Shopping this Memorial Day weekend? Don’t fail at the sale!

Posted on May 24, 2013 by

ID-100104045BBB advice on how to get the best deal this shopping weekend

Memorial Day isnt’ just a kick-off to summer, it’s also a big time for shoppers to look for some good deals. Better Business Bureau urges consumers to spend wisely on those “extra savings” and “sales” you see in advertisements.

According to American Automobile Association (AAA), median spending during the Memorial Day weekend is expected to be $659. Nearly half, 44 percent, of travelers also intend to partake in shopping. This weekend will bring big sales from many markets: car dealerships, clothing and even grocery stores.

Texas residents can also take advantage of eligible tax free ENERGY STAR products in stores, online and through catalog sales. Qualifying products will display the ENERGY STAR logo, which may appear on the appliance, the packaging or the Energy Guide label. For more information, visit the Texas Comptroller site.

In order to avoid confusion with consumers, BBB Code of Advertising often works with businesses as an advertising guide with basic standards to adhere to. Here are five of the most recognizable advertising terms:

  • Comparative price, value and savings claims: Advertisers often use words like “regularly” or “originally.” If the business uses the word “originally,” the original price should be the most recent price before the sale.
  • Sales: The word “sale” should only be used if there is a significant price reduction for the merchandise offered for a limited period of time. Sale merchandise should be taken off “sale” and priced regularly immediately after the sale time period.
  • “Up to” savings: Businesses should clearly state the range of savings without focusing on the maximum. They should also have a good amount of items available at the discounted price.
  • Lowest price: It’s difficult for sellers to compare their lowest price with all competitors. If advertisers claim they have the lowest price they should have evidence to verify their claims.
  • Free: The word “free” may be used in advertising when the business is offering an unconditional gift. The advertiser must clearly disclose this condition with the “free” offer.
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Businesses and ‘work-at-home’ folks: Beware of bogus check/wire transfer scam

Posted on May 24, 2013 by

scam-alert-pic-150x150Sometimes the scammers rip off businesses and the little guy all at once.

Your BBB just got wind of a scheme that involves stolen/forged checks and money wiring scam, fake work-at-home jobs listed on Craigslist, and a hit to the reputation of an area company some consumers believed (falsely) that they were working for.

A BBB-accredited ad agency in San Antonio recently discovered that bogus checks claiming to be from their company were being used in an overpayment/money wiring scam. The checks looked very professional, with the company name and actual routing and account numbers.

People who answered work-at-home want ads on Craigslist were caught up in the scheme. One woman was asked to send out fake checks on behalf of the scammers and was paid by Western Union. When she noticed the Western Union payment was in someone else’s name, she called the real ad agency and asked, “Am I working for you?” The answer was “no.”

She had already sent out 200 bogus checks.

Another woman was sent a $1,500 check in the name of the ad agency and asked to deposit the money and quickly send a money order for $1,200, keeping $300 for herself. The check looked legitimate to the bank teller at first, but when it turned out to be fake, the woman had to pay her bank $1,200.

According to the ad agency, the scammers somehow intercepted a check that was sent to a client. They knew something was wrong when someone tried to cash it in another state. Scammers “washed” the check and used it as a template for numerous fake checks in the ad agency’s name.

Which brings up some important tips for businesses regarding checks:

  • Monitor your accounts payable. Stop payment on the check and send out another one if too much time goes by and the check appears to be “lost.”
  • Use tamper resistant checks. Checks with security features make it harder for crooks who may intercept them to counterfeit or alter them.
  • Keep track of check orders. Notify your check supplier and bank if you order checks that don’t arrive in a reasonable amount of time. 
  • Keep checks secured. Keep reserve supplies of checks, deposit slips and other banking documents locked up and limit the number of people who can access the
  • Keep your eye on the ball. Don’t leave checks or other bank records unattended while you serve customers. Someone might take them while you aren’t looking.

Important tip for the consumer: 

  • Never agree to deposit a check and send a portion to someone else. This is a well-known scam. No matter how legitimate the check may appear to be, no matter what story or reasonable-sounding explanation you are given (“Mystery shopper” is a common scheme), you will get burned. A bank teller might accept the check, but when it turns out to be fake, you will have to reimburse the bank for whatever amount you wired to the scammer.  

And a tip for the prospective work-at-home employee:

  • Be very cautious. Way too often, work-at-home opportunities turn out to be scams run by people intent on ripping you off, ripping off someone else, or making you the unwitting partner in some kind of crime.

