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66 Comments
- jasnmb, on 10/12/2007, -0/+44#8 is sick
- soulpunisher, on 10/12/2007, -2/+34I think they should add Bestbuy's warranty on that list as well :)
- gigurtsis, on 10/12/2007, -15/+35Article text:
By Mark Huffman
ConsumerAffairs.Com
December 11, 2006
As 2006 draws to a close, a review of ConsumerAffairs.com's Scam Alerts archive shows that scammers have had a busy and -- we suspect -- lucrative year.
Targeting the most vulnerable citizens and using increasingly sophisticated tools, most have been able to easily elude law enforcement as they pick their victims' pockets, sometimes even making off with their life savings.
Scammers scored at will, generating instant cash using lottery and fake check scams. They capitalized on news events and pop culture to catch consumers off guard, and enlisted all kinds of emerging technology to perfect identity theft.
Story continues below video
Top 10 Scams of 2006
• Fake Lottery Scam
• Phishing-Vishing Scams
• Phony Job Scam
• Negative Option Scams
• Nigerian 419 Scams
• Pump & Dump Scam
• Bogus Fuel Saving Devices
• Grandparents Scam
• Oprah Ticket Scam
• craigslist Scam
---
• Latest Scam Alerts
Here then, chosen from the roughly 50,000 consumer complaints we've processed in the past year, are the ConsumerAffairs.com Top Ten Scams of 2006.
1. Fake Lottery Scam
Topping our list for 2006, the fake lottery or sweepstakes scam only seems to get bigger and more dangerous. Promising victims they have won thousands of dollars in a Canadian or European lottery, they target the elderly, who seem to be particular susceptible to these schemes. ConsumerAffairs.com reported on one case in which an elderly Kansas man lost over $300,000.
More than 400 New Yorkers fell victim to sweepstakes and lottery scams in the first seven months of 2006, with losses ranging from a few hundred dollars to more than $35,000, according to an analysis by the New York State Consumer Protection Board.
While elderly people lost the most money, lottery scams also tricked younger people into believing they had won a large cash prize from a foreign lottery or sweepstakes. In each case, the victims sent money, usually to Canada, thinking they had to pay insurance or taxes before they could collect these bogus prizes.
"No legitimate contest makes you pay a fee to collect a prize," said CPB Chairperson and Executive Director Teresa A. Santiago. "For many of the elderly victims, the scam artists made multiple demands for cash, falsely claiming that more money was needed in order to pay for 'taxes' or insurance."
Sons and daughters have filed complaints after failing to convince their elderly parent that there was no prize.
"You can't win a contest that you didn't enter. But it's hard to convince someone that they are the victim of a scam, especially when the con artists have made numerous phone calls and formed a bond with the victim," Santiago said.
2. Phishing-Vishing Scams
This scam, in which identity thieves "phish" for a consumer's personal information, are getting more prevalent, due in large part to technological advances. The use of email now makes to increasingly easy for criminals to trick people into revealing account numbers, passwords and social security numbers.
Cleverly designed emails appear to be from a bank, credit union, or online payment service like PayPal, requesting account verification. If the consumer clicks on a link in the email, they are taken to a site designed to look like the bank's actual site, where they are instructed to enter the sensitive information, which is captured and used for identity theft purposes.
In 2006, "vishing" arrived on the scene. Instead of asking the spam recipient to click on a link, they are instructed to call a toll-free customer service number, which seems more the way a financial institution might do business. When they call, an automated system instructs the caller to enter account numbers or passwords, which are then recorded by the scammer.
Secure Computing, which specializes in secure connections over networks, sent up the red flag over this new method in 2005, though the first recorded incident didn't take place until May 2006, involving a Santa Barbara, California, bank. Secure Computing engineers have been tracking news group sites and open disclosure discussion groups discussing vishing.
"This is just a natural evolution of phishing itself," said Paul Henry, vice president of strategic accounts for Secure Computing.
"Simply put, people are becoming more aware of the fact that an e-mail containing a URL could be malicious in nature. So hackers are moving away from the URL and using something victims are more familiar with like calling a number."
This "advancement" has forced some financial institutions to consider additional changes to the way in which they communicate with customers.
3. Phony Job Scam
Scammers are increasingly responding to job seekers posting their resumes at online employment sites, such as Careerbuilder.com. The job offer usually has nothing to do with the job seeker's experience or qualification. Even so, they are offered a job on the spot, serving as a "courier."
