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Consumer Tips
Listerine children's plaque rinse recalled
4 million bottles of Agent Cool Blue contaminated, Johnson & Johnson says
WASHINGTON - Johnson & Johnson recalled a recently launched Listerine plaque-detecting rinse marketed primarily for use
by children after testing revealed contamination by microorganisms.
The company's McNeil-PPC Inc. unit recalled all 4 million bottles of Glacier Mint and Bubble Blast flavors of Listerine
Agent Cool Blue plaque-detecting rinse, a spokeswoman said Wednesday. The recall covers all lots sold or distributed
since the product's launch last year.
The recall does not include any other Listerine products, including traditional versions that contain alcohol,
spokeswoman Meghan Marschall said. Agent Cool Blue is alcohol-free.
The company said product testing showed contamination by microorganisms despite the use of preservatives. There have
been no reports of consumer health problems associated with the contamination, it said. It added the risk of illness is
low, except for individuals with weakened or suppressed immune systems.
Consumers should stop using and properly discard the product. The company is offering full refunds. For more
information, call 888-222-0249 or visit the Web site.
The rinse tints plaque blue, highlighting it to encourage better brushing habits, Marschall said.
KNDO/KNDU BBB TIPS
Compiled by Zan Deery, Communications/Investigations
Better Business Bureau Serving Eastern WA, North ID and MT
Edited by the Kittitas County Prosecutor
July 6, 2009
Consumer Recovery Associates with Drop Box in VA
Using Montana# 406-558-4621 to Make Bullying Collection Calls
Consumer Recovery Associates aka CRA
PO Box 2916
Virginia Beach, VA 23450
USING: 406-558-4621
864-561-3177
Since our BBB services the state of Montana, last week BBB received a call from
a FL woman reporting that she has been receiving harassing collection calls for
her niece’s debt that she has nothing to do with. The calls are using a 406#,
which is the area code for Montana. She reported that the collection agency
won’t reveal who they are, are rude, bullying and won’t stop calling even when
asked.
These activities are in violation of the Fair Debt Collection Practices Act
which is regulated by the Federal Trade Commission.
The Fair Debt Collection Practices Act requires that debt collectors treat
those who have failed to repay their creditors in a fair manner. It prohibits
abusive debt collection practices. The following debt collection practices are
among those that are prohibited.
Debt Collectors may NOT:
- Harass, oppress, abuse, or use threats of harm toward you or any third
parties they contact;
- Publish a list of consumers who refuse to pay their debts;
- Use obscene language or repeatedly use the telephone to annoy someone;
- Take or threaten to take your property unless this can be done legally.
They are also restricted in the statements they can make to debtors. They may
NOT tell you that:
- You will be arrested if you do not pay your debt;
- They will seize, garnish, attach or sell your property or wages, unless
the collection agency or creditor intends to do so and it is legal to do so;
- They will take actions, such as a lawsuit against you, when such action
legally may not be taken, or when they do not intend to do so.
Finally, debt collectors may NOT:
- Give false credit information about you to anyone;
- Send you anything that looks like an official document from a court or
government agency when it is not;
- Use a false name.
A debt collector IS permitted to contact you in person, by mail, phone,
telegram or fax. However, he or she may not contact you at inconvenient times or
places (such as before 8 am or after 9 pm) unless you agree. They may not
contact your place of work if the collector knows that your employer disapproves
of such contacts. You should inform the collector accordingly, in writing, to
cease such actions. Keep in mind that this does not resolve the debt.
BBB ADVICE
If you wish to report a collector for violating any aspect of the Act, please do
so at: www.ftc.gov If you have an unresolved issue regarding a debt collector,
you can file a complaint with BBB. You can also file a dual complaint with the
attorney general’s office where the collector is located for resolve.
TAKING SURVEYS FOR $$
Know that the Surveyor is Legitimate before Taking!
Does this “take a survey” scenario ring a bell to you?
A Missoula, MT woman called stating that she received a letter from a random
“Health and Human Resources” addressed to “Resident” with regards to
participating in a survey. She contacted her local office of Health and Human
Resources and they knew nothing about this random survey. The postcard had a
name with a 800# to call. The letter stated that they have been contracted to
conduct a survey in your area and that a rep would be in her area soon. The
mailing stated that they can come to her home so she can take it, and if she
completes the survey she will receive $30 cash. The mailing gives an OPT-OUT
option where she can decline to take the survey if she so desired.
BBB ADVICE
There are a number of ways people are approached to take surveys: 1) randomly by
phone, 2) door-to-door, 3) approached in a mall or shopping center, 4) online.
Any way you look at it, taking a survey takes time. Also, some surveys require
you to provide personal information about yourself and your lifestyle and the
habits surrounding that lifestyle. That said, BBB advises people to KNOW that
the survey you are taking is legitimate because the safety of your personal info
could be in the hands of people you know nothing about. If you don’t know the
person conducting the survey and who or what they represent, think twice about
participating. If you are going to take a survey online, check out the company
first before proceeding. Read all terms and conditions regarding the company and
its offer before taking the survey.
If you have to pay to take a survey, consider it a red flag. There is no need
for them to ask for financial info. Consider it a red flag if you have to
provide sensitive information such as social security # and/or bank account #s
or credit card #s. Most surveys are going to ask questions about your lifestyle
and habits rather than ask you for sensitive information.
If you have taken a survey and suddenly are being billed for your
participation or have been signed up without your knowledge to be part of a
membership of some kind as a result of having taken the survey, dispute ASAP
first with company. If you get nowhere, file with BBB.
LATEST “YOU CAN’T FOOL ME” PHONE SCAM
BBB wanted to share its latest phone scam scenario attempting to obtain
personal info:
A consumer reported to BBB that they received a phone call from a “Federal
Claims Bureau” telling her she had won a fortune. She was also given the
following phone number 202-821-4749 to call to verify them with the Better
Business Bureau.
BBB called the number and they answered “Better Business Bureau.” BBB identified
itself to the scammer and the person hung up on her. BBB called back one more
time and a man answered, “Hello.”
LATEST ADVANCE FEE LOAN SCAM USES
WEB SITE WWW.DEBTPLUS.ORG FALSELY DISPLAYS BBB LOGO
A regional consumer contacted BBB to report that they received a call from
the above mentioned scam. The person calling convinced the woman to wire an
upfront fee of $750 to a Canadian location for a loan.
The woman reported that the scammers called themselves Debt Plus with a website
of www.debtplus.org The scam web site has the BBB logo displayed on it.
BBB ADVICE ON ADVANCE FEE LOAN PITCHES
If any materials presented refer to BBB in any way, FIRST AND FOREMOST, check
them out ASAP with BBB before going any further. Do not confirm or verify or
give out any personal or sensitive info prior to research. Don’t agree or give
any monies until you know exactly who you are dealing with. If you fall for this
type of scam, you will most likely not see your money back.
The Better Business Bureau offers these tips for spotting an advance fee loan
scam:
Pressure to act immediately. Advance fee loan scammers will try to get you to
send or wire money (especially out of country) or give out personal information
before you get any paperwork. Insist on receiving the necessary paperwork before
deciding whether or not to apply for credit.
Lenders not interested in your credit history. Lenders who don’t care about your
credit record or those who say no matter how bad your credit is we can promise
you a loan. This type of disregard for your current situation should be cause
for concern.
Ads that downplay bad credit and ads promising “fast money” or “guaranteed
approval” often indicate a scam.
A loan that is offered by phone. According to the FTC, it is illegal for
companies doing business in the U.S. by phone to promise a loan or ask you to
pay for it before they deliver.
