A Warning to Shoppers: New Scams

The holidays are just around the corner, and consumers are starting to buzz around in malls and just about everywhere checking out great finds and good deals. The March Group Scam Protection Blog knows that this is also the time of year when the biggest spoilsports come out – the scammers! Yes, scammers operate year-round, but they become especially busy during the holiday season, when shoppers have a little more to spend, and do spend more.

As consumers have become more aware and cautious over time about different scams, scammers too have become increasingly sophisticated in their methods of  ripping people off. Here are a few of the new shopping scams to be wary of, according to consumer.org:

Smishing

The term is a combination of SMS (short message service) and phishing. In a twist to phishing, instead of an email, the victim gets a text message to call a toll free number. It is answered by “a bogus interactive voice-response system that tries to fool you into providing your account number and password.”

According to Rod Rasmussen, president and CTO of IID, an Internet security firm, thieves can use random-dialing telemarketing services to access your number.

To avoid being a victim, it is best to confirm with your bank or other service provider the text message you have received and the number mentioned in it.

Teeny, tiny charges

In June, spokesman Frank Dorman of the Federal Trade Commission (FTC) confirmed this scam where thieves make small charges, anywhere between 20 cents to $10, to the victim’s credit or debit card. The charges appear under a legitimate-sounding corporate name in the account statement along with a toll free number that when called to, is either disconnected or answered by voicemail but no return calls. The small charges are often overlooked because of their seemingly insignificant amount, but according to the FTC, this scam is estimated to have rung up about $10 million.

To prevent being a victim of, and inadvertently contributing to this scam, thoroughly scrutinize your account statement every time, and report immediately to your bank any questionable charge or detail in it. Be aware of the time frame financial companies give for reporting cases like this – credit card charge concerns allow for a longer reporting time than for a debit card’s.

Skimmers

Skimming is a type of scam where thieves attach devices to an ATM or any machine that accepts debit card transactions. The device is usually placed at the card slot so when you slide it into the ATM machine, it records the data off of the magnetic strip at the back of the card. This is usually accompanied by another device, say a hidden camera or a transparent plastic PIN pad overlay that records the victim’s PIN upon typing it.

According to Brian Krebs, a computer security expert and author of “Krebs on Security” at Krebsonsecurity.com, whereas before thieves would have to go back to the location where the machine is to retrieve the “stolen” data, these days “wireless technology enables the devices to be rigged to send account information via text message to the thief’s cell phone.” He adds, “”As long as he’s got a working phone signal, he can get the information sent to him right away and start using it.” This makes the scam that much quicker to be acted on.

Since this sounds like a high tech scam, one should observe extreme caution in using ATM machines. Avoid non-bank ATMs found in obscure locations where scammers can easily tamper with the machines. Check the card slot and be aware of any suspicious-looking device or a plastic strip/film sticking out of the card reader.

Shopping, be it during the holidays or not, should be a stress-free and enjoyable activity. Armed with the knowledge of these latest scams that you might be a victim of, The March Group Scam Protection blog might just have made your shopping safer, and a lot more fun.

Avoid a scam today by subscribing to The March Group Scam Blog.

The March Group is a leading mergers and acquisitions advisory firm dedicated to the middle market.

http://shopping.yahoo.com/articles/yshoppingarticles/448/the-sneakiest-new-shopping-scams/



A Prescription for Online Pharmacy Scam

Online pharmacies have become an efficient and convenient means of providing for the medical needs of people, especially for the elderly and those in remote places where going to a store to buy medication would be necessary. Unfortunately, where a good thing is, scammers could not be far behind.

Photo from safefromscams.co.uk

Bogus pharmacy websites are all over the Internet, and there is the probable risk of making a transaction in any one of these. Such sites can pose a threat in both the safety of your health, with questionable manufacturing processes and ingredients in the products sold; and your personal identity, with many of these bogus websites in operation only to collect personal information including the victim’s financial data for identity theft and fraudulent sales transactions.