They are instructed to receive large checks and deposit them in their personal accounts. They are then instructed to wire the money to an account out of the country. The checks, of course, are counterfeit, but they aren't exposed until after they have been deposited and after the victim has wired the money -- their own money, it turns out -- to the scammer.
"Any employment offered online without a formal interview, no matter where it originates, should be treated with skepticism," said Arkansas Attorney General Mike Beebe, who investigated one of these scams in 2006. "Terms that seem too good to be true will prove to be just that and may cost you in stolen personal information or money lost."
4. Negative Option Scams
Unlike most scams, which are perpetrated by out-and-out criminals, negative option schemes are run by otherwise legitimate businesses. Using pop-up ads on the Internet and extremely fine print on the back of sales tickets, consumers completing a transaction with their credit card are offered some free gift or enticement, not realizing their acceptance enrolls them in a travel discount club or affinity group of some kind, or commits them to a year's subscription of a magazine they most likely don't want.
The consumer may think there is no harm in accepting the "free offer," because they don't realize there strings are attached. While laws generally require consumers to make an "informed consent" to purchase, negative option turns the transaction around. It assumes the consumer has made the purchase, unless the consumer "opts out" or takes the "negative option." The volume of complaints to ConsumerAffairs.com on this subject suggests consumers are completely unaware of the transaction.
5. Nigerian 419 Scams
These scams continue to make our list, year after year, because they continue to ensnare thousands of victims. This is the scam in which the victim receives an email, allegedly from a wealthy, dying person in another country who is desperately trying to get their fortune out of the country. They promise the victim a sizable percentage if they will help.
The victim either has to send money to cover fees or provide their bank account information, or both. The scams are mostly run from Nigeria and get their name because they are covered in section 419 in the Nigerian penal code.
Most people find these emails a big joke, but seemingly sophisticated people have fallen hard for them, losing hundreds of thousands of dollars. While the crime mostly goes unpunished, ConsumerAffairs.com reported on British prankster Michael Berry's humorous war on these scams, which actually show as much promise as any countervailing measure. Called "scambaiting," Berry actively engages these scammers, pretending to be a gullible victim, wasting their time and forcing them to perform all types of ridiculous and time consuming tasks.
6. Pump & Dump Scam
As the stock market finally rebounded in 2006 after years of near dormancy, scammers stepped up their stock-touting schemes. Sending out millions of spam emails, they would offer a "hot tip" about an obscure company whose stock was selling for a few cents a share. Before sending the email they would buy up millions of shares.
For example, Texhoma Energy was touted in an October spam email, resulting in a significant increase in the stock's value. According to the Chicago Tribune, 53,000 shares of Texhoma stock were traded on October 16. The next day the volume jumped to more than one million. Two days later it jumped to more than five million, as the spam emails began to hit inboxes and prompt victims to place orders.
The scammers, of course, sell at the stock's high point and other investors soon join them as the price begins to fall. Pretty soon the stock is back to selling at a nickel a share and those who jumped on the bandwagon have lost significant amounts of money.
At year's end the National Association of Securities Dealers issued an alert to investors to avoid taking any unsolicited investment advice. A survey of the huge increase in spam email revealed most of it to be touting these near-worthless stocks.
7. Bogus Fuel Saving Devices
When gasoline prices surged this year, scammers were quick to try and cash in. One company claimed its "special pellets," dropped into the fuel tank, would improve efficiency. The Federal Trade Commission went after one company that claimed its "magnetic device" would increase gas mileage.
"Consumers are looking for ways to increase fuel efficiency and save money at the pump," said Lydia Parnes, Director of the FTC's Bureau of Consumer Protection. "There are some practical ways to do that, like following the maintenance schedule in your owner's manual, combining errands, and avoiding jack-rabbit starts. The fact is that many products that claim to save fuel don't work, and worse yet, may damage your car and end up costing you more."
8. Grandparents Scam
This is a particularly vile scam aimed at senior citizens, perhaps the most vulnerable scam victims. An elderly person is targeted by the scammer who calls and says something like, "It's me, grandpa." The elderly person will respond, thinking it's one of their grandchildren.
The scammer then tells a tale of woe, saying they are in trouble and need some money, "and please don't tell mom." The grandparent obligingly sends a few hundred dollars, thinking they're helping a grandchild. Investigators say it works more than you might think.
