How to Determine if an Online Institution is Credible

Guest Blog Post by Brittany Lyons ~ 


--------------------------------

According to a November 2011 study by Babson Survey Research Group, more than 6.1 million students enrolled in at least one web-based class in 2010, an increase of more than 10 percent from the previous year. Online degrees offer educational credentials from the comfort of one’s living home—but experts say the convenience carries substantial risk. Fraudulent institutions that offer worthless degrees pose a threat to well-meaning young people who hope to receive a real education.

The Better Business Bureau (BBB) reported that e-learning scams have snared hundreds of victims. Typically, these “schools” offer university and high school diplomas for cash. Students complete courses and receive a certificate in the mail, only to be told it holds no academic value by admission offices, employers and military recruiters. Unfortunately these “diploma mills” that have become more prevalent as online student numbers rise.

However that is not say all schools found online are scams. The BBB acknowledges that many online institutions are reputable and offer legitimate services, providing some students who may not otherwise been able attend school in a traditional setting an opportunity to enhance their education. BBB spokesman Steve Cox points out, “Education is one of the keys to advancing in life and having a diploma or advanced degree can certainly make a difference when it comes to getting into college or landing a higher-paying job.”

If a student does decide to attend an online school, a resource for accredited online PhD degrees explains that it is important for the student to thoroughly investigate the college prior to enrollment. The most crucial aspect to explore is whether the university is accredited and by whom. The BBB adds that one good way to determine accreditation is to crosscheck the program with the Database of Accredited Postsecondary Institutions and Programs, maintained by the U.S. Department of Education. If students still have questions about the program, they want to visit an admissions office at a state college or university to ensure that the degree will help applicants earn consideration from admissions departments in the future.

There are also a number of red flags that indicate a potentially shady institution. A course-load that rewards points based on “life experience” or unusually easy exams often denotes a scam. The same is true of any “guarantees” of completion made by the program to the student, or deals for those who sign up to earn multiple degrees at once. "People who want to further themselves see something that looks really quick and easy," Houston's BBB spokeswoman told ABCNews.com. "People should know that if they get a college degree, there is a lot of time involved."

Students should also note the program’s contact information. Illegitimate programs often list addresses with suite numbers and post office boxes, while the phone number may not be listed at all. Foreign offices should also be treated as suspicious, especially if the program’s description makes no mention of international culture or overseas-based curriculum.

The BBB shut down three fraudulent online degree programs last year, but the organization claims many more are still lurking on the web. Operated by the same parent company, Belford High School and Belford University are the biggest offenders—with 117 complaints from individuals in 40 states. The high school program offers a high school diploma based on “life experience;” according to its site, which also claims 99 percent of colleges accept the degree. The university program offers associate, bachelor and even doctorate degrees for no more than $1,400. However, the BBB says that in reality the degrees are not seen as proper credentials by colleges or military recruiters.

Another violator is MMDS Ltd., a company based in the St. Kitts. Their most popular program, Jefferson High School Online (JHSO), offers high school diplomas for roughly $200. Course results are determined by a “life experience” questionnaire, which asks students to list musical tastes and preferred weekend activities. Following the questionnaire, the student takes a multiple-choice test that provides hints and allows three incorrect guesses per question. More than a hundred JHSO “graduates” have complained to the BBB about numerous rejections from colleges nationwide.

As young men and women strive to earn a degree and enter the American work force, it is important for them to proceed with caution. Online college scams represent the most recent incarnation of fraudulent Internet practices that have evolved to match consumer trends and web activity. Luckily, the headaches associated with obtaining a worthless degree can be avoided with a thorough preliminary investigation, and an eye for sketchy web conduct.

--------------------------------


Brittany Lyons aspires to be a psychology professor, but decided to take some time off from grad school to help people learn to navigate the academic lifestyle. She currently lives in Spokane, Washington, where she spends her time reading science fiction and walking her dog.

Thousands Scammed by Facebook Starbucks App

Guest Blog Post by Brittany Lyons ~ 

For many Facebook users, the offer of free Starbucks gift cards is simply too much to pass up. Recently, many users clicked on just such a link that popped up in their friends' status updates, after those friends had “liked” the page. Instead of taking them to a legitimate corporate website, the users were directed to a fraudulent website, where they gave up their private information in order to receive the non-existent gift cards.

Facebook scams like these are not a new occurrence. In August of 2010, the statuses of users' Facebook pages were flooded with messages letting people know that Justin Bieber was giving away free concert tickets. When users clicked the link, they went to a Facebook application page that asked for the user’s mobile phone number in order to enter a contest to win £50,000 (80,000 USD). The catch is that it was also a premium service that charged £4.50 (7 USD) to the mobile phone bill once a week.

The one thing that Justin Bieber and Starbucks have in common is an extremely large fan base, and thus more potential victims who scammers can target. This is also why scams will often be disguised as popular services like online PhD programs. That large number of potential victims is then multiplied by the number of friends that these fans have, and scams like these get passed along from friend to friend like wildfire. It is possible that thousands of people may have given up their personal information before the Starbucks scam app was removed by Facebook.

This connection between friends is what makes Facebook scams different than the email spam messages of the past. Email spam would just get sent to random people, typically by unknown senders, which made them relatively easy to block, filter or just ignore. Facebook scams, on the other hand, rely on trusted connections between friends in order to spread. Once someone has clicked on the link, the app re-posts that same link on their status, sending it out to all of their connections. Since a Facebook user would not be as suspicious of a message or link from a friend as they would with a random sender, there is a better chance of them opening the scam link or message and passing it on.

