BBB Scam Watch is a monthly summary of some of the scams that cross our desks, current as of September 30, 2007.
“We live in a fast-paced world where fraud is always quickly adapting,” says Lynda Pasacreta, BBB President and CEO. “Your BBB would like to let people know about scams as they happen. That is why we have started Scam Watch.”
1. Advance fee loan: Canwest Credit
Those with little or poor credit are often targeted by fly-by-night companies who look legitimate, but fail to deliver the funds. Consumers have contacted the BBB about Canwest Credit, alleging that this unlicensed business requires an advance payment by wire transfer, in order to obtain a loan. The loans offered ranged from $5000-$8000 with a payment equal to about ten percent of the loan. 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 month's payment. In addition, the company requests private and personal information to apply for their loan and appears to be requesting this information in an unsecured area on their website.
2. New take on the Nigerian Scam: A message from Iraq
“A message from Iraq” is a deceptive email alleged from a US Army soldier named Sgt. Derek George from the US army who requests assistance to evacuate the sum of $3.2 million supposedly recovered from Saddam Hussein’s hidden fortunes. This email is a new spin on the age-old Nigerian scam. In the original Nigerian scam, the sender, who claims to be a government official or member of a royal family, requests assistance in transferring millions of dollars of excess money out of Nigeria and promises to pay the person for his or her help. In this new adaptation of the scam, the corrupt officials are replaced with a supposed Iraq war veteran. Once you get involved with these crime professionals it opens you up to identity theft and losing hefty sums of money.
3. Phony job offer: Quality Consumer Research
While being offered a job is normally a cause for celebration, this one results in the lucky person being out-of-pocket hundreds of dollars. Quality Consumer Research offers jobs to mystery shop stores by purchasing a money gram to send to Owen Sound, Ontario. A consumer was sent a cashier's cheque of $980, which included $840 for the cost of the money gram, $20 for the service fee to order the money gram, and $120 payment for the job. After wiring the money, the person would have to call a phone number with the wiring reference number. Of course there is no job in the end. The cashier’s cheque that was sent is bogus, and the person who wired the money would be on the hook for the all the funds sent.
4. Lottery Fraud: Union Trust Financial Inc.
Canadians continue to be bombarded with lottery and sweepstakes scams, all promising huge winnings - with a catch.
A consumer reported to the BBB that they had received a notice in the mail reporting $250,000 in “winnings.” A cheque for $3,800 was enclosed. In order to collect the $250,000, the consumer was requested to deposit the cheque and wire $2,500 to a BC address. The cheque was a Bank of America cheque supposedly from CAJ Enterprises LLC, New Day Marketing, based in Prairieville, Louisiana. Thankfully the consumer didn’t do it, but there are lots of consumers out there who believe they have struck it rich. They do as instructed, but when the bank processes the check, they find out that it is counterfeit and the consumer is responsible for replacing the funds.
5. Cheque overpayment: Online buyers
We were recently notified about a scam in which a person selling merchandise on a Buy and Sell was contacted by a person interested in buying the product. The purchaser arranges to make the payment by cheque and even offers more than the value of the product, asking for the extra money to be sent back to them by cheque or wired to an account.
This is another too good to be true scheme. Why would someone want to pay you more than the asking price? If you sell a product and the purchaser agrees to pay by cheque for more than the asking price, stop right there. The money being wired back will be lost, and the person who cashed the bogus cheque will be on the hook for the whole sum.
Your Better Business Bureau tracks scams throughout the year and publishes the "Top Ten Scams" outlining the past year's most notorious scams. Stay tuned for the Top Ten Scams this December.