The Better Business Bureau today came out with its list of last year's top scams and, not surprising, offers preying on Americans' vulnerability in tough economic times accounted for many of the ripoffs.
While some come-ons were perennial problems, according to the BBB, others were particularly timely such as offers that tried to convince people they could land a new job, avoid losing their homes to foreclosure, or get their hands on a piece of the stimulus package.
In no particular order, here's the list from Alison Southwick, media relations manager with the Council of Better Business Bureaus:
• Acai Supplements and Other "Free" Trial Offers — Ads offering trial offers for teeth whiteners, acai anti-aging pills, and other miracle supplements blanketed the Internet, including trusted Web sites of national news organizations. The marketing campaigns often falsely claimed an endorsement by celebrities like Oprah, Rachael Ray, and Dr. Oz. Thousands of consumers complained to BBB that the free trial actually cost them up to hundreds of dollars, month after month.
• Stimulus/Government Grant Scams — Even before President Obama announced the stimulus plan in February, scammers had already set up schemes for misleading consumers and small business owners into thinking they could get a piece of the pie. Offers for worthless assistance and advice on how to get government grants bombarded consumers online, over the phone, via e-mail, and snail mail.
• Robocalls — Owning a cell phone or having a phone number on the do-not-call registry didn't halt harassing automated telemarketing calls in 2009. The robocalls often falsely claimed that a consumer's auto warranty was about to expire or offered help in obtaining a lower credit card interest rate. The prevalence of robocalls violating federal telemarketing laws prompted the FTC to increase restrictions on the practice.
• Lottery/Sweepstakes Scam — Victims received letters in the mail pretending to be from Reader's Digest, Publisher's Clearing House, or a foreign lottery informing them that they'd won millions. The letter would be accompanied by a check representing a portion of the total winnings. In order to get the rest, the victim was told to deposit the check and then wire hundreds of dollars back to the scammers supposedly to cover taxes or other bogus fees. Victims would wire the money, but never receive any prize.
• Job Hunter Scams — Scams targeting job hunters varied and included attempts to gain access to personal information such as a bank account or Social Security number, and requirements to pay a fee in order to even be considered for the job. Another common scam reported to BBB: prospective employers told job hunters that they had to take a look at their credit reports before being considered. The job offer was actually a marketing ploy for online credit monitoring that cost the victim every month until he or she cancelled.
• Google Work From Home Scam — Countless Web sites cropped up in 2009 that claimed you could learn how to make money from home using Google or Twitter, and offered a free trial of learning materials. The sites often included the Google or Twitter logo to make them seem more authentic. As a result, many people who complained to BBB thought they were getting a job with Google or Twitter when in, fact, they were being lured into a misleading free-trial offer and were billed every month for the materials and other mysterious charges that added up to hundreds of dollars.
• Mortgage Foreclosure Rescue/Debt Assistance — With many families struggling with mortgage payments and credit-card debt, there was no shortage of hucksters offering to help them save their house from foreclosure or help them get out of debt. Unfortunately, victims paid hundreds of dollars up front for assistance they desperately needed but ultimately never received.
• Mystery Shopping — Consumers thought they could make extra money as a secret shopper who evaluates customer service at various stores. Unsuspecting victims were asked to evaluate their experiences at a few stores as well as a money-wiring service such as Western Union by wiring money back to the scammers. A seemingly real-looking check was supposed to cover the costs, but they were fakes, and victims were out hundreds, even thousands, of dollars.
• Over-Payment Scams — Over-payment scams usually targeted small business owners, landlords, or individuals with rooms to rent, and sellers who placed classified ads on sites like Craigslist. Typically the scammer pretended to be a customer, possible renter or interested buyer, respectively. The victim received a check for more than the amount requested. The scammer then asked the victim to deposit the check and wire the extra amount elsewhere. Ultimately, the checks proved to be fakes and the victims ended up wiring money back to the crooks.
• Phishing E-Mails/H1N1 Spam — A perennial problem, phishing e-mails can take various forms such as appearing to be from a legitimate business, government agency or official, or from a friend. Whatever the setup, the goal of the phishing e-mails was the same: to trick victims into divulging sensitive financial information or to infect the victim's computer with viruses and malware. In addition to phishing e-mails, spam e-mail focusing on products designed to prevent the spread of the H1N1 virus were rampant in 2009.
