Archive for the ‘Better Business Bureau’ Category

With unemployment up, and schools across the area out for the summer, job seekers are turning their heads online to search for employment. The Better Business Bureau warns, while that jobs you find online may sound tempting, they could be a scam!

A local woman contacted the BBB after she was offered an employment opportunity through the popular online auction site, Craigslist. The “employer,” a man using the name Robert Filter, was looking for a personal assistant. Filter, who claimed to operate a family farm, and have other investments and businesses in real estate and as a private lender, was offering $500/week after taxes for the job. The local woman knew something was wrong when she received a $3,900 check via UPS and was told to cash the check, keep $500, wire transfer $3,000 to a person in New York, and use the remaining $400 for transfers and transportation costs. The “employer” said this wire was meant for “plans for his daughter’s birthday, so treat it with all importance.”

The BBB is warning all job seekers to be cautious when looking for employment online. In the situation with the Louisville woman, the “employer” displayed the most commonly used tactic in online employment scams.

The payment-forwarding/payment-transfer/fake check scams. In this scenario, the scammer pretends to be an employer and sends a fake check to the employee. Like the Louisville woman, the employee is asked to cash the check, keep part of the money as payment, and forward or transfer the money through Western Union. Later, the employee finds out the check was fake and owes the bank the money. Often, in this scam, the employer uses ploys to request the job seeker’s bank account information. They may tell job seekers it’s needed to deliver their pay check by “direct deposit.”

The BBB warns of other commonly used schemes that scammers are using in online employment scams:

The Personal Invitation – These are often ploys to garner personal data. The sender claims to have seen your resume on the Internet, notes that your skills match the requirements for their job, and invites you to complete an online job application.

The ID verification scenario – If a company requests information on, or copies of your driver’s license, passport, bank account or credit card numbers, mother’s maiden name, or your Social Security number to “verify” your identity during the interview/application process, you could be at risk for identity theft. Legitimate companies do not request this information prior to an interview.

The inside scoop on Federal jobs. All federal government positions are publicly announced and federal agencies never charge application fees or guarantee that an applicant will be hired. Avoid websites that promise, possibly for a fee, to give you the inside scoop on how to get a Federal or Postal Service job.

Opportunities abroad. Tempting, but only exploit a person’s desires and provide no real opportunities in exchange for money or personal information.  Legitimate businesses will not ask for money up front; use post office boxes, instead of office addresses; make promises of employment and guarantees of refunds; or charge fees for giving you a job lead.

The Better Business Bureau encourages checking a company’s Reliability Report and complaint record for free at www.bbb.org before sending any money or personal information when seeking employment. There are a variety of free and low-cost resources available to help you in your job search, including local and state government job service offices, libraries, universities and community colleges.

For additional information on how to protect yourself from online scams, visit www.bbb.org or call 1-800-388-2222.

In the wake of any disaster, many reach for their checkbooks and donate money to organizations. But, with any disaster are a slew of scams. In the wake of the oil spill, the BBB Wise Giving Alliance cautions consumers to beware that scammers will use e-mails, websites, door-to-door collections, flyers, mailings, and telephone calls to make contact and solicit money. Some will claim they are raising money for environmental causes or they may offer fraudulent services like remediation services related to the oil spill. BBB Wise Giving Alliance recommends that donors and volunteers consider the following:

• Beware of well-intentioned but inexperienced organizations – New non-profits and relief organizations spring up following any major disaster. While these groups might have the best of intentions, new charities responding to a crisis may lack the resources, experience and management needed to be effective. Ideally, look for established organizations with environmental expertise or experience aiding Gulf communities.

• Understand where your money is going – Find out how the organization plans to spend funds for Gulf relief, ecosystem recovery and related activities. Among the activities that charities are promoting, in addition to shoreline rescue and protection, are needs assessment, litigation, economic relief, advocacy for new governmental energy policies and research into long-term solutions to minimize effects of future disasters.  Ask whether the organization offers to restrict your donation for use in its Gulf-related activities or intends to use it for general support for all of its programs.

• Rely on expert opinion when it comes to evaluating a charity – Be cautious when relying on third-party recommendations posted on blogs or web sites, as the authors might not have fully researched the organizations they list.  The public can go to www.bbb.org/charity to research charities to verify that they are accredited by the BBB and meet the BBB’s 20 Standards for Charity Accountability.

• Find out if the charity is doing Gulf-related work or raising funds for other Gulf relief organizations – If a charity is raising money for other groups, you may want to consider “avoiding the middleman” and giving directly to those performing the work. Research ultimate recipients of the “middleman’s” donations to ensure that these organizations are equipped to do the job you want to support and are aware of the individual or organization soliciting on its behalf.

