At ShopSmart, our main task is to help you buy with confidence, whether it’s turkeys or tires. We do this by giving you the data you want to get the most productive deals on the most productive products. But knowing how to spot smart shopping is just as vital as understanding what to do to avoid scams. And with online fraud on the rise, it’s becoming increasingly difficult to thwart criminals.
Complaints filed with the Internet Crime Complaint Center, a joint operation of the FBI and the National White Collar Crime Center, increased 22% last year. Court cases come with many non-unusual scams, such as dealers borrowing credit card numbers or taking the cash and leaving. But that’s child’s play for what’s to come.
Do you think you’re too smart to get caught? Well, maybe don’t be fooled by emails from Nigerian royalty asking you to transfer money, but virtual criminals are getting smarter every year. A scam that can fool even the most cautious consumers are the “skimmers” attached to vending machines. These devices store account numbers and passwords so thieves can delete your bank account.
“These guys are constantly coming up with new tactics to scam you, some of which are quite sophisticated,” says Brian Krebs, computer security expert and “Krebs on Security” at Krebsonsafety. com.
Do you think it’s safer to shop at the mall? Official statistics on bag thefts show a downward trend, but many of these crimes are not reported to the authorities. And pickpocket activity increases during the holidays, says Bob Arno, co-author of “Travel Advisory! How to Avoid Theft, Scams, and Street Scams While Traveling” (Bonus Books, 2003). But you can outsmart even the cleverest scammers if you know what’s in their bag of tricks. Here you’ll find a guide to the newest and sneakiest scams, plus some undeniable tips that can help protect you.
“Phishing” involves receiving an email from a supposedly trusted source, such as your bank or PayPal, claiming that there is a challenge with your account and asking for your username and password. When you respond, your data is stolen and your account is diverted. “Smishing” is the most recent variation of this scam: when you receive an email, you receive a text message. (The word is a mixture of “SMS,” for short message service, also called text messaging, and “phishing. “)You are asked to call a toll-free number and are answered through a fake interactive voice reaction formula that attempts to trick you into offering your account number and password.
“It works because other people don’t give out their cell phone number,” Krebs says. “If anyone has my cell phone number, I assume it’s someone I know. ” Thieves can use random-dial telemarketing services to locate your number, says Rod Rasmussen, president and chief technology officer of IID, a web security company. If you belong to a credit union, be especially careful: Members are targeted because sometimes the callback number has a local domain code, not an 800 number, making those affected fewer. Most likely, you suspect hoax, says Rasmussen.
If you receive a text alert about an account, do not respond until you are sure it is legitimate. You can do a Google search for the number to see if it matches your monetary institution. Better yet, call the customer service number of your bank or other service provider to give all the details to a representative.
Thieves borrow your credit or debit card number and charge you a very small fee, ranging from 20 cents to $10. The rate appears on your bill with a harmless-sounding business name, and a toll-free number may appear next to the rate. quantity. But when you call the number, it either disconnects or you’re asked to leave a message and they never call you back.
It’s exactly this scam that the Federal Trade Commission busted in June, according to spokesman Frank Dorman. “We don’t know where the thieves got the card numbers, but we are investigating,” he said. The scam was a success because most consumers were unaware of the fees or the difficulty in paying them because the amounts were so small. In total, the criminal network has racked up more than $10 million in false accusations, the FTC estimates.
Review each and every item on your bill every month and ask for the ones you don’t recognize. (Some, though not all, places will have a phone number. )If you believe a fee is fraudulent, notify your card company as soon as possible, but no later than 60 days after the charge occurred. By law, the card company will have to remove the disputed amount from your account while they investigate. At worst, by law, you’re only guilty of the first $50 on a credit card. (In most cases, Visa and MasterCard will cover the full amount. )Debit cards offer fewer protections – you’ll have to report the problem two days after you realize it. If you don’t, you may only be liable for the first $500 in fraudulent fees. If you wait more than 60 days after it is mailed to you, you may lose all the cash in your account.
Skimmers, devices that thieves place at ATMs or gas pumps to borrow your debit account number and password, have been around for years and are disappearing. They become even more sophisticated.
