The Better Business Bureau serving Northern Colorado and Wyoming has released its list of the Top 10 scams of 2011.
Employment/Job Scams
Secret shopper schemes, work-from-home scams and other phony job offers often begin with emails, websites and online applications followed by telephone interviews and requests to provide credit reports and bank information for direct deposit of paychecks. Of course, there is no job.
Sweepstakes/Lottery Scams
Sweepstakes and lottery scams come in all shapes and sizes, but the bottom line is almost always this: You’ve won a whole lot of money, and in order to claim it you have to send a smaller amount of money to cover fees and “taxes.”
Social Media Scams
Viral videos claiming to be sent by friends have links that prompt you to “upgrade your Flash player,” but the file actually contains a worm that logs into your social media account, sends similar messages to your friends, and searches for your personal data.
Home Improvement Scams
Traveling contractors offer homeowners great deals on roofing, paving or home repair but deliver shoddy work or take your money and run. Find a trustworthy home contractor at wynco.bbb.org.
Check Cashing Scams
A buyer sends a check for more than the amount and requests that the extra be returned via wire service. The check is phony and you lose the money you returned.
Phishing Scams
Phishing emails install viruses on your computer to hunt for personal financial data. They look like legitimate requests from your bank/insurance company/Internet provider to update account information as well as legitimate messages from well-known companies and brands (this year, even the BBB name was used in one such scam!).
Hotel Identity Theft Scams
In 2011, hotels began posting warnings in their lobbies to beware of phony middle-of-the-night calls to their rooms informing them of a hotel computer crash and that their credit card information is needed again.
Financial Scams
When the federal government expanded mortgage relief programs, sound-alike websites popped up to fool consumers. Most ask for an upfront fee to deal and almost all leave you in more debt than when you started.
Penny Auctions
Penny auctions claim you can get something useful - cameras, computers, etc. – for next to nothing. But you pay a small fee for each bid (usually 50 cents to $1) and if you aren’t the winner, you lose all the money you bid.
Advance-Fee Loan Scams
Online lenders promise loans, but then require an advance fee as “insurance” or “collateral” via wire transfer. After the money is wired, you’re told you don’t qualify and have no way to get your money back.
Start With Trust. For trustworthy consumer tips and information, visit wynco.bbb.org or call 970-484-1348 or 800-564-0371.