According to Scambusters.org, a free online resource dedicated to exposing different scams affecting individuals and businesses, there are several ways with which to avoid becoming a victim of an online pharmacy scam:

• Don’t deal with sites that offer controlled meds without prescription.
• Be wary of those that offer a prescription based only on completion of an online questionnaire; the American Medical Association suggests these are unlikely to meet appropriate standards of medical care.
• Don’t use sites without a verifiable address or phone number.
• Check the National Association of Boards of Pharmacy (NABP) site listings for any online pharmacy you’re thinking of using.
• Discuss your online prescription plans with your physician.
• If you’ve previously bought online, ignore intimidating calls purportedly from the Food and Drugs Administration (FDA) or Federal Trade Commission (FTC) threatening to fine you; government departments don’t operate this way and don’t fine you over the phone.
• Consider using a one-time, disposable credit card number for your purchases (many card operators offer these — check with your provider).
• If in doubt, contact the FDA or NABP.

Online pharmacies are supposed to be a boon to consumers, but scammers’ dirty tricks threaten to smear the credibility of an otherwise great innovation to the industry. Consumers owe it to themselves to be informed and alert of when a good thing might do more harm than good.

Avoid a scam today by subscribing to The March Group Scam Blog.

The March Group is a leading mergers and acquisitions advisory firm dedicated to the middle market.

http://www.scambusters.org/onlinepharmacies.html

The New York City Cab Fare Scam

The March Group Scam Protection Program  recently came across an interesting article in The New York Times involving a scam perpetrated by an industry closely identified with New York city.

On September 22, it was reported that 59 New York City cab drivers were arrested and charged in Manhattan for manipulating their meters to double the fare rate, ripping off passengers in the process.

According to Cyrus R. Vance Jr., the Manhattan district attorney, the drivers who were arrested stole more than $235,000 in overcharged fares on more than 77,000 rides.

“Although the overcharged amount for each trip may only have been a few dollars, this kind of aggressive scam sends ripples of mistrust throughout our city,” Mr. Vance said. “No other American city depends so much on its taxi fleet.”

The Taxi and Limousine Commission’s head, David Yassky, said that they had found evidence that about 2,000 taxi drivers charged the wrong rate. He said that most of them went through administrative proceedings that resulted in either being fined or having their licenses revoked.

The widespread scam was uncovered when investigators, prompted by a passenger’s complaint last year, found out that a cab driver, Wasim Khalid Cheema, from Brooklyn had overcharged 574 passengers in just one month last year. Mr. Cheema’s driver’s license has since been revoked.

Those drivers who were found to have overcharged passengers at least 300 times were criminally prosecuted, Mr. Vance said.

Of those arrested, forty-five were charged with a felony of first-degree scheme to defraud, punishable by up to four years in prison. The remainder of those arrested were charged with a misdemeanor of petty larceny.

The drivers were accused of charging passengers with Rate Code 4, the rate reserved for rides to the suburbs such as Nassau and Westchester Counties, for rides within the city.

According to prosecutors, among the drivers Santiago Rossi was found to have improperly charged riders most often, having done it 5,127 times, and earning him $11,066.45 in overcharges; while Mfamara Camara made the most in overcharge fees: $15,502.30.

The widespread scam has threatened to tarnish an iconic industry that has become a part of New York’s image and an essential part of the city’s lifestyle.

http://cityroom.blogs.nytimes.com/2010/09/22/dozens-of-cabbies-arrested-in-fare-scheme/?scp=6&sq=scam&st=cse

http://www.nytimes.com/2010/03/13/nyregion/13taxi.html?_r=1

Avoid a scam today by subscribing to The March Group Scam Blog.

The March Group is a leading mergers and acquisitions advisory firm dedicated to the middle market.

Loan Modification Scams: Bane of the Mortgage Crisis

The March Group Scam Prevention Program feels for the homeowners driven away from their own homes because of rising mortgage costs, and their inability to make the payments. We hear of countless stories of displaced families living in motels, in trailers, or worse in their cars as the effect of this, but nothing can be more frustrating, and infuriating, than hearing about those who lost their homes as victims of a scam that was supposed to keep the roof above their heads.