9. Oprah Ticket Scam
This scam makes our list this year because of its potential to become much more widespread and to victimize vulnerable people. Illinois Attorney General Lisa Madigan recently warned consumers about this scam, alerting them to emails or letters that told them they had won tickets to a taping of the talk diva's show in Chicago, or had been offered a tour package that included a taping of the show. The communication asked for sensitive personal information, which, if provided, could allow their identities to be stolen.
In this case, e-mail recipients are asked to submit personal information and told they will receive tickets to The Oprah Winfrey Show after verification of certain financial information and/or the wiring of money to an unknown third party. However, according to Harpo Productions, Inc., The Oprah Winfrey Show does not sell tickets or ticket travel packages to fans.
10. craigslist Scam
Though not terribly widespread at the end of 2006, the craigslist scam makes our top ten list because of its potential to wreak harm in the years ahead. Starting this year scammers began taking advantage of the growing popularity of craigslist to victimize people trying to rent their homes or apartments.
The scheme is basically the fake check scam, with a twist. Darryl, of San Diego, told ConsumerAffairs.com that he received almost identical replies when he listed a room for rent on both craigslist and Roommate.com. The replies claimed to be from "Marie," who called herself "a young humanitarian officer."
"Marie" said her employer would be sending Darryl her expense check, which would be for several thousand dollars. Darryl was to deposit it in his account, deduct the rent and deposit, and send the balance back to her.
Fortunately, Darryl saw through the scam. If he had cashed the phony check, it would not have been discovered for a few days. By then he would have sent the scammer a very real check for a $3,000 or more.
"Most people who use craigslist have great stories to tell about their experiences with buyers, sellers, tenants, landlords and such, but we also receive occasional reports of scams and fraud," craigslist warned on its Web site. "We've found that one of the best ways to avoid this problem is to keep all transactions local -- whenever possible, don't do business with anyone who is not in your local area."
If It Sounds Too Good ...
Scams continued to be big business for criminals in 2006 and relatively risk-free as law enforcement appeared unable to keep up. As a result, consumers increasingly were at the mercy of scammers who use cunning, audacity and emerging technology to stay one step ahead of both their victims and the law.
The solution? Keep your wits about you, be skeptical and remember -- trite though it may be -- if it sounds too good to be true, it probably is. - VtmnR, on 10/12/2007, -1/+19That is the worst scam I have ever heard... sick is an understatement for doing that.
- merreborn, on 10/12/2007, -0/+18"who would fall for anyone of those? you would have to be a total moron."
The world's full of them. The sooner you understand this, the better. Remember, roughly 3 billion people have an IQ lower than 100.
"All these people deserve to get scammed."
No they don't. You wouldn't say "The mentally handicapped deserve to get scammed", would you? - Arramol, on 10/12/2007, -1/+17"How are eBay related scams not even on there?"
You mean like PayPal customer service? - cmilki, on 10/12/2007, -5/+21So you're judging an entire nation by a few sick retards ?
- chris9902, on 10/12/2007, -7/+22who would fall for anyone of those? you would have to be a total moron.
#1 The lottery scam. Somebody rings you and tells you you've won a lottery you didn't enter but you have to send them money? are the alarm bells not ringing? All these people deserve to get scammed. - inactive, on 10/12/2007, -3/+14Digg's not the only site on teh intarweb. It got Farked first.
Also, why should he have posted the duggmirror link when the guy right above him did? - josegutz, on 10/12/2007, -6/+17I think the PS3 Hype should be on the list...
- williamhelmick, on 10/12/2007, -2/+12#11: Scientology.
- inactive, on 10/12/2007, -3/+12I actually want the craigslist one to hit me. I think I could scam the scammer by making up some story about how I got arrested for illegal internet gambling 2 years ago, so now the Virginia Lottery Commission freezes my bank account every time I make a large withdrawal. So I can take their big check, and send them an equally big amount of cash, but I won't be able to buy groceries for the week unless they send me a $100 money order along with the check (which will of course be refunded with the balance of the check).
Think it could work? - arkmtech, on 10/12/2007, -2/+10The only reason I'm clicking that link is to bury it as SPAM in hopes your account will be gone by tomorrow...
- elnerdo, on 10/12/2007, -11/+19Yes
- sockpuppets, on 10/12/2007, -2/+8How are eBay related scams not even on there?
http://www.duggmirror.com - cianuro, on 10/12/2007, -1/+7Yea, #8 is really sad. I could actually imagine my granny falling for that.
