The BBB (Better Business Bureau) has issued a warning that scammers are using high technology and social media for get-rich-quick schemes.
"It's a new twist on an old scam," said Fred T. Elsberry Jr., president and CEO of the BBB serving metro Atlanta, Athens and Northeast Georgia. "It's a twist on what used to be called the fake-delivery scam."
Using social media to promote “money flipping” scams on social media, they are appealing to a new, younger audience, according to the National Consumers League.
How how it works:
There’s a photo of a person folding a pile cash on Instagram. In the caption, the users brag about having “flipped” a couple hundred dollars into thousands. Want to do it, too? It’s easy. Just send the account holder a message, and you can get started with a small deposit, according to a release about the scam.
In the original version of this scam, con artists asked victims to wire money or use a prepaid debit card. In a new twist, scammers ask you to mail your physical debit card and account PIN, granting direct access to your account. The “investor” claims that he/she is going to deposit a check into the account and will compensate you for your trouble.
You’ve got to wonder, who would fall for this scam?
“People who think their ship has come in and there’s easy money to be made,” said Elsberry. What they don’t realize “is this gives scammers direct access to your account.”
Scammers will appear to deposit a couple thousand dollars and withdraw an equal amount. But the first deposit was a fake. When the bank realizes the check is fraudulent, you will be on the hook for the withdrawn cash.
How to avoid such scams:
Elsberry advises consumer to check before releasing any personal or financial information. If others have had problems, they’re likely to share their experiences.
Do a web search of their username or phone number.
Don’t share your debit card, card number or PIN. No legitimate service would ever ask you to share this information.
Be wary of prepaid debit cards. Treat prepaid debit cards like cash. Once you give away the account info, you will not be able to get that money back.
If anyone claims you can make a pile of cash quickly by sending account information, it might be a pile of something else.
To find out more about other scams, check out BBB Scam Stopper (bbb.org/scam).