POSTCARDS SENT RANDOMLY OFFERING TO BUY YOUR HOUSE
FORECLOSURE TIPS TO KEEP IN MIND
BBB had a local resident visit BBB with a postcard that offered to buy his
house. He stated that he wanted to consult with an attorney first before going
with the offer, which was a very smart decision, but did call the 800# on the
postcard to hear the recorded pitch. He stated that the pitch seemed “too good
to be true” and was happier to have received a Roster of BBB Accredited
Attorneys with whom to consult prior to going with the offer!
BBB also suggests that you speak with your official lender and/or mortgage
company before going with ANY outside third-party. BBB and the FTC warns
homeowners to avoid foreclosure rescue businesses that:
- Guarantee to stop the foreclosure process -- no matter what your
circumstances.
- Advise you not to contact your lender, lawyer, or credit or housing
counselor.
- Collect a fee before providing any services.
- Accept payment only by cashier's check or wire transfer.
- Encourage you to lease your home so you can buy it back over time.
- Tell you to make your mortgage payments directly to their business,
rather than to your lender.
- Advise you to transfer your property deed or title.
- Offer to buy your house for cash at a fixed price that is not set by the
housing market at the time of sale.
- Offer to fill out paperwork for you.
- Pressure you to sign papers you haven't had a chance to read thoroughly
or that you don't understand.
June 25, 2008
FBI: PHISHING AND VISHING ATTACKS TARGETING USERS OF EPPICARDS
The IC3 has received reports of phishing attacks targeting users of EPPICards.
The EPPICard is similar to a debit card. EPPICards are issued by a state agency
for the purpose of receiving child-support payments. The cards are currently
used in 15 states.
Individuals have reported receiving e-mail or text messages indicating a
problem with their account. They are directed to follow the link provided in the
message to update their account or correct the problem. The link actually
directs the individuals to a fraudulent web site where their personal
information, such as account number and PIN, is compromised.
Individuals have also reported receiving an e-mail message asking them to
complete an online survey. At the end of the survey, they are asked for their
EPPICard account information to allow funds to be credited to the account in
appreciation for completing the survey. Providing this information will allow
criminals to compromise the account.
EPPICard providers indicate they are not affiliated with survey web sites and
do not solicit personal information via e-mail or text messages.
Please be cautious of unsolicited e-mails. Do not open e-mails from unknown
senders because they often contain viruses or other malicious software. Also,
avoid clicking links in e-mails received from unknown senders as this is a
popular method of directing victims to phishing websites.
If you have received an e-mail similar to this, please notify the IC3 by filing
a complaint at www.IC3.gov.
GOOD SCAM TO BE AWARE OF!
Have you received an email warning you of this? Just know about it because it
really has been reported to law enforcement!
A woman said her son found his license plate missing so he called the police
to file a report. They told him people were stealing the plates to get free gas.
Given the rise in gas prices, people have taken to stealing license plates,
putting them on their car, then getting gas and running. The gas station will
have "your" license plate # and you could be in trouble for "pump and run."
Check your car periodically to be sure you still have a plate. If you should
find it missing, file a report immediately!!! Keep an eye on your license plate!
Make sure you always know it's there! When the license plate is reported as the
"drive off vehicle", it's YOU they contact! Be aware!!!! Be aware of your
license plates, most of us never look to see if the plates are there or not.
May 19, 2008
Tip: Due to economic strains, questionable work at home opportunities
abound.
Thanks to the BBB Boise for the Tips and WWA, OR and AK for the great
Examples!
The internet is filled with thousands of ads for surefire ways to make money.
Some advertisements promise to teach participants how to make a fortune using a
guaranteed system, while others claim that participants will make money surfing
the internet or filling out online surveys. Most claim to require little
experience or startup capital, and claim to place tremendous trust in their new
employee. Those looking for work on line should expect work-at-home internet
jobs to offers part-time work, reasonable compensation, a flexible schedule and
the ability to work from home. The BBB is advising consumers to be wary of
internet offers that promise inexperienced entrepreneurs quick riches for little
work. Look out for these schemes and scams when searching for work online.
Surveys
Survey websites pay participants to fill out surveys that help a business define
the needs and desires of their customers. Legitimate sites can be hard to find
in a sea of imposters. Fake survey sites may be a sales pitch in disguise, have
complicated payment processes designed to defeat payment, or may have no
intention to fulfill the terms of compensation. The survey may be an attempt to
build a marketing profile on the user, which is later used to bombard the
participants with e-mail solicitations.
Reshipping
Many earnest entrepreneurs have been turned into criminals by scam artists who
convince their victims to reship stolen merchandise out of the country. It can
be difficult to bring foreign scam artists, operating outside the jurisdiction
of US authorities to justice. When the merchandise, paid for with a stolen
credit card number, cannot be recovered the person hired to reship is often held
responsible. Apprehended participants can face jail time and may be forced to
repay thousands of dollars for merchandise they shipped out of the country.
Mystery shopper
Legitimate mystery shopper programs ask people to use and evaluate services or
products provided by a business. What could be better than a job that asks an
employee to eat out and shop while making a great wage? Unfortunately, the work
may not be as glamorous as some promoters claim with duties such as: testing
call center services, recording store inventories, or purchasing and returning
merchandise. Seldom is the work full-time and while there is the potential to
earn a wage, scam artists use the lure of free merchandise or food to steal from
unsuspecting victims. The scam artist may be looking for personal information,
merchandise or for the victim to cash a counterfeit check and "test" a money
transferring service.
Big Money Opportunities
Successful entrepreneurs understand that experience, hard work and time play a
major role in the success or failure of a business venture. Big money
opportunities promise fledgling entrepreneurs the ability to earn fast and easy
money, requiring little experience or startup capital. Participants may be
selling the same product and competing for the same customers, while the
promoter makes millions selling the one-size-fits-all programs.
If you're searching for a work-at-home opportunity:
1. Do your homework. Take time to investigate the companies'
pitching offers. The Better Business Bureau Web site (www.bbb.org) allows you to
search for and read reliability reports on thousands of businesses, local and
national. If a phone call works better for you, dial 455-4200 or 800-356-1007
and talk to one of our skilled professionals (who are not working from home).
2. Consider it a red flag if you are required to pay any upfront fee
to apply for a job. We've never heard from a person raving about the great
experience they had making a payment with their job application.
3. Be wary of any job that requires you to open your own bank or
credit card account to process work. You are responsible and liable for
all account activity.
4. Do Internet searches and read reviews on the company. Be
sure to dig deep and look into related business names, physical locations and
customer testimonials. Check with the attorney general and secretary of state
offices in the state where the company is located to see whether it's registered
as a legitimate company or has legal troubles.
5. Avoid giving out personal information until you are
convinced the work-at-home opportunity is legitimate.
6. Consider it another red flag if you can only reach a recording
when calling the company, and you can't talk to anyone about the offer.
We've noticed a few of the work-at-home marketers change phone numbers and Web
site addresses on a regular basis.
October 24, 2007
TIP: New Rule on Predatory Lending to Military
What You Need to Know from BBB Military Line
The National Defense Authorization Act of 2007, later codified as Public Law
109-364, established broad protections for military personnel and their families
against predatory lending practices. The Department of Defense was given the
task of writing the regulation to implement this law. The regulation was
published in The Federal Register on August 31st, 2007 and took effect October
1st, 2007.
What types of credit are affected by this regulation? Although PL 109-364 was
written fairly broadly, DoD has decided to interpret it narrowly, for fear that
a broad interpretation would impede Service members' access to favorable
installment loans as well as predatory ones. So, the provisions of the law now
apply to only 3 types of consumer credit:
- Payday Loans: Closed-end credit with a term of 91 days or fewer in which
the amount financed does not exceed $2,000 and the borrower provides a
post-dated check or debit authorization to secure the loan;
- Vehicle Title Loans: Closed-end credit with a term of 181 days or fewer
that is secured by the title to a motor vehicle; and
- Tax Refund Anticipation Loans (RALs): Closed-end credit in which the
borrower gives the creditor the right to receive all or part of the
borrower's income tax refund or agrees to repay the loan with the proceeds
of the refund.
