BBB of Southern Arizona
The Dirty Dozen -Worst Scams of 2006
Tucson, AZ-As Time Magazine brings you the Year in Photos and CNN presents the Year in Review, the Better Business Bureau® gives you the 2006 Dirty Dozen - a compilation of the year's worst scams in southern Arizona.
1) Identity Theft - According to the Federal Trade Commission (FTC), Arizona leads all 50 states in the number of identity theft cases. The Identity Theft Data Clearinghouse administered by the FTC reports that 9,320 identity theft complaints were filed by Arizona victims in 2005; just over 1,400 of those were Tucson residents.
Consumer Tip: Monitor your account statements monthly and check your credit report annually. If you suspect you are a victim of ID theft, contact the fraud departments of each of the three major credit bureaus and request a "fraud alert" be placed in your file, close the accounts that you believe have been tampered with, file a report with your local police and call the FTC Identity Theft Hotline: 877-IDTHEFT (438-4338.)
2) Lottery/Sweepstake Scams - The local BBB receives an average of two calls per day about these scams. Victims are informed they have won a large lottery prize or sweepstake, and are often sent a check for a few thousands dollars worth of the winnings. The "winners" are then asked to pay back a small portion to cover taxes or processing fees, before accessing their winnings. The victim sends money and never receives their winnings. Any checks sent by the bogus lottery company are fake or stolen.
Consumer Tip: Legitimate lotteries and sweepstakes contests will not require you to pay money in order to receive your prize. Do not respond to lottery or sweepstake scams, as responding to one solicitation typically opens the door to dozens more. To reduce unsolicited marketing offers from organizations that belong to the Direct Marketing Association visit www.dmaconsumers.org to register with DMA's Do-Not-Contact service.
3) Bogus Checks/Overpayment Schemes - In this scam, fraudsters typically target people selling a product via classified ads or online bulletin boards. These cons send a check for a product or service for more than the negotiated price, then request that the seller deposit the money and return the excess funds. The original check is typically stolen or fake, and by the time the victim has cashed and returned excess funds the thief has disappeared with the money and the product.
Consumer Tip: Never accept payment for more than your selling price and never agree to refund excess money to an unknown buyer. When accepting a check from a stranger hold the product and the money in your account until the check officially clears at the bank.
4) Internet Fraud - Beware of fake websites, emails (phishing scams) and VoIP phone calls (vishing scams) from scam artists pretending to be legitimate businesses, asking for your personal or banking information. Also beware of sellers from online auctions that try to lure you outside the security of the online auction site, or who ask you to download programs (usually viruses or password stealing software) in order to do transactions with them.
Consumer Tip: Only enter personal or credit card information on secured websites. Look for the letter "s" (https://) and for an unbroken padlock symbol to determine if the site is secured. Check for the BBBOnline Reliability Seal on each website. Never download programs to your computer from unknown sources.
5) Health, Beauty & Fitness Claims - Fraudulent health treatment claims are a growing concern in the marketplace. Beware of advertisements promising "rapid & effortless weight-loss," "miracle cures," or "newly discovered" treatments for disease, illness, hair loss etc.
Consumer Tip: Before buying any treatment or medication or joining any health and fitness program, consult your physician, pharmacist or other health care professional. Before signing any contract take the time to read the fine print and ensure you understand your obligations and the cancellation or refund policy. For more information about contracts and consumer rights visit the FTC at www.ftc.gov and click on "consumer information."
6) Affinity Fraud - Scam artists target religious, ethnic or close-knit community groups by gaining trust and encouraging group members to invest their money in fake investment opportunities that promise guaranteed high returns, tax breaks and no financial risks.
Consumer Tip: Before investing your money, do your research. Check with the Corporations Commission, www.cc.state.az.us, 520-628-6560 to make sure your investment advisor is properly licensed.
7) Money Wiring Scams - Widely known as the "Nigerian Letter Scam" cons develop a variety of sad stories and reasons they need you to wire them money. Victims are contacted via phone, mail, email and fax and asked to wire money to the fraudster, who promises to return the money with interest. Once the money is wired, however the thief disappears and the money is untraceable.
Consumer Tip: Never wire money or give out personal or banking information to strangers. If you need to transfer money for the purposes of a transaction, consider using a legitimate escrow or legal service to hold your money until goods or services have been received.
8) Home Repair Rip-Offs - The contracting industry is plagued with fly-by-night scam artists that show up on your doorstep offering to do house and yard work for exorbitant fees - particularly after a damaging monsoon season. Home repair rip-off artists typically request that you pay fees up front before the work is completed, refuse to provide a written receipt and complete work poorly. Watch out for companies that knock on your door offering to do work.
Consumer Tip: When you need work completed around your home get estimates from a minimum of three contractors who have permanent addresses in your area. Visit www.tucson.bbb.org or call 888-5353 to check out each company's Reliability Report and check with the Arizona Registrar of Contractors, www.azroc.gov before agreeing to do business.
9) Bogus Charities - Scam artists pretending to represent a charity often contact victims by phone or show up on the door step during the same fundraising cycles (such as the holidays) as legitimate charities. Watch out for bogus charities with names that sound like legitimate ones.
Consumer Tip: Ask all fundraisers for their name, the charity name and their contact information before considering a donation. Ask how much of your donation actually goes to the program. Check with the Arizona Secretary of State at www.azsos.gov, 628-6583 for a list of registered charities in Arizona.
10) Unscrupulous Moving Practices - The BBB of Southern Arizona has taken 4,714 inquiries and 47 complaints against moving companies this year; 55 percent of those were settled. Over half of the complaints regarded customer service. Consumers should beware of moving companies that have hidden service fees, provide low estimates then charge more at the time of delivery or that hold your goods hostage until you pay extra in cash.
Consumer Tip: Before hiring a moving company, have them provide a detailed estimate in writing and request a firm quote. Check the company out with the BBB at www.tucson.bbb.org, 888-5353. Find out what protection the company will provide in the case of damaged or missing items and make sure this information is included in your written agreement.
11) Resort Vacation Promotions - The Tucson BBB has processed 143 complaints and taken 545 inquiries about this industry to date this year. Over half of complaints are from consumers who find it nearly impossible to get a refund of the "good will" deposit when travel cannot be scheduled. These free or low cost exotic vacation packages or prizes almost always come with hidden costs and several hours of high pressure sales meetings.
Consumer Tip: Don't sign up for any vacation package promotion without knowing what you are really getting into. Ask lots of questions about the actual costs, insurance coverage and sales seminar requirements. Get the details in writing before you commit to the vacation.
12) Directory Scams - In these scams businesses are typically invited to submit their company contact information for an online business directory and for distribution on CD-Rom. By submitting their contact information the business has unintentionally committed to paying an exorbitant advertising fee, usually hundreds of dollars, to be listed in a directory that is hardly used and is often only distributed to other advertisers or not at all.
Consumer Tip: Read the fine print before giving out business information and before signing any document. Never give business information over the phone to a solicitor you aren't familiar with and always ask them to send you the information in writing. Check your phone bill regularly for charges you may not be aware of.
The BBB is an independent, non-profit organization supported by businesses and program fees. The BBB promotes truth in advertising and fair business practices through voluntary self-regulation. BBB services include reliability reports on businesses; lists of members; consumer alerts and tips; complaint processing; arbitration; and advertising review. The BBB of Southern Arizona serves Pima, Cochise, Santa Cruz, Graham & Greenlee Counties in Arizona, and the state of Sonora, Mexico.