Consumer Affairs Alerts About Blocked Debit Card Scam

The South Carolina Department of Consumer Affairs is alerting South Carolina residents about a debit card scam targeting Midlands residents and likely spreading across the state. Consumers are receiving calls claiming their debit cards have been blocked. Consumers are instructed to respond to automated instructions to “unblock” or “re-activate” their card. Reports from consumers indicate the scam is targeting both cell phones and landlines.

The call is a scam designed to obtain sensitive bank account numbers. Consumers are urged not to answer the phone or hang up immediately if they receive a call from the following number: 520.882.7767. The number belongs to an Arizona heating and cooling company and is fraudulently being used without the company’s permission to perpetrate the scam.

Consumers receiving a call from this number should contact the Public Information Division at 803.734.4296 or toll free in SC at 1.800.922.1594, or online at www.scconsumer.gov.

BBB Warns Against a Summer Scam Going Door-to-Door Nationwide

Better Business Bureau warns that deceptive door-to-door magazine sales crews are hitting the pavement and looking to earn a quick buck this summer. In the last 12 months alone, BBB has received 1,100 complaints from consumers in 46 states and the District of Columbia against more than 50 companies that are selling magazines door-to-door.

Many of these companies employ crews of high school and college-age people who are trying to earn money over the summer. These crews are sent to communities to knock on doors and sell magazines—sometimes without appropriate licensing. In the sales pitch, the representative might explain they are working to help get their lives back on track, raising money on behalf of a charity or for a school trip or even selling subscriptions to support troops in Iraq.

“Because sales representatives are typically high school or college-age, victims readily believe the potentially fictitious sales pitch and often pay several hundred dollars for the subscriptions by personal check given directly to the sales reps,” said Kathy Graham, President and CEO of the BBB of Coastal Carolina. “Most complaints against such companies allege that sales reps took their check and the magazines never arrived, however, some complainants also allege being subjected to high-pressure and misleading sales tactics.”

In the last year BBB has received complaints on more than 50 companies conducting door-to-door magazines sales and following are a few examples:

The BBB serving Charlotte has received 286 complaints against two magazine companies owned by the same couple - Trinity Public Relations in N.C. and Seedtime Publications in S.C. Complainants report not receiving the subscriptions they paid for and some allege sales reps used high pressure sales tactics. In one example, a woman called the police after feeling threatened by a sales rep who became angry when she wouldn’t buy a magazine. Some sales reps have also allegedly told prospective customers that they would not be able to eat that day if they didn’t buy their magazines. Trinity Public Relations was closed down by the Attorney General in N.C. and Seedtime Publications has also closed in S.C.

The BBB serving Central, Northern and Western Arizona has received 33 complaints from 12 states regarding Prestige Sales, LLC. In addition to not receiving magazines they paid for, complainants allege sales reps lied about being neighborhood youth who were trying to earn money for a school trip to Europe, while other customers were led to believe they were purchasing magazines subscriptions for troops deployed to Iraq.

Other door-to-door magazine companies with F ratings from BBB include:
• Michigan City, IN-based Omni Horizons Inc., which has received 122 complaints from consumers in 17 states according to the BBB Serving Northern Indiana;
• Chesapeake, VA-based True Visions Inc., which has received 82 complaints from 13 states according to the BBB of Greater Hampton Roads;
• Memphis-based Greater Image, Inc., which has received 71 complaints from 16 states according to the BBB serving the Mid-South; and,
• Seattle-based Fresh Start Opportunities, which has received 66 complaints from seven states according to the BBB serving Alaska, Oregon and Western Washington.

“Experience tells us that customers aren’t the only victims of this scam; the young salespeople are also potentially being taken advantage of by their employers and forced to work long hours, endure substandard living conditions and have their wages withheld from them,” said Graham.

BBB offers the following advice to avoid getting scammed by a door-to-door magazine sales rep:
• Always research the company with your Better Business Bureau for free at www.bbb.org before filling out a check for a magazine subscription.
• The Federal Trade Commission’s Three-Day Cooling-Off Rule gives the customer three days to cancel purchases over $25 that are made in their home or at a location that is not the seller’s permanent place of business. Along with a receipt, salespeople should also include a completed cancellation form that customers can send to the company to cancel the agreement. By law, the company must give customers a refund within 10 days of receiving the cancellation notice.
• Victims of fraudulent magazine sales can file a complaint with their Better Business Bureau at www.bbb.org, local law enforcement, and state Attorney General offices.