DoD officials chose payday and vehicle title loans because they feel that
they contribute to a cycle of debt, and RALs because they are "the second most
prevalent high cost loans used by Service members, and because alternatives that
can expedite their tax returns are available, generally at no cost."
What does the new regulation say? The new regulation says that lenders offering
the types of consumer credit listed above may now charge no more than 36% MAPR
(military annual percentage rate).
What is MAPR? MAPR is different than the standard APR calculation because it
includes: interest, fees, credit service charges, and credit renewal charges;
credit insurance premiums; and fees for credit-related products sold in
connection with the transaction. The intent was to avoid a scenario where the
lender offers a low APR, but then tacks on numerous extra charges for services,
insurance, and ancillary products.
Who is covered by this regulation? Covered borrowers are: Army, Navy, Marine
Corps, Air Force and Coast Guard personnel serving on active duty for a period
of 30 days or more; and their dependents (spouse, child, and other legal
dependent).
How will lenders identify covered borrowers? Lenders must provide a "covered
borrower identification statement" and have each applicant sign it. Lenders may
ask to see a military pay statement or ID card, or a copy of active-duty orders
for National Guard or Reserves. Lenders may also go to a government database to
check a borrower's status. Upon identifying a covered borrower, lenders must
disclose the MAPR of the loan, both orally and in writing.
Who will enforce this regulation? DoD says that the "consumer credit covered
in these regulations is primarily overseen by state regulatory agencies." DoD
plans to work with all 50 states' regulatory agencies on a plan for enforcement.
To read the regulation in its entirety and see how the DoD incorporated
comments and suggestions from the public, go to The Federal Register of August
31, 2007 and look under "Defense Department."
NOTES: Sign up to receive the BBB Military Line Newsletter at:
www.military.bbb.org
August 8, 2007
TIP: Red Flags for Locksmiths: Unlocking the Problem
ALOA (Associated Locksmiths of America) and the BBB have a checklist for potential customers to use regarding hiring
a locksmith, some of which are legal by themselves, but, if used together, may indicate a highly questionable locksmith
agency:
- They're unfamiliar with your area.
- They answer their phone with a generic phrase like "Locksmith Service," instead of a company name.
- They use an unclear business name or some phrase like "under same ownership" in their ad.
- They use an unmarked service vehicle.
- They don't have identification or don't ask you for proof of your authority for them to unlock something.
- They won't give an estimate before doing the work.
- They won't promise in writing an itemized invoice.
- They don't have a valid state - AL,CA, IL, LA, NJ, NC, OK, TN and TX, county, town or city license number where
required.
- If their ad has a logo, like ALOA's or the BBB's, check with the appropriate agency directly before agreeing to
the service.
If you know that you are a person who may have a habit of "locking themselves out" of things, cars, houses, etc. do
homework ahead of time and have the name and number for a reliable locksmith handy on you in case this ever happens.
Better yet, do this anyway. You never know when you will be in a pinch and will need a reliable locksmith!
TIP: Beware of Scams when Checking Credit Report
If you have been watching television lately you know of the commercials informing consumers of a Web site touting
"free" credit reports. Can it be true?
When the BBB was recently on the Mark Fuhrman Show, this topic came up and was a highlight of the show.
The BBB warns consumers to be careful when responding to such offers. Some of these online operators and Web sites do
not actually provide credit reports, but may be using their sites as a way to capture a consumer's personal information,
charge you for information that is free or in some cases sign you up for identity theft protection. In some instances
once your information has been obtained, they may sell your information to others who may use it to commit fraud,
including identity thief.
The BBB, along with the Federal Trade Commission, urge consumers to take the following precautions when visiting
sites or responding to e-mails that offer credit reports:
- Don't believe everything you see or read; advertisements can contain false information.
- If you receive e-mail offering a credit report, do not reply or click on the link in the e-mail. Instead,
contact the company cited in the e-mail using a telephone number or Web site address you know to be genuine.
- Be skeptical of unsolicited e-mail offering credit reports. Be cautious of e-mail from an atypical address, like
ABC123@website.net, or an e-mail address ending in a top level domain other than .com, like .ru or .de.
- Exit quickly from a Web site that asks for unnecessary personal information, like a Personal Identification
Number (PIN) for your bank account, the three-digit code on the back of your credit card, or your passport number
and issuing country. Legitimate sites do not ask for this information.
- Use only secure Web sites. Look for the "lock" icon on the browser's status bar, and phrase "https" in the URL
address on a Web site, to be sure your information is secure during transmission.
- Watch your credit card statements. If you have responded to a bogus site, you may never receive the credit
report they offered for free. Contact your credit card issuer immediately in this case.
- There is only one official Web site for your free credit report. The law allows you to order one free copy from
each of the nationwide consumer reporting companies every 12 months. You need to provide personal information on
this site like your name, address, Social Security number, and date of birth. If you have moved in the last two
years, you may have to provide your previous address. To maintain the security of your file, each nationwide
consumer reporting company may ask you for some information that only you would know, like the amount of your
monthly mortgage payment. Each company may ask you for different information because the information each has in
your file may come from different sources.
- Remember the only official site is www.annualcreditreport.com and is the only authorized source for your free
annual credit report.
- www.annualcreditreport.com and the nationwide consumer reporting companies will not send you an email asking for
your personal information. If you get an email or see a pop-up ad claiming it's from www.annualcreditreport.com or
any of the three nationwide consumer reporting companies, do not reply or click on any link in the message - it's
probably a scam. Check your report to help guard against identity theft; that's when someone uses your personal
information - like your name, your Social Security number, or your credit card number - to commit fraud. Identity
thieves may use your information to open a new credit card account in your name. Then, when they don't pay the
bills, the delinquent account is reported on your credit report. Inaccurate information like that could affect your
ability to get credit, insurance, or even a job. The three nationwide consumer reporting companies have set up one
central website, toll-free telephone number, and mailing address through which you can order your free annual
report. To order, view www.annualcreditreport.com, call 877-322-8228, or complete the Annual Credit Report Request
Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. The form is on
the back of this brochure; or you can print it from www.ftc.gov/credit. Do not contact the three nationwide
consumer-reporting companies individually. They are only providing free annual credit reports through
www.annualcreditreport.com, 877-322-8228, and Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA
30348-5281.
TIP: www.SCAMBUSTERS.ORG Warns: Signs of Ecard Deception
Ecard scams are circulating. KNOW these warning signs and be aware---Pass this info onto anyone you want!
From Scambusters.org: One sign that an ecard may be fake is often contained in the "FROM" line. The email will say
you've received a card from a GENERIC friend, neighbor, classmate, secret admirer, etc.
Since most people who send REAL ecards insert their names in the "From" line, be VERY suspicious when an ecard
arrives "From: A Relative."
Other signs of deception include:
- Spelling mistakes -- e.g., congratulation! (Or your name is misspelled.)
- Errors in the message -- e.g., it says YOU sent the card you've just received.
- The sender isn't someone you know.
Staying Safe
- If in doubt, don't open an ecard.
- Delete any ecard from someone you don't know.
- Never click on anything from an unknown source, never open an attachment from an unknown source, and never
download from an unknown source.
- Never click to accept terms from any company without reading the fine print. Beware of those EULAs!
- Use antivirus software and keep it up to date.