To avoid scams like this, it's important to know the posting habits of your friends. For example, if friends are posting links when they normally do not post links, or they are linking to something you don't think they are a fan of, there is a good chance that they have been scammed and didn't even post the link in the first place. Most of these links are actually rogue Facebook apps installed on a user’s Facebook page. If you are ever taken to a Facebook application install page, pay attention to whether or not the application asks for authorization to post on your wall, and think carefully before granting that authorization—your friends will thank you.

Users should also avoid giving out personal information as a rule, especially in the case of promotional offers. Check the security setting on your Facebook profile, so that you are using “secure browsing”--that means there is an “https://” in front of the page URL rather than the “http://” that's more common. Secure browsing has a tendency to block all apps, rather than just the scams, but the extra step it takes to open a link will prompt you to think twice about how secure it is. Finally, users can also keep track of ongoing scams and frauds by checking the Facebook page of Sophos, a company that monitors and reports scams, viruses and frauds that are spread throughout the Internet.

Overall, the best mentality to have when seeing promotions that offer gift cards and other goodies on Facebook is this: if something seems to be too good to be true, then it probably is.

------------------------

Brittany Lyons aspires to be a psychology professor, but decided to take some time off from grad school to help people learn to navigate the academic lifestyle. She currently lives in Spokane, Washington, where she spends her time reading science fiction and walking her dog.

Internet Scam Victims - Real Stories

When I first became a scam victim I was embarrassed and did not want anyone to know . . . that lasted all of 5 minutes and then I was angry at so many things . . . the scammers for their greed, the banking system for not giving me accurate information about how long it takes for a cashier's check to clear, the wire transfer company for not having more warnings about these scams in their businesses and for turning a blind eye to the problem.

That is when I KNEW I had to do something.  I started to contact the media in order to get our story out there, and you know what . . . it HELPED!  It helped me to talk about it and get it out there, but it also helped so many other people.  My phone was ringing off the hook from people saying "The same thing happened to me" or from people who heard our story in the media in time for them to know the situation they were about to enter into was a scam and it saved them thousands of dollars.

If you are a scam victim, you could do the same thing for someone else.  I am contacted by the media in a regular basis asking for help in locating recent scam victims who would be willing to share their story.  Wouldn't it be wonderful to know that you saved someone else from going through the living hell that becomes your life when you discover you are a victim of a scam.

If you would like to be able to help to educate people about scams and fraud, and possibly save someone from becoming a victim, please email me and I will work to connect you with a media person that will do your story justice and help us to take a step forward in educating people about these scams.

Also, you can connect with me and follow our updates from http://www.retaggr.com/page/ShawnMosch/

Guest Blog and Scam Warning

Today I am sharing a blog post written by my good friend Denise Richardson

If you are looking for work-at-home opportunities --you may have already come across this deceptive marketing website dressed up as an investigative news site. A number of scam websites try to make themselves look legitimate through the use of bogus claims and website scripts that detect where visitors are browsing from and update portions of the site to mention their towns or cities.

Unfortunately, some websites try to take things one step further and attempt to pass themselves off as sources of legitimate news in hopes of tricking those who are looking for legitimate opportunities. It appears that The Consumer Warnings Weekly site at ConsumerWarningsReport.com does exactly this; it masquerades as a consumer website that purports to separate the scams from real opportunities, all the while being disguised as an investigative news organization.

The Consumer Warnings Weekly site features information about fake consumer investigations which claim to reveal a work-at-home program that isn't a scam, and further claims that the one the site promotes has worked for people in the visitor's hometown. Included are pictures of checks and a variety of comments which are most likely fake, along with "endorsements" from major news organizations such as CNN and MSNBC which are either taken out of context or are completely fake. Pictures on the site are stock photos, taken from free photo libraries and other websites to try and give the site the look of a more professional operation. Even the advertisements on the page are fake, directing users to other portions of the scam site when they think that they're clicking on an ad to learn how to avoid online scams. To top it all off, the site even features a Facebook "Like" button so that unsuspecting visitors can share the scam with their friends and potentially draw in more victims.

Of course, if you scroll all the way down to the bottom of the website then all of this is revealed to you in fine print. An "Important Consumer Disclosure" is located at the bottom of the page where many websites print their copyright information, obviously with the hope that it will be ignored by a number of visitors who routinely ignore similar text on other sites. This disclosure reveals that the site is in no way affiliated with any news outlet and that the story presented is only loosely based on an actual story. It goes on to reveal that both the comments and pictures are bogus and that the page receives compensation for any ad clicks or purchases made while on the site. To quote the disclosure, "I understand this website is only illustrative of what might be achievable from using this/these products, and that the story depicted above is not to be taken literally."

A number of websites and products use fictionalized accounts of what their product may be like to avoid having to pay endorsement fees, but few of them attempt to pass themselves off as consumer news reviews. The way that the site presents itself is intended to trick users into thinking that they've stumbled upon a legitimate opportunity when the disclosure itself states that results like those presented on the site may only occur with the top 1% of users of the program.

A number of savvy opportunity seekers will see through the site almost immediately because they've seen similar scams and know to avoid them. Unfortunately, not everyone who's searching for a way to make money at home will be as experienced in avoiding work-at-home scams. These are the people that the Consumer Warnings Weekly website is aimed at, those who will see supposed endorsements from major news networks and assume that the site is a legitimate opportunity instead of being nothing more than a scam.

-----------------

Denise is the author of the book Give Me Back My Credit

Better Business Bureau Tips for Consumers - June addition

The BBB sends out tips for consumers, and here is their June addition.

BBB Advice on Avoiding Wedding Scams

Love is in the air as many couples prepare for their long-awaited wedding day this summer. When preparing for the big day, the Better Business Bureau of Minnesota and North Dakota (BBB) advises people to proceed with caution when it comes to buying a wedding dress online, choosing a photographer and selecting a wedding planner. Doing so will help you ensure your wedding goes off without a hitch.

