Beware of $12,000 Stimulus Check & Other Scams, Says Kiplinger's

This item from the folks at Kiplinger's caught my attention:

"Will the Treasury Department really issue stimulus checks of $12,000? No—but some con artists would like you to believe so. Crooks miss no opportunity to take your money—and began plotting stimulus-related schemes as soon as the law was passed in February. In “Watch Out for Stimulus Scams,” Kiplinger’s Personal Finance contributing editor Kim Lankford uncovers the most common cons and offers tips to avoid them:

· $12,000 Government Grant. This ad says you can order a CD or access a special Web site that will show you how to get a $12,000 government grant—if you make a small credit-card payment. But the fine print shows that you’re also signing up for recurring credit-card charges that can be tough to get out of. The Better Business Bureau found that people who signed up for this advice were charged as much as $69.95 every month on their credit or debit cards.

· Warning of Stimulus Forfeit. The crook sends an e-mail claiming to be from the IRS, warning that if you don’t respond promptly (often with your bank-account information), you’ll forfeit your stimulus money. The IRS does not contact taxpayers by e-mail and never asks for PINs, passwords, or secret access information for credit cards or bank accounts. If you click on a link in the message, you could be directed to a phishing Web site, which the crook created to collect personal information.

So, how can you protect yourself?
1) File a Complaint. If you’ve received a fraudulent email, file a complaint with the FBI's Internet Crime Complaint Center and the Federal Trade Commission.
2) Do A Company Background Check. Check out companies and learn about recent scams at the Better Business Bureau's Web site.
3) Visit the FBI. Read warnings about e-mail hoaxes and phishing scams on the FBI’s Cyber Investigations Web site." --source Kiplinger's Personal Finance

Here's a link to full article about stimulus scams.

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Bank Woes? Foreclosures? Credit Crunch? A List of Scams From Kiplinger’s

"Think of a headline about the financial crisis, and criminals have found a way to exploit it. Bad credit? Bank problems? Home foreclosures? Each of these, and many more, comes with a matching scam, helping make today one of the most fertile periods ever for rip-offs.

The January issue of Kiplinger’s Personal Finance uncovers the most common schemes—and offers tips to help avoid them:

(1) Debt negotiation cons. Some debt-negotiation companies are counseling their clients to ruin—falsely claiming they can help repair credit reports. Others advise clients to stop paying their bills without telling them they could be sued by creditors.

How to Avoid It? Find a legitimate credit-counseling agency at www.nfcc.org or www.aiccca.org. If you think you’ve been duped, call in a complaint: 877-382-4357.

(2) Mortgage-foreclosure rescue cons. More than half of homeowners who are late on their mortgage payments aren’t aware that lenders have programs to help avoid foreclosure, People who don’t know their options can fall prey to crooks who charge $1,000 or more for fraudulent foreclosure-avoidance services.
How to Avoid It? Find a housing-counseling agency approved by the U.S. Department of Housing and Urban Development (links are listed at www.hud.gov).

(3) Bank phishing cons. Criminals are preying on fears over recent news of bank mergers and acquisitions. Phishing schemes—e-mails designed to get you to relinquish private security information, including your Social Security number—falsely indicate that your bank has been acquired. The message may tell you, “We recently purchased ABC Bank. Follow the link below to renew your account information.”
How to Avoid It? Forward fraudulent e-mails to the Federal Trade Commission at spam@uce.gov. Send a copy to the company that has been impersonated.

(4) Energy cons. Cold callers pitch energy-related limited partnerships that are often conceived in one state, involve drilling in another, and are sold to investors in still other states. Such a setup makes it tough for investors to check out the proposal, and tough for law enforcement to identify and expose a fraud.
How to Avoid It? If you’re tempted by such a pitch, start by checking the registration of the deal. Ask in which state the offering is registered, then contact that state’s securities agency to confirm that a security is really being offered."
--Source: The “Scams Ripped from Today’s Headlines” article

Stripped Gift Card Scams: New Plastic, But Dead on Arrival

Gift cards are often easy to reach at store cash registers or on nearby racks. But that easy access opens the door for an unusual consumer rip-off, according to Bottom Line Personal. The problem: High-tech thieves enter stores and use small electronic scanners to read and lift credit codes from the magnetic strips on gift cards.

With the scanned and stolen information, digital thieves use the gift card data to finance fraudulent online shopping sprees, according to a report from scambusters.org. Meanwhile, unsuspecting gift card recipients are left with worthless plastic. One Wal-Mart shopper, for example, purchased gift cards for her grandchildren. But when the grandkids (eight of them) tried to use the cards for the first time, the family discovered that all of the cards had been drained of value, according to scambusters.org.

The store ultimately offered a refund and through a bit of detective work discovered how thieves had stolen the stored value dollar amounts from the gift cards.

Anti-theft tip: Avoid gift cards that are arranged on easy-access racks. Instead, request a card from the behind-the-counter stash. Save receipts and check in with your gift card recipients to make sure that all is well when they try to use the gift cards.

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Sharon Harvey Rosenberg is the author of The Frugal Duchess of South Beach: How to Live Well and Save Money... Anywhere!, which will be published in the Spring of 2008 by DPL Press.
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Previous Posts

Today:
3 Reasons to Admire Bill Parcells & Why I Read the Sports Section First
Yesterday:
How to Demand Less, Live Better: A Financial Salute to My Natural Hair
My Miracle Treatment: Vitamin B for Writer's Cramp or CTS
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Steroid Sale Prices: Bogus Sales at Big Name Stores

Steroids have hit the sales racks. Many so-called sales (even at well-known stores) are a total fake-out, according to the ShopSmart's December/January 2008 issue.