- Use Mozilla Firefox. Many ecard scams use loopholes in Internet Explorer, so Firefox is far more secure against
this type of scam. But since Firefox is not 100% secure either, make sure you keep FireFox updated.
- We recommend against opening any ecard with an attachment. You never know what's really in that attachment until
it's too late. Remember: even opening attachments that appear to come from friends or coworkers puts you at risk.
- Be skeptical and alert. If something seems fishy, be cautious. A Trojan can make a phony ecard look like it's
coming from a friend or family member, so be vigilant.
By the way, Mac users are generally safe from these attacks.
For more information on ecards, visit www.Scambuster.org's article "Are Ecards Safe?." This article also contains
helpful links to information about anti-virus software, spyware removal and email safety tips. By following these tips,
you can stay safe from ecard scams.
July 23, 2007
TIP: Check out Credibility of Online Programs BEFORE Enrolling
Many fraudulent diploma mills are capitalizing on the growth in popularity of distance learning opportunities and are
using the freedom of the Internet to lure students into their "programs."
Diploma mills or accrediting mills are organizations and agencies that are actually functioning, but not legitimate.
They often operate with high-pressure telemarketers and are known to advertise heavily in magazines, on the Internet in
newsgroups and at impressive-looking Web sites
To determine whether an online university is reputable, follow these tips:
- Make sure the school is not only accredited, but accredited and recognized by the U.S. Department of Education.
Don't just go by what they TELL you—check it out and confirm. Diploma mills are skilled at
"telling" you that they
are accredited, yet when you go to confirm this info, you will find that they are not at all accredited.
- The DOE's Web site has a list of all accredited online universities. Prospective students can check if a school
is accredited at www.ope.ed.gov/accreditation
- Any universities that place a heavy emphasis on offering college credits for lifetime or real-world experience
should raise red flags.
- Other warning signs that an online university may be fake include addresses that are box numbers or suites or
universities that do not have contact information, tuition paid on a per-degree basis, discounts for enrolling in
multiple degree programs, and school names that are similar to well-known reputable universities.
- Contact the BBB or the state attorney general's office if you have a run with a diploma mill and file a formal
complaint.
TIP How to Raise Money Savvy Teens
The BBB has advice on how to help teenagers toward financial independence.
The first step to get your teens on their way to financial independence is to set up savings and checking accounts.
This will teach them how to manage spending and better understand the importance of saving money. After teens have
proved they can budget, control spending, pay debts and save, they're ready to graduate to the world of "plastic money."
Debit cards have proved to be enormously popular with students and younger workers who make up what marketers are
referring to as "Generation Plastic." In 2006, credit/debit card companies reported hundreds of billions of dollars
spent via debit card transactions, and many also reported double-digit increases in demand for debit cards among teens.
A debit card is a good way to teach your teen the value of monitoring an account balance and spending habits.
Unfortunately, having a debit card means teens could run the risk of overdrawing the account. The most recent study from
the Center for Responsible Lending notes that debit and ATM cards accounted for nearly half of the more than $10 billion
in overdraft loan fees levied against consumers in 2005.
If the card is ever stolen, teenagers might have a difficult time getting the money back, because debit cards do not
generally carry the same liability protections as credit cards.
Debit card liability varies. As with credit cards, in some cases loss might be limited to $50 if the card owner
notifies the issuing institution within two business days of loss or theft, but notification after the initial 48-hour
window can leave teenagers liable for as much as $500 for illicit use.
An alternative option to a debit card for teens is a prepaid card, which operates much like a store gift card but can
be used anywhere credit cards are taken. The best part about the prepaid card is that parents can manage the amount of
money available to the teen and don't have to worry about an overdrawn bank account. The drawbacks to prepaid cards are
the amount of fees that get tacked on, so parents and teens will want to read the fine print.
There are many options available when teens are ready for a real credit card. Parents can set up a secured card that
sets the credit limit based on the amount of money in the teen's savings or checking account. Parents can also set up a
joint credit card with both you and your teen liable for any debt.
Or, they can simply set their teen up as an authorized user on their credit card. All options will help educate
teens, with the last option allowing the teen to piggyback and benefit from parents' credit history.
Regardless of which option you choose, the BBB offers tips to help you guide your teen with their new debit, prepaid
or credit card:
- Set the ground rules, including what the teen can and can't purchase with the card.
- Make sure they always pay off the card balance in full and on time. If you're allowing your teen to piggyback as
an authorized user on your card, you should still insist on prompt repayment to you.
- Explain the concept of interest rates, the importance of a good credit score and the long-term consequences of
failing to pay their bills.
- Reconcile and discuss your teen's credit card statement and spending habits every month.
- Be firm that any debt is theirs to pay off. It is better for them to learn from their mistakes early while
you're there to guide them.
TIP Report from the FBI's Internet Crime Complaint Center (WWW.IC3.GOV): Greeting
Card Scam
The FBI continues to receive reports of Internet fraud related to electronic greeting cards containing malware
(malicious software). The cards, which are also referred to as e-cards or postcards, are being sent via spam. Like many
other Internet fraud schemes, the perpetrators use social engineering tactics to entice the victim, claiming the card is
from a family member or friend. Although there have been variations in the spam message and attached malware, generally
the spam directs the recipient to click the link provided in the email to view their e-card. Upon clicking the link, the
recipient is unknowingly taken to a malicious web page.
Please be cautious of unsolicited e-mails. It is recommended not to open e-mails from unknown senders because they
often contain viruses or other malicious software.
WARNING! If you have received an e-mail similar to this, please file a complaint at www.ic3.gov.
September 5, 2006
TIP: Identity Theft Coverage; Do You Really Need It?
Increasingly, companies are offering insurance that reimburses victims for
the costs of cleaning up after an identity thief. Coverage, usually part of
homeowner or renter policies, includes $15,000 to $25,000 for expenses ranging
from attorney fees and lost wages to postage, phone charges and notarizing
documents.
Bottom line? The out-of-pocket expenses can vary, and how extensive the
problem can become varies. If you want the additional security of that
insurance, go for it.
Consumers first need to focus instead on self-protection such as having a
list of all your credit cards and other financial accounts and contact
information so that if you are a victim, you can quickly make the right calls.
More than two-thirds of victims have no out-of-pocket costs, based on a
January report by Javelin Strategy & Research for the Council of Better Business
Bureaus. For those who incurred costs, the average was $422, according to the
report by the California financial-services research firm.
Make sure, for example, that you're not buying something you can get free,
such as credit reports. If you decide in favor of purchasing insurance against
identity theft, the BBB suggests the following:
- Check first with your insurance agent or your homeowners' insurance
company to find out if they offer identity theft insurance. Ask what they
would recommend for your situation.
- Be cautious before investing money in a new product being offered by an
unknown company. Make sure you are dealing with a reputable organization.
Contact the BBB for a reliability report or visit www.bbb.org.
- Ask about the deductible; coverage limits (some policies place a dollar
limit on retaining legal assistance or on the amount of lost wages that will
be covered); and, any restrictions on how the money for expenses is to be
spent.
- Have a clear understanding of the services and assistance you would
receive in the event of an identity theft when comparing product costs. For
instance, some third party insurers reimburse out-of-pocket costs, as well
as offer investigators to help victims wend their way through the process of
working with creditors, law enforcement, credit bureaus and the like.
AUGUST 21, 2006
TIP: Prevent Your Business from Becoming a Victim of Identity Theft
Consumers are not the only ones who need to beware of identity theft,
businesses are also at risk, according to the Better Business Bureau. The theft
may come in the form of forged checks, your business name being used for
fraudulent purposes or invoices for goods or services you did not order or never
received.
Some suggestions for protecting your business identity include:
- Never respond to unsolicited e-mails with bank account information,
social security numbers, passwords or other personal information.