For more information about door-to-door magazines sales, reporters can contact Kathy Graham at 843-488-0238.

Car Warranty Scams Haven’t Stopped – and the Economy Makes It Worse

The South Carolina Department of Consumer Affairs (SCDCA) first warned consumers last August to be wary of mail or pre-recorded phone messages about car warranties expiring. These post card and telephone warnings directing consumers to call a toll-free number were scams. Consumers who called these numbers were often asked for a “down payment” before they could even get information about the warranty. In many cases, the automobile was 10, 15 years or even older. The Department was made aware of these scams by the SC Automobile Dealers Association as well as South Carolina consumers.

Now the scam has taken a treacherous turn. Con artists are attempting to align the scam with the economic downturn – something that is in the news daily. An alert Midlands consumer contacted the Department when she received a telephone call, supposedly from a marketing firm representing “the Big Three Insurance companies for car warranties,” warning that her Chrysler warranty would not be honored once Chrysler is in bankruptcy. The caller used high pressure tactics and told the consumer that she needed to purchase a new warranty. The red flag for this consumer? The car she currently owns is not a Chrysler.

The danger in this particular twist is that well known car manufacturers are in the news daily because of the economy. But consumers shouldn’t be alarmed or pressured into purchasing an expensive “new” warranty they may not want or need – or a phony warranty that may not even exist. Consumers having questions about their warranty should look in the owner’s manual or better yet, call their Dealer.

Red flags consumers should watch for in car warranty scams:
∑ Mailings that appear to come from your automobile manufacturer offering extended warranty coverage.
∑ Pre-recorded phone calls. Telemarketers are not supposed to use pre-recorded messages unless a live person first asks you if you want to listen to the recording.
∑ A live caller who insists your warranty is in peril because of the economic downturn.
∑ Never give out personal financial or other sensitive information like your bank account number or Social Security Number, or even your Driver’s License.
∑ If your car is older and the warranty expired years ago, the warning is bogus anyway.
∑ Always get information in writing before you agree to sign up or pay any money.

For more information on car warranty scams or other consumer issues, contact the South Carolina Department of Consumer Affairs at 803.734.4200, toll free in SC at 1.800.922.1594, or online at www.scconsumer.gov.

Scammers are creating their own epidemic of spam e-mails

Relying on reports from online security experts, Better Business Bureau is warning consumers to be on the lookout for fraudulent e-mails and Web sites trying to take advantage of the current swine flu outbreak.

“Scammers read newspapers, watch TV and surf the Internet and they know that by using a hook from the day’s top headlines, that they’ll be able to catch lots of fish,” said Kathy Graham, President/CEO of the BBB of Coastal Carolina, Inc. “Right now, issues associated with swine flu and a potential pandemic are of global interest and that means scammers have a very large pond to go phishing in.”

According to McAfee Avert Labs, an online security company, spammers began pumping out e-mails as soon as the first accounts of swine flu were being reported in the news, accounting for two percent of all spam messages. The messages include such subject lines as, “Madonna caught swine flu!” and “Swine flu in Hollywood!” The company reports that the e-mails do not contain malware but often link to online pharmacies.

Another online security company claims that more than 250 Web sites with the term “swine flu” have been registered within the first few days following the announcement of the outbreak and predict that the scams artists are preparing to use such Web sites in a variety of different online scams. One Web site is already selling a “Swine Flu Survival Guide” PDF for $19.95 (www.noswineflu.com )

BBB offers the following advice to avoid swine flu scams:

• Avoid opening e-mail from an unknown source and do not click on any links in the body of the e-mail or open any attachments. Instead, delete the e-mail or report it to the Federal Trade Commission by forwarding the e-mail to spam@uce.gov.

