For Immediate Release – January 3,
2011 - The Better
Business Bureau today released a list of the top 10 scams and rip-offs of 2010. Job hunters and those struggling to make
money and get out of debt were common targets of fraudsters, hackers and
deceptive businesses in this tough economy.
Following,
in no particular order, is BBB’s list of top scams and rip-offs that took advantage
of consumers and small business owners across the U.S. in 2010:
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 a fee in order to
even be considered for the job.
Debt Relief and Settlement
Services – BBB
warned consumers in 2010 to seriously consider third-party assistance for
getting out of debt. These companies often require upfront fees and potentially
leave the consumer drowning in even more debt. Complaints to BBB about debt
relief and settlement services increased by approximately 30 percent in 2010,
according to tentative year-end estimates.
Work from Home Schemes – Some work from home schemes
promise to teach the secrets to making money online, others claim you can make
money assembling items at home or get paid to be a mystery shopper. Some
victims even found that their opportunity to work from home was a job to fence
stolen goods. The end result is that instead of getting paid, you can end up
losing hundreds—if not thousands—of dollars
Timeshare Resellers – Complaints to the BBB about the
timeshare industry—including deceptive resellers—increased by over 40 percent according
to 2010 estimates. Timeshare owners who are desperate to get rid of their
costly vacation property are being targeted by companies that claim they have
an eager buyer. The company tells the seller they just have to pay up to
several thousand dollars to cover fees. After paying the fees, the seller never
hears from the company again.
Not So “Free” Trial Offers – Misleading free trial offers
online for diet supplements, penny auctions and money making schemes blanket
the internet resulting in thousands of complaints ever year. The free trial
offers seem no-risk but complainants state they were repeatedly billed every
month and found it extremely difficult to cancel.
Itinerant Home Repair/Roofers – BBBs across the country
received complaints from consumers who answered a knock from a door to door
salesman or itinerant worker who eventually failed to deliver on promises to
fix their roof or conduct other work to the home. Complaints to BBB about
roofing companies increased by roughly 40 percent in 2010, according to
tentative estimates, due in part to one company that solicited door to door,
American Shingle, which received nearly 1,000 complaints nationwide after going
bankrupt and not providing new roofs to angry customers.
Lottery and Sweepstakes Scams – The victim—often a senior
citizen--receives a letter in the mail or phone call from someone pretending to
be with Reader’s Digest, Publisher’s Clearing House or a phony foreign lottery.
The scammer claims that the victim has won millions but must first wire
hundreds or even thousands of dollars back to the scammers to cover taxes or
some other bogus fee. The victim wires the money, but the prize never arrives.
Identity Theft – There are any number of ways a
person can become a victim of identity theft. Through low-tech theft, phishing
emails, vishing phone calls, smishing text messages, or even through no fault
of your own as the result of a corporate data breach, millions fall victim to
identity theft every year.
Advance Fee Loan Scams – A perennial problem, advance
fee loan scams prey on consumers and business owners who are struggling
financially. Victims are told they qualify for large loans but must pay upfront
fees—often more than a thousand dollars. The victim wires money to the
scammers, but never receives the loan.
Over-Payment Scams - Over-payment scams typically
target small business owners, landlords or individuals with rooms to rent and
sellers on classifieds or sites like Craigslist. The scammers overpay the
amount for the services or products and then ask the victim to wire the extra
amount back to them or to another fraudulent entity. Ultimately though, the
check is forged and the victim is out the money wired back to the scammers.
Consumers
or small business owners victimized by a scam can contact their local BBB or
file a complaint at cleveland.bbb.org. Always research a business with BBB before
you sign any contracts or hand over any money.
About Better Business Bureau
As the leader in advancing marketplace trust, Better Business Bureau is an
unbiased non-profit organization that sets and upholds high standards for fair
and honest business behavior. Every year, more than 65 million consumers rely
on BBB Reliability Reports® and BBB Wise Giving Reports® to help them find
trustworthy businesses and charities across North America.
Visit cleveland.bbb.org for more
information.