- Contact actual businesses or government agencies requesting financial
information directly at Web sites or phone numbers you know to be
legitimate.
- Use anti-virus and security software and firewalls to protect vital
computer systems.
- Check monthly bank statements to verify transactions; call your
financial institution immediately if errors are found.
- Scrutinize all invoices before payment to ensure billings are accurate.
- Guard check stock like cash.
- Do background checks prior to hiring prospective employees, especially
if they will have access to sensitive company information.
- Clean hard drives on computers before selling them by using software
specifically designed to remove all data.
AUGUST 14, 2006
TIP: Education and Awareness about Vishing
from the WA State AG's Office and TheLocalBBB
Just this week, we received this email from a concerned consumer:
"You have recently placed an article on this type of scam via the cell phone
using VoIP services. Please be advised that this can also be done via email and
that I was recently the victim of such a scam. The perpetrators attempted to
withdraw over $11,000 from all my checking accounts and bill several thousands
of dollars to my credit card accounts as well. I have been in touch with the
Secret Service as well as the FCC. All we can do is to continue to educate the
public and HOPE that they do not fall for these scams."
And ironically, just this morning, the Washington State AG's Office released
the following warning about VISHING:
Today's high-tech cons have become efficient at using the Internet to trick
unsuspecting consumers into divulging personal information that can be used to
steal your money or your identity. "Vishing" (abbreviated from voice-mail phishing) uses Internet-based phone systems to convince people to share credit
card numbers and is the latest identity theft ploy.
Scammers use Voice over Internet Protocol (VoIP), a technology that allows
people to make calls using an Internet connection instead of a regular phone
line. The con's automated phone message or e-mail lures victims into dialing a
fake 1-800 number. A recorded voice then prompts them to confirm an account
number, such as a credit card number, using the phone's touch pad.
Vishing evolved from "phishing," in which identity thieves send e-mails that
appear to come from businesses you may have accounts with, such as a bank,
online auction site or Internet service provider. The messages usually say that
you need to validate your account information and contain links to look-alike
Web sites. The sites then instruct consumers to "re-enter" their credit card
numbers, Social Security numbers, bank PINs, or other personal information.
Similar messages can be used in vishing fraud, except that consumers are told
to call a number instead of click on a Web site.
Other times, victims receive a phone call that appears to come from a
legitimate financial institution. Cons use computer technology to dial random
phone numbers, then play a recorded message to anyone who answers. The message
warns that a person's credit card has been used fraudulently and the card holder
to enter their account number, as well as the security code found on the back of
the card.
To make the call seem more legitimate, cons use technology that makes it
appear that they are calling from a local financial institution.
Here's how not to be taken by vishing:
- Never respond to a cold call requesting personal information. Likewise,
don't reply to e-mails that ask for personal information and don't click on
links in e-mails or pop-ups. Creditors, government agencies and companies
you do business already have your personal information and will not contact
you to verify it.
- If you receive a message indicating that your account has been
compromised, do not simply call the number you're provided. Instead, contact
your financial institution directly using the phone number on your credit
card and ask to speak to someone in the fraud department.
- Don't trust caller ID. Spoofing caller ID is easy with Internet-based
technology that allows people to appear they are calling from any number
they choose.
Consumers may be less skeptical of a phone call than an e-mail. Help protect
your friends and family by educating them about vishing and other forms of
fraud.
TIP: Beware of Emails that Claim Matches for your Job Resume Especially if
You Don't Have One Posted
TheLocalBBB receives calls concerning the topic of jobs online and certain
companies that advertise in the Classifieds to "Post your resume here…" Scambusters.org and TheLocalBBB once again remind you to be wary of SPAM emails
that take on the following tone:
We have successfully matched your resume to several opportunities
available in
your area. To ensure we have your correct contact information on file and ensure
that you are still interested in keeping your resume active. Please visit the
link below .
So we can continue to maintain our free resume service, we require our
members to visit our sponsors websites before we send out available job offers.
Once visited, we will send you the fresh job listings that meet your personal
resume profile.
http://yrsresumeservice.net/cgi-bin/maillist/r.cgi?u=...
We look forward to helping you find that perfect Job
Support Staff
The Resume Support Team
If you receive an email message from a company you've never heard of that
says it has matched a couple of possible jobs to your resume, and yet, you never
went to their site, never uploaded a resume, and have no idea how they got all
the information to begin with, don't believe them, but don't panic, either!
This is actually a type of spaham (misspelled intentionally). Dave Taylor, of
www.askdavetaylor.com says:
"This kind of thing is spam. No more, no less. The company doesn't have a
copy of your resume, it just has an interesting angle on sending junk and hoping
that we'll respond by clicking on the link and being infected by spyware, adware,
or otherwise brought somewhere other than where we'd expect."
TIP: "Out of the Blue and Bogus" Medicare Calls Still Circulating: Make
Elders Aware of this Scam
Scam artists continue to target senior citizens with phone calls claiming
they are calling from Medicare.
These and similar twisted scams using the "Medicare" name have been
increasing in recent months nationwide, and the BBB says, "Don't fall for such
calls!"
NOTES:
*It is against Medicare's rules to call a person with Medicare and ask for
bank account or other personal information, or cash payments, over the
telephone.
*No beneficiary should ever provide that kind of information to someone who
just calls them. Such calls must be placed by the beneficiaries themselves or
handled by a follow-up letter to which the beneficiary may choose to reply.
*If someone calls asking for personal information, or the call doesn't seem
right for some other reason, a beneficiary should hang up the phone and contact
Medicare or his or her local law enforcement or consumer protection agency.
Other cons are calling to say that Medicare will be issuing new cards, so
they ask personal information like Social Security numbers. They also ask for
$79 to $399 for the new cards. Medicare and Social Security replacement cards
are free.
TIPS for Medicare recipients:
- No one can come into your house uninvited.
- No one can ask you for personal information during their marketing
activities.
- Always keep all personal information, such as your Medicare number,
safe, just as you would your credit card or bank account number.
- Whenever you have a question or concern about any activity regarding
Medicare, call them directly.
- Legitimate Medicare drug plans will not ask for payment over the
telephone or the Internet. They must send a bill to the beneficiary for the
monthly premium.
- Beneficiaries can pay automatically with a monthly withdrawal from their
Social Security check. Beneficiaries may also pay by monthly check or set up
an automatic withdrawal from a bank account, but they must call their plan
or respond to a mailed payment request from the plan to do this.
- If you have any questions, call Medicare at 877-772-3379.
TIP: BBB SECURITY TIPS TO PROTECT LAPTOPS, PDAS AND CELL PHONES
More and more businesses are providing employees with laptops, personal
digital assistants (PDAs) and cell phones for speed, convenience and mobility of
communication. The benefits can be enormous, particularly for business
travelers. So can the security risks, if proper precautions are not taken.
Before handing out these high-tech communication tools, the Better Business
Bureau advises business to instruct employees how to protect the security of
data that is being transmitted or stored. The following guidelines may prove
helpful:
- Always keep your laptop, PDA or cell phone within sight, even when at
the office. Lock your business cell phone and PDA in a secure location when
not in use.
- Keep your portable device within eyesight and easy reach when traveling.
Stealing laptops at airports and from trains and restaurants has become a
popular data theft technique.
- If at all possible, do not store any sensitive customer or employee data
(such as bank account numbers, ATM codes, Social Security numbers and
credit/debit card info) on these portable devices.
- If any employee (a salesperson or telecommuter, for instance) needs to
take customer data, employee date or other sensitive information off
business premises on a laptop, CD, flash drive or other portable device,
insist and make certain that the data is encrypted.
