenshots of real USAA accounts with supposed deposits of different amounts. We blocked out the account numbers as we don’t know who these accounts belong to.

This person makes it a point to reach out to Military personnel, we initiated contact by sending a few direct messages through Instagram, they responded and asked us to text them.

The number itself comes back to a Sprint/NexTel phone out of Davenport, Iowa. So we played along and began texting them to get more information.

We stopped communicating when they asked for our Username and Password for our online USAA account. This scam is rampant on Instagram and Facebook at the moment, and yes people are falling for it. Never give your UN and PW to anyone for anything; USAA will also never ask you for that information. I am not exactly sure what these scammers are doing, whether its cleaning out the accounts, or depositing fake checks that later bounce causing the account to go negative.

If they have access to your account, they can use mobile deposit, deposit a fake check, then have you send them half of the money. Once the check bounces you are responsible for the amount plus overdraft charges.

Remember, nothing in this world is free! If it sounds to good to be true, it more than likely is! Share this around so we can make sure no one else falls for this scam.

Don’t Lose When It Comes to Buying Gameday Seahawks Tickets

Image courtesy of sanfrancisco.cbslocal.com

Have you seen the price for Seahawks playoff tickets? It’s crazy—some are going as high as $5,000 each! I don’t blame people for resorting to the online classifieds to find cheap tickets or wheeling-and-dealing with a scalper at the stadium. But I do question how often people let their guard down and throw caution to the wind.

Last year I worked with a news station on a story about fake tickets being sold to the NFC Championship game against the Niners. The station interviewed a guy who bought tickets from someone posting on Craigslist. The buyer thought he was doing everything right. He arranged to meet the man in public on game day, obtained a copy of his driver’s license and inspected the tickets before handing over several hundred dollars in cash. But when the unlucky fan went to the ticket gate, he was turned away because the tickets were fake.

Surprisingly this happens a lot every year, and most cases seem to go unreported. Even though the buyer did everything right in his mind, he still got ripped off. Not only were the tickets fake, but so was the seller’s ID.

The message here is simple. If you buy tickets from an individual or non-verified reseller, you’re rolling the dice. I mean, is it really worth the extra hundred dollars you might save on a ticket if you’re not 100% sure the tickets are real? I guess it depends on whom you ask.

I know one person who made a scalper walk into the stadium first before buying the ticket. He wanted to verify if it was the real deal. It was a gutsy move that worked—but I seriously doubt any ticket seller, legitimate or not, would actually take the time to do that. My suggestion is to stick with the basics:

• Look for BBB’s seal when buying tickets from an online broker. Use verifiable ticket sellers and resellers that hold vendors responsible to ticket authenticity.
• Avoid shady transactions where sellers fail to provide contact information or prefer to conduct business in private. Never wire money or fill up a prepaid debit card as a method of payment.
• Know how an actual playoff ticket looks and feels. Steer clear of tickets printed on flimsy paper, with smeared ink and uneven margins. When in doubt, just walk away.

Sometimes our emotions get the better of us and we want to believe the deal we are seeing is legit. But I caution anyone interested in buying playoff tickets to first take a deep breath, come up with a plan, prepare to call an audible and don’t get blitzed by a scammer wanting to make a buck. Don’t be like the guy interviewed on the news last year—he ended up listening to the game on the radio on his way home from the stadium.

To see more tips on how to avoid getting ripped off during football season, check us out on Facebook and BBB’s Social Hub.

Don’t Be Fooled by ‘Tech Support’ Scams

Trojan | © Berishafjolla / Wikimedia Commons /CC-BY-SA-3.0

One of the most common ways in which people unknowingly fall victim to cyber-crime is through computer-related phone scams. According to the most recently available United States Census Bureau data, 75.6 percent of Americans had household computers in 2011. With the population of the U.S. approaching 319 million, there are approximately 241 million potential victims of illegitimate offers to restore and fix computer software issues.

During my time answering public phones at Better Business Bureau I have heard a plethora of stories involving the infamous “tech support” scam, where various technology “support groups” claim to offer fixes for computer malware problems. Don’t be someone who takes the bait!

