Tag Archives: better business bureau

Creative scams target holiday shoppers: What you need to know

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Even legitimate websites can be impersonated as part of a scammer’s scheme (Courtesy, U.S. Army)


By Deborah Reed

WKTV Managing Editor

deborah@wktv.org

The online culture has opened doors for scam artists (Courtesy, pxhere.com)

In a culture revolving around online and media consumption, local law enforcement and government agencies are working to educate consumers on current scams and how to protect themselves from becoming victims.

Katie Grevious, Better Business Bureau Communications Specialist, told WKTV that falling victim to a scam has become more difficult to avoid as “scammers are becoming more crafty and creative.”

Grevious said that scammers use fear and a sense of urgency to prompt consumers into following their directives: “It is an emotional situation. Something is wrong, something bad is going to happen — that’s what gets people.”

Due to the number of consumers who now shop online, there are ample opportunities for scam artists to create situations involving that emotional response of fear and urgency.

An online society

QR codes boomed in 2020 as consumers needed quick and easy ways to function without physical contact during the pandemic.

QR codes can be used in a multitude of ways (Courtesy, pxhere.com)

Now, in 2023, QR codes seem to be everywhere.

“About 94 million U.S. consumers will use smartphone or QR scanners this year,” said a projection by eMarketer. “That number will grow to 102.6 million by 2026.

A consumer alert posted by the Federal Trade Commission (FTC) on Dec. 6 warn consumers of this threat.

Access to menus at restaurants, payment for public parking, boarding a flight, or gaining access to a concert or sporting event are only a few ways QR codes are used. With countless other ways to use these codes, scammers have begun hiding harmful links within QR codes to steal personal information.

QR codes are convenient, but can be utilized by con artists (Courtesy, pxhere.com)

These scam links can take you to a site that looks real but is not, allowing scammers to steal information as you log in, or install malware that steals your information.

Covering up QR codes on parking meters with a custom made QR code is another way scammers con the average consumer.

Texting or emailing a QR code with a reason you should scan it is another. These texts and emails create the sense of urgency mentioned above as they:

  1. Say they could not deliver a package and need you to contact them to reschedule.
  2. Ask you to confirm personal information because there is a problem with your account.
  3. Say there is suspicious activity on your account and you need to change your password via the attached QR code.

What you can do

Inspect URLs before you open them. If it is one you think you recognize, double-check there are no misspellings or switched letters.

If you think the message is legitimate, use a phone number or website you know is sound to contact the company as opposed to using the QR code.

Update phone operating systems to protect against hackers, and use strong passwords and multi-factor authentication to protect online accounts.

Preying on gift card buyers

Look for signs of tampering before purchasing gift cards (Courtesy, pxhere.com)

Copying gift card numbers and their activation codes from where they are kept in stores is a common and simple method of thievery. Once that gift card is bought and activated by an unsuspecting consumer, the fraudster is able to use that card for purchases.

Purchasing gift cards that are kept near checkout lanes where they are more easily seen, and ensuring the cardboard surrounding the gift card has not been tampered with in any way, are ways to protect against this.

Gift cards are used by scammers in a number of other ways as well. Information regarding these scams can be found here.

Porch pirates, phishing, and more

“Phishing emails and phishing texts are still high on the radar,” Keith Morgan, President and CEO of Wyoming-Kentwood Chamber of Commerce, told WKTV.

Phishing, defined as the fraudulent practice of sending messages designed to trick individuals into revealing personal information, is one of the most common conduits for fraud.

Grevious urges consumers to avoid emails that tell you to re-log into another account you may have, and offer a link to do so. Social media site names are regularly utilized for this scam, and are often ploys that will reveal your password to the sender.

Gaining access to one account can possibly grant scammers access to more (Courtesy, pxhere.com)

“Your Facebook password may offer a clue on how to get into more important accounts — like bank accounts,” said Grevious.

“People have a lot of similar passwords because it’s too hard to remember 200 different passwords to everything.”

An online scam could also be as simple as clicking on a link to track an order. Scam artists often use the names of larger corporations to send emails offering a link to track an order the consumer may not remember placing.