Asking for referrals and doing a little research can make a big difference in helping your special day go smoothly. Last year alone, the BBB received more than 970 complaints against wedding-related businesses. Services like wedding planners, bridal shops, car or limousine rentals, DJs, wedding photographers, florists, and jewelers all made the list. Many of the common complaints were centered on the company’s unwillingness to honor cancellation and refund policies after a deposit had been paid.

From choosing a florist to picking out the perfect wedding gown, more and more couples are opting for online retailers. While most venues have the brides’ best interest at heart, it’s important to recognize the danger signs before shelling out hard-earned cash to unreliable businesses.

“With the cost of today’s wedding averaging around $28,000, you want to make sure you get everything you pay for,” said Dana Badgerow, president and CEO of the BBB. “It’s important to do your research before securing your wedding vendors and paying any upfront fees.”

The BBB recommends couples consider the following when planning for their special day:

Research all online vendors. When choosing to go with an online retailer for your wedding services or products, start with a trusted site rather than shopping with a search engine. Search results can often lead you to unscrupulous websites or phishing scams.  Also, look for the BBB seal and other widely-recognized “trustmarks” on retail websites. Click on the seals to confirm they’re valid. Confirm that your online purchase is secure by looking for the “s” after “http” in the URL or the lock symbol in the lower right-hand corner of the screen. Be sure to check the company out with the BBB at www.bbb.org before doing business with them. 

Review all terms and conditions. Whether you’re dealing with an online firm or a brick and mortar store, review the terms and conditions of the contract carefully. What are the company’s refund and exchange policies? What is their cancellation policy?  What happens if the company can’t hold up their end of the bargain?  Who will perform the service on your special day? Be sure you understand your rights as a consumer before doing business with the company. 

Keep documentation of your order. For online orders, save a copy of the confirmation page or e-mails confirming the order until you receive the item or service and are satisfied. If you’re dealing with a company representative in-person, be sure to get all details in writing, including specific dates, products, prices, cancellation and deposit policies and signatures from both parties.

Pay with a credit card. Credit cards offer consumers the added protection of disputing any charge over $50 within 60 days of the purchase. Most established businesses accept major credit cards, so use them whenever possible, including payment for deposits Shoppers also have dispute rights if there are unauthorized charges on the card, and many card issuers have “zero liability” policies if someone steals your card number and uses it. Never wire money.

Consider purchasing wedding insurance. Wedding insurance can cover a range of prospective problems including vendor no-shows, cancellations, inclement weather, military deployment, medical emergencies, travel delays and more. Many policies start at $200 and can potentially save you thousands of dollars.

For more consumer tips you can trust, visit www.bbb.org/us/bbb-news.

Breaking down what MN HF0343 will really do for you

I know that a lot of you who read this blog and come to our website do so because you consider yourself the “average consumer” and know you can come to us to get the real information on things, without all of the legal or technical terms that only end up confusing you even more.  Recently I told you about Minnesota Bill HF0343, but let's look at it even closer.

Yes, you can do a search for Minnesota Bill HF0343 and find the online information, which allows you to read the bill text as it was introduced. Let me save you the time of searching . . . just click here and here for the State's information on this Bill.  Unless you have a background in law, you might read this and say “So what does that really mean, for me?”

In 2007 the MN Department of Alcohol and Gambling started a website called http://www.mnscams.org/ Why is the Department of Alcohol and Gambling even interested in scams and fraud? When Minnesotans were becoming victims of Lottery Scams, they began to reach out to the Minnesota Department of Alcohol and Gambling for assistance. In the video below you can watch an in-depth report on the great lengths that Minnesota law enforcement went to in order to track down these scammers.



This Bill would give the Department of Alcohol and Gambling greater power to subpoena and increase the variety of variations of these scams that the Department would have power to then go after.

This Bill will focus in on money transmitters, like Western Union and Money Gram, would have to have a anti fraud program, including a background check of agents and employees. This will raise the bar for these companies, and force them to look at the way that all of their authorized location are operating, and if one of those location are not upholding the rules and standards set forth, the company can be held accountable. If you have read up on scams and fraud, you have heard the stories of the employees working in a variety of businesses that have “turned a blind eye” to the fact that there are fraudulent transactions filtering through their company only to say “there is nothing we can do about it”. Even worse, there are cases when the employee is actually profiting from the scam.

In 2009 the FTC investigated Money Gram on charges that it allowed their system to be used for fraudulent activity. Money Gram ended up paying $18 million to settle.  According to the FTC, Money Gram was aware of the issue and turned a blind eye to the problem. There are many variations of the scams, and while businesses that carry out wire transfers do normally have information about these scams on their websites or on the bottom of their transfer forms, in very small print, these are normally not things that the average customer will see before they become a victim. This Bill will force for more attention to be put on this issue on the defensive side by spotting the warning signs and helping the customer to see them also. Really, it is about good customer service.

The part of this Bill that I am most impressed with is the portion that addresses that the money should go to who you designate on the form, and that they must pick it up where you designate. Now this might sound obvious . . . of course you want the money to go to the person you intended for it to go to, and to where you sent it, but it is not that simple. Right now, if I send money via wire transfer to Joe Schmo in Dallas, Texas and someone else knows the Wire Transfer Number and the Secret Question and Answer, they can pick up that money in any location in the world without having to show valid identification.   The Better Business Bureau pointed out this fact in one of their warnings on this type of scam.

