May is Older Americans Month and the Better Business Bureau of Minnesota and North Dakota (BBB) is reminding seniors and their loved ones – as well as caregivers – of the importance of being vigilant in regard to scams. Because seniors control over 70% of the nation’s wealth, they are often targeted by fraudsters and con artists. However, simply by following some basic steps such as taking time to consider all offers carefully, seniors can avoid becoming a victim.

“The scammers are out there and they’ve got a pretty deep bag of tricks,” said Gary Johnson, the Outreach Manager for the BBB’s Senior Program. “Our goal is to beat them to the punch and explain to seniors how these schemes work so that they can not only identify them, but use that knowledge to help others in their age group avoid them and also report them to law enforcement and agencies such as ours.”

The BBB warns against the following six scams that commonly target senior citizens:

Grandparent scam — Victims receive a phone call from someone claiming to be a family member stranded far from home. They usually beg to have the matter kept private and say they are being held in jail, need car repairs or other assistance and money has to be wired to them immediately. These scammers may lace the conversation with correct references to other family members, increasing their credibility.

• BBB Advice: Remain calm and confirm the identity of the individual by calling him or her directly or verifying the story with other family members before taking any further action. Never provide scammers with information they can use against you. For instance, don’t venture a name when an unknown caller says, ‘It’s your grandson!’ Instead, make them “fill in the blanks.”

Sweepstakes and Lottery Scams –Typically, the victim receives a letter in the mail stating they have won a lottery or sweepstakes. The letter instructs the victim to deposit an enclosed check and then wire a portion back to cover taxes, insurance or administrative fees. While these checks clear initially, the money will be removed when the bank discovers the check is phony. The victim is out whatever they wired back to the scammers – often thousands of dollars. These scams are also attempted over the phone. Remember, you can’t win a contest you didn’t enter, and if something sounds too good to be true, it usually is.

• BBB Advice: Never wire money to someone you don’t know. You should never have to pay a fee to collect winnings from a lottery or sweepstakes. Also, participation in a foreign lottery over the phone or through the mail is illegal. Some newer scams ask people to purchase Green Dot MoneyPaks and then get people to share the number on the back, which allows scammers to siphon funds that have been loaded onto these MoneyPaks, leaving victims empty-handed.

Medicare Scams – Scammers often claim to be with Medicare and ask for personal information such as Medicare, Medicaid, Social Security, credit card or bank account numbers. Potential victims might be given any number of excuses to provide this information including that an error needs to be fixed, that he or she is part of a survey or eligible to receive free products or can sign up for a new prescription drug plan.

• BBB Advice: Medicare will never call to ask for sensitive personal financial information. If you suspect fraud, contact your local police or the Health and Human Services Office of Inspector General at 800-447-8477.

Bereavement Scams – Scammers will go so far as to try to take advantage of seniors who have recently lost a loved one, such as a spouse. They call the widow or widower and claim that their spouse had outstanding debts that need to be paid immediately.

• BBB Advice: If you are uncertain about owing a debt when collectors call, always ask for written confirmation. Don’t be intimidated by unknown callers or letters claiming a debt is owed. Be aware of your rights under the Fair Debt Collection Practices Act.

Deceptive Professionals – While many scams targeting senior citizens are “faceless,” some scammers knock on the front door, claiming to be experts in their fields. These so-called professionals will lie about the extent of problems with your home or furnace, and then inflate prices in an attempt to profit off trusting seniors.

• BBB Advice – Find professionals you can trust by researching them at bbb.org. Report any deceptive offers to your BBB, local law enforcement and the state Attorney General.

Investment Opportunities - These schemes promise big returns but offer few details.

• BBB Advice: Beware of investment or money-making offers that seem too good to be true or use high pressure sales tactics. If you have questions about any offers you receive, contact the BBB at 1-800-646-6222.

For more advice on avoiding scams visit: bbb.org/us/consumer-tips-scams/.