• Volunteering for Gulf clean-up may require special skills or training – Learn what qualifications are necessary before setting off for the site. If you’re looking to get your hands dirty, you’re out of luck unless you’re certified to handle hazardous materials or have received training to care for injured wildlife. In fact, Gulf residents are being told not to handle any tar balls that wash up on the beach or animals that might be affected by the spill. Other volunteer opportunities may include shoreline monitoring, fund raising, office work, help in food programs for families in need and providing transportation. Numerous charities with volunteer programs ask that you register with them so that they can assess your skills and place you appropriately when openings arise.

• There will be many opportunities to give, so keep checking – The Gulf region will be suffering from the effects of the oil spill for years to come and, as the situation unfolds, there will be more opportunities for donors to step in and help in the future. If you can’t find a cause you can get behind right now, plan to revisit the possibility of making a donation or volunteering in the months to come.

BBB Wise Giving Alliance has compiled a list of nationally soliciting charities which meet BBB standards that are asking for donations and volunteers for the Gulf effort. More information and charity evaluations are available at www.bbb.org/charity.

Late last month, the Federal Trade Commission (FTC) began mailing more than 34,000 checks to consumers who lost money in cross-border fraud schemes involving payments made via wire through MoneyGram International, Inc.

Better Business Bureau’s across the country are receiving inquiries from the public as to the validity of these checks. They are legitimate checks and the FTC urges consumers who receive them to cash them within 60 days. As a reminder, the FTC never requires a payment of money up-front or the provision of additional information from consumers before the checks can be cashed as issued.

The checks are part of an $18 million dollar settlement agreement reached between MoneyGram and the FTC. In October 2009, the FTC charged that MoneyGram allowed its money transfer system to be used by fraudulent telemarketers to bilk U.S. consumers out of tens of millions of dollars – after these consumers were falsely told by con artists they had won a lottery, were hired for a secret shopper program, or would receive loans for an advance fee.

A press release describing the FTC complaint and the settlement agreement with MoneyGram can be found at: http://www.ftc.gov/opa/2009/10/moneygram.shtm.

The redress checks being issued to consumers average $520. The checks are being sent to U.S. consumers who complained directly to MoneyGram about their fraud-induced money transfers within the United States to Canada. However, consumers who were tricked into wiring funds by fraudulent telemarketers and didn’t file complaints might still be eligible for proceeds from the settlement. The redress program covers consumers whose transfers were made between the years 2004 through 2008. Consumers who have questions about the settlement can call the claims administrator at 1-877-740-6993.

If you received a letter from Our Lady of Peace notifying you of an “unfortunate incident where a flash drive containing personal information went missing,” the letter is legitimate. Personal information could have been compromised. The organization recommends contacting at least one of the credit reporting bureaus to place a fraud alert on your credit report.

Oil Spill Fraud - Beware of scams surrounding the Gulf of Mexico oil spill. The scams could involve individuals who claim to be raising money for environmental causes. Solicitations can come from emails, websites, and door-to-door. The FBI has a fraud tip line for information from the public on suspected fraud associated with the oil spill. Call (866) 720-5721. Emails can be sent to disaster@leo.gov.

Beware of healthcare-related scams! Complaints continue to rise against fake coverage” and medical discount plans. There are also scams surrounding the new healthcare reform bill. Consumers should confirm the company is licensed with the state insurance commissioner, read all fine print, recognize the difference between insurance and discount medical cards, and always research the company with the BBB at www.bbb.org.

U.S. Fidelis, which also operates as National Auto Warranty Services, is being sued by the Pennsylvania Attorney General for allegedly using “deceptive, misleading or false information” when selling car owners warranties across the country. The company filed for bankruptcy protection in March and reportedly stopped selling car warranties last year. The company is also accused of disregarding the “Do Not Call” law. The company has an “F” rating with the BBB.

Summer Camp – BBB recommends parents to do their homework on summer camps for their kids before they submit applications. Be sure to visit the site, ask about the staff’s training and experience, and find out how the camp will handle medical emergencies. Parents should also find out the total fees and payment deadlines, and ask for references.

It looks like a government notice, but a yellow postcard stamped “2010 Senior Income Tax Update” is apparently a marketing ploy used by Texas company, Acc-U-Lead, that collects the information and sells it to other businesses looking for leads to sell insurance annuities. The company has an “F” rating with BBB for not responding to several complaints. Be wary of giving anyone your personal information through the mail, email or over the phone.

