Hold onto your money: Wise up to scam artists
…and it’s more than shame on you—your money is probably gone
Published: August 31, 2009, 7:59 am
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Crooks trying to take your money are lurking everywhere— in your mailbox, on your computer, on the other end of your telephone, even at your front door. And every year, thousands of Western New Yorkers are taken in by phony offers of one kind or another.
“There is no real socio-economic or education profile [of victims]. Just look at Bernie Madoff and the very bright, educated people who were taken for lots and lots of money,” said Peggy Penders, a spokeswoman for the Better Business Bureau of Upstate New York. “These scam artists are smart, slippery people, and they’re just waiting out there to trap you.”
Worse, once scam artists hit, victims have little practical recourse. While Kenmore Police Chief Carl LaCorte said his department made three arrests this summer involving shady door-to-door salesmen, finding and prosecuting scam artists in the digital age is difficult at best.
“Victims should absolutely call us. We can and do contact federal agents for help, but [prosecution] is very difficult,” he said.
Executives at the Better Business Bureau liken eradicating such schemes to a game of Whack-A-Mole, with new scammers popping up as fast as others can be squashed.
The best defense, Penders said, is a proactive and skeptical consumer.
“There is only so much consumer advocates and law enforcement can do,” she said. “There are many consumer protections in place, but ultimately, the consumer needs to be informed and diligent before doing any kind of business.”
Here are some of the most common schemes making the rounds in Western New York recently:
Save the puppy
Also known as the Cameroon pet scam, this one preys on animal lovers with soft hearts. The scammer posts an ad online for a purebred puppy, free to a good home. Often claiming to be a missionary in Africa, the scammer says they are unable to care for their pet overseas and wants to assure she is taken in by a loving owner. All you have to do is wire the money (it’s almost always wired or a money order) to ship the pup to her new home. The advertised breeds are often expensive ones that are hard to get your hands on, such as English bulldogs and Yorkshire terriers.
Once you wire the money, you might be solicited for more funds to “cover unforeseen expenses,” such as customs charges or necessary vaccines. Either way, you’ll never see your puppy — or your cash.
What to do: Do business only with people you can research and do business with in person. If you want a purebred dog, contact a reliable breeder.
Door to door
Door-knocking swindlers have been busy around here this summer. Often targeting elderly homeowners in middle-income neighborhoods, cons sell fake or overpriced products and services, then run off with the money without making good on delivery.
Some common angles:
• Magazine sales. Bands of young salesmen are led by a highly organized con artist leader, who teaches them skillful, high-pressure tactics — usually involving guilt — to sell overpriced books and magazines. The teens falsely claim to be raising funds for school or working toward winning a trip or scholarship. The goods, which are supposed to arrive in the mail, never appear.
• Energy company. A representative for an “alternative” utility company comes with paperwork in hand, promising to lower your heating bills by locking you into a stable rate. They fail to mention the rate they’re locking you into is actually several times higher than what you’re paying, and much higher than prices are ever likely to rise.
The scam prevails in the summer, when heating bills are low and the rate increase isn’t easily noticeable. By the time you realize your mistake, you’ll have passed the contractual trial period and pay huge “early termination” fees.
• Alarm systems sales. Using high-pressure tactics designed to keep you from thinking it over or doing your homework, scammers sell and install home alarm systems. The fine print hides fees and expensive, multi-year contracts.
What to do: Hang a “No Solicitors” sign. Even though it won’t stop most unscrupulous sellers from knocking, it should make it easier to close the door on them.
Reputable companies do not do business door to door. Never pay up-front or in cash for services. And never do business until you can do your homework. Write down the person’s permit, driver’s license and license plate numbers.
Report suspicious salesmen to your local police department and the attorney general, who can verify whether the solicitor has a valid permit, which requires a background check. If a con does get your money, file a complaint with the state attorney general’s office at 1-800-771-7755.
Fake checks
People continue to be taken in by these scams—even against their better judgment — because the checks look so real and appealing that even trained bank tellers can’t tell they are bogus.
How it works: Under any number of false pretenses, a very authentic- looking check, printed on real check stock arrives at your door. For added credibility, it is often delivered by an official courier service, such as FedEx. Scammers often will follow up initial contact with phone calls and provide contact information to lull you into a sense of false security.
The scammer instructs you to deposit the check, keep some for yourself, then wire the rest back. You do so, only to find out later the check is no good, leaving you on the hook to repay any money withdrawn on the phony check, as well as bank fees.
Counterfeit checks are often drawn from real, existing accounts. Even waiting for the check to “clear” won’t keep you safe. That’s because, by law, banks are required to make deposited funds available within five days, even though securing money from overseas can take as long as a month.
Some common angles:
• Overpayment. A scammer buys merchandise you’ve listed for sale at an online classified site such as Craigslist or eBay. When the check arrives, it is in a higher amount than the sale price, supposedly to cover shipping.
The buyer demands you wire back the “excess” funds. But when the check fails to clear, you find you have just paid someone to steal your merchandise.
• Lottery or sweepstakes winnings, family inheritance. Targets are told they have won or inherited a jackpot and are told to wire just a few thousand dollars to cover taxes and fees.
• Nigerian prince. An oldie but a goodie, this one somehow continues to snare people. A scammer claiming to be beleaguered royalty contacts a target, often through e-mail, asking for help funneling a large amount of money out of a foreign country. The target need only pay a “small advance” in order to share in a percentage of the millions of dollars he or she helps liberate.
What to do: Just steer clear. Remember, if it seems too good to be true, it is. No one will give you money for nothing. Nor will any legitimate business, employer or sweepstakes require you to advance funds or wire back portions of a check.
Work at home
With the economy in the dumps and job seekers desperate, these scams are more prevalent than ever. Social networking sites such as Twitter and Facebook are the newest venue for these scams, but they’re lurking everywhere.
• Assembly. Companies will “hire” you to assemble products at home. You’re required to buy the initial materials, with the assurance your money will be refunded once the assembled items are completed and turned in. Instead of receiving a paycheck for your painstaking time and effort, your new “boss” tells you your work isn’t up to par, and you won’t be getting paid — or reimbursed for the materials.
• Secret shopper. This is another form of the fake check scam. Scammers troll Web sites such as CareerBuilder.com, where people looking for work post their resumes, then contact them with a secret shopper employment opportunity. These “opportunities” come unsolicited through online pop-ups, e-mail and on social networking sites.
“Employees” are instructed to deposit a fake check, use a specified portion to purchase goods at stores, keep a portion for themselves as pay, then wire the rest back as a “show of good faith.”
What to do: As always, check a company with the Better Business Bureau, but keep in mind scammers change names and addresses often to avoid detection. Never give Social Security or bank information. Remember, employers pay employees, not the other way around.
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