Chances are most of us will run into a scammer at one point or another, says the Better Business Bureau (BBB) serving upstate New York.
BBB is contacted by the public with scam inquires and reports every day through phone, email, social media, and mail. BBB says it helped thousands of people who reached out with questions in 2014 offering information to determine whether something was legitimate or not, helped with advice to avoid traps, and offered “trustworthy business review” information.
The Federal Trade Commission’s “Consumer Sentinel Data Book” estimates that Americans lost $1.6 billion to scams in 2013, up from $1.4 billion the previous year. BBB of Upstate New York’s “Top 10 Scams” list comes from a variety of sources, including reports from consumers (some of whom were victims of frauds) and other reliable sources, the bureau says.
(Sponsored)
Timekeeping Trap: Be Careful When “Rounding” an Employee’s Work Time
The Fair Labor Standards Act (FLSA) regulations do not require an employer to track and pay an employee for the exact number of minutes they actually work. As currently written,
Avoiding the Most Common Overtime Classification Mistakes
Are you sure your organization is prepared for an audit of your payroll practices? In this FREE one hour webinar to be held at noon on November 14, 2023, you
“Scams can happen to anyone. And sometimes, the scams go unreported because the victims don’t know they have been scammed or they are embarrassed,” Warren Clark, president of BBB of Upstate New York, said in a news release. “The scams that make the list are the most common and widespread. Scams are ever-changing so we want to help people recognize them and prepare them for the next time they get a suspicious solicitation on the phone, in email, or in a text message.”
The Top 10 Scams of 2014, according to BBB, were:
Microsoft/computer scams
A caller claims to be from Microsoft or a representative from another computer software company. The caller offers to solve a computer problem or sell a software license, in an effort to gain remote control of the consumer’s computer and later requests a fee for service. “Always check out a company first and only hire trusted repair businesses. Microsoft does not make unsolicited phone calls for computer help, BBB says.
IRS scams
People report receiving calls from “IRS representatives” who claim they owe taxes and must pay up or otherwise face a warrant issued for their arrest. Or, the scammers claim the IRS is pursuing a lawsuit against you and that you must make a payment immediately. The IRS never uses phone calls for collection purposes; the IRS only contacts taxpayers via U.S. mail, according to BBB.
Grant scams
Consumers report unsolicited phone calls claiming a “free” grant is waiting for them but they have to pay a fee in order to collect it. Grants do not have to be repaid; thus, there is no need to use the word “free.” Organizations do not usually give out grants for personal debt consolidation, or to pay for other personal needs. Grants are usually given only to serve a social good, such as bringing jobs to an area, training under-employed youth, preserving a bit of history, etc. “Be wary if you are asked to provide money up-front to an unknown company before the company will provide the services promised,” BBB advises.
Phony invoice scams
This scam affects businesses and consumers. They receive what looks like a legitimate invoice in the mail or via email for a renewal for a newspaper or a magazine. It turns out to be a solicitation. Most newspapers invoice their customers directly, and don’t use third-party billing.
Caller ID spoofing scams
New technology allows scammers to now change the name appearing on the caller ID screen on phones, which in most cases allows them to pose as a business or local law enforcement agency. In one scenario, scammers called and told the person on the other line that there is a warrant out for their arrest, but they can pay a fine to avoid criminal charges.
Home-improvement scams
Whether it is shoddy work from an untrained or unlicensed company, or so-called “invisible” repairs that are hard for consumers to detect on their own, the home-improvement fraud is always around, BBB notes. This includes repairs to roofs, chimneys, air ducts, crawl spaces, etc. Scammers may simply knock at your door offering a great deal because they were in the neighborhood, but many are turning to telemarketing, social media, and email to reach consumers. BBB reminds consumers to check out home contractors at bbb.org before saying “yes.”
Data breaches
Target, Home Depot, Michaels, P.F. Chang’s. These are just a few of the companies affected by data breaches in the past year. Do not click on unsolicited emails or social-media messages; call your bank to see if your account was affected if you have not heard from them, BBB advises. Always monitor your credit statements carefully.
Charity scams
With the popularity of the viral “Ice Bucket Challenge” and the deaths of celebrities, scammers are always trying to take advantage of people’s generosity. Never click on links in unsolicited charity emails or on social media, BBB advises, and always check out a charity at give.org.
Identity theft scams
Every two seconds, someone becomes a victim of identity fraud. And, every year, millions of Americans have their identities stolen. According to Javelin Research, that number totaled 13.1 million in 2013. Proper document shredding and protecting personal information online are two excellent ways to help prevent identity theft, BBB says.
Advance-fee loan scams
This type of scam generally happens online. Consumers receive emails from “loan companies” saying they are “pre-approved with no credit check” for a loan. People are then charged hundreds of dollars to release the first payment, usually through a wire transfer or a GreenDot money card. Reputable loan companies always do credit checks on potential customers, they do not solicit over email, nor do they charge people hundreds of dollars up front for a loan, BBB says.
For scam alerts, tips and other information, visit bbb.org.