BBB names top 10 scams of 2012

Better Business Bureau investigates thousands of scams every year from information gathered through sources such as consumers and federal agencies. Some of these scams have been around as long as BBB – 100 years – and some take advantage of brand new technologies.

To help consumers identify legitimate offers from fraudulent scams, BBB launched two websites last year: BBB Smart Investing and BBB Scam Stopper.

BBB Smart Investing (www.bbb.org/smartinvesting), developed in partnership with the Financial Industry Regulatory Authority Inc. Investor Education Foundation, informs consumers about investment fraud, Ponzi schemes and risky investments. The site also helps consumers assess risk, check out brokers and avoid being taken.

BBB Scam Stopper (www.bbb.org/scamstopper), developed in partnership with Western Union, educates consumers on major scams and provides information on how to avoid and report them.

Even as consumers become savvier, scams seem to be more prevalent and to help build awareness, BBB names the “Top 10 Scams of 2012” BBB also puts out a top 10 scams of the year.

• Top overpayment/fake check scam: Car ads

The typical online ad says, “Get Paid Just for Driving Around” – naming a prominent company that offers $400+ per week to drive around with their logo all over your car. The scammers send a check to be deposited, requiring that part of the money be wired as payment for the graphic designer who will customize the ad for your vehicle. A week later the check bounces, the graphic designer is nowhere to be found and you are out the money wired. The Internet Complaint Center (www.ic3.gov) saw this scam frequently in 2012.

• Top emergency scam: Grandparent scam

Grandchild/niece/nephew/friend is traveling abroad and calls/texts/emails to say he or she has been mugged/arrested/hurt and needs money right away. You send money only to find out the real person is safe at home. The FBI says that thanks to social media, it's becoming easier for scammers to tell a more plausible story as they use real facts from the supposed victim's life shared on social media. Rule of thumb: Before you wire money in an emergency, check with the supposed victim or their family to make sure they are really traveling. Odds are they are safe at home.

• Top employment scam: Mystery shopping

For those who love to shop, working as a secret shopper may sound like an ideal way to supplement income. Taking advantage of its popularity, scammers offer secret shopper jobs that are nothing more than a variation on the overpayment/fake check scam. Sometimes, they even include the evaluation of the wire service company as part of the job, telling consumers to send back part of the money.

The Mystery Shopping Providers Association says it's not the practice of their members to pre-pay shoppers, but if you have your heart set on this type of job, you can find legitimate offers at www.mysteryshop.org.

• Top advance fee/prepayment scam: Nonexistent loans

Loan scams continued to fester in 2012. Most scams advertise online and promise things like “no credit check” or “easy repayment terms.” The hook: you have to make the first payment up front, buy an “insurance policy” or pay a fee to “secure” the loan.

A new aggressive twist on loan scams involves consumers being threatened with lawsuits and law enforcement action if they don't “pay back” loans they have never taken out in the first place. Some receive calls at their place of work, even to relatives. The embarrassment of being thought of as delinquent causes some victims to pay even when they don't owe the money.

• Top phishing scam: President Obama will pay your utility bills

Of all the politically related scams, the scam stating President Obama would pay consumers' utility bills seemed to be the most prevalent. At the peak of summer with utility costs soaring, consumers received emails, letters and even door-to-door solicitations about a “new government program” to pay their utility bills. Victims “registered” at an official-looking website and provided enough personal and financial information for scammers to steal their identities.

• Top sweepstakes/lottery scam: Jamaican phone lottery

In this scam, the calls come from area code 876 in Jamaica, but the person claims to represent BBB, the FBI or another trusted agency. The caller says you have won a terrific prize, which typically is $ 2 million and a Mercedes Benz. The catch? You have to pay a fee in order to collect your winnings. Consumers are encouraged to hang up and file a phone fraud report with the appropriate government agency.

• Top identity theft scam: Fake Facebook tweets

Two top social media sites were exploited in one of this year's top scams. You get a direct message from a friend on Twitter with something about a video of you on Facebook (“What RU doing in this FB vid?” is a typical tweet). In a panic, you click on the link to see what the embarrassing video could possibly be, but you get an error message that states you need to update Flash or another video player.

However, the file isn't a new version of Flash; it's a virus or malware that can steal confidential information from your computer or smartphone. Twitter recommends reporting such spam, resetting your password and revoking connections to third-party applications.

• Top home improvement scam: Sandy “storm chasers”

BBB spends a lot of time investigating and reporting home improvement scams, but this year saw an unusual amount of “storm chaser” activity following Superstorm Sandy. Some legitimate contractors came from other areas to supplement the volume of work available, while others were unlicensed, uninsured and ill-prepared for the work; some even out-and-out scam artists who took money and never did any work. In an emergency, it's tempting to skip reference checking, but that's when it might be needed the most. Next time you need home repairs, find a contractor at www.searchbbb.org.

• Top sales/rental scam: Real stars, fake goods

Sports memorabilia and phony tickets always make the list of top counterfeit goods. From the Super Bowl to the World Series, counterfeiters manage to keep their hands in your pockets all year long. With the London Olympics added to the mix, it appears 2012 was a good year for sports fakes. Some scammers sold cheap knock-offs in front of stadiums; others set up websites and stole money never having any goods to begin with. Counterfeit goods are not only a rip-off because the merchandise is usually shoddy, but are also a rip-off for the teams, athletes, designers and artists who create, license and sell the real items. Buy directly from team stores, websites and legitimate retailers. Remember, if a deal sounds too good to be true, it probably is.

• Scam of the year: Newtown charity scams

Within hours of the horrific shooting at Sandy Hook Elementary School in Newtown, Con., social media pages dedicated to the victims began cropping up, and some of them were scams asking for money. The FBI arrested one woman for posing as the aunt of one of the children killed, and state and federal agencies are investigating other possible fraudulent and misleading solicitations.

Better Business Bureau has a Yuma office at 350 W. 16th St., Suite 205. Yuma County Director Janet Torricellas can be reached at 919-7940 or jtorricellas@arizonabbb.org.