• Don’t believe online offers for vaccinations against swine flu because a vaccine does not exist. For more information on swine flu and updates on progress in fighting the outbreak, go to www.cdc.gov/swineflu

• Make sure your anti-virus and anti-spyware software is up to date and all operating system security patches have been installed. If your computer becomes infected as the result of a spam e-mail about swine flu, you can report it to the Internet Crime Complaint Center at www.ic3.gov.

For more information or to schedule an interview with a BBB spokesperson, contact Kathy Graham at 843-488-0238.

Twitter Scams

The South Carolina Department of Consumer Affairs warns consumers to be vigilant of scams circulating on Twitter.

Historically, from the telegraph to e-mail, con artists have quickly adapted to advancements in communication technology. Thus, it comes as no surprise that they are now targeting social networking sites such as Twitter.

Twitter is a micro blogging tool that allows users to post, in 140 characters or less, what they are doing. Scammers are utilizing the site in the same way they use spam e-mail to try to entice users.

Easy Money
These scams have been around for years in various incarnations, such as work-at-home scams, pyramid schemes, and timeshare fraud. The bottom line is the same – you lose money. Scammers post promises that you can make thousands of dollars doing little or no work. A link is included in the post, directing you to a website that has more information on this “great opportunity.” This is never legitimate. No one is ever going to post on Twitter a legal way for you to make thousands of dollars.

Phishing
In most of these schemes a user posts a link to a website masquerading as a legitimate website. The spoofed site uses any information you enter to steal your identity, hack into financial accounts, and generally wreak havoc.

One scam, specific to Twitter, involves receiving a spoofed e-mail made to appear it is from Twitter. The e-mail usually claims you need to click on an accompanying link to see a “funny” post or “great site.” The link takes you to a site spoofing Twitter’s homepage. Once you login, the scammer has your user name and password, giving them access to your account and the ability to pose as you.

How to Protect Yourself
If you are uncomfortable with a follower, block them. To do so, simply click on their user name and then click the block user box under their picture. You can also protect against unwanted followers by making your posts private.

Be very wary of users who are following a large number of people, but are not being followed back by very many people. This is an indication the user is just looking for people to spam.

Never enter personal information into a website you reached by clicking on a link in a Twitter post. Instead, if you are going to enter personal information, open a new web browser and type in what you know to be the organization’s website address.

Someone you haven’t met is never going to post about a legal, legitimate “opportunity” to make thousands of dollars with little or no work involved.

This is not meant to discourage consumers from using Twitter. It’s one of the safe sites on the Internet, and the organization has taken a very proactive approach to stamping out scams and spam.
The Department has a presence on the site and can be reached by tweeting@scdca.

For more information, contact the Public Information Division at 803.734.4203, toll free in SC at 1.800.922.1594.

SCAM Alert

Remember, the IRS does not send out unsolicited email messages. There are phishing scams out there trying to steal taxpayer information. A common “hook” involves emails claiming to be from the IRS asking for a taxpayer’s personal information in order to process a refund. If the IRS needs to contact a taxpayer, we’ll send them a letter in the mail via the US Postal Service. Scam emails may be forwarded to phishing@irs.gov. Taxpayers are advised to delete the messages. Do not open attachments, click on links, or reply with personal information.

Fake Military Twist On Vehicle Sale Scams

The FBI continues to receive reports of individuals victimized while attempting to purchase vehicles via the Internet. Victims find attractively priced vehicles advertised at different Internet classified ad sites. Most of the scams include some type of third-party vehicle protection program to ensure a safe transaction. After receiving convincing e-mails from the phony vehicle protection program, the victims are directed to send either the full payment, or a percentage of the payment, to the third-party agent via a wire payment service. No vehicles are delivered to the victims.

In a new twist, scammers are posing as members of the United States military. The fictitious military personnel in the scam have either been sent to a foreign country to improve military relations, or they need to sell a vehicle quickly and cheaply because of their upcoming deployment to either Iraq or Afghanistan.

Consumers are advised to do as much due diligence as possible before engaging in transactions to purchase vehicles advertised online. Consumers are also cautioned to be aware of the rules of or warnings posted by the Internet sites they visit. If someone is asking a consumer to break or avoid the rules of the Web site, it is possible that person is trying to scam you.

