BBB Consumer Education Blog

New Lottery Scam Fraudulently Claims to Be From Better Business Bureau

By Beth | February 9, 2010

Arlington, VA - February 3, 2010 – Better Business Bureau warns that a new scam is fraudulently using the organization’s name in order to steal tens of thousands of dollars from victims who are led to believe they have won a lottery. So far, one victim has lost $80,000 to scammers posing as BBB employees.

Several individuals have reported to BBB that they were contacted over the phone or via e-mail by someone claiming they were with the Better Business Bureau. They were told that they had won a lottery and that, in order to receive the prize, they must first wire money back to the scammers. In some cases, the scammers used the names of real BBB employees—directing victims to legitimate bios and profiles on BBB’s Web site—in order to bolster their ruse.

“Many people are struggling in the current economy and when someone tells you that you’ve won millions in a lottery, it can seem like an answer to prayer,” said Steve Cox, President and CEO of the Council of Better Business Bureaus. “Every year, tens of thousands of people contact BBB about a suspicious lottery and instead of cashing in, many lose thousands of dollars they don’t have.”

Better Business Bureau reminds consumers that the organization does not run a lottery nor award prizes to consumers. Anyone who receives a call, letter or e-mail about winning the lottery should consult the following checklist in order to avoid falling victim to a lottery scam:

Make sure the story checks out. Always confirm the facts directly with the organization the representative claims to be from—whether it’s Better Business Bureau or any other organization. Use contact information that you found on your own from the organization’s Web site; don’t rely on phone numbers or Web links provided by the representative. Scammers often pretend to be from legitimate businesses or non-profits and a quick call directly to the organization can help set the record straight.
Never pay money to get money. Lottery scammers make their money by convincing victims that they have to pay money up front—to cover such costs as taxes or fees—in order to receive their winnings. Because it is extremely difficult for the victim to track or retrieve money sent via wire transfer, scammers will often use this as their payment method of choice.
Don’t fall for the phony check. Scammers will often send a check in the mail to the victim with the instructions that—in order to receive the full prize—he or she must deposit the check and wire back a portion of the funds to cover fees or taxes. This gives the victim a false sense of security because the check will clear initially, but eventually be discovered as a fake. The money is then taken out of the victim’s account and he or she is out the funds sent to the scammer.

If you have been contacted by someone posing as a Better Business Bureau employee, contact your local BBB and report the incident.

Topics: News, Announcement, Scams | No Comments »

Alert: Email Scam

By Beth | February 8, 2010

Our Trade Practice Assistant, Michelle, came across the following consumer alert and wanted to pass it on to our readers. For related posts containing tips and resources, see the links below.

WARNING - Email Scam - A number of calls have been received from individuals indicating they received an email that appears to be a grand jury subpoena issued by the U.S. District Court, Southern District of California. The email was sent from a USCOURTS.COM address. This email is NOT a valid communication from a federal court and may contain harmful links. If you receive this email, please do not click on any links or download any information relating to it.

Contact your BBB or www.ic3.gov if you receive such an email.

Recent Email Threats, Updates from IC3

Emails from U.S. Customs? Not Quite.

Internet Crimes and How to Spot Them

Topics: Announcement, Scams | No Comments »

Visit This Website Before You Fly

By Beth | February 5, 2010

I haven’t flown in years. Although at one point in my life I was on a plane every few months, I decided some time ago to forego the hassle and drive. Unfortunately, the time has come to bite the bullet and purchase a ticket for a flight. In preparation, I’m reading everything I can find about new charges, current issues, and updated airline rules.

In doing so, I came across a new website from the Department of Transportation. Aviation Consumer Protection and Enforcement “monitors compliance with and investigates violations of the Department of Transportation’s (Department) aviation economic, consumer protection, and civil rights requirements. The Office also provides legal review and support on aviation economic licensing matters.”

What does that mean for you? You have easy access to travel tips addressing topics like flight delays and passengers with disabilities. But you also can view reports from the DOT like mishandled baggage complaint data. Other useful links include dealing with bankrupt airlines and rules concerning overbooking.

Your BBB advises consumers to be prepared. And what better way to ready yourself for a flight than brushing up on rules, guidelines and tips from the DOT! At least, I hope my studying the site will make my experience less stressful.

Visit related posts here: (Please note that some of the content in the following blog posts may be out of date. Check with your airline, the DOT website, or visit the links above for updated information.)

Know the Fees Before You Fly

Troubled By Recent Airline Shutdowns?

Luggage Limits for Holiday Travel

Topics: Websites, Announcement | No Comments »

Student News: Credit Cards and You

By Beth | February 4, 2010

Our friends at the Council of Better Business Bureaus published a blog post recently that we wanted to pass along to our readers. If you are a student or the parent of a student, read below!