Grevious urges consumers to hover their computer mouse over the link, which will reveal a bar that states where it will actually take you. Hovering over the sender’s name to see the email address associated with that email is also a good idea. If it is a jumble of letters and numbers, it is not legitimate.

Also look at the browser — if there is a lock symbol and “https” listed there, it means it is a secure and authentic site.

“It is really important that people are vigilant all the time,” said Grevious. “Look for simple grammar and spelling mistakes. Big companies make sure everything is spelled correctly.”

Fraud can be in many forms, online and off (Courtesy, pxhere.com)

Fake deliveries are another popular scam.

“If someone says they dropped something off, or was sent to the wrong place, and want to confirm that it was sent to the right place [is a red flag],” said Morgan, adding that they will then try to get you to enter personal information.

Porch pirate thefts are a non internet-based scam that involves stealing delivered packages off residential and business porches.

Cameras at the front of the house or business can protect against thefts. Another option is to have packages delivered to a safe and secure place as opposed to the porch.

“Sometimes homeowners will have packages delivered to the side of the house if they are not going to be there,” said Morgan. “Some organizations with delivery services will allow you to have it delivered while you are at home so you know it gets there.”

Eliminate hurry, double-check sources

(Courtesy, pxhere.com)

Slowing down is also key to ensuring consumers don’t miss something important.

“Think before you act,” Grevious said. “Our culture has a quick-go pace. We do a lot on our phones, so we don’t do that double-checking and hovering. “You are in control of your information and who you are talking to. Think before you act.”

Consumers are also urged to speak up if they become victims of a scam.

“The more people let us know what is happening, the more we can help,” said Grevious.

Resources and Fraud Report Links:

Better Business Bureau consumer resources, scam tracking, scam alert and how to spot a scam email.

Identity theft, contact the Federal Trade Commission: Identity Theft.

Phone scams: Report Fraud.

Tax scams or relating to the IRS: IRS.

Credit card fraud growing; how to protect yourself

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Local law enforcement and the Better Business Bureau share tips on how to recognize credit card scams and how consumers can protect themselves. (Image Courtesy, pxhere.com)



By D.A. Reed, WKTV Contributing Writer

Since the inception of credit and debit cards, fraud has become more and more widespread.

And with the current culture of communicating and ordering online, scammers are getting creative — and consumers are scrambling to sort fact from fiction in an effort to keep their finances and identities safe.

“Be an informed consumer, that’s the best advice I can give you,” said Troy Baker, education foundation director of the Better Business Bureau (BBB).

As of June 30, 2022, the Federal Trade Commission received nearly 1.1 million consumer reports about fraud nationwide. Of this total number, 214,446 reported using some type of payment method, with 42,545 consumers reporting paying with a credit card for a total loss of $110.4 million. This puts the average consumer loss at $2,595.

Subscription scams

According to Baker, the BBB classifies credit card cons into four categories. The most common are subscription scams cloaked in offers of free trials. Hidden in the fine print of that free trial is the agreement to sign up for a subscription.

Year to date, the Federal Trade Commission reports credit card loss at $110.4 million. (Image Courtesy, pxhere.com)

Baker said consumers think they have been victims of fraud or that their card has been stolen, “but really, you had given them permission by doing this free trial. They hide the agreement in the fine print a couple pages deep on the website, and usually you have a very short window to cancel before that subscription kicks in and you get billed the next month.”

In other words, consumers have approved the use of their credit card without knowing it.

Phishing emails and text messages

Phishing emails and text messages also are popular among scammers, stating a credit card has been opened in the consumer’s name and to click on a link if they did not, in fact, open that card.

“We also see scams where someone is told they have some form of debt outstanding or have a warrant out for them and the caller will demand payment in the form of gift cards,” said Lieutenant Rory Allen, Wyoming Department of Public Safety.

This con plays on the fears of the consumer.

“The consumer thinks maybe I should click on this link to make sure they don’t bill me for something,” Baker explained. “That’s what the scammers want. They want you to feel that confusion and click on the link thinking your taking action to protect yourself when, in reality, the action you are taking is going to harm you.”

Computer repair scams

Both Allen and Baker have seen computer service cons where scammers tell consumers there is something wrong with their computer but the scammer can fix it for them. Once they have the consumer’s credit card number, they disappear.