ShopSmart --a Consumer Reports publication --has put together a sharp analysis of holiday sales. And the results confirmed some of our suspicions: Some discounts are fake.

"The next time you find yourself salivating over a 60-percent-off sale, don't scramble over to the store so fast. Those deals may not be as good as they appear," ShopSmart reports.

The magazine discovered that stores will inflate a price tag and THEN take the discount. As such, the so-called "original price," may be pumped up higher than even the manufacturer's suggested retail price (MSRP).

ShopSmart tracked advertisements for three stores -- Kohl's, Macy's and Sears -- and, YES! there were some true bargains, but there were also many examples in which the discount seemed larger because of an inflated original price. The best shopping protection: Check out the prices online through a shopping portal before you go shopping.

Here are a few examples of sales on steroids.

Kohl's

Item: 12-pc knife set

MSRP: $130

Store Price: $220

Sale Price: $99

Store Discount: 55 percent

Actual Discount on MSRP: 24 percent

Macy's

Item: iron
MSRP: $30
Store Price: $50
Sale Price: $25
Store Discount: 50 percent

Actual Discount on MSRP: 40 percent

Sears

Item: Blender

MSRP: $20

Store Price: $23

Sale Price: $20

Store Discount: 13 percent
Actual Discount on MSRP: 0 percent

source: ShopSmart's December/January 2008 issue.

Previous Posts Today:

5 Reasons Why I Have a Crush on My Parents' Retirement Magazines

What to Do After Losing a Job or Before the Pink Slip Arrives

Holiday Family Activities & More at Carnival of Family Life

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The Frugal Duchess Booktique
The Frugal Duchess of Beauty Store

Book Shop of Fear
The Poetry & Drama Queen
Frugal Jazz & Blues
Frugal Comic Book Connection
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Festive Frauds & Seasonal Scams: A Rundown of Holiday Crimes

From fake e-cards to bogus charitable pitches, there are many of seasonal scams. This list --from the Consumer Credit Counseling Service -- is excellent. The tip about getting anti-hacking firewall software info from Consumer Reports is also excellent. (see below) Feel free to chime in with scams that you have seen.

"Holiday scams are often delivered by bogus e-mails, direct mail or phone calls in order to gain access to personal financial and account information. Consumers can help safeguard their finances with the following tips:

Discard fake e-cards – These e-mails look like a holiday greeting from a family member, friend or well-known company, but these fake messages are simply "phishing" for information by posing as a legitimate communication and then querying the recipient for personal information, which can be used to access financial accounts.

Beware of charity pleas – Scammers capitalize on consumers’ generosity during the holiday season by sending out mass e-mails or placing professional-sounding telephone solicitations, disguised as well-known charities. Don’t be fooled into giving any personal information, such as making a gift via credit card that requires disclosure of card numbers, expiration dates and/or security codes. The best bet: initiate direct contact oneself to make a donation to a trusted charity.

Ensure retail Web sites are secure – When shopping online this holiday season, type in the Web site address rather than following links from an e-mail, which may lead to a bogus site built by a hacker trying to access personal information. Before providing a credit card or other account information to an online retailer, look for a small lock in the lower right-hand corner of the computer screen or an address that starts with https:// instead of http://.

Research before buying — When in doubt, investigate a retailer’s profile through the Better Business Bureau or other credible organization, and do not ever purchase anything from a company unless it has a physical address and phone number.

Watch for false credit card offers – Scammers often try to lure consumers into fake credit card applications – requiring the disclosure of personal data – when they think consumers need it most, such as the holiday buying season.

Seek product guarantees — Purchasing from reputable companies that provide written guarantees and/or warranties helps ensure more worry-free holiday shopping.

Keep good records — Always print receipts for items or services purchased online, including the price, date, time and purchase confirmation number, in case this information is needed later.
Install a firewall — Sensitive information like tax records, bank account information or credit card numbers are often available on one’s personal computer, and online hackers can be quick to access them if an Internet firewall is not installed on the computer.

Visit http://www.consumerreports.org/ for free guidance on firewall hardware and/or software options.
If needed, file a complaint – According to the Federal Trade Commission (FTC) Web site, consumers who suspect a business may have broken the law can file a complaint by calling the FTC toll-free at 1-877-FTC-HELP (1-877-382-4357) or file a complaint online at www.ftc.gov ."


Source: Consumer Credit Counseling Service
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The Frugal Duchess Booktique
The Frugal Duchess of Beauty Store

Book Shop of Fear
The Poetry & Drama Queen
Frugal Jazz & Blues
Frugal Comic Book Connection
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Buried Under Cash: Funeral Video Highlights

This was your life? That's the new twist in funerals: DVD Highlights & The Final Clip! I smell a scam or at least another effort to take advantage of people at vulnerable moments.

The Scenario: A friend of mine recently went to a funeral and was surprised by the eulogy, which included a video clip of the deceased, who was actually cremated.

The highlight film: Admittedly, it was a very lovely tribute to the deceased person, with photos, videos, narration and music. It was sort of like the types of videos played at anniversaries, weddings and other big tribute events.

The Funeral Cost: $6,000, including the video ($1,000-plus)

My Friend's Assessment: "It was a nice video, but the family could have made it for themselves for a lot less." The family also faced pressure to buy an expensive urn and other perks that lifted the price of the funeral so high.

Some undertakers and funeral homes place a lot of pressure on bereaved families to spend heavily on caskets, urns and now videos to create beautiful tributes for the deceased. That's the observation, from a savvy friend of mine, who recently attended a funeral service.

The unspoken pitch: The amount of cash you spend equals the amount of love in your heart.

How great is the pressure:

At another funeral, my friend overheard this conversation in which a member of the bereaved family had voted against an inexpensive coffin because it "would pinch" the deceased.

Actually, the grief of the has been pinched.

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