The mission of the Better Business Bureau is to be the leader in building marketplace trust by promoting, through self-regulation, the highest standards of business ethics and conduct, and to instill confidence in responsible businesses through programs of education and action that inform, assist and protect the general public. We are open8 a.m. to 5 p.m. Monday through Friday. Contact the BBB at bbb.org or 651-699-1111, toll-free at 1-800-646-6222.

MADISON – As Financial Literacy Awareness Month comes to an end, the Wisconsin Department of Financial Institutions (DFI) today issued an advisory reminding investors of the importance of understanding the distinctions between the various types of financial professionals.

“Whether you are just starting a retirement fund or need additional help with growing and managing your money, you may benefit from selecting an investment services professional,” said Patricia Struck, Administrator of DFI’s Division of Securities. “It pays to understand the differences between a broker-dealer agent, an investment adviser representative, and a financial planner. Each serves a distinct role in helping with your financial future.”

For example, Struck noted that anyone registered as an investment adviser must, by law, act as a fiduciary and put the interests of his or her clients ahead of their own.

“With so many brokers and salesmen calling themselves ‘financial advisers,’ or ‘investment consultants,’ it is easy to see how investors might assume these individuals are investment advisers,” Struck said. “That’s not always the case. Before you invest, make sure you verify the person’s registration, background and employment history by contacting DFI.”

The advisory provides basic information on the three types of financial services professionals and their obligations to clients: broker-dealer agents, investment adviser representatives, and financial planners. The advisory can be found on the DFI website at www.wdfi.org/_resources/UnderstandRolesOfFinancialProfessionals.pdf.

For more information, contact DFI’s Division of Securities at 608-266-1064.

With the school year winding down and warmer weather just around the corner, many students are planning on moving out of college dorms – or their parents’ homes – to find apartments or rental homes for the summer and beyond. The Better Business Bureau of Minnesota and North Dakota (BBB) is reminding students of the importance of doing their homework to ensure online listings for rental properties are legitimate and avoid falling victim to scams.

“The Internet has made it very easy to search for rental properties,” said Dana Badgerow, president and CEO of the BBB of Minnesota and North Dakota. “Unfortunately, it’s also made it easier for scammers to create fake ads on sites like craigslist, which attract victims with promises of low rent, only to take their security deposits and leave them on the outside looking in.”

In an effort to help students avoid rental scams, the BBB has compiled some helpful information and tips for those who are beginning their search for rental properties. Renters should be wary if:

• ·       The deal sounds too good to be true. Scammers will often list a rental for a very low price to lure in victims. Find out how comparable listings are priced, and if the rental comes in suspiciously low, walk away.
• ·       The landlord is located elsewhere and prefers to communicate solely via e-mail. Scammers might say they have just been relocated out of the country for a job or missionary work – don’t believe it.
• ·        An online listing has grammatical or spelling errors – often a sign the ad may have been created by overseas scammers not familiar with the nuances of the English language.
• ·       You’re asked to wire money through wire transfer services such as Western Union or MoneyGram, or if you’re told the deposit or rent needs to be paid with a Green Dot MoneyPak card. Any money sent via these means is extremely difficult to trace, and there is little chance – if any – of getting your money back.
• ·       The rental requires a security deposit or first month payment without meeting the landlord, inspecting the property or signing a lease. It’s never a good idea to send money to someone you’ve never met in person for a property you haven’t seen. If you can’t visit an apartment or house yourself, ask someone you trust to go and confirm that it’s actually for rent – and make sure they have access to the property to inspect its condition – inside and out. In addition to setting up a meeting, do a search on the landlord and the property listing. If you find the same ad listed under a different name, that’s a sign that something is likely amiss.

For more helpful consumer tips, visit bbb.org/us/Consumer-Tips/.

The Better Business Bureau of Minnesota and North Dakota (BBB) is warning businesses nationwide to be on the lookout for questionable bills from a company called AYPR Inc, which claims an address in Duluth, Minnesota. Complainants have stated the company is billing them for services they never ordered or authorized. Due to suspect business practices and a pattern of complaints, the BBB has given the company an “F,” their lowest rating.