The devices sit in the mouth of the card acceptance slot and record magnetic stripe data on the back of your ATM card as you swipe it through the machine. Scammers regularly install a device for the time being, such as a hidden camera or a clear plastic PIN pad, which is used to record your PIN as you enter it. At the start of the overpass, the thief had to return to the ATM or fuel pump. pump to recover the device. But now, Krebs says, wireless generation makes it possible to manipulate devices to send text messages with account data to the thief’s mobile phone. “The thief can be on the street, in a café or on the other side of the world,” he says. “As long as you have an active phone signal, you can get the data without delay and start using it. “
Use credit cards and avoid using non-bank ATMs. These machines are usually located in less secure areas, making it easier for thieves to access them. And check the card slot: if there is a plastic strip or plastic film sticking out, or anything stuck to the card reader, move it to another place. If your card gets stuck in the card slot, do not exit the machine. Use your cell phone to call your bank branch or 24-hour helpline to report the problem.
You purchase from a large, reputable website, but just before you click the “confirm” button for your purchase, you see a pop-up or banner ad with an offer like “$10 back on your next purchase. ” !”. Here’s the trick. By accepting this so-called agreement, you agree to enroll in an Internet reduction program run through a completely separate company. These programs, which have risk-free names like “Reservation Rewards,” “Travel Values Plus,” or “Great Fun,” will offer a 30-day trial period during which you’ll get discounts on a variety of products and services. After that, a monthly club fee, usually $10 to $20, will appear on your credit card bill, even if you never gave your card number to that outdoor company.
Sounds risky, doesn’t it? A Senate committee headed by Jay Rockefeller, DW. Va. , thought so too. Last year, the committee launched an investigation into three major corporations that sell memberships to those discount clubs: Affinion Group, Vertrue and Webloyalty. The committee’s report was released last November and alleged, among other things, that “the misleading ‘Yes’ and ‘Continue’ buttons lead consumers to believe they are completing the initial transaction, rather than entering into a new monetary relationship. ” continue with a member. club controlled through Affinion, Vertrue or Webloyalty.
The challenge is so pervasive that in May Rockefeller introduced a bill to ban this and other deceptive sales practices. At the same time, all three corporations analyzed in the report have committed to changing their habits. Previously, customers’ credit card numbers were provided to the reduction company through the originating site without the consumer’s knowledge. After the investigation began, the three corporations began requiring consumers to enter at least the last four digits of their card number to obviously imply that they were making a separate transaction. We will ensure that those adjustments are sufficient to prevent consumers from being misled.
Be wary of pop-ups or classified ads that promise an additional reduction before completing a transaction. If you click on an offer, take the time to read the fine print. Check your credit card every month and check any unknown charges. no matter how small. Check your email inbox and spam folder, as internet loyalty systems occasionally send a notification email before they start charging your credit card, while you still have time to cancel.
Thieves look for gift cards displayed in takeout displays such as grocery stores and retail branches. They use a handheld scanner, which you can buy online for just a few hundred dollars, to read the code from the magnetic stripe or scratch. from the back of the card. This, combined with the card number on the front, gives each and every item looking to borrow the price of the card. Then they put the card back into the holder. Later, an unsuspecting customer purchases the useless gift card. Even if a card is rarely heavily preloaded, a thief can borrow the card number and security code and then call the card’s 800 number every few days to check the balance. Once a customer has purchased the card and loaded it with a dollar amount, the thief can spend it before the customer.
Buy cards that sit behind a visitor service desk, says Tom Browning, vice president of corporate compliance and chief security officer at AlliedBarton Security Services. Inspect the card; If the magnetic or peel-off stripe on the back is not intact, the card may have been tampered with. When you buy a pre-loaded card, ask the cashier to scan it to make sure the full price is on it. If you purchase from a third-party gift card site, please refer to the refund policy and keep the receipts. If something goes wrong, it can help you or the gift recipient get a refund.
