Thieves continue to use the Internet, mail system and phone service to steal millions from unsuspecting victims across the Western Virginia region and the nation.
BBB Serving Western VA urges consumers to recognize the most common tactics used by crooks to scam money. Most of the thieves masquerade as legitimate businesses and ask consumers to send money via such hard-to-trace methods as Western Union, MoneyGram or Green Dot MoneyPaks. Other times, a consumer may be asked to mail money directly to a scammer in another country or to an associate within the United States.
“The message should be loud and clear: Never, ever send money to somebody you don’t know regardless of the reason they give you,” said Julie Wheeler, President & CEO of BBB Serving Western VA. “And never give your bank account information or a Green Dot MoneyPak access number to anyone unless you are absolutely sure you know exactly who you are dealing with and it’s for a legitimate transaction.”
Many of the most notorious scams have operated for years. Among the most common:
· Advance Fee Loan Scam. Typically, this scheme targets a consumer with poor credit who either applies online for a loan or receives a phone call offering a loan. The scam company may have a professional-looking website and a contract that looks legitimate. It may even use the name or address of a real company. But after the consumer sends an advance fee (usually for “insurance” or a “processing” fee), no loan is forthcoming. The scam company usually vanishes within a few days or weeks and then re-starts under a new name. A number of consumers recently lost between $400 and $900 each to advance fee loan thieves claiming to have offices in the Danville area. BBB Serving Western VA tracked the company to Canada.
· Sweepstakes Scam. In this scheme, the thief mails an official-looking, but phony, announcement proclaiming that the recipient has won a lottery or sweepstakes. The letter says the money or prizes will be delivered as soon as the winner pays taxes or other fees – again, often through Western Union, MoneyGram or a Green Dot MoneyPak. Typical is a recent mailing to a Roanoke resident informing him that he had just won $450,000 in the “USA Mega” sweepstakes. The notice included what appeared to be a legitimate check for $4,850 that the letter said would help him pay taxes on the winnings. The scammer is counting on the recipient to deposit the fake check into his or her bank account and then send out the $4850 in real money. Too often, the “winner” discovers too late that he or she has been duped and there is no sweepstakes. Scammers often use the phone to perpetrate the same type scam. Today, a Roanoke County resident received a phone call from the “Gaming & Lottery Commission” stating she had won $850,000 – all she had to do was purchase a MoneyPak from Walgreens in the amount of $299; she was told this was a means for them to “certify her identification”. Of course, had she purchased the MoneyPak and given the caller the ID number on the card, the money would have been long gone. This savvy senior recognized all the red flags and politely hung up on the scammer.
· Secret Shopping or Work at Home Scam. In this scam, a business that appears legitimate offers a job seeker a chance to earn money as a secret shopper, shopping various stores and services and reporting the findings back to the company. In most cases, the company mails a legitimate looking check, instructing the recipient to keep a portion of the money and use the rest to “shop” businesses such as Walgreen’s or Wal-Mart. Almost always, instructions also call for the recipient to use most of the cash to “shop” MoneyGram or Western Union by sending a large portion of the check through one of those businesses to an out-of-town recipient. The secret shopper scam has been particularly prevalent in our service area for several months. We were contacted by a local consumer last week who had been a victim of this type scam. He wired $2900.00 to the company that ‘hired’ him and then realized he had been scammed; now he has had to take out a loan to pay back his bank.
· Grandparent Scam. Well-meaning grandparents who think they are helping a grandchild in distress are becoming victims of another wave of the so-called “Grandparent Scam”. While many seniors have reported the scam without falling prey to it, unfortunately, many others have been victimized.
Here’s how it works, The grandparent receives a frantic phone call. A scammer, posing as their grandchild, explains that he or she has gotten into trouble, often in Canada, Mexico or another far off place, and needs their help. The “grandchild” might claim he or she caused a car accident or was arrested for drug possession and needs money sent right away. Victims are also contacted by someone claiming to be a police officer or lawyer representing the grandchild in court.
The caller pleads to the grandparents not tell his or her parents and asks that they wire thousands of dollars for reasons including posting bail, repairing the grandchild’s car, covering lawyer’s fees or even paying hospital bills for a person the grandchild injured in a car accident.
The caller may not identify themselves but will call you grandma or grandpa hoping you will reply with “Billy, is that you, what’s wrong?” The reply, “Yes, it’s me, Billy” provides the scammer with the name of your grandchild.
If you receive a call from someone claiming to be your grandchild in distress, BBB advises you don’t disclose any information before you have confirmed it really is your grandchild. If a caller says “It’s me, grandma!” don’t respond with a name but instead let the caller explain who he or she is. One easy way to confirm their identity is to ask a simple question that your grandchild would know such as what school he or she goes to or their middle name. Call your grandchildren’s mother or father and confirm your grandchild’s whereabouts.
· Craigslist Scam. Although these can take several forms, the most common involves a scammer who responds to a consumer’s offer on Craigslist to sell an item or service. The thief typically sends payment in the form of a phony check, claiming that a family member or associate accidentally has overpaid and then requests a partial refund by MoneyGram or Western Union. It is only after sending the refund that the consumer realizes he or she has been scammed.
· Romance Scam. Avoid sending money in any form to someone you have spoken with only online. If an email “friend” asks you for money – for any reason – it is probably a scam.
If you need more information, contact the BBB at (540) 342-3455 or (800) 533-5501. You can also visit www.bbb.org. Follow us on Twitter at twitter.com/BBB_WesternVA.
