DAYTON, OHIO, January 6, 2010 - Today, your Better Business Bureau released a list of the top 10 scams and rip-offs of 2009. Not surprisingly, many scams sought to take advantage of people who were suffering under tough economic circumstances, such as the unemployed. Additionally, the use of free-trial offers to lock people into recurring credit and debit card charges was widespread online.
"While many scams on the list are perennial problems, some scams were distinct in 2009 because of the economic climate and scammers’ desire for taking advantage of the top headlines," said John North, BBB president and CEO. "Some scams plagued different parts of the country more than others. For example, in places hit by the housing crisis, bogus offers for foreclosure rescue or debt assistance ran rampant."
Below, in no particular order, is your BBB’s list of top scams and rip-offs that took advantage of consumers and small business owners across the U.S. in 2009:
- Acai Supplements and Other "Free" Trial Offers
– Ads offering trial offers for teeth whiteners, acai anti-aging pills and other miracle supplements blanket the Internet, including trusted Web sites of national news organizations. Marketing campaigns often falsely claimed endorsements by Oprah, Rachel Ray and Doctor Oz. Thousands of people complained to your BBB the free trials actually cost them as much as hundreds of dollars, month after month.
Stimulus/Government Grant Scams – Even before President Obama announced the stimulus plan in February, scammers had already set up schemes for misleading consumers and small business owners into thinking they could get a piece of the pie. Offers for worthless assistance and advice on how to get government grants bombarded people online, over the phone and via mail and e-mail.
Robocalls – Owning cell phones or having phone numbers registered on the do-not-call list didn’t help thousands of people put a stop to harassing automated telemarketing calls in 2009. The robocalls often falsely claimed auto warranties were about to expire or offered help in reducing credit card interest rates. The prevalence of robocalls violating federal telemarketing laws prompted the FTC to increase restrictions on the practice in 2009.
Lottery/Sweepstakes Scam – Victims receive letters in the mail pretending to be from Reader’s Digest, Publisher’s Clearing House or phony foreign lotteries claiming they’ve won millions. The letters come with checks representing portions of total winnings. To get the rest, victims must deposit checks and then wire hundreds of dollars back to the scammers supposedly to cover taxes or other bogus fees. Victims wire money, but never receive prizes.
Job Hunter Scams – Scams targeting job hunters vary and include attempts to gain access to personal information, such as bank account or Social Security numbers, and requirements to pay fees to even be considered for jobs. Another common scam was reported to your BBB by job hunters who were told by prospective employers they had to check credit reports before being considered for jobs. The job offers are actually marketing ploys for online credit monitoring that cost victims every month until cancelled.
Google Work from Home Scams – Countless Web sites claim you could learn how to make money from home using Google or Twitter and offer free trials of learning materials. The Web sites often included the Google or Twitter moniker and logo. As a result, many people who complained to your BBB thought they were getting jobs with Google or Twitter when they were actually being lured into other misleading free-trial offers and billed every month for materials and other mystery charges that added up to hundreds of dollars.
Mortgage Foreclosure Rescue/Debt Assistance – Many families are struggling in the current economy and scammers are offering to help save their homes from foreclosure or get out of credit card debt. Unfortunately, victims are paying hundreds of dollars upfront for assistance they desperately need but never receive.
Mystery Shopping – People across the country thought they could make some extra money by becoming secret shoppers and evaluating the customer service of various stores. Victims are asked to evaluate store shopping experiences as well as money wiring services, such as Western Union or MoneyGram, by wiring money back to the scammers. Legitimate-looking checks are supposed to cover costs, but end up being fakes. Victims are out hundreds, if not thousands, of dollars.
Overpayment Scams – Overpayment scams typically target small business owners, landlords or individuals with rooms to rent and sellers on classifieds or sites like Craigslist. Typically, scammers pretend to be customers, possible renters or interested buyers. Victims receive checks for more than the amounts requested. Scammers then ask victims to deposit checks and wire the extra amount elsewhere, such as to shipping companies. Ultimately, the checks are phony and victims are actually wiring money back to the scammers.
Phishing e-mails/H1N1 spam – A perennial problem, phishing e-mails pop up in inboxes and can take various forms, such as appearing to be from businesses, government agencies or officials or even friends. Whatever the setup, the goal of any phishing e-mail is the same: to trick victims into divulging sensitive financial information or infect the victims’ computers with viruses and malware. In addition to phishing e-mails, spam e-mails selling products to prevent the spread of the H1N1 virus were particularly rampant in 2009.
Consumers or small business owners victimized by scams can contact your BBB or file complaints at www.bbb.org or (937) 222-5825 or (800) 776-5301. You should always research businesses with your BBB before signing contracts or handing over money.
About Your BBB Serving Dayton and the Miami Valley
Your BBB is an unbiased nonprofit organization that sets and upholds high standards for fair and honest business behavior. Businesses earning BBB Accreditation contractually agree and adhere to the organization’s high standards of ethical business behavior. Your BBB provides objective advice, free business BBB Reliability ReportsTM and charity BBB Wise Giving ReportsTM and educational information on topics affecting marketplace trust. To further promote trust, your BBB also offers complaint and dispute resolution support for consumers and businesses when there is difference in viewpoints. The first BBB was founded in 1912. Today, 126 BBBs serve communities across the U.S. and Canada, evaluating and monitoring nearly 4 million local and national businesses and charities. Your BBB serving Dayton and the Miami Valley serves Montgomery, Greene, Clark, Darke, Miami, Preble, Shelby and northern Warren counties. Please visit www.bbb.org for more information about your BBB.
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