Check out our May 10, 2013 blog post on the work-at-home business for some examples of what can happen and a list of tips: Do your homework before signing up for work-at-home.

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BBB offers tips for renting out your home

Posted on May 22, 2013 by

Planning to rent out your home? It could be a good source of income or a potential headache. Check out the these tips from BBB Media Specialist Stephanie Jacksis:

  • Do your research at bbb.org.
  • Get a written contract.
  • Check with your landlord or HOA to see if you’re allowed to sublease to guests.
  • Do a background check on tenants by doing a Google search, or by using an online screening service.
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BBB Wise Giving Alliance urges caution on donations for tornado relief

Posted on May 21, 2013 by

ID-10059533In the wake of the devastating tornadoes that ripped through Oklahoma yesterday, and in North Texas last week, Better Business Bureau and BBB Wise Giving Alliance have issued tips to help donors make smart giving decisions and avoid scams.

“It’s in our nature to move quickly when we see others in distress,” said Carrie Hurt, president and CEO of BBB serving Central, Coastal, Southwest Texas and the Permian Basin. “Especially now after seeing reports that these devastating storms took so many lives in Oklahoma. People naturally want to help. We encourage those willing to donate to do their research first so they can be sure those contributions are going to the right place.”

BBB Wise Giving Alliance is offering the following tips to help donors decide where to direct donations to assist victims:

  • Be cautious when giving online. Be cautious about online giving, especially in response to unsolicited spam messages, and emails and social media posts that claim to link to a relief organization. If you want to give to a charity involved in relief efforts, go directly to the charity’s website.
  • Rely on expert opinion when it comes to evaluating a charity. Be cautious when relying on third-party recommendations such as bloggers or other websites, as they may not have fully researched the relief organizations they list. The public can go to www.bbb.org/charity to research charities and relief organizations and verify that they are accredited by BBB and meet the 20 Standards for Charity Accountability.
  • Find out if the charity has an on-the-ground presence in the impacted areas. Unless the charity already has staff in the affected areas, it may be difficult to bring in new aid workers to provide assistance quickly. See if the charity’s website clearly describes what the charity can do to address immediate needs.
  • Find out if the charity is providing direct aid or raising money for other groups. Some charities may be raising money to pass along to relief organizations. If so, you may want to consider “avoiding the middleman” and giving directly to those that have a presence in the region. Or, at a minimum, check out the ultimate recipients of these donations to see whether they are equipped to provide aid effectively.
  • Gifts of clothing, food or other in-kind donations. In-kind drives for food and clothing, while well intentioned, may not necessarily be the quickest way to help those in need – unless the organization has the staff and infrastructure to distribute such aid properly. Ask the charity about its transportation and distribution plans. Be wary of those who are not experienced in disaster relief assistance.

BBB Wise Giving Alliance is asking anyone who receives a suspicious charitable solicitation to report it to BBB Report a Scam.
To check the reliability of a company and find trustworthy businesses, visit bbb.org.

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FTC wins settlement from bogus tech support operators

Posted on May 20, 2013 by

Maybe you’ve gotten one of these calls before: Someone calls out of the blue, claiming your computer is riddled with viruses and wanting to “fix” it remotely. The caller uses technical jargon that may or may not sound convincing, depending on how much you know about computers. I had one of those a few years ago. I figured out the caller was trying to pull the wool over my eyes and hung up, but scammers like that have managed to rip off a lot of consumers with a bit less tech savvy.

Thanks to the Federal Trade Commission for shutting down one such operation. The FTC got two operators of a fake tech support scam to settle complaints and give up the money they made with the scheme.

Mikael Marczak of Virtual PC Solutions and Sanjay Agarwalla were among those charged in a series of six FTC complaints filed last September to protect consumers from online scams. The defendants reportedly pretended to be with major computer security and manufacturing companies in an effort to convince consumers their computers were infected with various malware.

In fact, they were not with those companies and had not detected anything about the consumers’ computers. Yet the defendants charged hundreds of dollars to remotely access and “repair” the computers.

In addition to the tech support scheme, FTC staff found that Marczak was telemarketing a debt relief program the FTC claimed violated the Telemarketing Sales Rule.

The final orders against Agarwalla and Marczak and Conquest Audit, prohibit Agarwalla and Marczak from “advertising, marketing, promoting, offering for sale or selling any computer security or computer related technical support service” and from assisting others in doing so. The orders also prohibit Marczak and Conquest Audit from marketing or selling debt relief services.

