As the Better Business Bureau in Southeast Texas reflects on this past year, the scams listed below stand out as the most prevalent. “On a positive note, every day savvy Southeast Texas consumers call the BBB providing details about the latest scam they did not fall for”, states BBB Dispute Resolution Director, Jay Sheppard. “Those calls are encouraging and let us know that we are making progress in getting the right information to Southeast Texans enabling them to be armed and proactive against marketplace fraud.”
The #1 scam reported to the Better Business Bureau in Southeast Texas for 2013, once again, targeted vulnerable Seniors who were deceived by someone presenting themselves as trustworthy. The victims were led to believe that love was just around the corner. Unfortunately, this could not have been further from the truth….
1. Matchmaker Matchmaker Dating Scam: Callers seeking relationships were screened and Senior Citizens with high credit limits were selected and targeted. After a friendly phone consultation, the callers were invited to the business for an appointment. Upon arriving they were asked to fill out personality tests and provide their financial information. Once they were physically and mentally exhausted from several hours of paperwork, presentations, and high presure sales tactics, they signed long-term contracts for as much as $9,000.00. Upon leaving the business, they quickly realized their mistake. However, when they disputed the charges with their credit card company, the business simply provided the signed contract. When the BBB received complaints, a pattern was detected. This led to an investigation and government action from the Texas Attorney General resulting in the business closing its doors and owing refunds to the clients.
2. Illegal Foreign Lotteries/Sweepstakes: Year after year consumers, especially the elderly population, report sweepstakes and lottery scams. They happen via phone, mail and email. The targets are told they’ve won a large amount of money but they have to pay a certain amount to claim it. The BBB warns; if you have to send money to get money, it is a scam.
3. Fake Debt Collectors: Despite never being late on a loan or credit card payment, consumers receive calls from debt collectors using a fictitious name implying that they are with a law firm. They threaten that if the debt is not paid immediately, serious consequences will occur, such as being sued, arrested at work, garnishment of wages, or being forced to appear in court. They call consumers at both home and work alarming them with information they managed to acquire about them and their families.
4. Medicare Card Scam: Seniors report to the BBB that they have received suspicious phone calls claiming to be from Medicare. They were told they needed to provide their banking information in order to replace expiring Medicare cards.
5. Grant Scam: Consumers receive a phone call or voicemail informing that they are the lucky recipients of a government grant. The calls generally come from a number with a (202) area code, suggesting that they originate in Washington D.C. On the other end, the caller claims to be from a legitimate sounding source, such as the “Federal Grant Association” (a non-existent organization) seeking their checking account information so that the money can be wired directly into the consumer’s account. This can lead directly to identity theft.
6. Work At Home Schemes: This scam preys on unsuspecting job hunters. Businesses post so-called job opportunities only to defraud individuals soon after they provide their personal or financial information. Bogus companies advertise help wanted ads on Monster.com, CareerBuilders.com, Yahoo HotJobs or find perspective employee resumes for positions like “payment processing agent,” “ecommerce web site developer,” “programmer,” “freelance product designer,” or “database / developer.” Often the listings represent a false location and because the so-called companies are not legitimate, their web sites can be here today, and gone tomorrow.
7. Stolen Real Estate listings: This scam starts with a potential buyer visiting a popular site such as Zillow. Once the supposed property owner (who is actually a scammer) is reached, they establish communication with the client and collect their money. These unscrupulous practices are also plaguing rental homes and properties. Renting has grown increasingly popular after the recent instability in the home buying market and criminals are feeding on the popularity of that trend. Rental scams involving criminals manipulating real estate ads using the information to offer rental bargains galore and then pressure interested renters in forking over money upfront in order to "secure" the property. Meanwhile, the actual property owner or real estate agent is completely unaware that their listing has been hijacked.
8. Security System Scam: This scam involves a time-limited offer claiming that you must act now. For example, they may try to get you to sign a contract by telling you that the equipment is "free." More than likely, strings are attached. For example, to get your "free" alarm, you may have to sign a long-term expensive contract. They may use scare tactics. For example, they may talk about a rash of supposed burglaries in your neighborhood. Some door-to-door sales agents target homeowners who have signs on their properties for security systems with other companies. In these cases the sales agents may state or imply that they are from your existing security company and that they're there to "upgrade" or "replace" your current security system. Once inside your home, however, they may install a new security system and have you sign papers that include a costly contract for the monitoring service. They may also claim your security company has gone out of business, that they've taken over the accounts, and that you have to buy new equipment and sign new contracts.
9. Apartment and Home Rental Issues: This past year the BBB saw an increase in apartment and home rental complaints. Consumers complained of poor living conditions often stating that the landlord or property management company promised the rental property would be improved upon their move-in. The tenant waited and waited only to find that nothing was being done. Other complaints involved delayed and inadequate repairs with tenants providing pictures of deplorable conditions.
10. Traveling Asphalt Contractors: This scam involves a contractor that sells asphalt door-to-door claiming they have left over materials from another job. They push consumers to make a quick decision stating that they are receiving a tremendous discount. The contractor may arrive in an unmarked truck typically only accepting cash. By the time the asphalt starts cracking and deteriorating, the contractor is long gone, leaving the consumer with a business card listing a fake company name and phone number.
2014 is sure to bring new opportunities for consumers, businesses and scam artists. Wisely researching companies and charities at bbb.org before giving out personal information and hard earned money will prevent scams like these from occurring. For more information on the latest scams and industry tips all throughout the year, please visit www.bbb.org/scam-stopper.