Scam artists have always thrived on periods of crisis when people are at their most vulnerable, ready to grab anything that might present itself as an opportunity to redeem them of their current situation. The mortgage crisis is not an exception. Scammers have found ways to exploit it by offering victims loan modifications.

Today, we review some of the most common loan modification scams out there:

• Phony Counseling or Foreclosure Rescue Scams
  The scam artist poses as a counselor and tells you he can negotiate a deal with your lender to save your house—if you pay him a fee first. He may even tell you not to contact your lender, lawyer or housing counselor—that he’ll handle all details. He may even insist that you make all mortgage payments directly to him while he negotiates with the lender. Once you pay the fee, or a few mortgage payments, the scammer disappears with your money.

• Fake “Government” Modification Programs
  Some scammers may claim to be affiliated with, or approved by, the government, or they may ask you to pay high, up-front fees to qualify for government mortgage modification programs. The scammer’s company name and Web site may sound like a real government agency. You may also see terms like “federal,” “TARP” or other words related to official U.S. government programs.

Your lender will be able to tell you if you qualify for any government programs to prevent foreclosure. And you do not have to pay to benefit from these programs.

• Bait-and-Switch
  The scam artist convinces you to sign documents for a “new loan modification” that will make your existing mortgage current. This is a trick. You actually just signed documents that surrender the title of your house to the scam artist in exchange for a “rescue” loan.

• Rent-to-Own or Leaseback Scheme
  A scammer urges you to surrender the title of your home as part of a deal that will let you stay in your home as a renter and then buy it back in a few years. He may tell you that surrendering the title will permit a borrower with a better credit rating to get new financing—and keep you from losing your home. However, the scammer may have no intention of ever selling the home back to you.

But the terms of these deals usually make buying back your home impossible. Worse yet, when the new borrower defaults on the loan, you’re evicted.

The present crisis is already tough as it is. Challenging times call for vigilance and greater awareness about the goings on around us. Preventing yourself from becoming a scam victim is an objective you cannot take lightly.

http://www.loanscamalert.org/common-scams.aspx

Avoid a scam today by subscribing to The March Group Scam Blog.

The March Group is a leading mergers and acquisitions advisory firm dedicated to the middle market.

Pigeon Drop Scam – Fallen from Heaven, Landing in Scam Hell

Interestingly named, the Pigeon Drop Scam is a form of rip off where the victim is supposed to earn money when he pays money. The scammer lures the victim to part with his money with the promise of getting a bigger amount in return. The March Group Scam Prevention Program takes a look.

Back in March, a pigeon drop scam in action was caught on tape. It took place in a Kroger parking lot in Vicksburg, Mississippi where a surveillance cameras were rolling. According to the news report, the video showed the victim, who was identified only as Lonnie, being asked by a woman if she dropped a white envelope. Lonnie said no. Then, a man walked by, got hold of the envelope and opened it which revealed cash inside.

The man suggested that they split the money into 3. Lonnie said that they could not do it at the parking lot, so the woman, who said her name is Suzanne, offered that they do it at Walgreen’s, which was across the street and where she worked.

Once there, Suzanne went inside to count the money, and when she came out, announced that it’s worth $80,000. Then, Suzanne and the man required Lonnie to show $15,000 so she could take her $25,000 share.

Lonnie was jobless at the time and thought she could use the money, so she withdrew that amount from the bank, and met up with the other two right after. She gave the $15,000 to Suzanne, who asked her to go in the store and wait at aisle 6 where she will be given the $25,000. Lonnie complied, and stood waiting at the store. It was only after several minutes did she realize that she got scammed.

It is unfortunate to hear stories like this, but it also elicits a “How could she have fallen for that scam?” kind of reaction. It seems that for people who have fallen on hard times, all that glitters looks blindingly gold.

http://www.hotscams.com/articles/what-on-earth-is-pigeon-drop-scam.html

Avoid a scam today by subscribing to The March Group Scam Blog.

The March Group is a leading mergers and acquisitions advisory firm dedicated to the middle market.

http://www.businessweek.com/smallbiz/content/apr2008/sb20080414_093118.htm