The Survive and Thrive Boomer Guide

Watch out as Valentine’s Day approaches for online romance scammers

Valentine’s Day is a day for romance, but it can also be a time for scammers to take advantage of those looking for love online

The Better Business Bureau is urging consumers be careful before letting their hearts – and their money – get stolen.

Don’t be a catfish.

In a documentary “Catfish” and a MTV reality show with the same name, a catfish is someone who pretends to be someone they’re not by using Facebook or other social media to create false identities, especially to pursue deceptive online romances.

The BBB and Western Union offer consumers tips on how to avoid relationship scams.

Be on your guard

Only send money to people you have met in person. Be cautious with people you meet online, even if you correspond with them via e-mail or phone. Be wary of anyone who asks you to leave the dating website immediately to continue your conversation through e-mail or instant messaging, as this allows fraudsters to carry out their scam without the dating site having a record of your encounter.

Be cautious if someone claims to be local but is currently out of the country

Fraudsters could be operating from overseas, making it more difficult for authorities to track them down. Never give your banking information to people that you have not met in person or businesses that you don’t know.

Always verify every emergency situation before sending money

Fraudsters can trick their victims in a variety of ways. Sometimes they instantly express feelings of love and other times they lead their victims on for a while. No matter how much your relationship might seem like the real thing, you should be suspicious if someone starts asking for information such as credit card, bank, or government ID numbers or requesting you to send money.

For more information on scams, check out the BBB Scam Stopper at www.bbb.org/scam.

Copyright 2013, Rita R. Robison, Consumer Specialist

Watch out for common holiday travel scams

People love traveling during the holidays.

It’s likely AAA's 2011 estimate, about 91 million people traveling at least 50 miles during the holidays, will be topped this year.

The Better Business Bureau serving Alaska, Oregon and Western Washington is reminding consumers who are traveling to watch out for common scams:

• ATM skimming: When paying at the pump for gasoline, keep an eye out for unusual-looking card readers, false keypads, and suspicious cameras.

• E-mail chain letters: Inboxes are flooded with free or cheap offers for five-star accommodations, airline tickets, or cruise passes, but clicking links may install malware or viruses. Avoid unsolicited too-good-to-be-true offers.

• Front desk calls: Hotel guests receive calls from “the front desk” asking them to verify payment information, but the callers are actually scammers.

• Sketchy cab drivers: Be wary if drivers claim that certain hotels or motels are closed and “suggest” other locations. There may be incentives for drivers to create business for less-than-ethical companies. Check bbb.org to find reliable taxi services.

• Social engineering: Swindlers use social media to obtain personal information about travel plans. Avoid posting specifics that entice thieves to loot temporarily vacant homes. Also, be wary of sudden calls or e-mails regarding flights or vacation packages. Never provide personal information or credit card numbers to unsolicited inquirers.

Best wishes for your holiday travels.

Copyright 2012, Rita R. Robison, Consumer Specialist

Retailer pays $9.5 million to settle charges it fraudulently charged soldiers in New York and nationwide for electronics

SmartBuy, a retailer and financing firm based in North Carolina, has signed a $9.5 million agreement with the New York Attorney General’s Office to settle charges the company fraudulently charged thousands of soldiers who purchased electronics near Fort Drum in New York and ruined their credit.

The settlement will clear debt fraudulently charged to hundreds of New York soldiers at a shopping mall near Fort Drum and thousands of soldiers nationwide. This is the second settlement the attorney general has reached with SmartBuy and its affiliated companies.

"SmartBuy took advantage of service members using deceptive practices, roping them into high interest contracts, and ruining their credit,” Attorney General Eric T. Schneiderman said in a statement.

The investigation

The settlement is the result of the agency’s investigation of a kiosk and small storefront at the Salmon Run Mall that appeared to be marketing specifically to Fort Drum soldiers. Sales clerks aggressively pushed the sales of electronic equipment, including laptops, gaming systems, and flat screen televisions to soldiers, Schneiderman said.

At the time of the sales, SmartBuy sales representatives refused to take cash payments for merchandise and instead pressured soldiers to enter into payment contracts with hidden fees and exorbitant interest rates, he said.