AYPR Inc. claims to publish a business directory and attempts to charge businesses for being listed or featured in that directory. However, in many schemes of this nature, businesses are tricked into paying for services they weren’t interested in or something for which they didn’t know they would be charged. Some complainants say the person AYPR claims authorized their billing no longer works for them or is not the person such authorizations would go through.

“We often see these directory billing schemes and far too often legitimate businesses fall for them, assuming the company has provided them a service of some kind,” said Dana Badgerow, president and CEO of the BBB of Minnesota and North Dakota. “This is a good reminder for all companies of the importance of a verification system in their accounts payable departments.”

In addition to the address the company claims in Duluth – which is a mail shipping and services store – the BBB has learned that AYPR is also claiming addresses in: Colorado, Idaho, Indiana, Louisiana, New Jersey, New Mexico, North Dakota, Oregon, Texas, Utah and Wisconsin.

Directory schemes begin when companies are contacted by phone asked a few vague questions “for verification purposes” or else they receive an innocuous fax which asks them to confirm basic company information and fax the form back to the sender. However, employees often don’t realize that by simply providing this information they will be opening the door to future billings. Most of these faxes also have language buried in the fine print which states that by signing and faxing in the form businesses are agreeing to be charged for representation in directories – which may or may not exist – at a cost of hundreds or even thousands of dollars per year.

These scammers will also sometimes pretend to verify or renew a company’s “existing” directory listing. They then send as many urgent invoices as it takes to get paid, sometimes including a useless “directory,” sometimes not. They create confusion and count on an organization paying to avoid their hounding. When companies refuse to pay, the scammers may use high-pressure tactics, like bullying or threatening collection or legal action. Sometimes, they offer “a better deal” with a phony discount. Or, if a business received a directory, they may allow them to return it (if they pay the shipping costs), but insist on being paid for the so-called listing. These directories are usually worthless; they are rarely distributed or promoted as promised. In any case, if a business pays for their “listing,” they likely will receive additional invoices ­— either from the same scam artists or from others who have purchased their company’s contact information.

The BBB and the Federal Trade Commission (FTC) suggest a few simple precautions to put an end to paying for goods or services you haven’t ordered.

Designate certain employees as buyers. For each order, the designated buyer should issue a purchase order to the supplier that has an authorized signature and a purchase order number. The purchase order can be electronic or written. The order form should tell the supplier to put the purchase order number on the invoice and bill of lading. The buyer also should send a copy of every purchase order to the accounts payable department, and keep blank order forms secure.

Train Your Staff. Advise employees who are not authorized to order supplies and services to say, “I’m not authorized to place orders. If you want to sell us something, you must speak to ________ and get a purchase order.” Establish a team of employees who order and receive merchandise or services and those who pay the bills to develop some standard procedures.

Check All Documentation Before You Pay Bills. If you receive merchandise, the receiving employee should verify that the merchandise matches the shipper’s bill of lading and your purchase order. Pay special attention to brands and quantity, and refuse any merchandise that doesn’t match up or isn’t suitable. Don’t pay any supplier unless the invoice has the correct purchase order number, and the information on the invoice matches the purchase order.

Know Your Rights. If you receive supplies or bills for services you didn’t order, don’t pay. Don’t return unordered merchandise, either. Treat any unordered merchandise you receive, like a business directory or even office supplies, as a gift. It’s illegal for a seller to send you bills or dunning notices for merchandise you didn’t order or ask you to send back the merchandise — even if the seller offers to pay the shipping costs.

Report Fraud. If a business directory scam, or other business product or service scam, has struck your organization, file a complaint with the BBB (bbb.org) and the FTC (ftc.gov). You also can report scams to the Postal Inspection Service and your state Attorney General.

The mission of the Better Business Bureau is to be the leader in building marketplace trust by promoting, through self-regulation, the highest standards of business ethics and conduct, and to instill confidence in responsible businesses through programs of education and action that inform, assist and protect the general public. We are open 8 a.m. to 5 p.m. Monday through Friday. Contact the BBB at bbb.org or651-699-1111, toll-free at 1-800-646-6222.