January 29, 2010

Starting next month, college students under the age of 21 will find it harder to apply for credit cards, according to FiLife.

The Credit Card Accountability Responsibility and Disclosure Act, requires minors to have a parent or adult present to apply for a credit card.

The new law is meant to teach freshman financial responsibility while they’re in college, a course not often offered among various majors. Besides moving into a dorm and experiencing what college life has to offer, giving freshman credit cards can be risky business.

Although parents may stress that a credit card can only be used to purchase books for class, educational and living costs, many students use it for other things.

The Act is also meant to keep students out of debt while they’re in college. Semester costs and bills for other things do add up.

Credit Card Accountability Responsibility and Disclosure Act goes into effect on February 22, 2010.

Read the full article at FiLife by clicking here.

Contact your BBB to check out a specific business or offer.

For more information, tips and resources for students, click here.

Topics: News, Announcement, Students | No Comments »

Important: Toyota Recall Correction

By Beth | February 3, 2010

Consumers have been watching the news of the Toyota vehicle recall developing over the last week. The announcement of the recall involving eight vehicle models has affected millions of drivers. A recent Associated Press story was quoted by various outlets across the country and unfortunately included incorrect information.

The phone number printed for consumers to call was 800-331-4431. Unfortunately, when called, individuals were asked to pay $4.95 and to disclose their social security numbers.

We’d like our readers to be aware that the correct number to call is 800-331-4331.

For more information for owners from the company, click here.

Your BBB would like to remind you never to disclose personal information to an unknown source. Contact your BBB with questions or to check out a specific business or offer.

Topics: Announcement | No Comments »

How Well Do You Know Your Tax Preparer?

By Beth | February 2, 2010

It isn’t uncommon for us to believe those working in a specialized field know more than we do. And so we avoid asking questions in fear of appearing ignorant. Doctors, insurance agents, lawyers all work with an occupational vocabulary, but this should not keep patients, customers, or clients from asking questions in an effort to fully understand.

The same goes for your tax preparer. Whether you choose to enlist the services of an independent CPA or work with a tax preparation service, the IRS and your BBB want you to be prepared. Below is a list of items to consider when choosing your tax preparer. Also, click here for more from the IRS including links to help those who want to help themselves.

A paid preparer must sign the return as required by law.
Avoid preparers who claim they can obtain larger refunds than other preparers. If your returns are prepared correctly, every preparer should derive substantially similar numbers.
Beware of a preparer who guarantees results or who bases fees on a percentage of the amount of the refund. A practitioner may not charge a contingent fee (percentage of your refund) for preparing an original tax return.
Understand that the most reputable preparers will request to see your receipts and will ask you multiple questions to determine your qualifications for expenses, deductions and other items. By doing so they have your best interest in mind and are trying to help you avoid penalties, interest or additional taxes that could result from an IRS examination.
Choose a preparer you will be able to contact and one who will be responsive to your needs. Ask who will actually prepare the return before engaging services. Avoid firms where your work may be delegated down to someone with less training or some unknown worker. You should know exactly who works with your tax matters at all times and how to contact him or her; after all, you are paying for it. Determine if the preparer is exporting your return to a foreign country for preparation. Foreign countries do not have the same security and privacy laws as the United States nor is there any recourse should your information be compromised as a result of lax or nonexistent privacy procedures.
Investigate whether the preparer has any questionable history with the Better Business Bureau, the state’s board of accountancy for CPAs, the state’s bar association for attorneys or the IRS Office of Professional Responsibility (OPR) for enrolled agents or the oversight agency in states that license or register tax preparers.
Determine if the preparer’s credentials meet your needs or if your state mandates licensing or registration requirements for paid preparers. As of 2008, California and Oregon are the only two states that regulate paid tax preparers. Is he or she an Enrolled Agent, Certified Public Accountant (CPA) or Tax Attorney? Only attorneys, CPAs and enrolled agents can represent taxpayers before the IRS in all matters including audits, collection actions and appeals. Other return preparers may represent taxpayers only in audits regarding a return that they signed as a preparer.
Find out if the preparer is affiliated with a professional organization that provides or requires its members to pursue continuing education and holds them accountable to a code of ethics.
Check IRS.gov for information regarding abusive shelters and other tax schemes and scams. Remember, if it sounds too good to be true, chances are it is.