The state’s investigation revealed that the practices at SmartBuy's Salmon Run Mall location were part of a larger scheme to defraud service members by deceptively reselling them computers and electronics at wildly inflated prices. The soldiers were then locked into revolving credit agreements with undisclosed fees and high interest rates paid directly from military paychecks to unlicensed lenders.

SmartBuy purchased merchandise from stores such as Sam's Club, Costco, and Walmart. The items were then marked up by 200 to 325 percent, and included an added interest of 10 to 25 percent. The interest rates averaged out at 244 percent.

SmartBuy closed its local operations after the agency demanded that it stop its deceptive business practices and reimburse defrauded soldiers. A lawsuit was filed in 2010 and litigation continues against Rome Finance LLC and two individuals, Ron Wilson, of California, and William Collins, of Georgia.

The settlement

The settling parties include Frisco Marketing of N.Y. LLC, doing business as SmartBuy and SmartBuy Computers and Electronics; Integrity Financial of North Carolina Inc.; Britlee Inc.; and GJS Management Inc.; all owned and/or operated by Fayetteville, N.C.-based family John Paul Jordan, Stuart Jordan, and Rebecca Wirt.

According to the terms of today’s settlement, the settling companies will release about 358 New York state soldiers and an additional 3,963 soldiers nationwide from their debt. The defendants will also clear all negative credit reports related to the contracts and will pay a $150,000 penalty to the state.

The settling companies are banned from doing business in New York.

Copyright 2012, Rita R. Robison, Consumer Specialist

Watch out for charity and auto scams after Hurricane Sandy

Earlier this week, I wrote about scams related to auto and property damage that can occur from hurricanes, floods, and fires.

Consumers also need to be aware of scammers when they donate to charities and buy cars.

New Jersey officials Gov. Chris Christie, Attorney General Jeffrey Chiesa, and Eric T. Kanefsky, acting director of the Division of Consumer Affairs, also warn consumers about charity scams that have been known to prey upon the generosity of those wishing to help during times of disaster. 

Many charities are legitimate, but it pays to investigate before you donate:

• Before donating to a charity, find out whether the charity is registered to solicit funds. Check with the agency in your state that registers charities, often the Secretary of State’s Office. Also check the Better Business Bureau’s website for a Charity Report on the organization you’re considering.

• Find out how, exactly the charity plans to use your money. Learn how much the charity spent during recent fiscal years on program costs, management costs, and fundraising. Learn about the charity's stated mission.

• Be wary if the charity doesn’t readily provide all of this information to you.

In addition, Oklahoma Attorney General Scott Pruitt warns consumers to be aware of water-damaged cars from the East Coast that soon could be sold at car lots in their areas.

Among the many photos from this week’s devastating storm are images of cars floating in water. Once owners settle claims with their insurance companies, these cars could be repaired and resold to unsuspecting buyers in other states.

“By law, if a car has been damaged it should be clearly noted on its title,” Pruitt said. “However, unscrupulous sellers sometimes buy damaged cars cheap, make a few cosmetic changes, and resell them at a high price.”  

Here are tips to help protect consumers when buying used vehicles:

• Always purchase from a reputable dealer.

• Have a reliable mechanic inspect the vehicle before buying.

• Ask questions about the vehicle’s history.

• Thoroughly inspect the car inside and out for signs of rust, mildew, mold, water stains, and dents.

• Do a search on the car’s title.

• Remember the consumer tip that if it seems too good to be true, it probably is.

Pruitt said that buying a flood-damaged car is risky and can pose numerous safety and health hazards that might not appear until the seller is long gone.  

Copyright 2012, Rita R. Robison, Consumer Specialist

Watch out for scammers who prey on consumers after natural disasters

Natural disasters such as hurricanes, floods, and fires often bring out scam artists who take advantage of the victims. Some of the most common "after-disaster" scams involve auto, home and yard repairs, or clean up.

The Better Business Bureau offers the following tips to consumers who suffer auto and property damage due to Hurricane Sandy:

 Check with your insurance company about policy coverage and specific filing requirements. Save all receipts – including those for food, temporary lodging, or other expenses – that may be covered under your policy.

Stay calm. Don't be pressured into making an immediate decision with a long-term impact. Be pro-active in selecting a company and not reactive to sales solicitations. Make temporary repairs if necessary.

