The Survive and Thrive Boomer Guide

BBB: Use caution before signing up for a technology buy-back program

By Rita R. Robison, Consumer Specialist

Today’s technology is constantly being replaced by updated models with newer, more exciting features. To keep up with the latest technology, more and more retailers are offering consumers buy-back programs.

The Better Business Bureau advises consumers to weigh the pros and cons of these programs before spending their money.

Typical programs require a one-time fee that is paid at the time of the original gadget purchase. As long as your gadget is in good condition, many buy-back programs allow you to trade-up items such as your cell phone, laptop, tablet, and television for a percentage of its current value. Usually, this credit will come in the form of a gift card that can be used toward the purchase of a newer model.

"If you are an individual that likes to stay on top of the latest and greatest technology, then a buy-back program may be for you," Stephen A. Cox, president and CEO of the Council of Better Business Bureaus, said in a statement. "But, as with anything else, you will need to do your research to find out if the program is worth the cost."

The BBB recommends that consumers consider the advantages and disadvantages before taking part in a retailer’s buy-back program:

Buy-back programs can provide a sense of insurance on your product. Buy-back programs guarantee a resale value, meaning they act as insurance against loss of value. But like any insurance policy, its true value can become hard to define. Before becoming a member of a buy-back program, make sure to read the fine print. Many buy-back options have conditions that could keep you from being able to sell back your used gadget.

Remember that the deal usually favors the retailer. In exchange for your old gadget, your return often will be given as a gift card. The plan and gift card mean you’re required to use the retailer for your next technology purchase. In addition, you may end up paying triple the sales tax when the exchanges are done. While sales tax rules vary from state to state and buy-back programs vary from program to program, you’re the one responsible for paying the tax. By paying the tax once when you buy the gadget and again when you return it, and then again when you use the gift card, you could end up paying triple sales tax.

Gadget-buy backs may be a problem the forgetful or the disorganized. If you haven’t saved your original receipts, power cords, and manuals, you could be at a loss or your payout could be less than expected. Most buy-back programs insist that the original items be brought back to the store at the time of the exchange.

Mobile phone contracts aren’t covered. When you purchase a new phone and add the retailer’s buy-back program, you can resell your phone back to the retailer for the agreed on dollar amount. However, your cell phone provider will keep billing you for the length of your contract.

You can compromise your identity. Many electronic items such as your smartphone or laptop can hold large amounts of personal information. If this information gets into the wrong hands, your identity could be stolen. Be sure to fully wipe out all personal data.

You could get more for your electronic gadgets elsewhere. Reselling electronics isn’t new. Many consumers use sites like eBay and Craigslist to sell their gadgets. In most cases, you could get more for your electronics by using these sites than opting for a retailer’s buy-back program.

Copyright 2011, Rita R. Robison, Consumer Specialist

Complaints to Better Business Bureau up 10% in 2010

By Rita R. Robison, Consumer Specialist

Consumers filed 1.1 million complaints against North American businesses in 2010, reflecting a 10 percent increase over the previous year, according to an annual report released today by Better Business Bureau.

See my WalletPop article, “Cable and Satellite TV, Cell Phones Top List of BBB Complaints,” for more information.

Copyright 2011, Rita R. Robison, Consumer Specialist

Has your child’s identity been stolen?

An 8 year old is in foreclosure on a home in another state. A three-year-old is being sent to collection for a huge utility bill.

Identity theft among children is on the rise, according to a report by Carnegie Mellon CyLab.

Based on scans of over 42,000 U.S child IDs by Debix, an identity protection company, the report offers these key findings:

• 4,311 or 10.2 percent of the children in the report had someone else using their Social Security number.

• Child IDs were used to purchase homes and automobiles, open credit card accounts, secure employment, and obtain driver’s licenses.

• The largest fraud – $725,000 – was committed against a 16-year-old girl.

• The youngest victim was 5 months old; 303 victims were under the age 5.

“From my perspective, having tracked the evolution of cyber crime over two decades, it is only common sense to surmise that the problem goes beyond those breached accounts included in this report, and that there are many thousands more children and their families at risk,” Richard Powers, author of the report and director of strategic communications for CyLab, said.

Powers is author of the book “Secrets Stolen, Fortunes Lost: Preventing Economic Espionage and Intellectual Property Theft in the 21st Century.”
 