This month, Census takers start knocking on doors of households that did not return their census forms through the mail. BBB warns, beware of census scammers who may ask for your social security number, credit card, or bank account information. Legitimate census workers will carry official government badges marked with just their name, they may also have a “U.S. Census Bureau” bag, and will provide you with supervisor contact information and/or the local census office phone number for verification.

Scam Calls – BBB wants to remind consumers NOT to share personal information, including social security, checking account, or credit card numbers over the phone with someone you do not know. BBB is receiving many reports from consumers who say they have been contacted by someone they don’t know who is asking for their information, for several purposes including lowering interest rates on credit cards, healthcare, gift cards, and more.

Flood Repairs - Property owners in need of repairs after the recent floods should carefully check out companies before hiring them. A home repair rip-off artist may overcharge, perform shoddy work, or skip town without finishing your job. BBB Tips: Deal with licensed and insured contractors only, take your time signing a contract, resist hiring a contractor who asks you to pay for the entire job up front, and check with the BBB to see if complaints have been filed against the contractor.

Help4Troops is a work-at-home shipping scam that claims to help American troops overseas. Shippers are told to accumulate a number of small packages at their home then consolidate them into a larger box to ship. Help4Troops promises each volunteer a salary of $20 per package shipped, and requests personal banking information in order to deliver these payments via check, wire, or money transfer. BBB has confirmed Help4Troops is not located at its listed address in Spring Green, Wisconsin.

Loved ones who plan to send flowers for Mother’s Day should beware of “petal pushers.” These unscrupulous florists place bogus listings in local phone directories. When you call the local number listed, or given to you by the operator, you’re unknowingly forwarded to an out-of-town telemarketing company. The telemarketer takes your order and credit card information, and then forwards your order to an area florist. The telemarketer pockets a processing fee and usually a percentage of the total order. You don’t know you’ve been scammed until you learn you’ve been charged more than you planned, then the flowers aren’t delivered as ordered or worse — not delivered at all.

Here are some tips from the BBB so you don’t get duped by petal pushers:

• Ask family and friends for referrals to a florist they have used.
• Check to see if a florist is a BBB Accredited Businesses at www.bbb.org.
• If you find a florist from the phone book, look for a listing that includes a local address. When you call, ask for the directions to the store – if they hesitate or refuse, hang up.
• Visiting the shop is another way to determine if the florist is reputable. Check the quality of the flowers and the overall quality of the business.
• You can also ask for a guarantee. Most professional florists should have one.

For more tips, go to www.bbb.org or call 1-800-388-2222.

Better Business Bureau is warning business to beware of a new malicious e-mail that pretends to be from BBB about a complaint filed against the company.

Several businesses in the Louisville area, and across the US – including law firms, advertising agencies and architecture firms – have reported receiving a suspicious e-mail from the address seatac@bbb.org with the subject line “BBB Complaint Case #” followed by a nine-digit number. BBB Accredited and non-Accredited businesses have been targeted.

The body of the e-mail claims that the company did not respond to a complaint filed by a Jason Harlow (however other names may be used) and includes a link to a page at www.ca-bbb.org where the business can supposedly review the complaint.

Because the message is fraudulent, BBB advises any business that receives this e-mail to take the following steps:

• Do not click on any links or reply to the message,
• Forward the message to phishing@council.bbb.org,
• Completely delete the message from your inbox, and
• Run a full virus scan on your computer if you did click on any links.

If you receive an e-mail from Better Business Bureau about a complaint filed against your business and need assistance in determining whether or not it is legitimate, contact your local BBB directly at www.louisville.bbb.org or call 1-800-388-2222.

For more advice on how to protect your business from malicious online attacks and data breaches visit www.bbb.org/data-security/.

A copy of the actual email follows:

Insurance Scams – Scam artists are taking advantage of consumers’ confusion over the new government health care reform law. Scam artists are going door-to-door, telling consumers there’s a limited open enrollment period to buy health insurance now, and they are selling the consumer fake insurance. Other scam artists are setting up toll-free lines.

Trustnet Financial Company is sending letters to local consumers stating they’ve won a “Consumer Promotion Draw.” The company, which claims to have a Louisville address, sends a check that the “lucky winner” is supposed to deposit, then wire part of the money back to the company for taxes in order to claim the prize. The “winner” never receives the prize and is out the “tax money.”