MADISON – You reply to an online posting for a babysitting job. The client is moving to Wisconsin from out of state in a couple of weeks, so you are finalizing the details of the babysitting arrangement by email and text message. Your pay will be $400 per week. The client sends you an initial check for $1,800 and asks you to cash the check, keep the first week’s payment, and wire the remainder back.
Seems simple enough…but it’s a scam. You have been sent a bad check, and once the bank figures it out, you will be on the hook for the total amount plus any penalties. Meanwhile, the scammer is off celebrating with the illegitimate funds you wired.
The Wisconsin Department of Agriculture, Trade and Consumer Protection recently heard about a consumer who was in this situation, but recognized it as a scam and contacted the police.
“When someone sends you a check for more than the agreed-upon amount and asks you to wire the balance back, it’s a scam,” said Sandy Chalmers, Division Administrator of Trade and Consumer Protection. “This scam has been around a long time, but it keeps evolving and catching new victims.”
Because it can take a couple of days for a check to clear after it has been cashed, victims often do not realize that they have been scammed until well after the excess money has been wired away. In the meantime, they may have also spent a portion of “their share.” As with any other scam involving wire transfers, once the money has been wired and picked up, it is gone for good.
Remember the following tips to avoid falling prey to a check cashing scam:
? There is no legitimate reason for someone who is giving you money to ask you to wire it back.
? The checks in these scams are fakes, but they look real. This can lead to the delay time between when a victim cashes a check and when the bank realizes that it is fraudulent.
? You are responsible for the checks you deposit. If you cash a bad check, you will be required to pay the bank back the total amount plus any penalties. Would you want to take the risk of depositing a bad check from someone you do not know?
? Scammers often claim to be in another country or to have difficulties with the English language, giving them a reason to ask you to keep all communication in email or text format. It may also give them a reason to have an “agent” that will assist in the transaction, either by sending you the bad check or by receiving the excess funds.
? The person will ask you to send back the funds by wire, often overseas. Wire transfers are like handing over cash; once the transfer is sent, it is nearly impossible to get the money back.
For more consumer information or to file a complaint, contact the Bureau of Consumer Protection on the web at http://datcp.wisconsin.gov; via e-mail at datcphotline@wi.gov; or call toll-free at 1-800-422-7128.
Connect with us on Facebook at www.facebook.com/wiconsumer.

As part of Military Saves Week 2013, which takes place from February 25 – March 2, the Military Line program offered by the Better Business Bureau of Minnesota and North Dakota (BBB) is spreading the saving theme and urging all servicemembers and military communities to participate and take theMilitary Saves pledge.

“Military Saves Week is a wonderful opportunity to help servicemembers and their families in our communities set a goal, make a plan and save automatically,” said Vicki Lokken-Paverud, Military Program Coordinator for the BBB of Minnesota and North Dakota.

As a lead-in to Military Saves Week, the BBB is participating in a Financial Information Fair at the Grand Forks Air Force Base today. BBB Military Line will also be offering two workshops – “Avoiding Scams and ID Theft” and “Smart Consumer” – this evening in Fargo for the Air National Guard. In addition, the BBB will be providing online support for Military Saves Week activities throughout next week.

Since 2004, the BBB Military Line program has provided free resources to military communities across the U.S. in the areas of financial literacy and consumer protection. The BBB of Minnesota and North Dakota launched a local Military Line program in May of last year, joining 27 other BBBs who offer this service. It offers free onsite trainings and counseling for servicemembers throughout Minnesota and North Dakota, and provides tips and resources at military expos and job fairs.

Military Saves Week is coordinated by America Saves and the Consumer Federation of America in partnership with the Department of Defense. The week is an annual opportunity for organizations to promote good savings behavior and a chance for servicemembers to assess their own savings status. Learn more at militarysaves.org, bbb.org, or by calling 651-694-2428.

MADISON – Roses are red, violets are blue, your online love interest may be scamming you.

If you intend to look online for your valentine, be mindful that scammers are also on those sites looking for you and your pocketbook.  The Wisconsin Department of Agriculture, Trade and Consumer Protection asks Wisconsin residents to keep an eye out for signs that they are being led into a “sweetheart scam.”