Fraud reports by payment method, 2022 YTD. (Courtesy, Federal Trade Commission 2022)



Online holiday shopping scams

Baker said another issue is consumers buying items on websites they are not familiar with.

“We especially see this closer to Christmas,” Baker said. “Scrolling through social media, you see the things that really catch your eye and seem like a great deal. So you click buy and put your credit card in, thinking that you’re going to get this great deal, when it turns out the company isn’t real or doesn’t have the track record that you think it does, and they don’t deliver what they promised. But they’ll charge your credit card for it.”

Banks and credit unions have put security measures in place to protect consumers, but scammers still manage to get through.

A local consumer’s personal story

Kelly* (name changed at the source’s request), a Rockford resident, told WKTV that her husband’s card was used to make charges in Louisiana and Arkansas at gas stations and Walmart stores, with the charges anywhere from $40 to $300.

Adding to their confusion was the fact that the charges were happening in different places at the same time.

Kelly happened to see the charges on the credit card statement and called the bank to report them as fraud. The bank shut down the card and refunded their money, but the mental and emotional damage has remained.

“I’m paranoid now and check our bank account and credit card account every day — still all these years later,” Kelly said.

Kelly and her husband still don’t know how the scammers obtained their card number.

Corrections time-consuming

Allen said frustration and anger in the victim is normal.

“It can be a lot of work to correct the issue if a credit/debit card is used in a fraud,” Allen explained. “In addition to the financial burden, it costs victims wasted time correcting the issue, filing reports, etc.”

Another local resident’s account

Stacy* (name changed at the source’s request), a West Michigan resident, said her husband’s credit card was used for seven fraudulent charges totaling approximately $1,200 on Walmart.com back in December 2021 — and the issue wasn’t fully resolved until April 2022.

Stacy and her husband reported the charges as fraud to their bank, who said they would close down the account.

“Then we get a letter in the mail saying that unfortunately the merchant has provided us with proof that you have received said items,” Stacy said.

Stacy asked to see their proof and was provided with FedEx tracking numbers that stated the items ordered had been delivered to her address. The order contained Stacy’s address, her husband’s name, and phone number, but an unknown email for confirmation and delivery status. The email IP address was based in Holland.

“It’s still a mystery,” Stacy continued. “I don’t know the scam; I’d love to know the scam. It made me so mad that someone could do this and stick me with the charges.”

It was April 2022 before the bank finally took the charges off their credit card statements for good.

Allen said fraud can cost citizens thousands of dollars each and cause long-lasting effects on finances and credit scores.

The FTC received 10,926 identity theft reports from Michigan consumers, 2022 YTD.  Of this total number, 3,853 reported credit card fraud. (Courtesy, Federal Trade Commission 2022)



How can consumers protect themselves?

“We advise anyone who believes they are a victim of fraud to contact the police as soon as possible to file a report,” Allen said.

“If you believe a credit/debit card is being used by someone else, then contact your bank or credit company as soon as possible to turn the card off to avoid further charges.”

Is it really free?

Baker advises being wary of anything offered for free where the consumer only has to pay shipping and handling.

“There will be a catch,” Baker said. “Usually, it’s a (hidden) subscription.”

Slow down and research

Baker also advises taking your time.

“Before you put your credit card in, before you buy something, make sure you’ve done your research on the company you’re buying from. Take your time before you make that purchase decision. That time is really going to protect you from a lot of these scammers.”

And — even with the amount of credit card fraud out there — Baker said consumers should still use their credit cards and that they are still the safest route for a consumer to go when making purchases.

“While there is certainly a lot of credit card fraud, our advice is to use your credit card when you make these kinds of purchases,” Baker explained. “At least with a credit card, there are some protections for you. You can dispute the charges, you can work with your bank if there is fraud. And in many cases, there is a mechanism to get some or all of your money back.”

To learn more about credit card scams and how you can protect yourself, visit the Better Business Bureau at Better Business Bureau and the Wyoming Department of Public Safety at Wyoming Department of Public Safety

*Name changed at the source’s request.

D. A. (Deborah) Reed is an award-winning author of young adult novels and a creative writing instructor from the Grand Rapids area. To find out more about D.A. Reed, visit her website: D.A. Reed Author