Top 10 BBB Scams in 2011 Revealed, Part 1 of 2

The Better Business Bureau (BBB) receives thousands of complaints and has listed the top ten scams for 2011.  I wanted to provide the list and description, so that you are aware of the scams.  The scams are getting more creative and more disparate for money.  Because of the economic times, more people are getting scammed because they want a deal or to make money also.

The top five scams will be discussed here and the remaining five in a second blog article. The top five scams are: job, sweepstakes and lottery, social media/online dating, home improvement and checking cashing.

Top five scams

1. Job Scams – These scams involve secret shoppers and work-from-home schemes. The purpose is to steal your identity and money from your bank account. You receive emails offering you a job.  They require you to complete an on-line application from an official looking website.  You are interviewed on the phone and offered the job.  You are asked to provide bank information for direct deposit of paychecks.  They have your Social Security number and bank account information that can be used to open accounts and take money from your account. Oh and by the way, there is no job.

2. Sweepstakes and Lottery Scams – These scams inform you that you are a winner and to claim your prize, you need to send them money. Some use celebrity names to make it more official. They ask you to click on the link but don’t click on the link or send them money. If you think it is legitimate, go directly to their website.

3. Social Media/Online Dating Scams – Scammers go to sites to get personal information such as name and birth date. Some pay attention to the dates that you are on vacation, so they can break into your home.  They can become your “friend on Facebook” and learn more about you.  They can send you emails that seem to be from a friend and send you a link to a video. You could also receive an email or  link to a video from some from online dating.  When you click onto it you download a worm that logs into your social media accounts, sends messages to your friends, and searches for your personal data. The same thing can happen from online dating. The latest scam is a link to “upgrade your Flash player” – don’t click on it.

4. Home Improvement Scams – Contractors knock on your door and offer you a deal.  They noticed work that needed to be done on your house, or they have extra supplies and can give you a deal.  Don’t forget, there are those that take advantage of victims of natural disasters.  Check with the Better Business Bureau to make sure they are legitimate, trustworthy and dependable.  Also contact your neighbors and friends for references.

5. Check Cashing Scams – The usual check cashing scam is to send you a check for more than the amount for something you are selling or for something you buying as a secret shopper.  You are asked to deposit the check in your account and send them the difference via Western Union.  It takes time to find out whether the check is good, but the wired money was gone instantly, and you were out the money.

Part two of this blog will discuss five other scams: phishing, identity theft, financial, sales, and the scam of the year.

Credit Expert Witness, John Ulzheimer, is the President of Consumer Education at SmartCredit.com, the credit blogger for Mint.com, and a Contributor for the National Foundation for Credit Counseling.  He is an expert on credit reporting, credit scoring and identity theft. Formerly of FICO, Equifax and Credit.com, John is the only recognized credit expert who actually comes from the credit industry.  Follow him on Twitter here.

Categorised in: Civil Penalty, Identity Theft, Improving Credit

This post was written by John Ulzheimer