“Women over the age of 40 who are divorced, widowed or disabled are the most common targets, but every age and demographic is at risk,” said Sandy Chalmers, Division Administrator of Trade and Consumer Protection.  “The crooks behind these scams usually operate from overseas and ask the victim to wire money.”

The FBI recently reported an extortion scam involving online dating sites.  Victims met someone on a dating site and were asked to move the conversation to a particular social networking site where the talk often turned intimate.  Victims were later sent a link to a website where those conversations were posted along with photos, their phone numbers and claims that they were “cheaters.”  In order to have that information removed, victims were told they could make a $99 payment—but there is no indication that the other side of the bargain was upheld.

It is possible that you are being targeted for a sweetheart scam if your online love interest:

• Claims to be from the United States but is currently “travelling,” “deployed with the military,” or “working overseas”
• Professes love for you almost instantly
• Asks you to leave the dating site and communicate by personal email or instant messages
• Requests that you send personal information including social security, bank account or credit card numbers
• Asks you to cash checks for him/her
• Makes excuses for not meeting in person, such as last-minute financial, medical or family emergencies
• Asks you to send money by wire transfer to pay for airfare, visas or government documents or to help a family member in distress.  Never wire money to someone you do not know or have not met in person.  Wiring money is like sending cash – once it is gone, you cannot get it back.

For additional information or to file a complaint, visit the Consumer Protection Bureau atdatcp.wisconsin.gov, send an e-mail to datcphotline@wisconsin.gov or call the Consumer Protection Hotline toll-free at 1-800-422-7128.

MADISON – The Department of Financial Institutions (DFI) is urging Wisconsin business owners to exercise caution if they receive a request for information from a company called Corporate Records Service. Business owners are asked to fill out an Annual Minutes Form and submit a fee of $125 to a Madison mail box.  Businesses are not required by DFI or any other state agency to complete the form.

“The form has a very official look to it,” said Paul Holzem, Administrator of DFI’s Division of Corporate and Consumer Services. “It includes information about companies that is available on the DFI website, such as corporation number and incorporation date, that make it appear to be a legitimate request.  Business owners should not be hoodwinked into giving out potentially confidential information and paying an unnecessary fee.”

DFI has received numerous inquiries from business owners asking whether the form was a new requirement from DFI, which is the filing office for Wisconsin businesses.

The form states that Corporate Records Service is offering to assist businesses with maintaining minutes of meetings of shareholders and boards of directors, but does not include any specifics on how the company will supply that service. The form also includes the following statement: “Corporate Records Service is not a government agency and does not have or contract with any government agency to provide this service.”

“Any business that chooses to fill out the form and pay the fee should make sure they will be getting some legitimate service in return,” Holzem said.

Corporate Records Service is not registered with DFI. State officials in Maine, Indiana and Tennessee also have warned businesses in their states about the activities of Corporate Records Service.

Business owners who have questions about the form may contact DFI at 608-266-1622.

The Better Business Bureau of Minnesota and North Dakota (BBB) is noting an uptick in reports of the “Tech Support” scam. Consumers have contacted the BBB in recent days reporting phone calls from people identifying themselves as computer technicians and telling potential victims they’re calling because they’ve noted issues with their home – or business – computers. The BBB is urging people not to be fooled by these calls, as they are not legitimate and are designed to either solicit credit card numbers or gain remote access to computers, which could lead to personal or financial information being compromised.

“As in most cases, there’s a level of plausibility to this scam,” said Dana Badgerow, president and CEO of the BBB of Minnesota and North Dakota. “Scammers tell consumers they’re calling because of an operating flaw or because they’ve noticed their computers are running slow. And many older computers do run slow. However, consumers need to know these cold calls are bogus. When you have a computer problem, you call the expert. It’s not the other way around.”

In many instances of this scam, people report the callers have foreign accents. They also sometimes identify themselves as being with Microsoft.

According to Microsoft, once these scammers are given access to a computer they can install malicious software, steal personal information, take control of the computer remotely or direct customers to fraudulent websites where they are asked to enter their credit card information.