Topics: Consumer Myth, Websites, Tips | No Comments »

Choosing an Assisted Living Facility

By Beth | February 1, 2010

According to the American Association of Retired Persons, assisted living is the fastest growing type of senior housing in the United States. Assisted living facilities usually provide or coordinate personal care services, 24-hour supervision, scheduled and unscheduled assistance, social activities, and some health-related services. These facilities are designed for individuals who cannot live independently, but

do not need nursing care on a daily basis. If you decide that an assisted living facility is the best option for you or a family member, the Better Business Bureau suggests the following tips:

Visit several facilities and talk to the staff and residents.
Ask yourself some questions:
- Does the atmosphere seem pleasant?
- Does there seem to be enough staff available?
- Do residents seem happy and engaged?
- Do residents appear to be clean and groomed?
Know what the daily or monthly rates are and ask what services are included in this fee. There may be other services available for an extra charge.
Find out if the state requires the facility to be licensed.
Ask to see the facility’s most recent inspection report.
Find out what services the facility provides, and if the services are provided by the facility’s staff or if arrangements are made with other agencies.
What choices of accommodations are available?
- Can you get a private room?
- Do they have rooms with kitchen facilities?
- Is the bathroom private or shared?
- Are there private areas other than the bedroom for visits?
- Is there space for personal belongings?
- Check the facility for safety features including well-lit stairs and halls, handrails in the bathrooms, well-marked exits and a way to call for help if needed.
Find out if you or your family will be involved in the care planning process. Be sure you know what will happen if you should need assistance later on. Will you have to move, or will the facility be able to provide the care you need?
Ask about cost. Costs vary according to the residence, room size, and types of services needed by the resident. Most assisted living facilities charge month-to-month rates, which are generally paid by the residents or their families from their own financial resources; however Medicaid might cover this type of care.
Lastly, check the facility out with your BBB.

Also get a free copy of “Exploring Your Options: Housing Solutions for Seniors” from the Metropolitan New York BBB.

Topics: Tips, Seniors | No Comments »

Is Your Purse Poisonous?

By Beth | January 29, 2010

We’re heard of lead poisoning from paint and from canned foods, but from our fashion accessories? As ABC news reports, the Center for Environmental Health (CEH) just announced that a recent study shows that handbags tested from top U.S. retailers showed “disturbingly high levels” of lead. The source of the lead is synthetic materials and pigments used by manufacturers. The greatest risk, according to an expert, are children and pregnant women.

The CEH entered into legal agreements with four of the companies, resulting in the elimination of some sources of this threat. Click here to read more from CEH and to view the list of companies notified by the organization.

Topics: News, Announcement | No Comments »

Giving to Police or Firefighter Organizations

By Beth | January 28, 2010

In reviewing appeals from police & firefighter organizations, potential donors should be aware of the following points. In addition, donors should consider the nature of the organization’s programs as they can vary quite widely from one group to the next.

The police or firefighter organization may not be a charity. There are many different types of police & firefighter organizations. Some are tax exempt as charities. Others may be tax exempt as labor organizations, fraternal groups, benevolent associations or something else. As a result, your gift may not be deductible as a charitable gift.
Local officers may not be involved. Don’t make assumptions based on the name alone. The words “police” and “firefighter” in the organization’s name does not necessarily mean that local members of the force or any officers for that matter, are involved in any way.
Don’t believe promises of special treatment. Don’t believe promises that donations will result in special treatment by police or firefighters. If such suggestions or threats are used, contact your state’s attorney general and the BBB. Also, if you believe that a police group sticker in your car window will help if you are stopped for a traffic ticket, think again.
Don’t hesitate to ask for written materials. Ask the organization for written information detailing its programs and finances.
How much of your gift will be spent on fund raising? In some cases, fund raising expenses can be as high as 80% or more of the funds collected. Find out how much goes to the group.
If asked to buy tickets to send needy kids to an entertainment event, ask how the children are chosen, how many will attend, how the tickets will be distributed and if transportation has been arranged for the children.
If your business is asked to buy advertising space in a police or firefighter journal, ask how many copies of the publication will be distributed, who will receive them, if there is a cover price, the estimated publication date, and ask to see a copy of the draft and published version of the ad.
If in doubt about an organization that has contacted you, consider giving locally to organizations in your city.

For more from your BBB on charities and making donations, click here.

Topics: Consumer Myth, Charity Info, Tips | No Comments »

Can’t Pay Your Taxes? Contact the IRS First.

By Beth | January 27, 2010

If you owe the IRS less than $25,000 and need help paying, consider the IRS Online Payment Agreement (OPA) before going to a third-party for payment assistance. The agreement allows approved individuals to pay in installments.

Unfortunately, we’ve heard from local consumers that individuals claiming to be with out-of-state law firms contact them to help stop IRS collections after they failed to pay required fees and taxes. Some consumers, in need of a solution, entered into agreements with these individuals, later finding fees owed to the company far exceeded what they owed the IRS.

Your BBB recommends always contacting the agency first to find out the extent of your obligations and to learn how the IRS can help. For more on OPA, click here.

Topics: Websites, FYI | No Comments »

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