BBB Hot Topics
March 2010
Consumer Protection Week begins March 7th. BBB is a proud supporter of this nationwide effort to educate the public on how to become savvier consumers. Hundreds of national and local organizations will work together to educate consumers on the importance of taking control of their personal finances. Look for your BBB at various local events.
U.S. Census – Be alert for potential scams surrounding the U.S. Census which ramps up in March. Most census forms will arrive in the mail March 15 – 17 and then at the end of April, Census workers will go door-to-door to households that didn’t return the form. Beware of anyone who asks for your social security number or bank account information. Also, the Census will not contact you by email.
IRS Scam – Beware of an email that looks like it’s from the IRS. The “very important note” states the consumer is eligible for a tax refund, and asks the consumer to go to a website that looks like the official IRS website. The fake website asks for the consumer to use a small bank debit account, like a hometown bank, instead of a large bank like PNC, Chase, etc. The IRS will never contact someone via email about taxes.
Chile Earthquake Scams – Be alert for scams surrounding the Chile earthquake. BBB recommends to avoid making donations to unfamiliar websites or as a result of a solicitation received via email. Also be aware that scams can occur on social networking sites like Twitter, Facebook, and MySpace. For more information on donations, check out the BBB’s Wise Giving Alliance at www.give.org.
Online Job Scams – Job seekers who respond to certain job postings on Craigslist are receiving an email requesting information for either a background check or credit report prior to consideration for employment. The scammer directs the job seekers to a website that is used to steal their personal information. Legit job offers never require upfront fees or bank account information before an interview.
Online Housing Schemes – Consumers looking for homes to rent on Craigslist should be skeptical of ads that seem “too good to be true.” Consumers across the country are being duped by scam artists who say they are living in Nigeria and want to rent their home in the U.S. The scam artist offers a cheap price for the rental, but wants an advanced payment wired to them. The listings are legitimate homes, many of them on the market for sale. However, the real owner knows nothing of this elaborate scam.
The Love Foundation claims to be a program that offers financial assistance for children of the homeless and unemployed. The ad is popping up on Craigslist and other sites. The “foundation” claims to be out of different states. Those who need assistance are asked to call 1-800-217-9750. The first thing the caller is asked to provide is a social security number.
National Publishers, Inc. is a Mississippi-based magazine subscription company that’s claiming membership with the BBB. The company, which also does business as Exclusive Media, has an “F” rating with the BBB due to failure to correct a pattern of complaints. Consumers say they received a call from the company informing them that they won a sweepstakes for cash prizes, items, or trips, but they are told they must purchase magazine subscriptions in order to win. Consumers report that they are then charged several payments each month, sometimes totaling hundreds of dollars.
Spring Break Scams – Be cautious when surfing the Internet to find great deals on spring break travel. While the rates may look good, you may click on an offer and find that the total price is much more than the advertised price. BBB recommends spring breakers review all terms and conditions as well as cancellation and refund policies before finalizing deals, and check out the company first at www.bbb.org.
Online Payday Lenders – BBB has received hundreds of complaints against payday loan sites like OnceClickCash.com, 500Fastcash.com, rbtloans.com, and Ameriloan.com. Complainants say they agreed to what they thought was a one-time payday loan, typically a few hundred dollars to be paid off in two weeks, and quickly found out that payments went towards recurring finance charges and never toward the principal. They report paying two to three times the amount of the original loan.