For more information, see Child Identity Theft: New Evidence Indicates Identity Thieves are Targeting Children for Unused Social Security Numbers.

Copyright 2011, Rita R. Robison, Consumer Specialist

Watch out for these top 10 scams of 2010 this year

 

ConsumerAffairs.com, one of my favorite websites, offers this list of the worst scams of 2010:

1. Foreclosure rescue scams

2. Uncharitable charities

3. Phony debt collector

4. Work-at-home scams

5. Facebook scams

6. Gold scams

7. Debt settlement scams

8. Ponzi schemes

9. Unauthorized charge scams

10. Timeshare sales scams

See ConsumerAffairs.com's "Top 10 Scams of 2010" for details on each of these frauds.

Dishonorable mention

ConsumerAffairs.com’s article also said many other scams were operating during the year that cost consumers problems. Making its dishonorable mention list this year are the many scams related to the BP oil spill, this year's one-time $250 payment to Medicare Part D participants, and the growing number of cyber scams. In that last category, "tabnabbing" could be one to keep an eye on in the New Year.

So be aware of the scams on this list and watch out for them, and other frauds old and new, during 2011.

            Copyright 2011, Rita R. Robison, Consumer Specialist 

Top 12 holiday season scams

If you want to have a merry, merry holiday season, be sure to be on the lookout for scam artists.

Just because it’s the time of year for good cheer doesn’t mean that fraudsters are going to take a vacation from ripping off consumers.

Here are the 12 scams of Christmas as offered by the software security company McAfee.

1. “Help! I’ve been robbed” phony distress messages from “family members” or “friends.”

2. Fake gift cards promoted on social media.

Holiday job offers for “high-paying,” work-at-home schemes that ask for your personal information, including your Social Security number.

3. “Smishing,” SMS texts that appear to come from your bank or online retailer saying something is wrong with an account.

4. Suspicious holiday rentals that ask for down payments on properties by credit card or wire transfer.

5. Recession scams such as pay-in-advance offers where consumers pay a processing fee for a supposedly low-interest loan or credit card.

6. Fake greeting cards that load computer viruses onto your computer.

7. Low price traps such as auction sites and fake websites that offer too-good-to-be-true deals to get your money and personal information.

8. Fraudulent charities that ask you to donate.

9. Dangerous holiday downloads – such as screensavers, jingles, and animations – that spread viruses.

10. Free hotel and airport Wi-Fi, which thieves use to hack into networks.

11. E-mail banking scams in which scam artists trick consumers into giving their bank details by sending official-looking e-mails.

12. Password stealing scams where hackers get control of your computer and hijack files.

So happy holidays, and beware of the bad guys and gals interested in separating you from your money.

Copyright 2010, Rita R. Robison, Consumer Specialist

Latest phone scam targets your bank account

Denial-of-service attacks – when computer hackers take down websites by flooding them with large amounts of traffic – are being transferred to telephones.

You get hundreds or thousands of calls on your home, business, or cell phone, tying up the lines. When you answer, you hear anything from dead air to recorded messages, advertisements, or even phone sex menus.

It could be a sign that you’re being victimized by a ”telephone denial-of-service attack“ that’s targeting your bank accounts, reports the FBI.

While the lines are tied up, the criminals – masquerading as the victims themselves – are raiding the victims’ bank accounts and online trading or other money management accounts.

Here’s how it works:

• Weeks or months before the phone calls start, a criminal uses social engineering tactics or malware to elicit personal information from a victim that his or her bank or financial institution would have – such as account numbers and passwords. Or maybe the victim responded to a bogus e-mail phishing for information, inadvertently gave out sensitive information during a phone call, or put too much personal information on social networking sites that are trolled by criminals.

• The criminal ties up the victim’s various phone lines, using technology such as automatic dialing systems.

• The criminal either contacts the financial institution pretending to be the victim or pilfers the victim’s online bank accounts using fraudulent transactions. Usually, the institution calls to verify the transactions, but they can’t get through to the victim over the phone because the line is jammed.

• The criminals sometimes re-contact the financial institution as the victim if the transactions aren’t made, and ask for it to be done. Or they add their own phone number to victims’ accounts and just wait for the bank to call.

It’s too late by the time the victim or the financial institution realize what happened.

A Florida dentist lost $400,000 from his retirement account after a denial-of-service attack on his phones.

As of April, there has been a noticeable increase in these attacks, with numerous incidents reported in several Eastern states.