Reports to BBB indicate that the unsolicited callers mostly claim to be affiliated with Microsoft, while others claim affiliation with Windows Corporation or similar well-known technology companies. However, the callers are not associated with any corporation and they are simply seeking remote access to computers in the hopes of obtaining personal information for identity theft purposes; sometimes, callers require “fees” for their services and ask for prepaid money cards or money transfers. One Washington State man lost more than $10,000 to an illegitimate Microsoft Tech Support offer in 2013.

Of course, the obvious question is: How does a random caller know that my computer has a virus? That question leads to an obvious answer: He doesn’t!

Unfortunately, anti-virus software is no guarantee and it is relatively easy for viruses and malware to end up on computers. BBB recommends having computers checked by legitimate companies if problems arise.

Microsoft is aware of this ongoing scam and is working to notify the public on recognizing fake calls. So, if you do receive a call from tech support, hang up and report it.

Don’t Throw Your Money Away: Recognizing an Online Scam

© Stephan Röhl / Wikimedia Commons / BY-SA 3.0

First guesses are usually right—just ask any student who has ever taken a multiple choice test and changed an answer halfway through. Not surprisingly, this logic also applies when making purchases, and Better Business Bureau can help determine if gut feelings are accurate.

When consumers check with BBB to research a company, sometimes there is no report. Most of the time this simply means BBB hasn’t had a reason to interact with the business, but occasionally, it means that it is not legitimate.

For example, I recently spoke with a consumer who called BBB to verify a company’s legitimacy before making a purchase. After I was unable to locate a BBB Business Review I analyzed the business’s website. Upon inspection I noticed several red flags that made me wary of the company’s intentions:

1. There was no contact information available.
   There are no requirements for businesses to display their contact information on websites; however, honest and transparent businesses understand that the more contact information they provide the more at ease their customers, and potential customers, will be.
2. Everything was marked at more than 50 percent off.
   Businesses have the authority to set their own prices as long as they stay within the limitations of the law; however, legitimate businesses will be unable to stay afloat while continually selling items at a loss. This particular store sold overstock at unrealistic discounts: $2,000 items were priced around $750.
3. BBB Accreditation couldn’t be verified.
   Eligible BBB Accredited Businesses may display their accreditation online if certain criteria are met—like displaying the correct seal and having it link directly to the appropriate BBB Business Review. While reviewing the website in question, I noticed that every page advertised BBB Accreditation, but the seal was outdated, did not link to a review and could not be verified through the BBB national database.
4. The only accepted payment method was prepaid debit or money cards.
   Businesses have the ability to decide how they want their customers to pay for merchandise, and may refuse certain types of payment. In this case, the website only accepted Green Dot cards. Prepaid debit cards are easy money for scammers and should only be used when handling personal funds.

Any one of these red flags alone wouldn’t necessarily mean that a company is trying to scam people, but all the factors together bring suspicion. Remember, never ignore your gut and report anything that gives you hesitation.

After seeing all of the red flags on one website I strongly advised the consumer to be cautious about doing business with the company. He was inclined to agree.

It’s satisfying to know that I was right. I checked the website a few weeks later and it had already been taken down. It’s likely that the “company” collected some money from unsuspecting shoppers, left them high-and-dry and then set up a new site somewhere else.

Full Disclosure: Green Dot Corporation is a BBB Accredited Business headquartered in Pasadena, California.

Congratulations! You’ve Been Scammed!

Photo by Psychonaught [public domain]

I’ve always pictured my parents as invincible—two superheroes who not only gave me sound advice growing up, but were always there to pick me up when I fell. They also taught me to make smart decisions and be skeptical of too-good-to-be-true offers. So you can imagine my surprise when I received a call last week about their major life-changing event. Apparently, my Mom was the “lucky” recipient of a $500,000 sweepstakes prize! All she needed to do was pay $2,000 to cover the administrative fees.

Luckily, they called me first and never wired money or disclosed any personal information. But that one phone call really got me thinking: What if my parents had caved-in and wired money? What if they had given the caller personal information? What could have happened if the bad guys accessed my family’s bank accounts?

Unfortunately, this kind of thing happens every day to unsuspecting and trusting people. Sweepstakes and lottery scams are real. The scams prey on emotions and people are quick to buy into the idea of instant wealth. In fact, according to the Federal Trade Commission, Americans spend more than $100 million a year on foreign lottery sweepstakes.