How is this possible?!?!?! Well, here is the reasoning behind this “loophole”. What if my friend Joe Schmo had his wallet stolen, so he did not have any valid identification with him that he could show, and he needed that money to pay his bills. Joe would need a way to “prove” that he knew about the wire transfer and that it was intended for him. If I give him the Wire Transfer Number and tell him what the Secret Question and Answer are, he will now have that information, right? Problem solved. Wrong! Now you have just created a NEW problem. What if someone who is not Joe gets a hold of that information? They too can now go and pick up that wire transfer anywhere in the world, and once the money is picked up the transfer cannot be reversed . . . the money is gone.

The scammers understand this, and they use it to their advantage. They can use a pretend name and tell you that they live within the United States. They can tell you that you are sending the money to someone that is their accountant, client or shipping company . . . whatever fits their story that they have used to bait you into this scam. All of the warning signs of a scam alert you to sending money overseas, but you are just sending money to a shipping company in New York, so what do you have to worry about. This Bill would help to close that loophole and require that your money is only being sent to who you designate and that they are where you designate that they are.

It is sad that the scammers know all of this information better than the average American, but this is why these scams work so well. Besides the truth about how the money transfer businesses work, another point that the scammers seem to be better educated on than the average American is how the check clearing process works.

This is why we at Scam Victims United have been working since 2002 to educate people on scams and fraud, and especially the real way that wire transfers and check clearing works. Education is the key to fighting these scams, and you can sign our petition asking for the creation of Scam Education and Awareness Programs.

http://www.change.org/petitions/create-scam-education-and-awareness-programs

Survey on Scams and Fraud

A post-graduate researcher has asked us to help them with a survey they are doing.  I have personally taken this survey and feel it is safe for all of you to take, otherwise I would not even ASK for your help.  It does NOT ask for any personal information at all, just some questions on your feelings and thoughts on different real life situations.

Here is a link to the survey
http://survey.scamresearch.info//index.php?sid=43356&lang=en

And here is a link to some more information on the person doing this research if you are interested
http://scamvictimsunited.com/phpBB2/viewtopic.php?f=19&t=6529

Thank you for your help!  Please spread the word to other scam fighting websites that you know.

More on MN Bill HF0343

Things have been so busy I feel like I have neglected my scam fighting blogger friends.  I did want to give you a quick update on a topic that is very dear to my heart . . . laws to protect scam victims.  As anyone who has read my story, website, blog or who has any interaction with me personally in the past 8+ years since I have started down this road of scam education and awareness knows that I am passionate about this issue.  I have been asking for laws to be changed from day one.  In the beginning, people just laughed and said that there was no way to change those kinds of laws or do anything to help scam victims, but that did not make me give up . . . I just kept talking to different people until found someone that DID listen to me. 

Then things started to turn around.  I was able to speak with someone at Senator Franken’s office and they really listened to what I had to say.  We had several phone and email conversations, bouncing ideas off of each other.  Then around the same time I was asked by AARP of Minnesota and the BBB of Minnesota to come to a meeting that they were having to look at legislation that could help scam victims, or better yet, protect people from BECOMING scam victims.  I could not believe it . . . things were falling into place.  At that meeting I shared all of the ideas that my husband Jeff and I had from day one of beginning our site.  I told them that I am not a legal expert, but I know what would have saved us, and the people that come to our website for assistance, from becoming scam victims.  I showed them the “loopholes” that I saw in the way that things were currently run, with both banking institutions and money transfer companies.  I said that if they could close these loopholes, we could dramatically reduce this type of scams.

So I made sure that my contacts at the BBB, AARP and Senator Franken’s office all were connected to each other, and then I waited.  There were a few more emails and conversations, but after a while things kind of stopped going and I wondered if the whole idea fell through.  Then, at a Fraud Fighter’s Forum organized by the Minnesota AARP I saw it for the first time . . . HF0343.  If you would like to read the Bill, you can do so at this link.  https://www.revisor.mn.gov/revisor/pages/search_status/status_detail.php?b=House&f=HF0343&ssn=0&y=2011

Many of the items in this Bill are things that I have been talking about for years, so to see it becoming a reality was HUGE for me.  There are other scam fighting sites out there that are also backing this bill.  I think that is great that we can all join together on one common issue.  It does not matter who told you about HF0343, just that you know about it, and that we get it passed.  If it passes in Minnesota, we can then all work together to see it get passed in other states.

I was also able to be at a recent hearing about this Bill, and I shared with everyone there why I am so passionate about this issue and that if this Bill would have been law in 2002, I would not have been sitting in front of them speaking to them as a scam victim . . . if this Bill works as it is written, it would have saved my husband and I from becoming victims.

Also, there are some that have recently accused me of “stealing their thunder” and I believe most of it is due to a recent post I made telling all of you about this bill and asking you to send letters in to the authors.  This other group was asking people to send in letters, and instead of “re-inventing the wheel” I passed that information on to all of you.  I felt that I could do this because

1)      I also had been working with the same groups mentioned in the context of the letter

2)      I also feel passionately about this topic

3)      This group was asking for help in getting the word out

4)      Had I know that letters to the authors would “help” I would have put the word out a LONG time ago

To me, scam fighting and changing the laws is not about who “gets credit” for it . . . it is about all of us working together for the best outcome.  If I have some good info, and you want to share it, go ahead . . . share away!  That is how we get the word to spread and educate more people.  

Laws to fight scams

I have been working with some people here in Minnesota, and we are making some progress on scam fighting. There are currently some laws being proposed and if we get them to pass here in Minnesota we are hoping that other states will follow our lead.

This is where we need your help . . . we are being asked to send the authors of this bill letters or emails telling them why this bill is so important. Some suggested speaking points are

That you have been scammed
That you lost X amount (we want the authors to realize the extent of these crimes)
Thanking them for caring and taking the time to sponsor this bill
Hoping that it will be passed.