Counterfeiting might seem like old news, but it is still so prevalent; in fact, more powerful than ever. Last year, U. S. Customs and Border Protection made 14,841 seizures of counterfeit and pirated goods worth $261 billion, an all-time high. Among the counterfeits seized were the same usual suspects (shoes, clothing and accessories), as well as a huge amount of electronic devices. “A counterfeit handbag probably wouldn’t pose a direct threat to consumers,” says Anthony Toderian, a spokesman for CSA International, which tests and certifies products, “but counterfeit electronics do. ” Counterfeit products may feature poor wiring, faulty fuses, flammable plastic casings, and destructive chemicals such as lead and mercury. All types of electronic devices have been illegally copied, in addition to computers, phones and portable gaming devices, he says. Although online grocery shopping, auction sites and discount retail stores are the most likely ways to appear, such imitations have found their way onto the shelves of major retailers. “Store shoppers can be fooled just as easily as consumers,” Toderian says.
Look for a label stating that the product has been graded through CSA International or Underwriters Laboratory. (Go to CSA-International. org and click “Certification Marks” to see what authentic labels look like. Under UL. com, go to the search box and type “How to spot counterfeits. “)Take a look at the product as well. Matrix Are there spelling errors in the package?If the box is clear, does it include all the parts listed, plus batteries, housings, and power cables?Are the manufacturer’s tactile details, including address and phone number, clearly displayed?When in doubt, shop at reputable stores that offer full refunds.
In recent tests, we discovered two wonderful downloadable systems that resist viruses, spyware, and other online threats for free. Try Avira on www. free-av. com or Microsoft Security Essentials on www. microsoft. com/security_essentials.
There are several useful resources to help you stay online. Add them to your favorites!
The Federal Trade Commission has many fact sheets telling you what to do if you have been scammed. Under the Consumer Protection tab, click “Consumer Information” and then “Purchases of Products and Services. ” Don’t miss useful information on what to do if you’re charged for products you never get and “How to fix a mistake. “
This site is sponsored by the United States Bar Association and is full of tips on secure payment methods, how to protect your privacy while shopping, and other must-have topics.
This site provides food purchasing recommendations and is sponsored by government agencies. Quizzes test your knowledge about spyware, online auctions, identity theft and more.
The Anti-Phishing Working Group, an industry-sponsored association, has a tip sheet on how to get scammed. Click on “Consumer Tips” and then “How to Avoid Phishing Scams. “
Before doing business with someone, check the Better Business Bureau in www. bbb. org/us. Grades from A to F are based on how long the dealer has been in business and how well they are in resolving complaints. Other sites worth visiting are SiteJabber. com, Complaints. com and RipoffReport. com, to find out the opinions of their users. Also Google the site or store and the word “complaints. “
Anti-theft consultant Bob Arno has traveled the world secretly filming pickpockets. So he knows his tricks and how to counter them. Here are his tips:
Thieves are just as likely to borrow your purse as they are to reach into it to grab a wallet. So keep your bag close to your body and in front of you at all times. And when you’re sitting in the mall food court, don’t throw your purse on the chair. Even if you think you’re maintaining physical contact with your purse, leaning forward for a moment is the only chance a thief wants to catch. on the ground, even if it’s in front of you.
They are back in fashion, but any bag that is not visible is a juicy target for experienced pickpockets, no matter how strong its closure is. And bags with open compartments. Zippered bags are the best.
A classic purse thief ploy is to create a distraction: by pointing at anything, talking loudly, holding a card open and asking for directions, or spilling anything on your coat and then offering to leave it blank. place or in a busy shopping center. Whenever they approach you, make sure to hold your bag tightly and keep it in front of you.
Do you really want to take all your credit cards and ID cards with you?Leave everything you shouldn’t have at home yet. And never bring anything that has your Social Security number on it (photocopy all the cards in your wallet, just in case).
Park in well-lit areas. If it’s still sunny and you plan to go shopping for a while, park under street lights or in a well-lit garage. Always close the windows and lock the car. If you return to your car to store packages, put them in the trunk—visual boxes and bags are magnets for thieves. Don’t carry so many packages that your bag hangs from your arm, out of sight. Enjoy curbside pickup or ask the store to hold your bags for you. If someone tries to grab your bag, don’t resist. “Life is not worth wasting,” Arno said. Also, if you have a GPS device in your car, program it so that your “home” setting is not your home address. Instead, use the school or church down the street, otherwise scammers will know how to get to your space while you’re away. GPS thefts are also on the rise, so don’t leave any line of sight to a GPS in your car by adding the mount.
This article appeared in Consumer Reports ShopSmart magazine.