Q. I have concern about fraud activity in the marketplace; what action as a consumer should I take to be protected?
A. Better Business Bureau serving Southeast Tennessee and Northwest Georgia suggest you can protect yourself from most fraud and scams in 2015 and beyond, by adding a few "smart consumer" resolutions to your list.
Traditionally, most complaints filed at BBB involve disputes between consumers and merchants or contractors. However, as technology has evolved, Better Business Bureaus across the continent are receiving a growing number of complaints about scams involving total strangers, imposters and criminals who hide behind the Internet. Though the methods vary, the criminals' objectives remain the same: to steal, frighten or trick us into divulging personal and financial information.
To avoid fraud and scams in 2015; Better Business Bureau offers its Smart Consumer Resolutions:
Invest a few moments before signing or paying. Visit www.bbb.org to check out a business, professional, or charity before handing over any money or signing a contract. Pull up a company's BBB Business Review to see what other consumers' experiences have been like and look for any patterns of unethical business practices.
Reach out rather than respond. Unsolicited texts, emails and telephone calls usually spell trouble. It's safest to ignore sales pitches through these media and find a professional, charity or business on your own. You can find what you're looking for in our BBB Accredited Business Directory data base.
Back up your files. Malicious software or computer failure can lead to the loss of your important data. Given these risks, it is worth the investment to buy a backup drive for your documents, contacts, photos and other digital information.
Guard your personal information. Identity theft is one of the fastest-growing crimes in the nation. Do not give credit card or bank account numbers, your date of birth, Social Security number, insurance information or driver's license number over the telephone. Assume that any time you give out personal information, including your name, address and telephone number, it may be shared with a third party and leave you open to fraud.
Use safe payment methods. Credit cards offer more protection than debit cards online and in stores. Online payment systems such as PayPal are also a safe alternative when shopping on the internet. Remember to check and read the privacy policy on any website where you enter payment or personal information. Beware of any seller who will only accept payment in the form of a wire transfer, bank draft or preloaded payment card.
Be careful where you click. Many consumers' problems begin by clicking on a link or opening an attachment in an unsolicited email. Often these are disguised to resemble "official" email from a government department, financial institution, insurance company or legitimate business. None of these would ask for personal information or include a link to "update files" with personal or financial information, user names or passwords.
Recognize and avoid high pressure sales tactics. Con artists use fear and a sense of urgency to get us to let our guard down. Any attempt to coerce you or make a "one time limited offer" is a red flag. A legitimate company or charity will want your money as much next month as today. Take your time to do research and differentiate between a worthwhile bargain and a fraud.
Be skeptical of internet claims. Just because you see an offer on a glitzy website does not mean you are dealing with a legitimate business. Claims of fast money and guaranteed returns on investment are no more reliable than classic chain letters and other get rich quick schemes.
Remember to watch out for low tech crime. Crimes of contact are responsible for the majority of fraud. Shred or store important documents safely. While shopping, be aware of your surroundings at all times, and remember that pickpockets and purse snatchers are still active.
Check your credit reports for free. Your credit reports can help you determine whether someone is opening lines of credit in your name through identity fraud. You can also improve your credit score by closing unused lines of credit. The government-sanctioned AnnualCreditReport.com offers free reports from each of the major credit reporting companies; Equifax Experian and TransUnion. Pull your report from one of the three companies every four months in order to identify any changes over the course of the year. If you find any mistakes, report them as soon as possible.
There is no way to protect ourselves from all forms of fraud, however, we can significantly lessen the chances of becoming a victim by learning to identify and avoid the many risks. And best of all, is that this resolution will save you money.
Jim Winsett is president of the Better Business Bureau in Chattanooga.