The FBI recommends consumers take these precautions:

• Never give out personal information to an unsolicited phone caller or via e-mail.

• Change online banking and automated telephone system passwords frequently.

• Check your account balances often.

• Protect your computers with the latest virus protection and security software.

If you think you may have been targeted by a telephone denial-of-service attack, contact your financial institution and your telephone provider, and file a complaint with the FBI’s Internet Crime Complaint Center.

Thanks to ConsumerAffairs.com for posting a link about these telephone attacks.

Copyright 2010, Rita R. Robison, Consumer Specialist

Top 10 tips for buying Mother’s Day gifts

 

Mother’s Day is a great time to recognize our moms, the women who have made a significant contribution to our lives.

Whether your family traditions for celebrating are elaborate or low-key, here are some tips for helping you have a great time on this special day.

1. Ask your mom for ideas on what she’d like for Mother’s Day. Flowers, chocolates, and jewelry are popular with many moms, if you find yourself running out of time.

2. Consider electronic items, if your mom’s techie. Your mom might like an iPad, Kindle 2, digital camera, or digital photo frame.

3. Find the right gift basket. Fruit, flowers, gardening items, gourmet food, coffee, tea, chocolates, cookies, wine and cheese, and pasta are among the many choices. You can also create a gift basket yourself to include many of your mom’s favorite items.

4. Avoid appliances such as toasters and vacuum cleaners. See "Gifts Mom Doesn’t Want on Mother’s Day" for other no-nos, such as cleaning supplies and body/bath gift sets.

5. Give a service, such as a spa gift certificate, massage, or a home cleaning service for a day.

6. Take your mom out to lunch or dinner at a nice restaurant, if you’re lucky and live close by.

7. Buy a gift card for your mom’s favorite store. Be sure to package it attractively and include a well-written card.

8. Check your mom’s bookshelves to see what kind of books she likes, if she enjoys reading. See AARP The Magazine and Publishers Weekly’s Books for Grown Ups for ideas, if your mom’s a baby boomer.

9. Think green when shopping for your mom’s present. Some ideas are locally grown flowers or jewelry made by a local craftsperson. See "Green Mother’s Day Gifts" for more ideas.

10. Avoid scam artists. Some set up shop to sell low-quality goods, then leave town. This happened to my daughter on Valentine’s Day. She bought roses, which deteriorated quickly. When she went back to complain, the sellers had vanished. Consumer Reports also advises moms to be wary of Mother’s Day e-mail message. Moms shouldn’t open any attachments or click on hyperlinks, especially if the message was sent by an unknown person. Scammers can disguise emails to make them appear as though they’re from legitimate e-card sites. It’s best to verify the sender.

I hope you and your mom have a happy Mother’s Day.

Copyright 2010, Rita R. Robison, Consumer Specialist

Top 10 tips to protect yourself as a consumer

It’s National Consumer Protection Week.

This year’s theme, Dollars & Sense: Rated “A” for All Ages, highlights the importance of using good consumer sense at every stage of life, from grade school to retirement.

For baby boomers consumers, age 45 to 64, here are the top 10 ways you can protect yourself as a consumer:

1. Watch out for scams. Hot topics now are scams involving bogus business opportunities, employment, money transfer, fake checks, phone offers, charities, mortgage foreclosures, and free computer security.

2. Use caution about investment decisions so you don’t become a victim of investment fraud.

3. Compare credit card issuers and consider signing up with a credit union for a credit card.

4. Do research on any prescription drugs you’re taking, and ask your health care provider detailed questions about any new drugs recommended.

5. Take steps to protect yourself from identity theft.

6. Review how you handle your money to make sure you’re progressing well toward your goals. Figure out what you need to do to get out of debt. Most importantly, determine if you’re saving enough money to have the retirement you want.

7. Use extreme caution when selecting a contractor or roofer to work on your home.

8. Know how to find information about consumer agencies that can help you and file complaints when you have problems.

9. Be informed and ask questions to help you get through a hospital stay safety.

10. Be an alert, informed consumer any time you have your car repaired or you buy a new or used car.

Happy National Consumer Protection Week. By using these tips, you’ll be able to avoid many common problems that plague consumers today.

Copyright 2010, Rita R. Robison, Consumer Specialist

How to have a fantastic, fun Valentine’s Day

Valentine’s Day will be here soon, a day for lovers, partners, and spouses to honor and acknowledge the one they love and their relationship.

