December 15, 2009 - Baltimore, MD – It’s the holiday season – a time to give and to be merry. Consumers are in search for the perfect gift at just the right price. These factors combined make Maryland consumers most vulnerable to fall prey to scam artists trying to take away that holiday cheer! Before you put yourself out there, be aware of the 2009 holiday scams and BBB | Greater MD lends you tips on how to avoid them.
“The holidays bring out the best in many and the worst in a few,” said Angie Barnett, President/CEO, BBB | Greater MD, “Scam artist Grinches are looking to steal your holiday cheer in the form of your money or identity.”
BBB | Greater MD identifies the top five 2009 holiday scams as gifts that could just keep on giving or gifts you will never receive:
Malicious Holiday Downloads. Everyone wants to spread a little cheer, but watch out for corrupt downloads, worms, and Trojans from holiday themed downloads such as Yuletide lyrics or ring tones. Be suspicious of any greeting with spelling errors or without your name on it. Also, check the URL of any link contained in the e-card and only click on sites you trust. Remember to be extremely cautious when downloading from the Internet.
You’ve Won! No, you haven’t. Beware of foreign lottery and sweepstakes. You might think these winnings are the only way to pay off holiday debt, but don’t fall for it. These alleged ‘winnings’ typically come with a request to send a portion to cover taxes or processing fees. Maryland law stipulates a sweepstakes is an advertising or promotional device by which items of value (prizes) are awarded to participating consumers by chance, with no purchase or entry fee required to win and NO FEES or taxes to be paid prior to receiving the prize(s).
Gift Cards That Fail to Give. Gift cards are prefect for that impossible to buy for person on your list. Scammers' favorite trick is to obtain the PIN and card ID and once activated shop online and drain the account balance. Be wary of bogus gift cards sold over the internet. Purchase gift cards directly from the store instead of online auctions.
The “IT” Gift. Each year there is that one toy, gadget, or item that kids have to have, which fly off the retailer’s shelves. Weeks before the big day, fly-by-night websites pop up, offering this must-have gift, parents think they’ve hit a goldmine, but never receive it. In a recent survey McAfee found 54% of people believe it is hard to tell if a site is safe to buy from. You can avoid gift scams by doing your last minute shopping with retailers you know and trust, confirm their legitimacy, and always use a credit card. Keep in mind that you could pay premium prices for shipping most anytime after the 18th.
TIED FOR the #1 Holiday Scam of 2009:
“Help” wanted. The pressure that comes with giving during the holiday season leads people to seeking part-time jobs for extra cash. Beware of advertisements offering quick cash and a lot of it, offering little information about the company.
A Maryland consumer reported he signed up for the Google work at home offer which included an agreed to charge of $1.97 + S&H on his credit card. After receiving the anticipated and authorized CD-ROM, our victim reported three unauthorized charges ranging from $72.21 to $38.84. After numerous attempts to speak with the company’s customer service reps to dispute the charges, the consumer’s only recourse was cancellation of the credit card.
Holiday Lenders. BBB | Greater MD closed two advanced fee websites within the past three weeks. The online anonymity enables the scam artist to set up a website offering small loans with the lure of “no credit check”. While an online loan is one way to pay off holiday debt, avoid predatory lenders who require an up front fee (one consumer reported in November sending $2100 advanced fee) for loans never fulfilled leaving the consumer even worse in debt. To confirm your lender is licensed to provide services to Maryland residents, call Division of Financial Regulation at 410-230-6097 for licensing verification.
For more advice on giving over the holidays visit www.bbb.org.