Exclusive Media Services – has an “F” rating with the BBB. Consumers say the company, which also does business as National Publishers, is claiming membership or affiliation with the BBB. They say the company is also using the names of Publishers Clearing House and other sweepstakes companies. The company is not affiliated with the BBB. Consumers say they receive calls from the company informing them they’ve won sweepstakes for cash prizes or items, but that they must purchase magazine subscriptions to win.

Internet Auto Sales Scam – Be careful when shopping online for a vehicle! Be sure you are buying from a company that you can trust. Consumers report a scam that is erupting, that is misusing company names like Spirit Motor Car, Kiki Motors, and Extreme Motorcars. The scam artist asks the buyer to send a deposit for the vehicle via Moneygram, usually for $2,000 – $3,000 and the car will be delivered in 5 days. The buyer is out the money and never receives the car.

Air Passenger Rights – New rules go into effect later this month to protect air travelers. Among the new rules: Airlines will be required to acknowledge customer complaints within 30 days and address the issue within 60 days. Also, airlines can be penalized for any domestic flight that is more than 30 minutes late on at least half its trips each month for four months in a row. For more information on the new rules, go to www.regulations.gov.

2010 Census – If you didn’t fill out your census form, you will soon be contacted by a census worker. BBB wants to remind consumers that census workers will never ask for donations, bank account, Social Security, or credit card numbers. The Census Bureau may contact you by mail or phone, but will never send an unsolicited email requesting personal information.

Facebook Scam – Facebook users are being targeted in another scam. An email, that appears to be from Facebook, says that the user’s FB password has been reset and the user should download an attachment that contains the new password. The attachment is actually a Trojan horse program, which infects a computer without any visible signs. It can steal passwords from your computer.

iPad Scams – Scam artists are taking advantage of the popularity of the new iPad by sending out spam emails requesting product testers for the iPad. The victims are told they can keep the iPad at the end of the test. The scam artists are after personal information. Other iPad scams involve ads on social networking sites. BBB recommends consumers who want to buy an iPad shop through an authorized dealer or directly with Apple.

Look out for Irish Travelers! These would-be construction workers, who take thousands of dollars from victims who pay them up front for painting, paving, roofing, or other small construction jobs are on the move. BBB recommends consumers not to deal with these types of solicitors, who often have out-of-town license plates and unmarked vehicles.

Managing Credit – Made Simpler – BBB has partnered with Capital One to create a unique set of free resources to help consumers learn how to effectively manage credit. The program provides tailored advice for different types of credit cardholders – including young adults who are new to credit and consumers who may be looking to pay down high balances.

For more information: www.bbb.org/credit-management/.

BBB and Capital One Partner to Help Cardholders Manage Credit Wisely

Managing Credit – Made Simpler offers tailored advice and easy-to-follow tips online for free

April is Financial Literacy Month and Better Business Bureau and Capital One Financial Corp. have partnered to create a unique set of free resources to help consumers learn how to effectively manage credit.  Recognizing that not every credit cardholder is the same, the new “Managing Credit – Made Simpler” (www.bbb.org/credit-management/) provides tailored advice for different types of credit cardholders – including young adults who are new to credit and consumers who may be looking to pay down high balances.

“Faced with the realities of the economic downturn, millions of Americans have been taking a second look at their finances, including examining their spending habits and how they are using credit,” said Stephen A. Cox, President and CEO, Council of Better Business Bureaus. “Regularly examining your finances including how and why you use credit is important. BBB’s Managing Credit – Made Simpler provides easy-to-follow tips, checklists, and advice that can help consumers better understand and successfully manage their credit.”

“Used wisely, credit can be an invaluable tool,” said Shelley Solheim, Director of Financial Education, Capital One.  “Armed with basic information about credit, including understanding of the agreements they are entering into and knowing what’s expected of individual cardholders, consumers can make better choices about how they’re using their cards. Our goal is to help consumers establish good credit habits and empower them to take control of their personal finances.”

Most credit card users understand the need to manage credit effectively, however there is no “One Size Fits All” answer about how to do it. The needs and perspectives of credit users differ based on their level of experience with credit and how they use it.  Managing Credit – Made Simpler provides targeted advice for:

• Consumers interested in securing their first credit card or managing a personal credit line for the first time
• Cardholders who recognize they need long-term guidance on managing their credit efficiently.
• Cardholders who face mounting bills and need advice on how to pay down high balances efficiently.

BBB and Capital One created Managing Credit – Made Simpler to give customized credit management guidance to different types of credit users, based on their specific needs and perspectives. Credit users can self-select the version that fits their needs best:  “New to Credit,” “Balancing Act,” “Overwhelming Obligations”. Topics include strategies to pay off balances faster, how to improve your credit score, reputable resources to get help now, five ways to find more cash and fraud prevention guidelines.

