BBB names top scams, introduces resource

Better Business Bureau investigates thousands of scams each year, from the latest gimmicks to those that linger for decades.

To increase the public's awareness, BBB's new Scam Source (www.bbb.org/scam) provides comprehensive resource on scam investigations from BBBs around the country that includes tips from law enforcement and others.

The public can also sign up to receive BBB's scam alerts by email and is encouraged to report scams they discover.

“Although we are in a new year, it does not mean that the scams prevalent in 2011 are no longer a threat. For this reason, BBB encourages the public to share our scam warnings with family and friends to ensure their identity, money and time are protected,” BBB President Matthew Fehling said.

The following is a list of the top nine scam categories as well as the Scam of the Year.

Top job scam

BBB sees lots of secret shopper schemes, work-from-home scams and other phony job offers, but the worst job-related scam can dash your hopes and steal your identity. Emails, websites and online applications all look very professional and the candidate is even interviewed for the job, usually over the phone, and receives an offer.

However, to start the job, the candidate has to fill out a “credit report” or provide bank information for direct deposit of their “paychecks.” The online forms are nothing more than a way to capture sensitive personal data that can easily be used for identity theft. And, of course, there is no job.

Top sweepstakes and lottery scam

Sweepstakes and lottery scams come in all shapes and sizes, but the bottom line is almost always this: “You've won a lot of money, and in order to claim it you have to send us a smaller amount of money. Oh, and keep this confidential until we're ready to announce your big winnings.” These kinds of scams often use celebrities or other famous names to make their offer seem more genuine.

If you aren't sure, don't click on the link but instead go directly to the home page of the company mentioned. If they are really giving away $1 million, there will be some kind of announcement on their website.

Top social media/online dating scam

On the Internet, it's easy to pretend to be someone you are not. Are you really friends with all of your “Friends” on Facebook? Do you have a lot of personal information on a dating site?

There are numerous ways to use social media for scams, but one really stood out in 2011. Viral videos claiming to show everything from grisly footage of Osama bin Laden's death to the latest celebrity hijinks have shown up on social media sites, often looking as if they have been shared by a friend. When you click on the link, you are prompted to “upgrade your Flash player,” but the file you end up downloading contains a worm that logs into your social media account, sends similar messages to your friends, and searches for your personal data.

Top home improvement scam

Always near the top of BBB complaint data are home improvement contractors who often leave your home worse than they found it. Itinerant contractors move around, keeping a step ahead of the law and angry consumers.

The worst are those who move in after a natural disaster, taking advantage of desperate homeowners who need immediate help and may not be as suspicious as they would be under normal circumstances.

Top check cashing scam

Two legitimate companies, Craigslist and Western Union, are used for an inordinate amount of scamming these days, especially check cashing scams. Here's how it works:

Someone contacts you via a Craigslist posting. They send you a check for more than the amount they owe you, and ask you to deposit it into your bank account and then send them the difference via Western Union. Since a deposited check normally takes days to clear, fake checks will eventually bounce, leaving you responsible for the missing funds. You will also be out the money wired to the individual posing as a buyer or employer.

Top phishing scam

“Phishing” is when you receive a suspicious phone call asking for personal information or an email that puts a virus on your computer to hunt for your data. It's almost impossible to avoid them if you have a telephone or an email account.

But the most pernicious phishing scam last year disguised itself as official communication from the National Automated Clearing House Association, which facilitates the secure transfer of billions of electronic transactions every year. The email claims one of your transactions did not go through and it hopes you react quickly and click on the link. It may take you to a fake banking site to “verify” your account information, or it may download malware to infiltrate your computer.

Top identity theft scam

There are numerous ways to steal someone's identity. One particular scam has become so prevalent that many hotels are posting warnings in their lobby. Here's how it works:

You get a call in your hotel room in the middle of the night. It's the front desk clerk. The clerk is very apologetic, saying their computer has crashed and they need to get your credit card number again.

In another scenario they claim to have captured the credit card number wrong because the transaction won't go through. They then ask you to read the number back so they can fix the problem. By the time morning rolls around and you are clear-headed, your credit card has been on a major shopping spree.

Top financial scam

Since the federal government announced or expanded several mortgage relief programs last year, many similar sounding program websites have popped up to try to fool consumers into parting with their money.

Some may sound like a government agency, or even part of BBB or other nonprofit consumer organization. Most ask for an upfront fee to help you deal with your mortgage company or the government (services you could easily do yourself for free), and almost all leave you in more debt than when you started.

Top sales scam

Sales scams are nothing new, but the Internet has introduced a whole new way to rip people off. Penny auctions are very popular because it seems like you can get something useful for way below retail. Yet, you pay a small fee for each bid (usually $.50 to $1) and if you aren't the winner, you lose that bid money.

BBB recommends you treat penny auction sites the same way you would legal gambling in a casino: Know exactly how the bidding works, set a limit for yourself and be prepared to walk away before you go over that limit.

Scam of the year

Many people have received fraudulent emails that look like an official notice from BBB. The subject line says something like “Complaint Against Your Business,” and the instructions tell the recipient to either click on a link or open an attachment to view the details.

If the recipient does either, a malicious virus is launched on their computer that can steal banking information, passwords and other critical pieces of information needed for cyber-theft. BBB is working with security consultants and federal law enforcement to track down the source of these emails, and has already shut down dozens of hijacked websites.

Anyone who has opened an attachment or clicked on a link should run a complete system scan using reputable anti-virus software. If your computer is networked with others, all machines on the network should be scanned as well.

Myriam Cruz is the community relations specialist for the Better Business Bureau. She can be reached at 1-602-212-2229 or mcruz@arizonabbb.org. To check on a business or charity, contact your BBB at www.arizonabbb.org or call 1-602-264-1721.