If you have fallen victim to this type of scam, please notify the IC3 by filing a complaint at www.IC3.gov.

More Stimulus Scams

With so much news about economic stimulus packages and the country’s economic recovery plans, consumers are hoping some of this stimulus money will funnel down to them. This is the perfect opening for con artists to try to scam the vulnerable. The South Carolina Department of Consumer Affairs (SCDCA) has received numerous reports of scams using the stimulus package – each with a different twist – to steal personal information and/or money.

One of the more brazen twists uses President Barrack Obama’s image to persuade consumers. SCDCA has received a number of forwarded emails from alert consumers who are suspicious of the offer. The mail, featuring a photograph of President Obama, promises a free stimulus check in varying amounts of from $613.27 to several thousand dollars. Consumers are directed to another link where they must “participate in the program” in order to receive the check.

Participation requires completion of several “reward offers” such as magazine subscriptions that the consumer must purchase or a credit card which can only be activated with a purchase. Although the offers themselves may or may not be real products, the consumer will have to spend money on things they possibly didn’t need, plus they will not receive a stimulus check just for participating in the program.

The Department has also received calls from consumers concerning other e-mails they have received. The e-mail claims to be from the Internal Revenue Service (IRS) and asks them for sensitive information such as a bank account number or Social Security number in order to process their portion of the stimulus package. Consumers should remember that the IRS or any other government agency will never contact you regarding rebates or refunds via e-mail. Additionally, the IRS will never ask you for personal information.

Another twist on this scam arrives by US mail and contains an actual check, again in varying amounts. Of course the check is fake, but it looks very real. The accompanying literature instructs consumers to call a toll free number for further instructions. Callers are then instructed to deposit the check but to wire a certain amount back to either enter into foreclosure rescue, or if you’re not in foreclosure, to purchase a foreclosure “kit” with instructions on how to use the stimulus money to buy foreclosed properties in your area. This scam is for the needy as well as the greedy, but it is a scam nonetheless.

Homeowners qualifying for mortgage assistance or restructuring under the housing portion of the Economic Recovery Plan may be telephone by their lender just to expedite matters, but they should verify that the caller does indeed represent that lender. Consumers are urged to contact the Department if they are suspicious of anything they receive that purports to represent stimulus money.

For more information, contact the Public Information Division at 803.734.4190, toll free in SC at 1.800.922.1594, or online at www.scconsumer.gov.

Warning About Tax Rebate Scam

Regardless of all the talk in Washington D.C., there is no stimulus check headed your way yet. And there might not be depending on what we demand from our Congressional representatives and senators.

Here's a scam warning from the Department of Consumer Affairs on the issue:
The possibility of another economic stimulus check for consumers has led to a resurgence in the tax rebate scam. The scam initially appeared a year ago when the first economic stimulus package was proposed by President George W. Bush, which included a tax rebate check for consumers. Pretending to be government officials, scammers attempted to solicit personal information, including social security and bank account numbers from consumers.

The South Carolina Department of Consumer Affairs warns consumers a new variation of this scam has been uncovered in South Carolina. The scam begins with a fake check and the promise of thousands of dollars in the form of a “secondary stimulus check” if you take the time to register. A telephone number provided for more information takes you to a pre-recorded message pitching an information packet consumers can purchase. The packet instructs consumers how to make money on “foreclosed homes.” The scammers claim you can receive thousands of dollars in regular cash payments by taking advantage of government programs related to foreclosed properties.

This is a scam. There is no second stimulus check at this time. There are no government programs that will pay you thousands of dollars to buy foreclosed properties. If you receive one of these letters or telephone calls, report it to the South Carolina Department of Consumer Affairs or destroy it. If you have already fallen prey to this scheme, please contact the Department immediately.

Consumers are reminded:

Any unsolicited check in the mail from a business, organization, lottery or sweepstake is fraudulent.

You should never give out personal information over the phone to unknown callers or businesses.

No one from the government will ever call you to verify any personal information or to “qualify” you for a stimulus check.

For more information, contact the Public Information Division at 803.734.4190, toll free in SC at 1.800.922.1594, or online at www.scconsumer.gov.