Here is a link to the text of the bill for you to read

https://www.revisor.mn.gov/revisor/pages/search_status/status_detail.php?b=House&f=HF0343&ssn=0&y=2011

Here are the names or the people we need to contact, and links to their sites with their contact info

Representative Joe Hoppe
http://www.house.leg.state.mn.us/members/members.asp?id=10766

Representative Joe Atkins
http://www.house.leg.state.mn.us/members/mailto.asp?id=10753

Senator Chris Gerlach
http://www.senate.mn/members/member_bio.php?ls=87&district=37

Senator Linda Scheid
http://www.senate.leg.state.mn.us/members/member_bio.php?leg_id=10589

Could you help me by not only contacting these people and telling them how much we need laws like this to protect people from scams and fraud, but also share this information with ANYONE that you know that might also be willing to contact the above people . . . share it on blogs, message boards, Facebook, Twitter . . . anywhere you can!

Thanks,

Things that are certain

I am going to guess that most of you have heard the quote from Benjamin Franklin who said, "The only things certain in life are death and taxes."  Well Ben, I would like to add one more thing to that list . . . scams.  No matter what the season, reason or situation, scams will continue on.  The scammers may change the story, but once you peel back the layers of the story, the scam that remains is the same.


Here is an example of what I am talking about.  This is an email telling the recipient that they overpaid in their taxes and are entitled to a refund.  

Overpayment Notification
Date of this Notice: MAR. 06, 2011Taxpayer Identifying Number: xxx-xx-xxxxForm: 1040
Tax Period: DEC. 31, 2010

Subject: Taxpayer Overpayment on Tax Refund
Dear Taxpayer:
Our records show you were overpaid on your Federal Tax Refund under Social Security Number xxx-xx-xxxx, therefore $380.00 of the overpaid Tax Refund must be returned.
This memorandum serves as notification of an overpayment of Tax Refund that you received and the subsequent repayment that is your responsibility.

The overpayment totals $380.00 for 1040/2010 filing period you were overpaid in error because of an incorrect Tax Adjustment causing an incorrect refund.

You are offered the following options of repayment within five (05) business days from today Mar. 11, 2011. Failure to respond timely will result in the immediate recovery of the overpayment, fines, and possible criminal prosecution.

If you disagree with the amount listed below, you have the right to an immediate Pre-decision Meeting with a person who has direct access to the agency appointing authority for this purpose.

A summary of the overpayment is as follows:

Here are your Re-payment Options:   1. Submit payment within five (05) business days of the "date of demand" to the account:    Name(s) on Receiving Account: C    Street:    City:     Zip Code:     State:     Country: United States    Bank name: FIFTH THIRD BANK
    Bank Account Number:     Electronic ABA Routing Number(ex. Direct Deposit/Automatic Payment):    Wire ABA Routing Number:     Bank Address:348 Lincoln Highway,    North Versailles,    PA, 15137    Bank phone #:1-800-972-3030
   2. Write on transfer reference: "Payment of Erroneous Refund" and your SSN.   3. Failure to comply within the given time frame will result in stiff penalties and interest accruals in excess of what is owed.

Sincerely yours,

WILLIAM C. MALAHAI19-06693Tax Assessment Supervisor

Internet Crime Complaint Center's (IC3) Scam Alerts

The Internet Crime Complaint Center is the BEST place for people to report Internet Scams to, since it is connected to several other agencies and can channel the information on to the right places.  It also allows for the IC3 to gather information on new twists in old scams and then update consumers through their newsletters.

Here are some recent updates from the IC3

ROMANCE SCAMMERS CLAIMING AFFILIATION WITH THE IC3

The IC3 has received several complaints regarding a romance scam originating via a dating website. Generally, in romance scams, the subject claims to be out of the country for a business trip and in need of money. The subject asks potential victims to wire funds for various reasons including paying for a hotel, returning to the states, or paying for a lawyer.
Recently, the scammers have added a layer of supposed law enforcement involvement in an attempt to convince the victim the scam is legitimate. In one such IC3 complaint, the "investigator" says he is using his private e-mail because the IC3 database is under maintenance. To convince the victim to wire the requested funds, he claims to be assigned to the case and assures the victim that the subject has been "interrogated and investigated" and that he is a safe, "legit business man."

Other complainants reported having difficulty canceling their membership to the particular dating site, which reportedly offers a "3-day free membership" for their service. The membership is reportedly "automatically" renewed after the three days unless canceled. Complainants reported that the website renewed their membership and charged their credit card over $59 despite the complainant's attempts to cancel the membership. Some complainants said the company did not answer their calls, e-mails, or voice mail messages, while others claimed the company admitted the "error" and offered them free service, but refused to refund the charges.

PHISHING E-MAIL CLAIMS "YOUR FEDERAL TAX PAYMENT WAS REJECTED"

In October 2010, articles were posted online warning consumers about phishing e-mails purportedly from the Electronic Federal Tax Payment System (EFTPS) claiming the recipient's federal tax payment was rejected. The IC3 has received over 150 complaints reporting this matter. Although different versions of this spam campaign exist, many complainants reported that the e-mails they received were titled "LAST NOTICE: Your Federal Tax Payment has been rejected." E-mails stated, "the problem is that system doesn't process your company ID on holidays and we moved your tax payment batch to a waiting list." Recipients were then directed to click on the link provided to obtain more details about their company's status and tax payment batch file. Some complainants reportedly use the electronic system to pay their estimated quarterly taxes, so the e-mail appeared relevant.

Other related phishing e-mails claimed, "the identification number used in the Company Identification Field is not valid." Recipients were directed to visit hxxp://eftps.gov/r21 and "check the information and refer to Code R21 to get details about your company payment in transaction contacts section."