Shop around. For major repairs, take time to get at least three to four estimates based on the same specifications and materials. Check references, verify licensing and registration, and read the BBB Business Reviews at www.bbb.org.

If it sounds too good to be true, it probably is. Be wary of door-to-door workers who claim to have leftover materials from a nearby job or who don’t have a permanent place of business. If sales people go door-to-door, check to see if your community requires them to have solicitation permits. Be leery if a worker shows up on your doorstep to announce that your home is unsafe. If you are concerned about possible structural damage in your home, have an engineer, architect, or building official inspect it.

Get everything in writing. Require a written contract with anyone you hire. It should specify the work to be done, materials to be used, and price breakdown for both labor and materials. Any promises made verbally should be written into the contract, including warranties on materials or labor. Be sure their name, address, license number, and phone number are included in the contract, along with a start and end date for the work. Once you have found a contractor, request proof of a current insurance certificate covering workman’s compensation, property damage, and personal liability.

Never pay in full in advance, and don’t pay cash. While many companies may ask for a deposit, the BBB suggests that no more than one-third of the job be paid upfront. Be sure the contract specifies the schedule for releasing payments to the contractor. Before making the final payment, ask the contractor to show proof that all subcontractors have been paid. If they haven’t been paid, you could be liable).

Disaster victims should never feel forced to make a hasty decision or to choose an unknown contractor. Take your time and check out any company thoroughly that you’re considering doing business with.

Copyright 2012, Rita R. Robison, Consumer Specialist

Books, food, jobs, finances, mortgages, Islam, and brain changes are the topics for this week’s Blogging Boomer Carnival

Laura Lee Carter of the Midlife Crisis Queen is the host of this week’s Blogging Boomer Carnival #283. Although she doesn't like the leaves falling and the snow starting, she's celebrating up a storm because her blog turns five this week.

The carnival is a collection of like-minded blogs cooperating to share their best stories of interest to the Baby Boomer Generation.

This week, boomer bloggers are writing about books, Duck Confit Shepherd’s Pie, jobs, financial planning, mortgage fraud, the Islamic religion, and computers changing the brain.

Boomers, born between 1946 and 1964, are leading corporations, serving as governmental officials, heading up non-profits, worrying about retirement, and experiencing layoffs at a higher rate than younger workers. They’re also reinventing themselves in trying economic times, with some looking for their dream jobs to keep them happy in retirement.

At each stage in their lives, boomers have changed things. They’re continuing to make America different as they begin entering into their retirement years.

In addition to The Survive and Thrive Boomer Guide, members of the Blogging Boomer Carnival are: The Accidental Locavore, The Midlife Crisis Queen, Sightings From 60, Arabian Tales and Other Amazing Adventures, So Baby Boomer, Vaboomer, and Books Is Wonderful.

Copyright 2012, Rita R. Robison, Consumer Specialist

Bank of America sued by feds for mortgage fraud

It’s good news that federal prosecutors today filed a $1 billion-plus lawsuit against the Bank of America Corp.

The lawsuit charges that the bank engaged in a scheme to defraud Fannie Mae and Freddie Mac, government controlled companies that resell mortgages.

The lawsuit alleges that from at least 2007 through 2009, Countrywide Financial and Countrywide Home Loans, and later Bank of America after acquiring Countrywide in 2008, carried out a new loan process called the High Speed Swim Lane or “Hustle.”

The Hustle was intentionally designed to process loans at high speed and without quality checkpoints, the lawsuit said. The purpose was to generate thousands of fraudulent and defective residential mortgage loans sold to Fannie Mae and Freddie Mac that later defaulted, causing more than $1 billion dollars in losses and thousands of foreclosures.

This is the first civil fraud suit brought by the Department of Justice on mortgage loans sold to Fannie Mae and Freddie Mac.

“For the sixth time in less than 18 months, this office has been compelled to sue a major U.S. bank for reckless mortgage practices in the lead-up to the financial crisis,” Manhattan U.S. Attorney Preet Bharara said in a statement.

Steve A. Linick, inspector general of the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, said Countrywide and Bank of America allegedly engaged in fraudulent behavior that contributed to the financial crisis, which ultimately fell on the shoulders of taxpayers.

