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AJC.com > Metro > View from the cop > Archives > 2008 > February > 14
Thursday, February 14, 2008
Revisiting old scams
The Atlanta Journal-Constitution
Ah yes, the age of technology is great. We can sit on our duffs and cruise the world and order just about anything. Let’s say you wake up at 8:10 a.m. and decide you’re interested in Anthropology. By 8:15 you’ll have enough information to carry on cocktail discussions that evening with the boss’s new trophy wife about GG-rubbing. (I thought it was the author of the Harry Potter books.
We all know there are those who love this same technology for slightly different reasons. We also know there’s a sucker born every minute. The art of scamming used to take some acting skill for that inevitable face-to-face meeting with the victim. Now scammers can be anyone they want. I’m actually very impressed with some of the approaches, some cheesier than others, but regardless of how phony they sound to you, someone else out there sees it as an opportunity. In this age of super-technological snake-oil selling, don’t forget two important things:
- If it’s too good to be true, it usually is and,
- You rarely get something for nothing.
Some scams:
The Can’t Miss Car Deal
The Council of Better Business Bureaus received more than 35,000 complaints about car sales in 2006. Don’t be dazzled so much with a good deal that you don’t check the car out. “Off-lot” deals can easily be cars that had previous damage, flood damage, odometer rollbacks. Watch out for overpriced extended warranty packages.
A good rule is to have your own mechanic check the car and don’t go into a car dealer without first checking the prices out on the cars you’re interested in first. Buy a vehicle history report but don’t consider that the bible on the car. It’s best to arrange your own financing at a credit union or bank before you go car shopping. Don’t agree to undercoating and other unneeded add-ons when you’re negotiating.
Lotto Winners
You get an unsolicited phone call telling you you’ve won a prize or a foreign lottery.
The Hook- To collect the money, you must wire or overnight fees to cover insurance, taxes and shipping and handling.
New Twist- Scammers have learned to use a new tool known as “spoofing.” They disguise their real phone numbers on your caller ID with legitimate federal agency numbers in Washington D.C. and claim to be with Federal Trade Commission or the very official sounding “National Consumer Protection Agency.”
The FTC received more than 45,000 complaints about this type of scam in 2006. This ranks number three in it’s annual top fraud complaint list. Sweepstakes victims lose an average of $2,700 and lottery scam victims lose an average of $3,200.
What can I do? Real sweepstakes DO NOT require up-front payments. You can put your number on the national “Do Not Call Registry” at www.donotcall.gov or 888-382-1222.
(Let me just say that I’ve won the Spanish Lottery three times now and someone over there owes me 32 million dollars.)
Bank Account Problems
The pitch is easy. You get a call or and e-mail notifying you that there is a problem with your bank account that can be easily rectified if you give your account number, online password and / or Social Security Number to a bogus website. These websites are complete with phony logos of legitimate banks.
These were floating around for a couple of years. Washington Mutual and Suntrust Bank logos were being used for this “phishing’ scam. Always verify this with your bank before any response. Asking for sensitive numbers like account, SSN and online passwords is not a practice of legitimate banks when it’s unsolicited.
Great Stock Deal
Someone calls you about a great stock tip. It sounds like they were calling a friend but they have apparently called the wrong number. Being the alert financial wizard you are, you decide to cash in on your good fortune. This is called a “Pump and Dump” scam where they sell you high on some thinly traded microcap stock before the bottom drops out. The latest variation has these tips showing up as text messages on cell phones.
The FBI estimates these “Pump and Dump” scams cost victims about $6 billion a year.
Roof Repair
The victim is approached by a contractor and arranges the repair of his or her roof—sometimes after heavy thunderstorms and hail. The victim is convinced that although they can’t see the damage, it’s there none the less. The contractor takes a large up-front payment and then either absconds or delays any further work until such time he fades out. In 2006 there were more than 85,000 complaints with 40% either not settled or not pursued.
➢ Get estimates from at least three contractors. DON’T hire someone who comes to your home unsolicited, uses high-pressure ales tactics, or promises a price too good to be true.
➢ Use LICENSED contractors.
➢ Ask for references, proof of liability, worker’s compensation, and property-damage insurance.
➢ Put the deal in WRITING and specify the work to be done by the contractor and subs. ➢ Check your county or city for needed permits.
➢ Don’t pay large amounts in advance and don’t pay the balance before the work is completed. (Completed means completed to YOUR satisfaction.)
➢ Pay by credit card if possible, or check but NOT cash. Think twice before arranging financing with the contractor.
Be skeptical and ask a lot of questions when you and your money are on the line. In the words of my Uncle Dewey: “Never let a salesman think you aren’t crazy. Somehow it seems to keep things in order.” Uncle Dewey never had a problem convincing anyone of that.
Don’t take any wooden nickels.
