BBB Warning: Scams Currently Affecting Small Businesses

Scams targeting small businesses are not only becoming more frequent, but are also appearing in many different forms. Most recently, BBB has received reports of office supply scams and Yellow Page spoofs.

Office Supply Scam

How It Works:

Scammers will call your small business claiming to be from an office supply company making offers for limited time pricing, discounts, or going-out-of-business sales. Once you have agreed to make a purchase, weeks later you receive a large invoice for products you did not order. If the scammer is questioned regarding the invoice, they will often back off. However, if your Accounts Receivable staff is authorized to pay any and all invoices, and are unaware of current scams, your business could fall victim.

How to Avoid this Scam:

• Train your staff and make sure they are up-to-date and aware of current scams and schemes.
• Make sure your staff does not respond to unsolicited phone offers. All sales pitches should be made in writing.
• Do not engage with unknown sellers. Make sure they are a trustworthy business by visiting bbb.org.

Yellow Page Spoof

How It Works:

A scammer posing as Yellow Pages might contact your business about updating your directory information. They ask you to confirm some basic information such as your name, address, and phone number. Weeks later you will receive an invoice for an ad in the Yellow Pages. When you call to complain, the scammer posing as a representative tells you that you made a verbal confirmation. They might even play you a spliced recording making it sound like you had agreed to placing an ad.

How to Avoid this Scam:

• Hang up. Don't confirm information over the phone from unsolicited callers.
• Don't trust caller ID. Scammers sometimes use special technology to fake the number and name that appear on your phone.
• The Yellow Pages name and logo are not trademarked, making it an easy target for scammers to impersonate.

If you are unsure if you have fallen victim to a scam, trust your instinct. If something seems too good to be true, it usually is. If your business has experience with or has fallen victim to these scams be sure to contact your local Better Business Bureau.

If you are seeking specific information about a business, or simply need assistance, contact BBB serving Eastern MA, ME, RI & VT by info@boston.bbb.org or call 508-652-4800.  

BBB Top Ten Scams of 2014

Better Business Bureau hears from thousands of consumers and business owners every year about a variety of scams and frauds. Many are new twists on existing scams, but scammers get more sophisticated every year in how they spoof trusted names and how they fool consumers.

While BBB doesn’t have specific numbers about how many people were defrauded or for how much, here are the scams we think were most pervasive this past year:

#10 Sweepstakes Scam: You’ve won a contest! Or the lottery! Or the Publishers Clearinghouse Sweepstakes! All you have to do to claim your prize is to pay some fees or taxes in advance so they can release your prize… This is not a new scam, but it is a perennial problem.

#9 Click Bait Scam: This one takes many forms, but the most notorious of the past year was when the Malaysian Airline plane went missing (“click here for video”). Other click bait schemes use celebrity images, fake news, and other enticing stories to get you to unintentionally download malware.

#8 Robocall Scam: The notorious “Rachel from Cardholder Services” made a resurgence in 2014. This scam claims to be able to lower your credit card interest rates and takes personal information – including your credit card number – and then charges fees to your card.

#7 Government Grant Scam: You get a call saying you’ve been awarded a government grant for thousands of dollars. It may even mention a program you’ve heard about in the news. All you have to do to collect your grant is pay a couple hundred in fees by wire transfer or prepaid debit card…

#6 Emergency Scam: This one is sometimes called the “grandparent scam” because it often preys on older consumers. You get a call or email from your grandchild or other relative who was injured, robbed or arrested while traveling overseas and needs money ASAP.

#5 Medical Alert Scam: Another one that preys on older folks. You get a call or a visit from a company claiming a concerned family member ordered you a medical alert device in case you have an emergency. They take your credit card or banking information but you never receive anything.

#4 Copycat Website Scam: You get an email, text message or social media post about a terrific sale or exciting new product. You click through and it looks just like a popular retailer’s site. But when you order, you either get a cheap counterfeit or nothing at all… and now they have your credit card number!

#3 “Are You Calling Yourself?” Scam: Scammers can make a call look like it’s coming from anywhere. The latest trick puts your number in the Caller ID, which piques your curiosity and gets you to pick up the phone or return the call… and then they’ve snagged you in whatever scam they are running.

It was almost a tie for the top spot this year, because BBB sees this one every day:

#2 Tech Support Scam: You get a call or a pop-up on your computer claiming to be from Microsoft (or Norton, or Apple) about a problem on your computer. They say if you give “tech support” access to your hard drive, they can fix it. Instead, they install malware on your computer and start stealing your personal information.

And the top Scam of the Year, because it’s just so terrifying, is:

#1 Arrest Scam: You receive an ominous phone call from someone claiming to be a police officer or government agent (often the IRS in the United States or the CRA in Canada). They are coming to arrest you for overdue taxes or for skipping out on jury duty… but you can avoid it by sending them money via a prepaid debit card or wire transfer. Another variation on this is that you’ll be arrested for an overdue payday loan. Whatever the “violation,” it’s scary to be threatened with arrest, and many people pay out of fear.

Why Scams Work:

There is a science to scams, and it may surprise you to know that scammers use many of the same techniques as legitimate sales professionals. The difference, of course, is that their “product” is illegal and could cost you a fortune. Here are the major techniques they use to draw you in:

Establishing a connection: The scammer builds rapport and a relationship with you. This is usually used face-to-face, as in home improvement scams and many investment scams, but also online romance scams.