- maotx, on 10/12/2007, -0/+6Goto craigslist and try to sell a laptop. I tried to sell one on the Washington D.C. list and out of the 8 responses I received, 8 were scammers.
- 42nnn, on 10/12/2007, -7/+1338 diggs and its down...
- acrodev, on 10/12/2007, -1/+7Maybe you misread the price tag...
- xocomil, on 10/12/2007, -0/+5It would probably wind up costing you $100. Most of these scams do send money orders. Most people are smart enough to recognize that checks bounce. Money orders though, everyone trusts those. What you don't realize is that they can take days for your bank to process all the relevant information and find out it is fake. A bank is required to make the funds available immediately. A properly washed check could take 10 days for the bank to find out it was fake and then come after you for the money.
I worked at an online car site for a while and saw all sorts of these checks come through. I still have two fake money orders framed at my house. One for $25,000 and my personal favorite for $50,236. - TheG2, on 10/12/2007, -1/+6Where is OnRebate.com and TigerDirect.com's rebate scam on the list? Seriously, I can't count the number of people I know who never recieve their rebate unless they threaten with an FTC complaint and also never recieve support emails.
- Wilcox, on 10/12/2007, -3/+7http://www.duggmirror.com
It is a little faster... - jblade, on 10/12/2007, -2/+6There is an article, so its not spam, but here is the youtube clip posted on the site
http://www.youtube.com/watch?v=BcFKKvaxVq0&eurl= - popcultureicon, on 10/12/2007, -0/+4"Simply put, people are becoming more aware of the fact that an e-mail containing a URL could be malicious in nature. So hackers are moving away from the URL and using something victims are more familiar with like calling a number."
they could have just as easily used the correct term "Criminals" instead of "hackers" - Aeiri, on 10/12/2007, -0/+3"You mean like PayPal customer service?"
No kidding, I had my account locked for 1 and a half YEARS on PayPal, I constantly called in, starting procedures to get the account unlocked and so on, and it just never seemed to happen!
I finally got my account unlocked once, then the next week it was locked again...
One day, I called in and talked to someone who wanted me to fax a bunch of information to them to prove I was who I said I was.... I was willing to do it because it's PayPal, they already have that information anyway, but then I called in the next day wondering where the fax cover sheet they said they required was, and the guy there actually knew what he was doing.
He said that by calling in and going through the system of verification I had already confirmed I was who I was, so he sent me an email to reset my account and in under 1 minute my account was unlocked...
Out of countless calls... ONE PayPal customer support rep actually knew what he was doing. ONE. Great service, PayPal! - compu73rg33k, on 10/12/2007, -0/+3Didn't see that before, my bad.
- NsinU8, on 10/12/2007, -0/+2What about the "brick in the box" ebay/ paypal scam? That will be on there next year.
- cogitocogito, on 10/12/2007, -0/+2Regarding check scams:
Many people think they protect themselves by waiting for a check to "clear". But just because the bank lets you use the money, it doesn’t mean the check is good. Under federal law, banks have to make the funds you deposit available quickly – usually within one to five days, depending on the type of check. But just because you can withdraw the money doesn’t mean the check is good, even if it’s a cashier’s check. It can take weeks for the forgery to be discovered and the check to bounce. - speedmaster, on 10/12/2007, -1/+3Social Security is conspicuously absent from the list! ;-)
- cianuro, on 10/12/2007, -0/+2I am sure you have a grandparent or know of someone who has a grandparent that is "not all there" due to some sort of mental degradation. My girlfriends grandfather is perfectly mobile and communicates like there is nothing wrong with him, but each time we visit, she has to tell him who she is.
- inactive, on 10/12/2007, -0/+2cameraworld.com just ripped me off on a mail-in rebate scam for an SD card.
- Lewie, on 10/12/2007, -0/+2I hate Scientology. Even before it was fashionable to hate Scientology. I was a pioneer.
- loof, on 10/12/2007, -1/+3That's what I have to do in order to get my rebate? Onrebate is terrible.
- mateo60, on 10/12/2007, -0/+2I marked it as spam too. I hope lots of people do the same.
- JohnnyHuh, on 10/12/2007, -0/+2I saw the Nigerian email scam "expose" on the news last night. I couldn't stop laughing when they interviewed the woman from Alabama who fell for it.