- Password-protect access to the laptop, DA and cell phone. Also make use
of passwords to protect Internet access, e-mail, voicemail and address
books.
- Turn off the devices when not in use.
- Do not download or accept file downloads from unknown sources.
- Do not share portable communication/organization tools with others.
- Back up all data regularly and keep back-up disks and other back-up
materials in a locked, secure area.
A final word of caution from the BBB: Do not assume that laptops are the only
devices that can be hacked into. Criminals can hack into cell phones and steal
stored files, contacts and voice mails. Viruses can also significantly disrupt
cell phones. Cell phone owners should check with their providers regularly for
updates on security features to make certain they have configured their settings
for maximum security.
These and other guidelines to help businesses protect customer data are
included in a toolkit, Security and Privacy – Made Simpler™, developed by the
BBB and available for free download at www.bbb.org.
July 24, 2006
TIP:
Electronic Federal Tax Payment System
Cited by IRS in New E-mail Scam
Be aware! While it may not be full-fledged tax season for most, there are still
some hi-tech Internet scams still surfacing that are claiming victims. The most
recent email scam to hit our INBOX once again uses the IRS to purport it.
Please read this warning and be aware that this email scam is circulating:
On July 19, 2006, the Internal Revenue Service warned taxpayers to be on the
lookout for a new e-mail scam that uses the Treasury Department's Electronic
Federal Tax Payment System (EFTPS) as a hook to lure individuals into disclosing
their personal information.
The system, which is used by more than six million taxpayers, allows businesses
and individuals to pay all their federal taxes online or by phone.
The new e-mail scam, fraught with grammatical errors and typos, looks like a
page from IRS.gov and claims to be from the "IRS Antifraud Comission" (sic), a
fictitious group.
The e-mail claims someone has enrolled the taxpayer's credit card in EFTPS and
has tried to pay taxes with it. The e-mail also says there have been fraud
attempts involving the taxpayer's bank account. The e-mail claims money was lost
and "remaining founds" (sic) are blocked. Recipients are asked to click on a
link that will help them recover their funds, but the subsequent site asks for
personal information that the thieves could use to steal the taxpayer's
identity.
The IRS does not send out unsolicited e-mails asking for personal information.
Additionally, the IRS never asks people for the PIN numbers, passwords or
similar secret access information for their credit card, bank or other financial
accounts.
This latest e-mail scam is the first one known to reference EFTPS.
The IRS has seen a recent increase in these scams. Since November, 104 different
scams have been identified, with 22 of those coming in June, the most since 40
were identified in March during the height of the filing season.
Many of these schemes originate outside the United States. To date,
investigations by the Treasury Inspector General for Tax Administration have
identified sites hosting more than two dozen IRS-related phishing scams. These
scam Web sites have been located in many different countries, including
Argentina, Aruba, Australia, Austria, Canada, Chile, China, England, Germany,
Indonesia, Italy, Japan, Korea, Malaysia, Mexico, Poland, Singapore and
Slovakia, as well as the United States.
Other scams claim to come from the IRS, tell recipients that they are due a
federal tax refund, and direct them to a Web site that appears to be a genuine
IRS site. The bogus sites contain forms or interactive Web pages similar to IRS
forms or Web pages but which have been modified to request detailed personal and
financial information from the e-mail recipients.
Tricking consumers into disclosing their personal and financial information,
such as secret access data or credit card or bank account numbers, is fraudulent
activity which can result in identity theft. Such schemes perpetrated through
the Internet are called "phishing" for information.
The information fraudulently obtained is then used to steal the taxpayer's
identity and financial assets. Typically, identity thieves use someone's
personal data to empty the victim's financial accounts, run up charges on the
victim's existing credit cards, apply for new loans, credit cards, services or
benefits in the victim's name and even file fraudulent tax returns.
When the IRS learns of new schemes involving use of the IRS name or logo, it
issues consumer alerts warning taxpayers about the schemes.
The IRS also has established an electronic mailbox for taxpayers to send
information about suspicious e-mails they receive which claim to come from the
IRS. Taxpayers should send the information to: phishing@irs.gov.
More than 8,000 bogus emails have been forwarded to the IRS, with nearly 1,300
forwarded in June, 2006 alone!
TIPS
The IRS's mail box allows taxpayers to send copies of possibly fraudulent
e-mails involving misuse of the IRS name and logo to the IRS for investigation.
Instructions on how to properly submit one of these communications to the IRS
may be found on the IRS Web site at www.irs.gov. Enter the term "phishing" in
the search box in the upper right hand corner. Then open the article titled "How
to Protect Yourself from Suspicious E-Mails" and scroll through it until you
find the instructions. Following these instructions helps ensure that the bogus
e-mails relayed by taxpayers retain critical elements found in the original
e-mail. The IRS can use the information, URLs and links in the bogus e-mails to
trace the hosting Web sites and alert authorities to help shut down these
fraudulent sites.
However, due to the volume the mailbox receives, the IRS cannot acknowledge
receipt or reply to taxpayers who submit their bogus e-mails. The phishing@irs.gov
mailbox is only for suspicious e-mails and not for general taxpayer contact or
inquiries.
For information on preventing or handling the aftermath of identity theft, visit
the Federal Trade Commission's consumer (http://www.consumer.gov/idtheft/index.html)
and OnGuardOnLine (http://onguardonline.gov/index.html) Web sites. Click on
"Topics" to find the identity theft and phishing areas on OnGuardOnLine.
For information on identity theft prevention and victim assistance in relation
to tax administration, visit the IRS Identity Theft Web page which can be found
on IRS.gov. Enter the term "identity theft" in the search box in the upper right
hand corner.
For schemes other than phishing, please report the fraudulent misuse of the IRS
name, logo, forms or other IRS property by calling the Treasury Inspector
General for Tax Administration's toll-free hotline at 1-800-366-4484.
TIP:
Scam Artists Even Target the Bereaved
It is a sad fact of life that scam artists frequently prey on the vulnerable.
Those being victimized include people who have recently lost loved ones. Better
Business Bureaus caution spouses, as well as those with elderly parents to bear
the following scenarios in mind if their mother or father passes away.
If you are an adult-child, it might make sense to also gently counsel a
surviving parent to be alert to the following ploys, which have been reported to
BBBs:
- Contracts for services allegedly signed before the spouse's death.
Less-than-ethical people offering driveway paving, tree-trimming or other
home-related services sometimes visit the widow in the weeks after the funeral.
When the spouse claims they know nothing about having hired the company, the
sales rep produces a contract, allegedly signed by the husband before his death.
The signature is typically scribbled or blurred and the service is highly
priced. The company states that they won't require the widow to take the
service, but insists that she pay the agreed-upon fee. They remind her how "forgetful" her spouse used to be and that is why he never informed her about
the contracted work.
- Specially-engraved trinkets. After the funeral, the widow receives in the mail
a fountain pen or other trinket engraved with the name of the recently deceased.
Included with the invoice is a note from the business, with a message saying, "I
thought you'd want this to remember him by." Sometimes the trinket is engraved
with the name of the surviving spouse, and the note from the company mentions
that her husband had ordered the gift especially for her.
- Delinquent life insurance premium ploy. An insurance "agent" phones the
surviving spouse, with an employee allegedly from the funeral home also on the
line. The widower is advised that his wife's life insurance premium was
delinquent and that he must pay $3,000 so that the insurance funds can be
released to the funeral home. He is asked for his credit card number to make a
partial payment on the premium and to wire the remaining amount to the insurance
company. Turns out that both the insurance company "representative" and the
funeral home employee are bogus.
Scam artists probably obtain the names of their victims from obituaries
published online or in local newspapers. Older Americans are advised to check
with the BBB (www.bbb.org) whenever they are contacted by an unknown individual
or business demanding payment for an unfamiliar product or service.