Agarwalla is required to pay $3,000 for the funds he received from the alleged scam operation. Marczak and Conquest Audit must pay $984,721, the total amount of money lost by consumers in the scams. According to the FTC, Marczak and Conquest Audit will not be able to pay the full amount, but will surrender almost all existing assets. Consumers affected by the debt-relief scams will also be notified of the order and will receive FTC information about how to settle credit card debts.

Litigation continues against the remaining defendants in each of the FTC actions.

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Looking for a place to rent? Don’t fall for Nigerian rental scam!

Posted on May 17, 2013 by

ID-100146153With rental properties in short supply in the Midland area, scammers are taking advantage. A consumer recently informed BBB that someone on Craigslist was trying to rent property that belonged to her. A prospective tenant forwarded her an e-mail message from the scammer who claimed to be a US citizen with a temporary “assignment” in Africa.

The consumer also reported that the scammer took the name of her previous tenant and was impersonating the tenant with a fake e-mail address.

Below is part of the correspondence between the prospective renter and the scammer:

Hello,

It gives me great joy to know that you have interest in my lovely house,its still very much available for rent and ready for immediate occupancy. I am sure you would be asking yourself why my rent is low, that’s because i am not too keen about the amount in renting the house out but to whom i am renting the house out to. My intention is to rent my house to someone that is responsible and be ready to take great care of the house as if it were his or hers. I am very certain that you would love the comfy of the house.

I would like you to know that i am giving this house out for rent because i have been posted to West Africa as an Pediatrician (kid’s doctor) and would spend couple of years before i would be through with my assignment here. So my family and i have decided that we would be moving to our other home in Seattle, Washington when we get back to the states,i would like you to complete the tenant application form below and please be honest with these details to enable us choose the right tenant.

The form includes an address, rental amount, description of the property and a questionnaire.

This is obviously the Nigerian rental scam that’s been going around for a while. A quick web search even found exact matches for entire sentences in the above letter from people reporting the scam. Versions of the scam differ, but people have reported being asked to wire money to someone via Western Union or another service to ensure that you’re not a “time waster” or as payment to have them ship the keys to the rental property.

If you send money to someone like this, you won’t have a place to rent, and you’ll have to scrape up more funds for a deposit when you do find a legitimate place.

BBB advises renters of the following red flags to look out for:

• The deal sounds too good to be true. Scammers often list a rental for a low price to lure in victims. Find out how comparable listings are priced, and if the rental comes in suspiciously low, walk away.

• The landlord is located elsewhere and prefers to communicate via e-mail. Scammers might say they have just been relocated out of the country for a job or missionary work – don’t believe it.

• The landlord requires a substantial deposit. Don’t pay any money before inspecting the home, inside and out.

• The landlord asks the renter to wire money. Money sent via wire transfer service is very difficult to retrieve and once the scammers have picked it up, there is little recourse. Your money is gone forever.

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What to do when choosing the right child care this summer

Posted on May 15, 2013 by

ID-100109912As the school year wraps up, many parents will start seeking child care for the summer. Better Business Bureau encourages parents start their search early and do the necessary research when looking for the right daycare:

  • Turn to an organization you can trust. Research any child care facility you are considering and look up its BBB Business Review at bbb.org. You can also turn to organizations such as the Texas Department of Family and Protective Services for information about child care centers and licensing requirements.
  • Visit each facility. Find out how the staff is selected and what their credentials are. Ask about safety procedures and how an accident might be handled. Also, don’t be afraid to ask if you can walk through the facility. Check the bathrooms, play centers, kitchens, playgrounds, etc. for cleanliness and any safety hazards.
  • Include your child in the visit. This will give you the opportunity to observe how your child behaves in the environment and around the teachers.
  • Ask for references. Ask other parents whose children are enrolled in the program to discuss their experiences. Consider visiting the facility when parents will be picking up their children to gather as much information on the daycare as possible.
  • Request the payment schedule in writing. Make sure the monthly cost is included as well as when payments are due. Check to see if there are additional fees incurred when a payment is late or missed. Also, check to see if you get reimbursed for days your child does not attend or days the facility closes.
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Don’t get bugged by the wrong pest control company

Posted on May 13, 2013 by

Spring has arrived and with it warmer weather and some rain showers. Unfortunately, the warmer temps can also bring more bugs.