Source credibility: The scammer uses techniques to make themselves look legitimate, such as fake websites or hacked emails that come from a friend’s account. Most email phishing scams spoof real companies, and many scammers pretend to be someone they are not in order to add credibility.

Playing on emotions: Scammers rely on emotion to get you to make a quick decision before you have time to think about it. An emergency situation or a limited time offer is usually their methodology. They count on emotional rather than rational decision-making.

What You Can Do:
Don’t be pressured into making fast decisions.
Take time to research the organization. Check them out on bbb.org, search online, etc.
Never provide your personal information (address, date-of-birth, banking information, ID numbers) to people you do not know.
Don’t click on links from unsolicited email or text messages.
If you are unsure about a call or email that claims to be from your bank, utility company, etc., call the business from the number on your bill or the back of your credit card.
Never send money by wire transfer or prepaid debit card to someone you don’t know or haven’t met in person.
Never send money for an emergency situation unless you’ve been able to verify the emergency.

For more information:
For more information on these and other scams, go to BBB Scam Stopper (bbb.org/scam). Sign up for our weekly Scam Alerts to learn about new scams when we do. You can report scams here, too.
For more information on investment scams, go to BBB Smart Investing, a partnership with the FINRA Investor Education Foundation.
To search for a business in the U.S. or Canada, or to find your local BBB, go to BBB.org.
For information on charities, go to Give.org (BBB Wise Giving Alliance).
For information on U.S. government services, go to: USA.gov.
For information on Canadian government services, go to Service Canada.

Guest Blog: How to Protect Yourself on Cyber Monday

Written By: Judy Leary

President, IdentityForce

Ah, Cyber Monday. No lines, no waiting, no fighting over the last Frozen DVD for a lucky niece or nephew.

As you can tell, I’m a big fan of Cyber Monday. Apparently, I’m not the only one: deal hunters spent $2.29 billion in 2013. That’s a 15% increase from 2012, and with all those shiny new iPhones with bigger screens (better to see those deals with) this year, I have no doubt that the number of online shoppers is only going to increase in 2014.

As the president of IdentityForce, it is my job to remind people that unfortunately, holiday shoppers won’t be the only “hunters” surfing the Internet on December 1. The increase in online spending is the perfect opportunity for scammers to gather credit card data from unsuspecting bargainers.

Here’s how you can protect yourself throughout the online holiday shopping season:

1. Avoid making purchases over a wireless connection in a public space. Shared connections allow hackers to access your computer (or tablet or phone), and lure you to fake sites where they can gather your credit information.
2. Password protect your home network connection, or better yet, plug into the network. Wireless connections are inherently less secure than ethernet connections, for the same reasons noted above.
3. Be cautious about links provided in emails. You’ll see plenty of deals come through your inbox, and it will be tempting to just click on the links to get the deal. Experts recommend pasting the link into a new browser window, or navigating directly to the site to find the coupon or deal. Hackers can manipulate emails links to look safe when they’re actually designed to take a user to a fraudulent page.
4. Lock down your social networks. The more of your interests that you make public, the more information a scammer could potentially use to target you with fake offers that you’ll be tempted to accept.
5. Dedicate one of your credit cards to all of your online purchases. That way, if your information is compromised, it’s only one account.

While it is really important to remember that thieves and scammers may be more active over the holidays, don’t forget that they’re searching for vulnerabilities on the Internet all year long. Always remember to keep your passwords unique, and limit the number of people you share personal information with. Remain diligent over your credit reports, and monitor your credit card bills for unusual purchases. By keeping these tips in mind, if your information is compromised, you can take the necessary steps to stop the bad guys before they do too much damage.

December 1 is almost here! With these tips, I hope you’re getting ready to sit back in your coziest pajamas with a great cup of coffee to shop away from the comforts of your home, and personal computer.  

Things to Know to Avoid Being Scammed

You got duped. Deceived, hoodwinked, bamboozled. You went against your gut (and you didn't check BBB.org) and someone just walked away with your valuable money or time. Getting scammed is not a great feeling. In an effort to avoid getting this, familiarize yourself with these six ways to avoid getting scammed!

1. Do Not take someone at their word. Always do your homework. Ask lots of questions and check with your BBB. If a business tells you they are accredited with BBB, double check. It’s always best to be skeptical and thorough when dealing with businesses and solicitors.
2. Do Not become emotional. Never allow yourself to get wrapped up in the story a solicitor is telling you. Scammers feed on people who allow their emotions to dictate their actions. If you believe their tragic or sad or exciting story, the scammer is more likely to make money off of you.
3. 

   Know common persuasion tactics. Scammers like to try to ignite emotion in their victim. They either manipulate the victim’s emotions or use fear to get what they want. If you get an unexpected phone call and are being asked for money (recently people were getting phone calls from the IRS demanding immediate payments with the threat of jail time if the payments were not made immediately) ask questions. If you have an uneasy feeling about something call your BBB. Never blindly hand out your personal information or money.
4. Do Not act impulsively. Downloading files, clicking pop-ups, signing up for trial offers, and opening emails from unknown senders are all behaviors to avoid if you want to protect yourself from a scam or from being hacked.  
5. Do Not be afraid to be rude. Often the people who end up scammed are those who feel bad about hanging up the phone or shutting the door in someone’s face.
6. Always protect your personal information. This last tip is vital. Always shred personal documents or keep them locked up. Shred credit card offers that come in the mail. Anything that has your social security number or your banking information on it needs to be destroyed. Never use the same password for all of your accounts and change it frequently.

What other ways can you think of to help avoid scams! Comment Below!