Bharara said the lawsuit is aimed at recouping some of the money taxpayers paid to bail out the financially troubled Fannie Mae and Freddie Mac.

I applaud this action. For years, I’ve wanted to see those who caused the financial crisis brought to justice for their reprehensible conduct.

Copyright 2012, Rita R. Robison, Consumer Specialist

Agency takes action against wide spread tech support scams

It’s a common scam. Telemarketers say they’re major computer companies, con consumers into believing that their computers are riddled with viruses, and then charge hundreds of dollars to remotely access and “fix” the consumers’ computers.

At the request of the Federal Trade Commission, a U.S. District Court Judge has ordered a halt to six alleged tech support scams until further hearings are held. The court also has frozen the companies’ assets. 

The FTC charged that the companies – based mostly in India – target English-speaking consumers in the United States, Canada, Australia, Ireland, New Zealand, and the United Kingdom. 

Five of the six companies used telemarketing boiler rooms to call consumers, according to the FTC. The sixth enticed consumers by placing ads with Google, which appeared when consumers searched for their computer company’s tech support telephone number.    

After getting the consumers on the phone, the telemarketers allegedly claimed they were affiliated with legitimate companies, including Dell, Microsoft, McAfee, and Norton. And, they told consumers they’d detected malware that posed an imminent threat to the consumers’ computers. 

The scammers offered to get rid of malware for fees ranging from $49 to $450.  When consumers agreed to pay the fee for fixing the “problems,” the telemarketers directed them to a website to enter a code or download a software program that allowed the scammers remote access to the consumers’ computers. 

When the telemarketers took control of the consumers’ computers, they “removed” the non-existent malware and downloaded otherwise free programs.

In addition to individuals, the FTC lawsuits name the following companies: Pecon Software Ltd., Finmaestros LLC,  Zeal IT Solutions Pvt. Ltd., Virtual PC Solutions, Lakshmi Infosoul Services Pvt. Ltd., and PCCare247 Inc.

This week’s Blogging Boomer Carnival offers tips on grandparenting, job hunting, free speech, travel, scams, and food

By Rita R. Robison

Anne Maxfield of The Accidental Locavore is the host for this week’s Blogging Boomer Carnival #276.

The carnival is a collection of like-minded blogs cooperating to share their best stories of interest to the Baby Boomer Generation.

Topics on boomers’ minds this week are:

• How making ricotta ice cream is easier than making plain vanilla.

• How grandparents can build closer bonds across the generations.

• How to outsource your job search.

• What is free speech and what is hate speech.

• Travels in India.

• The latest high-tech scams.

• How making a list of what you’d do if the world were ending in three weeks is like a going through a midlife crisis on a deadline.

Boomers are leading corporations, serving as governmental officials, heading up non-profits, worrying about retirement, and experiencing layoffs at a higher rate than younger workers. They’re also reinventing themselves in trying economic times, with some looking for their dream jobs to keep them happy in retirement.

At each stage in their lives, boomers have changed things. They’re continuing to make America different as they begin entering into their retirement years.

In addition to The Survive and Thrive Boomer Guide, members of the Blogging Boomer Carnival are: The Accidental Locavore, The Midlife Crisis Queen, Sightings From 60, Arabian Tales and Other Amazing Adventures, So Baby Boomer, and Silver & Grace.

Copyright 2012, Rita R. Robison, Consumer Specialist

Don’t get trapped by the latest high-tech scams

By Rita R. Robison

High-tech scams are on the rise.

Con artists are using new channels and technology that didn’t exist 15 years ago including social media, pop-up ads on your computer, and text-message “smishing” scams, according to a Consumer Reports’ investigation.

Here are some of the latest high-tech scams the consumer organization found:

• We’ll remove the virus we found for $100.

• You could win an iPad. Start bidding.

• Buy a gourmet dog-food coupon worth $61 – for just $16.

•  OMG. Now you really can see who views your Facebook profile.

See the article “CR Provides Tips on How to Avoid Getting Burned By the Latest High-Tech Scams” for information on how to protect yourself from these scams.

For details on other scams, go to www.ConsumerReports.org or get the October issue of Consumer Reports on newsstands or in bookstores or libraries.

 <div style="width: 100%; margin: auto; text-align: center;">Copyright 2012, Rita R. Robison, Consumer Specialist</div>