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Better Business Bureau warns consumers about popular scams

The Better Business Bureau is hoping consumers will learn a lesson from past mistakes. The organization is publicizing a list of scams to watch for in 2012 showing how scammers use misrepresentation to gain trust. Brand spoofing Brand spoofing (a.k.

The Better Business Bureau is hoping consumers will learn a lesson from past mistakes.

The organization is publicizing a list of scams to watch for in 2012 showing how scammers use misrepresentation to gain trust.

Brand spoofing

Brand spoofing (a.k.a. phishing) is a general term for email, text messages and websites fabricated and sent by criminals and designed to look like they come from trusted businesses, financial institutions and government agencies in an attempt to collect personal, financial and sensitive information. If the recipient connects with the fraudulent website, any information entered into the data fields (account number, PIN, social insurance number etc.) could be recorded, collected and used for fraudulent purposes.

If you receive these messages just delete them and do not click on any links, and hang up on callers you arent familiar with. Never give credit information online or over the phone unless you are sure of the identity of the caller.

Advance fee loans

Consumers have reported losing substantial sums of money responding to advertisements that guarantee loans to people, often online. Consumers complete credit applications and are told the loan has been approved and the funds will be received once a fee is paid. After payment, the loan is never received as promised.

It is illegal for a company to charge a fee in advance to obtain a loan, even if that fee is disguised as the first or last months payment.

Gold-buying schemes

In 2011, the price of gold soared, rapidly fluctuating and averaging more than $1,735 per ounce. Similar to gold rushes of the past, a strained economy and high demand for gold resulted in many consumers selling, trading and receiving unfair returns when cashing in their gold and jewelry.

Get multiple appraisals and compare prices before selling. Be sure that jewelry of differing karats is weighed and priced separately. Have jewels such as diamonds priced separately from the gold they are contained in.

Financial elder abuse

Common financial elder abuse frauds include tricking seniors into giving out private banking information; encouraging unnecessary home repair work, telemarketing and mail fraud; and swindles by family or friends that result in seniors giving up money, property, personal information and decision making capacity.

Most elder abuse happens to a senior by someone they know, such as a family member, friend or caregiver. Signs a senior is being financially abused include: missing belongings, unusual activity in bank accounts, suspicious stories, sudden changes in power of attorney or wills, bounced cheques and numerous unpaid bills.

Power-saving claims

The switch to Smart Meters in B.C. fostered a rise in false claims and deceptive ads by some scammers selling energy conservation devices. Consumers reported purchasing a number of power-saving devices they claim did not work.

Always check out a companys BBB Business Review (bbb.org) first and report deceptive advertising and business claims to your local BBB.

Door-to-door sales

Each year a variety of unscrupulous door-to-door salespeople use high pressure sales tactics to frighten people into purchasing expensive, substandard, often unneeded products and services. Be wary of overly aggressive sales people selling everything from alarm systems to vacuums and home upgrades or maintenance.

Before making any purchase, take the time to do your due diligence, getting the name and location of the company and ensuring all details and verbal promises are included in a contract.

Virus-fixing scheme

The caller warns that if the problem is not solved, the computer will become unusable. In order to fix it, the computer owner is directed to a website and told to download a program, plus pay a fee for a subscription to this preventative service. The catch: there was never anything wrong with the computer, the caller is not working for Microsoft, and the owner has downloaded to their computer damaging malware and spyware.

Check with the organization directly that the caller is claiming to be from, using the contact numbers found on their website. Do not provide any personal information to avoid identity theft. Never provide credit or debit card information for payment.

Penny auctions

Online ads, often designed to look like news reports, are cropping up on popular websites claiming that you can get great deals on iPads and other electronics with online penny auctions. Users set up an account and purchase bids with a credit or debit card; each individual bid may cost less than a dollar and are often sold in bundles of 100 or more. Every item has a countdown clock and as people bid, the cost of the item goes up incrementally and more time is added to the clock. Even if you dont win the item, you still have to pay for the bids you placed which can add up over time.

Before providing any personal information or signing up for any free trial with a penny auction, read all of the fine print carefully on the website. Pay close attention to details on signup and annual fees, minimum bidding requirements, maximum prize amounts and how to get a refund. Before bidding on an item, research how much it costs elsewhere. Watch your credit card for unexpected charges.

Martin Millerchip