JULY 17, 2006
TIP: How to Protect Your Credit Card
Make Safety a Priority from Scambusters.org and ConsumerTipsReports.org
With teens bound for college, so many enticing credit card offers and, with
people more and more paying for pricey gas at the pump using their credit cards,
while there are tips on how to actually choose a credit card that fits your
lifestyle, what do you do once you obtain one? Misplacing a credit card, or not
reading your terms and conditions can mean one step away from either ID Theft or
dangerous debt. Scambusters.org along with Consumer Tips Reports.org offer these
common sense tips for safeguarding credit cards once they are in your
possession:
- Credit Card Safety Step 1 -- Keep a Secret
It may sound like overkill, but you need to treat your credit card number as if
it were a precious secret. Only tell it to those who really need to know and
don't say it or lay it where others can find it out. Before entering your credit
card number into any website or giving it to anyone over the phone, make sure
you know exactly who you're dealing with and that their reasons for needing your
credit card number are legitimate.
- Credit Card Safety Step 2 -- Lock it Up
There is absolutely no reason to carry every single credit card you own around
with you. Not only can that lead to frivolous spending, it can lead to serious
credit card safety mishaps. Only carry the credit cards that you absolutely need
and keep your other credit cards locked up in a personal safe.
- Credit Card Safety Step 3 -- Read Every Line
Each month when your credit card statement comes in, don't automatically assume
everything on it is accurate. Read every line item on your credit card statement
and make sure each and every charge is legitimate. If there's a charge you don't
recognize, don't assume it's just something you forgot about. Get down to the
bottom of the charge and make sure it's not fraudulent. A $10 charge may not see
like a lot, but if it's being charged fraudulently each and every month, it will
sure add up over time.
- Credit Card Safety Step 4 -- Be Careful with Your Mail
If you have a street-side mailbox, don't leave your credit card payments in
there for the postal carrier to pick up and make sure you pick up your mail each
and every day. If you're not careful with your mail, thieves may dig through it
to get your credit card information.
- Credit Card Safety Step 5 -- Get Credit Monitoring Service
With the above four steps, you'll be able to ensure no one uses the credit cards
you have for fraudulent purposes. But what if someone opens up a credit card in
your name and you don't even know it exists? If you want to make sure no one is
using your good credit to run up a huge bill, you're going to want to sign up
for credit monitoring service so you can check your credit report frequently and
be notified if anyone opens up an unauthorized account.
By following the above five steps, you can rest assured that you'll be well on
your way to credit card safety.
TIP:
How to Choose a Home Security System
According to the Better Business Bureau, the best home security system will
accommodate your lifestyle and specific valuables you want protected.
There are four types of security systems to consider:
- A burglary and fire alarm system monitored by an off-site central station that
notifies police and fire authorities if alarm signals are received from your
home.
- A burglary-only alarm system, also monitored by an off-site central station.
- A fire-only alarm system, monitored by an off-site central station.
- Various non-monitored burglary and fire alarms, which sound an alarm if
activated but don't notify authorities.
Are all alarm systems created equal? Many authorities feel that a monitored
alarm system is superior to a non-monitored system that sounds an alarm, but can
leave your home and family vulnerable. Non-monitored alarms such as
battery-operated and wired smoke detectors are better than nothing, but aren't
the best option available.
No matter which type of alarm you choose, quality and proper installation is
key. If the product doesn't function properly, it leaves your personal safety
and assets in great danger.
TIPS
- Go with a reputable seller and alarm company. Although you often can identify
a popular one in your area simply by noting the "Protected By" signs dotting the
neighborhood, it's always a good idea to get recommendations from the Better
Business Bureau (www.thelocalbbb.com) and local authorities, as well as friends
and neighbors who have alarm systems.
- Visit the National Burglar and Fire Alarm Association Web site at www.alarm.org to verify the alarm companies you're considering are members. The
association suggests asking if employees are pre-screened and trained or
certified by the NBFAA. Ask for references; the company you choose should have a
proven track record in response times, ease of use and dependable service.
- Shop around. Call three to four companies and get quotes from each one in
writing. Compare prices for alarms with similar features and services then
decide which is best for you. Price is always a factor in selecting alarm
systems, but as more people purchase home security systems, they become more
affordable. Logically, the features you choose will affect the cost of your
system. While quality is most important, homeowners may appreciate added
conveniences such as single-button-operated alarm systems with voice activation.
While comparing systems, consider these questions:
- What happens if there's a power outage? Find out if your alarm system offers
a battery backup system and, if so, how long the batteries will keep the system
running.
- What guarantees and warranties are available? Some alarm systems come with
maintenance plans; some offer coverage only on normal wear and tear.
- Does your alarm offer a radio backup unit? If telephone lines are cut or
unavailable, a radio backup unit will keep your home's alarm system and central
station in communication with others.
- Can your alarm monitor other controls besides fire and intruders? Some alarm
systems can be designed to monitor high and low temperatures, natural gas,
carbon monoxide levels and flooding.
- What is the length of your monitoring contract? Before you obligate yourself
to a long-term contract, ask what your rights are if your alarm company is
purchased or acquired by another company, what happens if you're not satisfied
with the services provided and whether you can cancel the contract.
MAY 22, 2006
TIP:
Cell Phone Theft Alert from Scambusters.org
TheLocalBBB felt this was important info to pass along to consumers in our
region. Thanks to Scambusters.org for this info!
You may not realize that if your cell phone is stolen, you are responsible for
paying for all the calls that are made until you report the theft.
Scambusters.org recently read about one woman who was on vacation when her cell
phone was stolen. The thief made over $26,000 worth of calls (mostly
international) during that week before she reported the theft!
How to protect yourself: Although it is a bit of an inconvenience, we recommend
using the password security option that most (if not all) cell phones have.
Check your owner's manual if you need to figure out how to program a password
into your phone.
You can also put a hold on your account if you cannot find
your phone. If you simply misplaced it, you can then just remove the hold.
Otherwise, you report the phone as stolen.
Previous Tips
Tip - Are Gifting Clubs Ponzi Schemes?
With "auto-surfing" investment/job opportunities whirling around, many are
now asking if such "buy-in" offers or "gifting clubs" have anything to do with "Ponzi
schemes."
Gifting clubs are usually billed as private clubs with members who are eager
to help their new "friends." To join, new members are asked to give cash gifts
to people who have risen through the club.
New members are told that as they get new members to join, they too will rise
through the ranks of the club, so that they will receive far more money than
they paid to join the club -- from the club's newest members.
Members often give thousands of dollars when they join these clubs.
Are most of these gifting clubs Ponzi schemes? Yes, according to the FTC. The
FTC says the reality is that these clubs are illegal pyramid schemes.
TIPS FROM THE FTC: Don't Get on the Receiving End of a Gifting Club "Gotcha"
Promises of quick, easy money can be a powerful lure – especially when it
comes with the additional benefit of new friendships.
If you're approached about joining a club but you aren't sure if it's an
illegal gifting club, the BBB and the Federal Trade Commission remind you to:
- Consider that a legitimate gift has no strings attached and is not an
"investment."
- Avoid being misled into thinking a gifting club is legitimate because
the ads say that members consider their payments a gift and expect nothing
in return. This is an attempt to make an illegal transaction look legal.
- Be wary of success stories or testimonials of tremendous payoffs. Very
few members of illegal gifting clubs or pyramid schemes ever receive any
money.
- Take your time. Don't buckle under to a high-pressure sales pitch that
requires you to join immediately or risk losing out on the opportunity.
Remember, solid opportunities – and solid friendships – aren't formed
through nerve-wracking tactics.