A recent complaint filed with the IC3 reported the same type of phishing e-mail except this time, the e-mail directed the recipient to open an attachment contained in the e-mail. The e-mail was titled "Your Federal Tax Payment Notice." Like the others, it claimed, "the identification number used in the Company Identification Field is not valid." To entice the recipient to open the attachment, the e-mail stated, "check the attached information and refer to Code R21 to get details about your company payment in transaction contacts section."

TELEPHONE SCAM OFFERING VIRUS REMOVAL SERVICES TO GAIN REMOTE ACCESS TO VICTIMS' COMPUTERS

The IC3 has received several complaints from victims who reported a telephone scam in which the caller purports to be an employee of a major online company, which develops, manufactures, and supports software along with other products and services. Victims reported that a caller with an Indian accent claimed their computers were infected with viruses. The caller advised the victims they were sending the viruses to others via the Internet, and instructed victims to go to websites such as hxxp://www.irssupport.net,hxxp://www.go4support.org, hxxp://www.teche4pc.com, and hxxp://www.ammyy.com. When the victims navigated to one of the websites, they were further instructed to click on live support or live connect for assistance in removing the viruses. Some victims were instructed to download a program once they were on the hxxp://www.ammyy.comwebsite. After the victim clicked on the link or downloaded the program, the caller gained control of the victim's computer. Victims watched as the caller explored personal files, pointing out files that were infected. Some victims reportedly believe the caller copied their files and obtained their personal information. In some cases, the caller tried to sell the victims' software. Many victims reported loud background noise during the call, indicating a possible boiler room-type operation. Some victims reported the scam to the online software company. The company has an alert on their website warning consumers about this matter.

For more information regarding online scams visit the IC3 Press Room page for the most current Public Service Announcements.

http://www.ic3.gov/media/default.aspx

What would you do?

Every day we make choices . . . grab some fast food for breakfast, or have some fresh fruit . . . walk up the stairs or take the elevator . . . you can follow the crowd or stand alone. What would you do?



This is the basis of the television segment What Would You Do on ABC.  They set up scenarios that are supposed to make you stop and think, and then they let the hidden camera roll to catch on tape what people really do in these situations.

Now, you might ask what this show has to do with this scam blog.  It turns out that they are looking to do a segment where one of the scenarios will be a person that is entering into a situation that is clearly a scam.  Will people warn them or just let them go on believing that this is all real?

They would also like to partner this with an interview with real life scam victims who would be willing to share their story.  If you are a scam victim who is willing to share your story please contact me.  They would prefer someone in the New York Tri-State Area, since that is where their production studios are located.

The Sophistication of Scams

I just got done reading the article Scams achieve a new level of sophistication which does a good job at pointing out that anyone can become the victim of a scam.  Here are my two cents that I added as a comment to the article . . .

These scams have been evolving for years now, and the WORST part about any of the counterfeit cashier's check scams is the fact that when someone wants to find out if the check is legitimate and they take it to the bank for them to look at . . . because of course the average person would assume the bank can spot a counterfeit check . . . the banking customer is told that it is "good", "clear", "verified" and that "funds are available".  Look up good, clear and verified in the dictionary and by definition the average person would then assume that there is no problem in cashing and using the money from a check that is "good", "clear" and "verified".  But this is where we as banking customers make a mistake . . . we trust our banks are giving us accurate information.

These checks can come back weeks and even months later as counterfeit, and the bank CUSTOMER is held liable for the entire amount, the the bank, who verbally told us it was "good", "clear" and "verified".

How about the banks start telling people the truth?  That it could take 10 business days or more for the check to be "good", "clear" and "verified".  Is that too much to ask?

Consumers who help AG's office could get up to $3K

I was just sent a link to this article from my good friend and fellow advocate, Denise Richardson (GiveMeBackMyCredit.com) and I just had to share it with all of you.

http://www.news-sentinel.com/apps/pbcs.dll/article?AID=/20101229/NEWS/12290334

To summarize the article, The Indiana AG office wants victims of financial scams to be able to recoup legal costs through a program funded by violators of the state's consumer protection laws.  Personally, I think this is a GREAT idea.  I know that so many scam victims don't report the scams and just pay the money to make it go away instead of getting a lawyer to try to fight these cases . . . mostly because they cannot afford to get a lawyer.  This would allow them to get justice without it being an added financial burden on them.

Looks like there are a couple of lawmakers already backing this . . . Senator Richard Bray and State Representative Woody Burton.

Advice from the BBB

Here is a little clip from a recent BBB newsletter.

The BBB Absolute 'No' for December

Every month, the BBB informs the public of an absolute ‘no,’ a fraudulent scheme or offer they should never consider or take part in under any circumstance. The absolute no for December involves online deals that seem too good to be true. In late November, the BBB began receiving complaints against OnSaleFurnitureDepot, an online furniture company which claimed to be operating out of an apartment in Fargo, North Dakota. Consumers reported that the company was offering furniture and swing-sets at heavily discounted prices, but then failed to deliver once payment was received. Also, customers were told they needed to pay for their merchandise Green Dot MoneyPak cards (essentially a money transfer service). Unfortunately, this left customers without any recourse to get their money back. For more information on this situation and BBB tips for shopping safely online, click here.

Moments Like This

This last June, the BBB began receiving complaints against Moments Like This, a bridal service company in Minneapolis. Complaints were from disappointed wedding parties who reported that on their wedding day they either hadn’t received linens or chair covers they had paid for or only received parts of their order. The BBB immediately began forwarding the complaints to the business owner, and by late June had updated the company’s report to indicate there was a pattern of a problem and customers considering doing business with the company should be aware of that. As of December 16th, the BBB had processed 22 complaints against the company. Eleven of those complaints were closed unresolved and another seven were closed with no response received from the company.