Need some ideas on how to have a wonderful celebration? Here are tips to help you make this year’s Valentine’s Day the best ever.

Most consumers will be spending less this year on Valentine’s Day than they spent last year. See the article “Consumers Cutting Valentine’s Day Spending This Year” for ideas on how to buy affordable gifts for the big day.

If you’re still debating about what to buy for a gift, see the article “Top 10 Romantic Gifts for Valentine’s Day” for suggestions.

While you’re mulling over the possibilities for gifts, be aware that some gift choices aren’t popular with women and men. See the article “Top 10 Gifts to Avoid Giving the Woman or Man in Your Life” for some gift ideas that could draw a frown rather than a smile on Valentine’s Day.

Also be aware that scam artists may try to get your financial information by sending a fake e-mail or to “sell” you flowers but never deliver them. See “Watch Out for Valentine’s Day Scams” for more information.

Best wishes on Valentine’s Day. I hope your celebration will be terrific and you’ll be able to experience great joy.

Copyright 2010, Rita R. Robison, Consumer Specialist

Top 10 scams of 2009

Many of the top scams of 2009 sought to take advantage of people who were suffering under tough economic circumstances, such as the unemployed.

Here is Better Business Bureau’s list of last year’s top scams:

1. Acai supplements and other "free" trial offers – Ads offering trial offers for teeth whiteners, acai anti-aging pills, and other miracle supplements blanketed the Internet, including the Web sites of national news organizations.

2. Stimulus/government grant scams – Offers for worthless assistance and advice on how to get government grants bombarded consumers online, over the phone, and via mail and e-mail.

3. Robocalls – The robocalls often claimed that consumers’ auto warranty was about to expire, which wasn’t true, or offered help in reducing their credit card interest rate.

4. Lottery/sweepstakes scam – The victim receives a letter that pretends to be from Reader’s Digest, Publisher’s Clearing House, or a phony foreign lottery claiming that he or she has won millions. It comes with a check for only a portion of the winnings. To get the rest, the victim has to deposit the check and then wire hundreds of dollars back to the scammers supposedly to cover taxes or some other bogus fee. The victim wires the money, but the prize never arrives.

5. Job hunter scams – Scams targeting job hunters include attempts to gain access to personal information such as bank account or social security numbers and requirements to pay a fee to be considered for the job. In another scam, job hunters were told by a prospective employer that they had to check their credit report before being considered for a job. The job offer is actually a marketing ploy for online credit monitoring that costs the victim every month until they cancel.

6. Google work from home scam – Countless Web sites cropped up in 2009 that claimed you could learn how to make money from home using Google or Twitter and offered a free trial of learning materials. People thought they were getting a job with Google or Twitter when they were being lured into a misleading free-trial offer and were billed every month for materials and other mystery charges that added up to hundreds of dollars.

7. Mortgage foreclosure rescue/debt assistance – Hucksters offer to help homeowners struggling to save their house from foreclosure or to help them get out of credit card debt. Victims pay hundreds of dollars up front for assistance, but they never receive it.

8. Mystery shopping – Consumers think they can make extra money by becoming a secret shopper and evaluating the customer service of various stores. The victim is asked to evaluate his or her shopping experience at a few stores as well as a money wiring service such as Western Union or MoneyGram by wiring money back to the scammers. A real-looking check is supposed to cover the costs, but ends up being a fake. The victim is out hundreds or thousands of dollars.

9. Over-payment scams – These scams target small business owners, landlords, or individuals with rooms to rent and sellers on classified ad sites such as Craigslist. The scammer pretends to be a customer, possible renter, or interested buyer. The victim receives a check for more than the amount requested. The scammers then ask the victim to deposit the check and wire the extra amount elsewhere, such as to a shipping company. The check is fake, and the victim is really wiring money back to the scammers.

10. Phishing e-mails/H1N1 spam – Phishing e-mails appear to be from a business, government agency or official, or friend. The goal is to trick victims into giving financial information or to infect the victim’s computer with viruses and malware. Spam e-mail selling wares to prevent the spread of the H1N1 virus also were rampant in 2009.

Consumers or small business owners victimized by a scam can contact their local Better Business Bureau or file a complaint at www.bbb.org. Always research a business with the bureau before you sign any contracts or hand over any money.

Copyright 2010, Rita R. Robison, Consumer Specialist