Jim Winsett of the BBB. Q. What scams and fraudulent activity should consumers be aware of during the holidays?
A. This is the hustle and bustle time of the year. All indicators show that the retail landscape is heating up online and in stores, and criminals are capitalizing on this busy time of year by stepping up their efforts to get us to part with our money. Many of their scams are well-known, however, the Better Business Bureau warns consumers to keep their guard up to protect themselves from season-specific criminal activity.
There are some types of fraud more prevalent at this time of year. Shoppers are using their credit cards often and are easily distracted. It becomes a potentially dangerous combination for consumers. Shoppers' hands are full. They are bogged down in stores, malls and parking lots with packages, wallets and purses, and exposing their cash and credit cards in the checkout line. Social media and false advertising with "too good to be true" enticing internet deals can also lead shoppers to take chances online.
Here are some of the holiday season scams we are experiencing:
1) IRS and U.S. Treasury Telephone scam. Over a three-year period, this scam has reached unprecedented levels of activity. The critical message to consumers is that if someone calls claiming to be with the IRS, or the U.S. Treasury, HANG UP the phone. This scheme to date has cost consumers nationwide millions of dollars. Most scams prey on greed, this scan preys on fear. A new version of this scam today is fake email with a tax bill as part of the Affordable Care Act. Report this fraud activity to www.tigta.gov, you may also report it to www.bbb.org/scamtracker.
2) Crimes of contact. Be aware of your surroundings. Petty thieves grab purses, wallets and credit cards, and break into cars in parking lots.
3) Package delivery notices. These are email messages that carry computer malware or infected attachments. The senders use the names and logos of well-known delivery companies and tell you they have tried several times unsuccessfully to deliver a package to your home. Remember that if you miss a delivery, the driver will leave a tag on your door to either arrange a subsequent delivery or a pickup at the company's depot.
4) Phony websites. They offer unrealistically low prices to grab our attention or may use brand names and stock images of merchandise. They want your credit card number and personal information, which in and of itself is currency for criminals.
5) Knockoffs. They may look authentic but if the price is ridiculously low for a popular brand name product, it could be a cheap imitation. You also may end up with an electronic gadget that doesn't work or is not covered by a warranty in the U.S. Brand name websites can help you identify a fake by showing the difference between a knockoff and a genuine article.
6) Phony Ecards. It is not unusual to get greeting cards over the holidays, but Ecards can be replicated and loaded with hyperlinks that can infect your computer. Make sure you know who sent one before clicking on anything on the card's page.
7) Holiday travel scams. The internet is replete with phony travel packages. Always check the reputation of a website or vendor before dealing with them at bbb.org. If not, you could lose thousands of dollars very quickly.
8) Credit card and bank robocalls. The message will tell you that your account has been locked because of suspected fraud, and require you to divulge personal information. This may include your card number and expiration date, as well as logins and passwords. If your financial institution does spot a problem, it will contact you by telephone, not ask you for personal information and may tell you to destroy your card as they prepare to send you a replacement.
9) ATM skimmers. Criminals place devices over card reader slots at ATMs and gasoline stations with a pinhole camera to capture your card number and PIN number as you enter it on the keypad. All of this is transmitted to the fraudsters. Bluetooth technology has added another communication method for Skimming fraud. Check ATM and gasoline card reader slots to make sure their covers fit properly, and always cover the keypad if entering a PIN number - even if you don't think anyone is looking.
10) Charity cheats. Fake charity appeals usually come in the form of telephone solicitations. The Do Not Call registry exempts legitimate charities, so they do have the right to call you. BBB encourages and recommends finding a charity of your choice, rather than giving out your credit card to someone over the phone. You never know who's at the other end. Today in our communities, we have multiple disaster events where solicitations are active. BBB encourages support of the Woodmore Fund, the Gatlinburg fire disaster relief and current tornado destruction areas. Donate wisely; charities may be vetted at www.give.org.
11) Bogus gift cards. Fake cards and empty cards are sold on internet sites, classified ad and auction sites. The safest way to buy a gift card is directly from a retailer. If you purchase a gift card in a store, make sure the card and its packaging have not been tampered with.
12) Naughty texts and links. These are unsolicited texts that offer coupons, free electronics and more. If you didn't sign up for the text alerts, they are scams. Text links are like browser links. They can be dangerous. Call your wireless carrier to block the telephone number associated with the text.
13) Front door helpers. Phony contractors go door to door in neighborhoods at this time of year, and may be unregistered, unlicensed, uninsured and perhaps unqualified. They may offer inexpensive renovations, leaf and lawn clearing or handyman services such as inspecting and/or fixing your roof or cleaning your gutters. Consumers should avoid doing business at the front door or agreeing to sign a contract or pay a deposit for a "today only" price.
Enjoy the season; during the holidays be an educated consumer, be safe and aware of your activities at all times. For more consumer tips you can trust visit bbb.org.
Jim Winsett is president of the Better Business Bureau in Chattanooga.