5 Rules to Keep Your Identity and Credit Safe during the Holiday Shopping Season

Today we have a guest blog from Jon Ryan of ProtectIdentity.com

Your own shopping compulsions versus a limited budget isn’t the only threat during the holiday shopping season.  Use of your credit cards can really increase during this time of year. Without thinking you could be falling into habits that put your entire financial persona in jeopardy.


1.  Be assertive. Don’t be afraid to disagree, say no, or ask questions. If you are in a shop and the clerk want to take your plastic into the back room, speak up. You shouldn’t let that little piece of plastic out of your sight. If you have to keep other people waiting do so. They also know you are in a rush too. Fraudsters use crowds to mask their efforts and human emotions to force their efforts.

2.  Watch where you swipe. ATMs are extreme risky during the holidays. Fraudsters use a device called a skimmer to grab account numbers and PINs from a single card swipe. The skimmer can be placed on top of or within the original reader, thereby intercepting the digits or it can be placed in a separate location on the ATM in hopes a customer accidentally swipes there instead. If you need cash, the best practice is to avoid mall ATMs and go inside your bank to get the funds.


3.   Avoid giving. At lease right then and there. Any charity that wants your info and donation right then and there should be avoided. Don’t listen to the pleas. Any time you are going to give money away, there should be some research on the organization and where your money is going to actually go. The last thing you want to do is get surprised because you claimed a “fake” charitable donation on your taxes.

4.  Delve down when buying online. Think like a criminal here. Lines of encryption and a few bounces around to different IP addresses and then they are home free. There’s no face to attribute to the crime. Many people will avoid the crowds this year by taking their shopping lists to the web. If you choose to do so, don’t ever shop with your debit card. That is a direct line to your bank account. Under the federal laws, the credit card company can only hold you liable for $50 of any fraudulent transactions. The debit card could put you into overdraft fees and pose much more hassle and threat, so shop with your credit card or an alternative payment method like a prepaid check card or PayPal. Only buy on sites that have a secure server and a privacy policy and/or show the padlock icon in your browser’s bottom right hand corner. You can know your info is encrypted if the url goes from “http:\\” to “https:\\”. No email or search engine “shot-in-the dark” shopping. This will give you merchant’s with no researchable reputation.

5.  Beware of your surroundings & destroy everything. The two go hand in hand. Shoulder surfing and dumpster diving are still threats. People around you at the mall can probably heard you opening that new line of credit to cover your holiday expenses. Protect vital information from wandering eyes and ears. Write it down instead of verbally exchanging it. Afterwards take the slip with you and destroy it. Dumpster diving is still the easiest way for a low tech criminal to get hands on your personal info and steal your identity. Destroy/shred all these documents, especially those pre-approved lines of credit apps that come in the mail.

Follow these rules, and hopefully you will not become one of the 10 million who fall victim to identity theft every year. Also, remember less is more. Don’t leave the house with more cards or information than you absolutely need. It’s very important to watch your statements year-round, but this time of year you will be doing more spending than usual. So it stands to reason that more attention should be paid.

By Jon Ryan of ProtectIdentity.com, a blog hoping to spread awareness and provide identity theft protection tips.

Secret Shopper Scams

With how hard it is to find jobs in today's economy, and the holiday's coming up, Secret Shopper Scams and other work at home offers seem to lure in more people.  They seem like a way that people can provide some extra income, and who does not need that right now.  Here is an example of a Secret Shopper Scam email.

 Subject: Mystery Shopping (Shoppers Needed)..  From: beeguy1@aol.com

Reply To: evaluationteam50@rogers.com

We have a mystery shopping assignment.

Date:8th December,2010

Email:(evaluationteam50@rogers.com)

"We have a mystery shopping assignment in your area and we would like you to participate"

Secret Shopper(R) is accepting applications for qualified individuals to become mystery shoppers. It's fun and rewarding, and you choose when and where you want to shop. You are never obligated to accept an assignment.

There is no charge to become a shopper and you do not need previous

experience. After you sign up, you will have access to training materials via e-mail, fax or postal mail.

ABOUT US

Secret Shopper(R) is the premier mystery shopping company, serving clients across America with over 500,000 shoppers available and ready to help businesses better serve their customers. Continual investment in the latest internet and communication technologies coupled with over 16 years of know-how means working with Secret Shopper(R) is a satisfying and rewarding experience.

Secret shopping as seen on ABC NEWS, NBC NEWS, L.A.TIMES.

Stores and organizations such as The Gap, Walmart, Pizza Hut, and Bank. One  amongst many others pay for Secret Shoppers to shop in their establishments and report their experiences. On top of being paid for shopping you are also allowed to keep purchases for free. Secret Shopper(R) NEVER charge fees to the shopper. Training, tips for improvement, and shopping opportunities are provided free to registered shoppers. Mystery shoppers are either paid a pre-arranged fee for a particular shop, a reimbursement for a purchase or a combination of both.

You will be required to interact with the shop clerk.

You may conduct the shop alone or as a couple.

The assignment will pay $200.00/ Assignment

Kindly Fill Out the application form below and we will get back to you

shortly with the assignment to this email (evaluationteam50@rogers.com):

PERSONAL INFORMATION:

First Name:

Last Name:

Street Address:

City, State, Zip Code:

Cell Phone Number:

Home Phone Number:

AVAILABILITY:

Days/Hours Available

Monday  .............................................

Tuesday .............................................

Wednesday .............................................

Thursday  .............................................

Friday .............................................

Saturday .............................................

Sunday .............................................

Hours Available: from _______ to ______

We await your urgent response.

Thank you for your help.

We look forward to working with you.

Sincerely,

Frank James

Secret Shopper(R)

Pot Calling the Kettle Black

As I opened my email this morning, the news items opened up and I had to take a second look at the title of this article . . . Nigeria Charges Dick Cheney in Corruption Case Stemming From Halliburton Bid.  My first thought was this is like the pot calling the kettle black!

