Call it a scammer’s dream. Right now, we have a down economy, people out work, and the holidays. It’s a perfect time to prey on unsuspecting people. Instead of the 12 days of Christmas, the Better Business Bureau calls it the 12 scams of Christmas.
While Kansas sees almost everything, there are five that stand out in 2010.
#1 Mystery Shopping
“Number one is going to be mystery shopping and shop at home,” says Robbie Namee with the Better Business Bureau.
The victim is asked to evaluate their shopping experience at a few stores as well as a money wiring service such as Western Union or MoneyGram by wiring money back to the scammers. A real looking check is supposed to cover the costs, but ends up being a fake. The victim is out hundreds, if not thousands, of dollars says the BBB.
#2 Lottery/Sweepstakes Scam
No, you didn't win the lottery. If you have to send money to get it, chances are that it's a scam.
In a lottery scam the BBB says the victim receives a letter in the mail pretending to be from Reader’s Digest, Publisher’s Clearing House, or a phony lottery claiming that he or she has won millions. The letter comes with a check that represents only a portion of the total winnings. In order to get the rest, the victim has to deposit the check and then wire hundreds of dollars back to the scammers supposedly to cover taxes or some other bogus fee. The victim wires the money, but the prize never arrives.
#3 Phony Debt Collectors
Someone may call you and tell you that you owe money--and even make threats if you don't pay. Make them put it in writing and never give your credit card number to them.
Consumers have rights under the “Fair Debt Collection Act.”
#4 Debt Consolidation
“The biggest thing to look at is if they're licensed in the state of Kansas, that's very important,” says Namee.
Many families are struggling in the current economy and scammers are offering to help them save their house from foreclosure or help them get out of credit card debt. Namee says, unfortunately, victims are paying hundreds of dollars up front for the assistance they desperately need but ultimately never receive.
#5 Overpayment Scams
According to the BBB, “over-payment scams” typically target small business owners, landlords or individuals with rooms to rent and sellers on classifieds or sites like Craigslist. Typically the scammer pretends to be a customer, possible renter or interested buyer, respectively. The victim receives a check for more than the amount requested. The scammers then ask the victim to deposit the check and wire the extra amount elsewhere, such as to a shipping company. The check is fake and the victim is really wiring money back to the scammers.
Here is the National Better Business Bureau’s list of top holiday scams for 2010(in no particular order):
1. Free trial offers
2. Advance Fee Loans and Grant finder services
3. Timeshare Resellers
4. Lottery Scams
5. Job Hunter Scams
6. Work from Home Scams/Mystery Shopping
7. Debt Relief/Foreclosure Rescue
8. Overpayment scams
9. Phishing, Vishing, and Smishing
10. Diploma mills
11. Door to door handymen/roofing contractors/storm chasers
12. Phony debt collectors