BBB has some tips to help find a pest control company:

    • Research the company. Check any pest control company’s BBB Business Review at bbb.org before signing a contract. Look at the company’s rating, how it has responded to customer complaints and any advertising issues it may have.
    • Compare prices. Solicit bids from at least three different pest control companies before making a decision. BBB provides a free Request a Quote service to make it easier to gather estimates from local BBB Accredited Businesses.
    • Ask about safety. Because pesticides and pest control products could be dangerous to touch or inhale, be sure to ask the company about the safety of the chemicals they use. Let the company know if you have pets, children or sensitive plants as that may impact the products they select for your home.
    • Check for licensing and insurance. Make sure the company meets state licensing requirements by verifying with the Texas Department of Agriculture. Also, be sure to ask for proof of the company’s insurance and coverage for any potential property damage or personal liability.
    • Carefully review your contract. Be sure you fully understand the nature of the pest to be exterminated, the extent of the infestation, and the work necessary to solve the problem.

    To check the reliability of a company and find trustworthy businesses, visit bbb.org.

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Do your homework before signing up for work-at-home

Posted on May 10, 2013 by

scam imageBBB advises consumers to be cautious about work-at-home opportunities

The ability to work from home is an attractive proposition, especially when a company promises high income for little effort. But Better Business Bureau advises consumers to be careful about accepting these offers.

BBB received over 1,800 complaints about work-at-home businesses in 2012. The majority of consumer complaints alleged companies required them to pay up front for work-at-home opportunities and were promised income that never materialized.

Work-at-home schemes have been around for a long time. Traditional schemes such as envelope-stuffing are still around. A consumer recently forwarded to BBB a pay-upfront offer from Preston Lord Enterprises aka Maxwell Gates Enterprises, which was sued in 2011 by the New Jersey Attorney General. The lawsuit was part of “Operation Empty Promises,” a nationwide crackdown against work-at-home scams.

Digital age work-at-home scams are now commonly reported by consumers who respond to offers found on the Web or receive offers after signing up on job-hunting sites.

The Federal Bureau of Investigations warns that involvement in work-at-home schemes can make a consumer vulnerable to identity theft or unknowing involvement in criminal activity. The FBI breaks work-at-home scams down into the following basic categories:

• Advance-fee. Consumers are asked to invest money up front to pay for inventory, set-up or training materials. When the materials arrive and turn out to be worthless, the consumer is stuck with the bill.

• Counterfeit check “mystery shopper.” The consumer is sent a check and asked to deposit the funds, withdraw money to shop in local stores and wire part of the money to the employer, keeping a percentage. When the check turns out to be bogus, the consumer is left on the hook for the full amount.

• Pyramid schemes. The consumer is hired as a distributor and must pay large amounts for promotional materials and products such as pamphlets with little value. The consumer is promised income from recruiting more distributors. When the scheme falls apart, the only ones to make money are those who started the pyramid.

• International go-between. Criminals, often located overseas, sometimes involve unknowing victims to help them steal, launder money and remain anonymous. A criminal may offer to hire the consumer as a U.S.-based agent to receive and re-ship checks, merchandise and offers to other potential victims.

Austin-area resident Carolyn Reininger was excited when she was contacted after signing up online for work-at-home opportunities. It wasn’t long before her excitement turned to frustration and disappointment. The company offered to help her start a small credit-card processing business—for a fee.

Reininger paid $5,495 and was told the company would get her started by developing a list of businesses that needed third-party credit card processing. “They were supposed to work your leads,” she said. “They were going to work them and then give you the first 1,000 leads. They would get it started, help get your company established. The leads would help you contact companies that wanted this service.”

After Reininger noticed the company no longer seemed to be gathering leads, she began to call with questions and either got no response, or was encouraged to spend more money.
Reininger said she got a call from someone she said was touted as an expert who told her he could make anyone into a millionaire. “He wanted me to spend more money. I didn’t want to. He got kind of belligerent and then I never heard from them again.”

Perry Bird of Round Rock paid over $2,000 for a website advertising diet and nutrition products. He was told he would receive money for advertising based on traffic to the site. He said the income did not materialize and the company would not honor a promise to refund his money if he cancelled within 30 days.