The BBB offers these tips to avoid the Tech Support scam:

• ·         Don’t trust cold calls. Remember, computer firms don’t call you about a problem – you call them. Also, never give out your personal information over the phone to someone you don’t know. If a caller claims there’s a problem with your computer, simply hang up.
  • ·         Protect your computer – All computers should always have the most recent updates installed for spam filters, anti-virus and anti-spyware software and a secure firewall.

As we ease into the New Year, the Better Business Bureau of Minnesota and North Dakota (BBB) is taking time to look back at the Top Ten scams of the past year. The list is an informal one compiled by BBB staff and weighs scams by how widespread they were and the effect they had in the Minnesota and North Dakota marketplace.

“2012 continued to be a big year for ‘classic scams’ such as bogus timeshare resellers or asphalt scams, where companies knock on doors claiming to have excess materials from other jobs,” said Dana Badgerow, president and CEO of the BBB of Minnesota and North Dakota. “However, we also saw the emergence of a highly malicious text scam and a utility scam that had many consumers mistakenly believing the government would be paying their utility bills.”

In no particular order, the Top Ten scams of 2012 according to the BBB were:

• Phony debt collectors telling consumers they faced arrest if they didn’t make an immediate payment on bills they may or may not have owed. Under the Federal Debt Collection Practices Act, debt collectors cannot threaten people with arrest.
• A text scam in January which resulted in a $10 charge – per text – on the cellphone bills of people who received the unsolicited messages, regardless of whether or not they opened or responded to these messages.
• Sweepstakes scams. Consumers continued to be victimized by emails, texts or letters informing them that they had won sweepstakes. Unfortunately, these were only ploys to get people to pay – supposedly for taxes or insurance purposes – fees to collect non-existent prizes. Remember, if you’re told you have to pay or wire money to collect a prize, you haven’t won anything.
• Deed Scams. Consumers receive official-looking notices which look like bills for a copy of their property deed. The BBB reminds consumers they generally don’t need copies of their deed, and also that companies who send out these mailings charge homeowners more than 40 times the price they would pay if they were to purchase the same copies themselves at their county offices.
• Bogus timeshare resellers. In 2012, the BBB identified four entities claiming Minneapolis and St. Paul addresses, all purporting to be resellers of timeshare properties. However, a closer review of these companies revealed they were not located here and none of them were legitimate organizations. Complaints regarding timeshare resellers often involve situations where people were told they only needed to wire “escrow funds,” or that they just had to pay taxes or closing costs and their timeshares would be sold. Never wire money to someone you don’t know.
• Asphalt Scams.  Traveling crews go door to door claiming they have extra asphalt from a nearby project and they’re willing to work at a discounted rate. However, the quality of work is often sub-par and the final cost can sometimes be double – or many times – the quoted price.
• Utility Scam. In early July, our area was hit by a nationwide scam which claimed the government would pay people’s utility bills through a new federal program. Through social media, customers shared a fraudulent bank routing number that would supposedly pay their utility bills via automated telephone payment services. The payments were initially accepted but later declined after the bank account number proved to be phony.
• Romance Scams. Scammers use dating sites, chat rooms and social networking sites to woo singles and eventually convince them to hand over money. The BBB advises people to try to meet someone locally, as there’s a far higher risk of running into a long-distance scammer when your only contact with the suitor is online.
• Ransomware. A tricky new computer virus that delivered pop-up messages to infected machines which claimed to be from the FBI and threatened people with a fine or prison unless they paid a fee to have their computer unlocked. The BBB advised affected consumers to pay an expert to fix their computers – not the scammers – and urged all computer users to make sure their computer had the most recent updates installed for spam filters, anti-virus and anti-spyware software, as well as a secure firewall.
• Power4Home Pro. A company which claims a Minnesota address (however it’s a UPS Store) and also claims on their website they can teach people how to “slash their power bill or eliminate it completely.” The company has an F rating with the BBB due to unanswered complaints and a pattern of complaints alleging incomplete orders or non-shipment of training materials. The company also failed to provide the BBB with substantiation of savings claims made on their website.