All of the resources and guidance made available through Managing Credit – Made Simpler can be found online for free at www.bbb.org/credit-management/.

BBB warns basketball fans who want to follow the University of Louisville or Kentucky Wildcats along the road to the NCAA Final Four should use caution in order to avoid con artists when buying tickets and travel packages.

Fans could find it difficult to get tickets, and may be tempted by the secondary market, where tickets always pop up. The BBB warns fans to be careful if buying tickets from individuals online or from unfamiliar sources. If buying tickets from a brokerage, check the company’s BBB reliability report. If people buy from scalpers, or from individuals through classified ads or on the internet, BBB warns they are taking a big chance.  The tickets could turn out fake, and there isn’t anything a fan can do about it.

BBB also warns to be sure you are getting what you pay for when it comes to travel packages throughout the tournament. Check out the travel planner with the BBB. Be sure to verify reservations made in your name so that there are no surprises when you arrive. Find out what the cancellation or refund policies are in case you cannot go.

The BBB has these tips for fans who want to follow the teams:

• Use secure websites for online transactions. When buying tickets or making hotel and travel reservations on line, look for a padlock on the page, and the letter “s” in the URL (web address box) after the “http.” Example: https://www.xyz.com. Unsecure sites will only show http://… If neither is present, the site is not secure and your credit card or bank account information may not be safe.

• If buying online, beware of sellers leading you away from secure, reliable transaction methods such as PayPal or those who discourage using credit cards. If you use a credit card and something goes wrong, you can try to dispute the charge with the credit card provider. Beware of sellers that want you to wire money via Western Union – there is no way to trace the cash if something goes wrong.

• Buy at your own risk. You are better off buying from a reliable source. If you buy tickets from unfamiliar sources or scalpers, there is no guarantee that they will be legitimate. (Scalping laws vary from state to state.)

Remember, if a deal sounds too good to be true, it usually is. Check out companies with the BBB at www.bbb.org or call 1-800-388-2222.

High school students and their parents are often concerned about upcoming college expenses. The Better Business Bureau urges students and parents to be cautious regarding offers from scholarship services and organizations that require upfront fees to apply for or search for scholarships.
 
A local consumer says his son was contacted by Edifi-College Financial Aid Services. The company has an “F” rating with the BBB. The company says it assists clients in planning for college. Edifi mails prospective college students a letter advising them they have been selected for a personal interview. Students who call for the interview are scheduled for a financial aid seminar along with other students and parents. At the seminar, parents are given the option to purchase services at a charge of approximately $900. The company’s primary service is assistance filling out financial aid forms. For a complete report on the company, go to http://www.bbb.org/upstate-new-york/business-reviews/scholarships-and-financial-aid/edifi-college-financial-aid-services-in-albany-ny-24001253/.
 
 
There are varieties of scholarship scams. Here is what to look out for:
 
1.      Scholarship search organizations often fail to make good on promises.  In exchange for upfront fees, students may receive lists of possible scholarship sources but, in most cases, the organization does not assist students in obtaining the listed scholarships. In other instances, individuals never hear from the organization after paying the fee and supplying all requested information. Typically, scholarship search services send mailings to schedule “interviews,” usually targeting parents of high school students. These “interviews,” usually at a local hotel, are little more than sales pitches for scholarship information services costing $900 or more. Almost always, any information provided by these services is available free from other sources.
2.      Advance fee scholarship applications require an upfront fee to apply for a scholarship but, in some cases, the organization refuses to provide documentation that any scholarships are awarded. If you check the company, you’ll often learn that it has a bad record with the BBB. The companies will often collect application fees, but award no scholarship. 
Obtaining free scholarship information can begin with high school counseling offices, college financial aid offices, and research at public libraries, bookstores, or on the Internet. Consider all available options, including federal, state, and local aid programs, financial institutions’ loan plans; and a wide variety of scholarships, fellowships, or other programs offered by colleges. Many reputable and well-known private organizations and businesses also offer scholarships to students. 
Individuals interested in using a scholarship service are urged to investigate the background of a company using the Better Business Bureau’s website, www.bbb.org, or by calling the BBB at (502) 583-6546 or 1-800-388-2222 for a reliability report. Ask the company to put details of its services and promises in writing, including the refund policy. Finally, be suspicious of “guaranteed offers.” Any guarantee that “you will win a scholarship” or “your money back if not satisfied” is as good as the organization behind the guarantee. So even with a guarantee, it’s important to know that you are dealing with a reputable and reliable organization.