At this point, it’s unclear how my parent’s contact information got into the hands of the con artists; they followed the proper procedures—always researching businesses with Better Business Bureau, reading the fine print, ignoring phishing emails and telemarketers, et cetera. The worst part is that we may never know how this caller obtained the phone number. But, learning the red flags of these types of scams can reduce the likelihood of falling victim.

I reminded my parents to exercise caution and anyone who receives similar phone calls or letters should listen closely as well:

• Never pay for a prize. It is illegal for any company to require a purchase or fee to play a sweepstakes; just ask the Washington State Attorney General. Also, processing fees or taxes will be deducted from prizes and will never need to be paid out-of-pocket.
• Do not wire money. Wire transfers are a great way to transfer money when you need to quickly get cash to your sister in Iowa or your nephew in Florida; they are a terrible way to get money to people you don’t know and have never met in person, especially if they are “out of the country.” Once funds are transferred, it is nearly impossible to reclaim them. In this case, the scammer specifically requested a wire transfer from my Mom, but she recognized the red flag and didn’t do it.
• Spot the fakes. Bad guys will oftentimes hijack the names of government agencies and the logos of well-known organizations in attempts to confuse and fool victims. Reputable organizations will not call or email winners; notifications will be delivered by certified mail and never by bulk-rate mail. When in doubt, call BBB or visit bbb.org to see if companies and notifications are legitimate.
• Never cash checks. Even if checks look real, don’t cash them! Scammers often blast out extremely convincing bogus checks in hopes that even just one person will make a deposit and wire some of the money back—this is called an overpayment scam.

As awesome as it would be to win a ton of money out of the blue, it’s a pretty unlikely event. Nationally, complaints about prizes, sweepstakes and lotteries ranked #6 in 2013 with the Federal Trade Commission. Victims of mail fraud should contact their local postmasters or the U.S. Postal Inspection Service by phone, toll-free at 1-800-372-8347, or online at postalinspectors.uspis.gov.

And while my blood is still boiling over the fact that someone targeted my parents, keeping a cool head is key. Whatever you do, avoid the gimmicks and hard sells and learn how to spot the red flags; this will turn you into the invincible superhero that helps others with sound advice.

Bellingham: Home of Scenery, WWU and… Fraud?

Bellingham, Wash. | © Josh Parish / Wikimedia Commons / CC-BY-2.0

From the City of Bellingham: On the shores of Bellingham Bay with Mount Baker as its backdrop, Bellingham is the last major city before the Washington coastline meets the Canadian border. The City of Bellingham is at the center of a uniquely picturesque area offering a rich variety of recreational, cultural, educational and economic activities.

But what lies beneath the surface?

Continuing Better Business Bureau’s analysis of the Federal Trade Commission‘s 2013 Consumer Sentinel Network Data Book, I am currently investigating an interesting statistic for 2013: Bellingham, Wash., is ranked #3 in the country for consumer complaints about fraud. Last week, BBB took a look at the total dollar amounts lost in Alaska, Oregon and Washington in the article What can Fraud Buy?, and this week I am particularly interested in how a relatively small city—population 82,310—beat out usual fraud hotspots like Miami, Fla.—ranked #17 in 2013—and Atlanta, Ga.—ranked #29.

Now, I’m not arguing that Bellingham isn’t a beautiful city with a rich culture and deep community roots, but what could cause such a high ratio of complaints in 2013? It’s important to note that this statistic is normalized, but the bottom line is that out of 100,000 people, 609 filed fraud complaints.

Typically, when I talk about the dangers of fraud it has to do with senior citizens. It’s an unfortunate fact, but seniors are the most-targeted demographic for scams and fraud because they have semi-disposable nest-eggs and are perceived as weak. However, Bellingham has a low population of seniors, with just 12% of the total population being over the age of 65. On the other hand, the population of 18-29 year-olds represents 32.5%—or about 1/3 of the total population of the city.

Initial conclusion: As more and more of the scams that BBB learns about evolve and become more advanced, younger demographics are falling victim.

So what can young adults do to protect themselves?

• Learn the 10 Ways to Avoid Fraud.
• Regularly check bbb.org for the latest fraud schemes and scam alerts.
• Connect with BBB on social media for up to date alerts on-the-go.

Remember, the best defense is a proactive one. Take steps to educate yourself and others so that Bellingham doesn’t make the list next year. Oh, and go Vikings!