SALT LAKE CITY — The Better Business Bureau of Utah Tuesday released its list of the most prevalent fraud schemes of 2011, with the Internet and email being key tools used to defraud people.
The top job scam involved emails, websites and online applications that all looked very professional with the candidate even interviewed for the job — usually over the phone. Upon receiving an offer, the candidate is required to complete a “credit report” or provide bank information for direct deposit of their paychecks. However, the online forms are just a ruse to obtain sensitive personal data that can easily be used for identity theft — and, in reality, there was really no job.
Sweepstakes and lottery scams were quite popular as well. The schemes typically indicate that the victim has won a large sum of money, and in order to claim the funds the victim would have to send a smaller amount of money. The year's top sweepstakes scam was an email claiming to be from Facebook founder Mark Zuckerberg announcing that the recipient was the winner of $1 million. These kinds of scams often use celebrities or other famous names to make their offer seem more genuine.
The BBB warned that on the Internet, "it is easy to pretend to be someone you are not." With so much information available online, a scammer could pretend they know the potential victim. Potential victims are prompted to “upgrade your Flash player,” for instance, but the file that is downloaded contains a worm that logs into the victim's social media account, then sends similar messages to their friends and searches for personal data.
The BBB advises, "Next time you see a sensational headline for the latest viral video, resist the urge to peek."
Home improvement scams are always near the top of complaint data and 2011 was no exception, the BBB stated. The schemes usually involve contractors who leave a home worse than they found it. Scammers typically knock on doors with a story or a deal — the roofer who can spot some missing shingles or the paver with some leftover asphalt who can offer a great deal on driveway resealing. The worst are those who move in after a natural disaster, taking advantage of desperate homeowners who need immediate help and may not be as suspicious as they would be under normal circumstances. Reliable contractors can be found at www.bbb.org/search.
Two legitimate companies — Craigslist and Western Union — were used for an inordinate amount of scamming, mostly involving check-cashing schemes. The scams target victims through a Craigslist posting, maybe for a reason like buying an old couch or hiring the potential victim as a secret shopper.
In either situation, the scammers send victims a check for more than the amount owed, then the person is asked to deposit the check into their bank account and send them the difference via Western Union. While a deposited check takes a couple of days to clear, wired money is withdrawn from the victim's account instantly. When the original check bounces, the victim is out whatever money they were wired and still stuck with the old couch.
Another top fraud is “phishing” — when a potential victim receives a suspicious phone call asking for personal information or an email that puts a virus on their computer to hunt for personal data. The most pernicious phishing scam this year was disguised as official communication from the National Automated Clearing House Association, which facilitates the secure transfer of billions of electronic transactions annually. The email claims a transaction did not go through and hopes the recipient quickly clicks on the provided link before thinking it through. The scam may take you to a fake banking site to “verify” personal account information, or it may download malware to infiltrate your computer, the BBB warned.
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