Tip - The increase of unmonitored inline
auction sites is creating a rise in online fraud
One reason online auction fraud is on the rise is that more and more auctions
sites have been popping up, thanks to inexpensive do-it-yourself programs.
Consider this: eBay—the leader with 181 million people trading more than $40
billion a year worth of merchandise—signs up 110,000 people each day, providing
crooks with a huge pool of neophytes to swindle.
According to the FBI, cyber-scams in the United States increased by about 20
percent last year—of which three in five involved auction fraud.
ONLINE AUCTION TIPS
Online auctions have become one of the most popular commercial venues on the
Internet. Yet surveys show that 40 percent of online auction buyers report
problems with their transactions, suggesting the need for caution when you bid
and buy online.
Here are a few SafetyNet tips from the WA State AG's Office that should
improve the chances that your online auction experience will be a good one:
- Use a credit card. When a consumer uses a credit card, the bank
that issued the card acts as an intermediary if there is a problem with the
transaction, and allows the consumer to charge back an unauthorized or
erroneous charge.
- Use third party payment services. Third party payment services
that are affiliated with the auction site act as intermediaries between a
buyer and seller. Depending on the auction site's particular system,
purchasers may also be able cancel charges for unsatisfactory or
non-delivered goods.
- Consider online auction insurance. Some online auctions offer
insurance to protect the buyer. Under these programs, when the seller fails
to deliver, or the goods aren't what was promised, the buyer can recover
some of what was paid. However, consumers need to check the insurance policy
and procedures carefully. Often, there are very short windows of opportunity
to file a claim, and some policies limit the types of claims that can be
filed.
- Use online escrow services. Online escrow services allow
consumers to deposit money in trust with a company that holds money until a
consumer receives the goods that were purchased in an auction.
- Study consumer feedback sections of online auction sites. These
areas contain reviews of seller practices by previous customers.
Tip - Phishing scams falsely using credit
union names
The latest phishing scam to be seen is using the good name of Horizon Credit
Union to try to get people to compromise personal information. The notice comes
FROM: Horizon Credit Union [Accounts@hzcu.org] and has a SUBJECT LINE:
Important Notice! and goes on to say:
Dear Valued Customer,
Horizon Credit Union is proud to announce their new updated secure
system. We updated our new SSL servers to give our customers a better, fast
and secure online banking service.
Due to recent updates to the servers, you are requested to update
your account-info at the following link:
This email is a HOAX---a SCAM…Do NOT reply…Your credit union or bank would
never send you this kind of notice asking for an update to your info because
they already have it.
IMAGINE what it would take for a credit union or bank to have to upgrade a
security system and send random emails asking customers for personal info—a
SECURITY NIGHTMARE, very vulnerable to a hack attack!
If you ever receive any emails from your personal bank or credit union asking
for personal info like this, CALL YOUR INSTITUTION DIRECTLY AND ASK THEM IF THEY
ARE DOING THIS---Most likely, they will say NO WAY…
TIPS
OnGuard Online suggests these tips to help you avoid getting hooked by a
phishing scam:
- If you get an email or pop-up message that asks for personal or
financial information, do not reply. And don't click on the link in the
message, either. Legitimate companies don't ask for this information via
email. If you are concerned about your account, contact the organization
mentioned in the email using a telephone number you know to be genuine, or
open a new Internet browser session and type in the company's correct Web
address yourself. In any case, don't cut and paste the link from the message
into your Internet browser — phishers can make links look like they go to
one place, but that actually send you to a different site.
- Use anti-virus software and a firewall, and keep them up to date.
Some phishing emails contain software that can harm your computer or track
your activities on the Internet without your knowledge.
Anti-virus software and a firewall can protect you from inadvertently
accepting such unwanted files. Anti-virus software scans incoming
communications for troublesome files. Look for anti-virus software that
recognizes current viruses as well as older ones; that can effectively
reverse the damage; and that updates automatically.
A firewall helps make you invisible on the Internet and blocks all
communications from unauthorized sources. It's especially important to run a
firewall if you have a broadband connection. Operating systems (like Windows
or Linux) or browsers (like Internet Explorer or Netscape) also may offer
free software "patches" to close holes in the system that hackers or
phishers could exploit.
- Don't email personal or financial information. Email is not a
secure method of transmitting personal information. If you initiate a
transaction and want to provide your personal or financial information
through an organization's website, look for indicators that the site is
secure, like a lock icon on the browser's status bar or a URL for a website
that begins "https:" (the "s" stands for "secure"). Unfortunately, no
indicator is foolproof; some phishers have forged security icons.
- Review credit card and bank account statements as soon as you receive
them to check for unauthorized charges. If your statement is late by
more than a couple of days, call your credit card company or bank to confirm
your billing address and account balances.
- Be cautious about opening any attachment or downloading any files
from emails you receive, regardless of who sent them. These files can
contain viruses or other software that can weaken your computer's security.
- Forward spam that is phishing for information to spam@uce.gov and
to the company, bank, or organization impersonated in the phishing email.
Most organizations have information on their websites about where to report
problems. You also may report phishing email to reportphishing@antiphishing.org.
The Anti-Phishing Working Group, a consortium of ISPs, security vendors,
financial institutions and law enforcement agencies, uses these reports to
fight phishing.
- If you believe you've been scammed, file your complaint at ftc.gov, and
then visit the FTC's Identity Theft website at www.consumer.gov/idtheft.
Victims of phishing can become victims of identity theft. While you can't
entirely control whether you will become a victim of identity theft, you can
take some steps to minimize your risk. If an identity thief is opening
credit accounts in your name, these new accounts are likely to show up on
your credit report. You may catch an incident early if you order a free copy
of your credit report periodically from any of the three major credit
bureaus.
Tip - Credit card offers: know your Ts & Cs!
TheLocalBBB receives inquiries daily regarding the validity of credit card
offers people are receiving via email, phone and mail. Here's what you should be
looking out for prior to getting one as well as when you receive one, courtesy
of the National Fraud Information Center:
- KNOW YOUR Terms and Conditions PRIOR---Read the fine print. If
you receive an offer for a pre-approved credit card or if someone says
they'll help you get a credit card, find out the details first. You need to
know what interest rate you will be paying and for how long. Some credit
cards offer low rates as "teasers" that are raised after a certain period of
time or only apply to balances transferred from other cards. You also need
to know about any annual fees, late charges or other fees, and whether there
are grace periods for payment before interest is applied. If the terms of
the offer aren't provided or aren't clear, look for a credit card from
someone else.
- Shop around. Interest rates and other terms vary widely. There
are also different types of cards, such as secured cards that require a
deposit to cover any charges that are made, cards that can also be used as
telephone calling cards, cards that allow you to either charge something and
pay later or deduct the charge from your bank account immediately, and cards
that can only be used to charge merchandise from a catalog. Make sure you
know what kind of card you're being offered and what type of card meets your
needs best.
- Don't pay fees up front to get a credit card. Legitimate credit
card issuers don't ask for money up front, unless you're applying for a
secured card. If you are applying for a secured card, make sure you
understand how your deposit will be used. Don't pay someone to help you get
a credit card; if you have good enough credit, you can get one yourself, and
if you have bad credit, no legitimate lender is likely to give you one.
- Use your credit wisely. Many Americans are in debt because they
have taken on more credit than they can handle or have not used credit
responsibly. Don't apply for more cards than you absolutely need, and don't
charge more than you can afford. To maintain a good credit rating, pay bills
promptly. Avoid interest charges by choosing a card that offers a grace
period and paying the entire balance due each monthly. If you can't pay the
full balance, choose a card with the lowest interest rate.
- Get help if you feel you're in over your head. Contact
TheLocalBBB and ask for a list of members in this business category.
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