Bird said after he bought the website, he could not get through to anyone with the company. “At first they wouldn’t take my calls,” he said. “Now they won’t answer the phone at all. They got $2,250 from me. I’m on a fixed income on Social Security Disability.”
Bird said after he sent his second payment via bank draft, he had second thoughts and the next day sent certified letters to two Phoenix, Arizona addresses saying he wanted to cancel. The letters were not accepted. “They said I could cancel within three days,” he said.

Before signing up for any work-at-home opportunity, BBB advises job hunters to:

• Start with trust. Check out any company at bbb.org to view their BBB Business Review free of charge. There you will find the company’s history of complaints and contact information. For a list of accredited businesses, go to checkbbb.org.

• Be skeptical. Beware of any offer that guarantees a lot of money for little effort and no experience. Thoroughly read the website’s terms and conditions, keeping in mind that a free trial could cost you in the end.

• Don’t be fooled by affiliation claims. Be wary of work-at-home offers that use logos from Google, Twitter or other popular online sites. Just because Google is in the name doesn’t mean the business is affiliated with Google.

• Check the domain. Research the website with Whois.net or a similar site for determining domain name ownership. Be cautious if the site is anonymous or individually registered.

• Beware of unexpected offers. If you receive a job offer without filling out an application, meeting with the business or being interviewed, it is probably a scam.

• Don’t pay up front. Being asked to make an advance payment to get on the ground floor of a big opportunity is a red flag, especially if it is a large payment or the company doesn’t provide much information about the deal. Handing your Social Security number or other personal information to suspicious sources could lead to identity theft.

• Don’t wire money. Being asked to wire money is a red flag. Scam artists often ask you to wire payments because they know you won’t be able to get the money back.

Update 5/24/13: BBB just learned of a scam involving bogus checks and wire transfers that serves as a perfect example of what can happen when you take a chance on a work-at-home scheme.

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FBI issues advisory about Microsoft Explorer 8 vulnerability

Posted on May 9, 2013 by

Better Business Bureau warns consumers and businesses about vulnerability to scams

Better Business Bureau is urging all consumers and businesses to pay close attention to a Cyber Security Advisory issued by the Federal Bureau of Investigation regarding a vulnerability in Microsoft’s Internet Explorer 8 browser (IE8) that could allow scammers to access and take over users’ computers. The risk for all users – home, business and government – is high, and BBB is urging anyone with IE8 to follow the recommended steps to address the problem.

The problem was first announced yesterday, and last night Microsoft released a temporary fix. Here is the original overview from the FBI:

“A vulnerability has been discovered in Microsoft’s web browser, Internet Explorer, which could allow an attacker to take complete control of an affected system. Exploitation may occur if a user visits or is redirected to a web page which is specifically crafted to take advantage of the vulnerability. Depending on the privileges associated with the user, an attacker could then install programs; view, change, or delete data; or create new accounts with full user rights. Failed exploit attempts may result in a denial-of-service condition.”

Microsoft today released a workaround which acts as a temporary fix. It is available at: https://support.microsoft.com/kb/2847140. The company is working on a patch to undo the vulnerability, which does not affect other versions of IE.

“BBB recommends that everyone with Internet Explorer 8 apply the temporary fix immediately,” said Ben Steinberg, Chief Information Officer of the Council of Better Business Bureaus. “If you are not sure which version you have, try running the fix. If you don’t have IE8, the fix will stop running and let you know that your system is not at risk. Microsoft will let you know when the patch is available, and you need to download that as soon as it is.”

To avoid being a victim of computer scams, the BBB provides this advice for online security:

• Develop a strong password. A strong password has letters, punctuation, symbols and numbers. A variety of characters makes the password better. Never use personal information such as your name, birthdate, driver’s license, social security number or similar information. Also, avoid sequences or repeated characters.

• Avoid Phishing e-mails. Phishing e-mails are a common way for hackers to get at your personal information or break into your computer. Do not respond to requests for financial information. Legitimate businesses do not request personal or financial information by email. Don’t click on any links or open any attachments to e-mails until you have confirmed that they are not malicious. Also beware of unsolicited e-mails from companies with which you have no association.

• Install virus detection. To help protect your computer from viruses, make sure you have virus detection software installed on your computer. This software can also help identify if a virus appears on your computer.

• Find a computer repair company you can trust. If you are concerned your computer may have been exposed to viruses, contact your service provider directly. Some providers offer free tools that can help detect and remove viruses. If your provider can’t fix the problem, go to checkbbb.org to find a BBB Accredited Business you can trust.

To check the reliability of a company and find trustworthy businesses, visit bbb.org.

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