In the article it states

An anti-corruption unit in Nigeria has charged former Vice President Dick Cheney in an alleged bribery scheme dating back to his days as CEO of Halliburton, the huge oil services company.

Halliburton and other firms are accused of paying as much as $180 million in bribes to win a contract to build a $6 billion liquefied natural gas plant in the African country's southern delta, the Associated Press reported Tuesday.

Okay . . . $6 billion is a LOT of money, but depending on which agency or report you look at, that is just a drop in the bucket to the amount lost by people to the scams and fraud coming out of Nigeria.  There are some reports that would show that $6 billion is not even one full year's work for Nigerian scammers.  Add to that the fact that many people do not report scams out of shame, and the true dollar amount just keeps getting higher and higher.

Back to the article . . . it goes on to say

Nigeria's Economic and Financial Crimes Commission pointed specifically at a former Halliburton subsidiary, Houston-based KBR, which pleaded guilty last year in U.S. federal court to authorizing and paying bribes in Nigeria for plant contracts between 1995 and 2004.

If you go to the Economic and Financial Crimes Commission's website you will see on the About EFCC page this information . . .

 The preponderance of economic and financial crimes like Advance Fee Fraud (419), Money Laundering, etc has had severe negative consequences on Nigeria, including decreased Foreign Direct Investments in the country and tainting of Nigeria's national image. The menace of these crimes and the recognition of the magnitude and gravity of the situation led to the establishment of the Economic and Financial Crimes Commission (EFCC). The legal instrument backing the Commission is the attached EFCC (Establishment) Act 2002 and the Commission has high-Ievel support from the Presidency, the Legislature and key security and law enforcement agencies in Nigeria.

My words to the EFCC . . . how about you go and clean up the crime, corruption and fraud in your own backyard before you start pointing fingers at others.  You have an office in Lagos, Nigeria which is the scam and fraud capital of the world.  How about making a REAL difference by shutting down the scam and fraud rings, and locking up the people running them so that they cannot just go out and open up a new location.

  

Sample scam email

Here is an email that showed up in my inbox.  I am posting this as an example of a scam email.

---------------

 Subject: CONTACT SKYE BANK NIG., PLC WITH YOUR NEW PAYMENT CODE.(SBN/0098).  From: internetwatch@monitoringunit.org

Reply To:

internetwatch@fedinfodept.org

Attn:

The Skye Bank Nigeria Plc informed us the FBI, that they are through withthe first (1st) quarter transfer to beneficiaries, and that they are ready to start with the (2nd) quarter transfer to beneficiaries where your payment file belongs to now.

And since they are in the second quarter of fund released to beneficiaries, the bank states that the old payment code: to your inheritance contract funds has been changed and that the new payment code: to your contract funds will be (SBN/0098), take note of the new payment code: (SBN/0098), any e-mail you receive henceforth that does not have your payment code: (SBN/0098). Should be disregarded immediately and forwarded to us for immediate investigation.  Warning: Note that you are advised not to disclose the said inheritance contract funds with anyone until your said contract funds has been fully released to you, and ensure that you contact the bank (skyeban-knigplc09@live.com) with your payment code: (SBN/0098).

Immediately you receive this e-mail from us. Any e-mail that you receive stating that your inheritance contract fund is ready without the new payment code, should be disregarded immediately. CONTACT THE BANK AT THIS E-MAIL ADDRESS: (skyeban-knigplc09@live.comn) IMMEDIATELY.

Thank You And Have A Nice Day.

In God We Trust.

Robert S. Mueller III
Federal Bureau of Investigation
J. Edgar Hoover Building
935 Pennsylvania Avenue, NW Washington, D.C. 20535-0001, USA.

Fraudulent Notifications

From the Internet Crime Complaint Center (IC3)

The IC3 continues to receive reports of letters and emails being distributed pursuant to prize sweepstakes or lottery schemes. These schemes use counterfeit checks that bear legitimate-looking logos of various financial institutions to fool victims into sending money to the fraudsters.

Fraudsters tell victims they won a sweepstakes or lottery, but to receive a lump sum payout, they must pay the taxes and processing fees upfront. Fraudsters direct individuals to call a telephone number to initiate a letter of instructions. The letter alleges that the victim may elect to take an advance on the winnings to make the required upfront payment. The letter includes a check in the amount of the alleged taxes and fees, along with processing instructions. Ultimately, victims believe they are using the advance to make the required upfront payment, but in reality they are falling prey to the scheme.

The victim deposits the check into their own bank, which credits the account for the amount of the check before the check clears. The victim immediately withdraws the money and wires it to the fraudsters. Afterwards, the check proves to be counterfeit and the bank pulls the respective funds from the victim's account, leaving the victim liable for the amount of the counterfeit check plus any additional fees the bank may charge.

Persons may fall victim to this scheme due to the allure of easy money and the apparent legitimacy of the check the fraudsters include in the letter of instruction. The alleged cash prizes and locations of the financial institutions vary.

Tips to avoid being scammed:

• A federal statute prohibits mailing lottery tickets, advertisements, or payments to purchase tickets in a foreign lottery.

• Be leery if you do not remember entering a lottery or sweepstakes.

• Beware of lotteries or sweepstakes that charge a fee prior to delivering your prize.

• Be wary of demands to send additional money as a requirement to be eligible for future winnings.

If you have been a victim of this type of scam or any other cyber crime, you can report it to the IC3 at: www.IC3.gov. The IC3 complaint database links complaints for potential referral to law enforcement for case consideration. Complaint information is also used to identify emerging trends and patterns to alert the public to new criminal schemes.