I think there should be extra jail time for people who prey on the elderly. - davidestroy, on 10/12/2007, -0/+2People really need to keep their personal information to themselves. I work at a call center and support a very popular online music/movie store. Yesterday the store was under maintenance and I got a call from someone who couldn't create an account. I told him the situation and to try again later. He said he really needed to buy some songs and wanted to know if I would set it up for him. I told him this was not a good idea since he would be giving me all of his personal info. He still wanted me to do it so I did. Name/Address/Birthday/CC number and expiry/CC security number/email address/account password/account question(answer = dog's name).
This guy is lucky I'm a good person. - ExSlashdotter, on 10/12/2007, -2/+3No way, mail-in rebates ought to be #1.
- TheGonzo, on 08/13/2008, -0/+1@mateo69
this was my fault for not putting the right URL on the screen, I don't understand what ad Sense is not do I have any business online.
Sorry for the confusion.
Just like any gamer out there, I was looking for deals etc. online and found the scam site. Rather than have other people lose money to slimey bastards out there, I thought I would spread the word. My fault
take care - TheWorm, on 10/12/2007, -0/+1Hello friends, I really am a nigerian widow. I need help trasnfering funds to a forign acounts. Please send banks information so we begin transfer immediate. Ala be with you.
- mateo60, on 10/12/2007, -0/+1@gonzomarte
The reason I dugg-down your improperly placed "story" (i.e. SPAM) is because it points to a "Made for Adsense" page with no redeeming content on it whatsoever. You're just trying to make money. - TheWorm, on 10/12/2007, -0/+1Also, Here's how a typical Craigslist scam goes. They happen all the time. Good to recognize. This is copied directly from one i recieved.
Hello,
Thanks for your response, i really appreciate it alot,i will like to inform you that i am presently in Mexico on vacation,While i will want you to know that i am sending this item to my Grandson Abroad,who just have to relocate due to the fact that he was involved in the Hurricane Katrina,since he was reciding in New Orleans when the incident happened,so i want to send him this item so he can know he is right here in my heart and also be informed that i will be taking care of the shipment my self due to the fact that i want this item to be presented to him in a Grandstyle,so kindly send in your full name,address,city,state,postal code and also including the total amount you are willing to sell this item,and as soon as i have this informations with me,i shall proceed with the payment right away,i would have loved to make the payment via Pay Pal,but i do not have an account with them and can not set up one due to where i am now,i hope you understand with me,while i will also want you to know that payment will be made via Money Gram in which the money will be brought to your door-step and made delivered to you cash and also will you be able to track your money once payment has been made and its been cleared......Bye for now and hope to hear from you soon....
Thanks.... - diggsIt, on 10/12/2007, -0/+1Family friend got scammed last year by #10. Recent college grad. Sent 3G to London - Western Union. I couldn't believe it. When I heard what he did, I told him the check he deposited wouldn't clear. He thought I was joking. It was painful for everyone.
- Jelloman, on 10/12/2007, -0/+1They forgot the biggest scam in the world by far: DIAMONDS.
- macaddct1984, on 10/12/2007, -0/+0merreborn: "The world's full of them. The sooner you understand this, the better. Remember, roughly 3 billion people have an IQ lower than 100."
That's kind of biased, about 3 billion people have an IQ between 90 and 110 - Slacker1031, on 10/12/2007, -0/+0can't forget the 357customs scam. thousands of people ripped off for hundreds of thousands of dollars worth of merchandise. that and zakk wylde himself was ripped off from those asshats.
- bradleyland, on 10/12/2007, -1/+1You know, most of these 419 scams propose activity that is definitely *not* above board. The proposal you receive usually borderlines on money laundering. IMO, if you're willing to engage in this activity, you deserve what you get. Furthermore, you ought to face charges for funding these *****.
- inactive, on 10/12/2007, -1/+1anyone ever heard of studiotraffic? this should be up there.. I know some people that got screwed out of life savings from that one...
- diggsIt, on 10/12/2007, -1/+1Isn't it time to run your adware, spyware, and antivirus.
- Lewie, on 10/12/2007, -1/+1All autosurfers and HYIPs are scams. I was in one in which I received a small profit, but luckily got out when it started to go down. Those not familiar with them lost tens of thousands.
- elnerdo, on 10/12/2007, -2/+1Next time, while you're at it, why don't you write them new canned-messages so they can scam more effectively?
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Show 51 - 66 of 66 discussions
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