Better Business Bureau

Transcription

1 Better Business Bureau 1

2 Who We Are & Our Vision BBB is an unbiased non-profit organization that sets and upholds high standards for fair and honest business behavior. For more than 100 years, Better Business Bureau has been helping consumers find businesses, brands and charities they can trust. Better Business Bureau Serving Central Ohio is one of over 100 local, independent BBBs across North America that provide free services to consumers and businesses within its service area. An ethical marketplace where buyers and sellers can trust each other. 2

3 BBB Scam Tracker 3

4 Scam Tracker In response to a loss of $50 billion a year to scams, with a grant from Target, BBB launched Scam Tracker in the fall of In 2016, more than 32,000 reports were submitted to BBB Scam Tracker, an average of about one report every 15 minutes. About half of those who report scams are motivated by the desire to make a difference by warning others. 4

5 Scam Tracker 2016 The median dollar Loss was $274 The top means of contact was phone 23% The top method of payment was credit card 34% Top 3 dollars losses reported: Romance, Family/friend er and Investment scams. Top 3 Most Risky Scam Types Age 55-64: Home Improvement, Travel/vacations and Fake Check/Money Orders Age 65+: Family/Friend ER, Sweepstakes and Travel/vacations Gender Differences Females average loss is $249: online purchase, home improvement and fake check/money order Males average loss is $361: investment, home improvement and advance fee loan In the Midwest the riskiest scam is Employment with an average loss of $231 Military families and Veterans lost 35% more than non-military w/an average loss of $350. They are a favorite target of scammers for their steady paycheck. 5

6 Top 10 Most Riskiest Scams Home Improvement $1,400 Males age 55-64, check Fakecheck/money order $1,471 Males age 18-24, check Employment $671 Males age 25-34, check Online Purchases $101 Females age 18-24, credit card Advance Fee Loan $510 Males age 18-24, credit card Investment $1,800 Males age 55-64, wire transfer Romance $2,373 Males age 45-54, wire transfer Tech Support $299 Females age credit card Family/Friend Er $2,174 Males age 65+ wire transfer Sweepstakes $500 Females age wire transfer 6

7 Top Scams Tax Scam = Someone calls from the IRS [CRA in Canada] and says you owe back taxes and will be arrested or face legal consequences if you don t pay. Tech Support Scam = You re contacted by a technician or you get a pop up security alert on your computer saying it has a virus or a security threat. But- good News! the tech can fix the problem, for a fee. In reality, the tech is likely a hacker trying to steal your money or computer passwords or even trying to damage your computer with malware. Lottery/Sweepstakes/Prizes Scam = You won!!! But you need to send money for delivery, processing or insurance costs. You should never have to pay money to claim a prize you have won. Advance Fee Loan Scam = You complete a loan application online and are told you need to send a processing fee, security deposit or insurance in order to get the money (which never comes). Fake Check Scam = Someone paid you for something and sent a check for more than what was owed. You re told to deposit it and wire the difference. Turns out the check is fake and you re on the hook. Debt Collection Scam = You get a call saying you haven t paid a debt and will face garnishment, a lawsuit and maybe jail if you don t pay up pronto. Often, the crook pretends to be with the government or law enforcement. 7

8 Top Scams Credit Card Scam = It s supposedly your bank or credit card issuer (actually it isn t) saying: Congratulations, you re now eligible for a lower interest rate! Or, perhaps, the institution needs to verify a recent transaction. You provide your credit card number and security code and the scammer is off to the races. Home Improvement Scam = A bogus contractor offers to fix what s wrong, as long as you pay a lot upfront. That s the last time you see the person. Government Grant Scam = You get a call or an or a letter saying you ve qualified for a government grant. You just need to send money for the processing or delivery fee. Often, you re told to do so through wire transfer or prepaid debit card. Work-from-Home Scam = After answering the online ad for the alluring job, you have to pay an advance fee for the information and materials. You could be scammed because you send the money and there s no work opportunity. Or your identity might be stolen after you complete the employment forms. Work-from-Home Scam = After answering the online ad for the alluring job, you have to pay an advance fee for the information and materials. You could be scammed because you send the money and there s no work opportunity. Or your identity might be stolen after you complete the employment forms. Romance Scam = Not everyone using online dating sites is looking for love. Scammers create fake online profiles using photos of other people even stolen pictures of real military personnel. They profess their love quickly. And they tug at your heartstrings with made-up stories about how they need money for emergencies, hospital bills, or travel. Why all of the tricks? They re looking to steal your money Online Purchase Scam = The victim usually purchases an item online but never receives it, and is unable to receive a refund. This occurs when consumers are shopping on fraudulent sites. Rental Scam = Scammers post on sites that offer free listings to steal consumer s money and personal information. Scammers post a listing for a fake property, stealing real picture to make it look legitimate. They ll ask you to wire money for rent or a security deposit but aren t able to show you the property. Don t wire money or pay using a prepaid debit card, watch out for deals that sound too good to be true, and make sure to see the property in person. 8

9 Why Scams Work & What You Can Do They use the same techniques as legitimate sales professionals Establish a Connection Source Credibility Technology can make them look legitimate Play on your emotions Don t be pressured into making fast decisions Take time to research the offer or organization Never provide your personal information Don t click on links Call the business directly Never wire money or pay with gift cards 9

10 10 Steps to Avoid Fraud 1. Spot imposters. Scammers pretend to be someone you trust, government officials, family members, a charity, or a company you do business with. Don t send money or give out personal information in response to an unexpected request whether it comes as a text, a phone call, or an Do online searches. Type a company or product name into your favorite search engine with words like review, complaint or scam. Or search for a phrase describing your situation, like IRS call. You can even search for phone numbers to see if other people have reported them as scams. 3. Don t believe your caller ID. Technology makes it easy for scammers to fake caller ID information, so the name and number you see aren t always real. If someone calls asking for money or personal information, hang up. If you think the caller might be telling the truth, call back to a number you know is genuine. 4. Don t pay upfront for a promise. Someone might ask you to pay in advance for things like debt relief, credit/ loan offers, mortgage assistance, or a job. They might say you ve won a prize, but first you have to pay taxes/fees. If you do, they will probably take the money and disappear. 10

11 10 Steps to Avoid Fraud 5. Consider how you pay. Credit cards have significant fraud protection built in, but some payment methods don t. Wiring money through services like Western Union or MoneyGram is risky because it s nearly impossible to get your money back. That s also true for reloadable cards like MoneyPak, Reloadit, itunes or Vanilla. Government offices and honest companies won t require you to use these payment methods. 6. Talk to someone. Before you give up your money or personal information, talk to someone you trust. Con artists want you to make decisions in a hurry. They might even threaten you. Slow down, check out the story, do an online search, consult an expert or just tell a friend. 7. Hang up on robocalls. If you answer the phone and hear a recorded sales pitch, hang up and report it to BBB and FTC. These calls are illegal, and often the products are bogus. Don t press 1 to speak to a person or to be taken off the list. That may lead to more calls. 8. Be skeptical about free trial offers. Some companies use free trials to sign you up for products and bill you every month until you cancel. Before you agree to a free trial, research the company and read the cancellation policy. And always review your monthly statements for charges you don t recognize. 11

12 10 Steps to Avoid Fraud 9. Don t deposit a check and wire money back. By law, banks must make funds from deposited checks available within days, but uncovering a fake check can take weeks. If a check you deposit turns out to be a fake, you re responsible for repaying the bank. 10. Sign up for free scam alerts. Get the latest tips and advice about scams sent right to your inbox. BBB at FTC at ftc.gov/scams Thank You