AT&T, Sprint and Verizon are among the companies offering subsidized netbooks this holiday season for as low as $49. Sounds like a great deal, right? No way, says Clark!
The subsidized netbooks come with a contract for an overpriced two-year data plan. You'll pay massive overage fees if you exceed the data cap. So while you might save yourself $80 on the upfront costs of a netbook, you could wind up paying as much as $1,500 over two years.
This marketing push is very similar to what you'd see in the 1990s when AOL, Compuserve and others offered a free computer in return for signing a three-year contract for dial-up service.
Remember, you'll be better served by competitively shopping for a netbook this holiday season and going with an unlimited Internet service plan.
RIP-OFF ALERT: The FBI has issued a warning about e-mails purporting to be from the Department of Homeland Security and the FBI Counterterrorism Division.
The e-mails typically have subject lines like "New DHS Report," "New Patterns in Al Qaeda Financing" and "FBI Weapons of Mass Destruction Directorate." In addition, these bogus correspondences usually come with an executable file as an attachment that will prompt your computer to download malware.
As a general rule, you should never willingly open attachments from unknown senders. And be sure your computer is not set to automatically open attachments in e-mails.
Meanwhile, small business is the No. 1 target for people trying to attack computers. That's because small businesses typically have large cash flows and very little IT security.
Thankfully, there is an easy solution for small business owners. Simply buy a dedicated computer that's used only for financial transactions like payroll and online banking. No surfing the web on your dedicated computer. No e-mailing. No visiting Facebook, MySpace or Twitter.
This will reduce, but not eliminate, the risk of a security breach. High net worth individuals may also want to consider using a dedicated computer for all financial transactions.
Fortunately, computers have become so affordable that it's very possible to get a fully functional one for under $300. Owning more than one computer is no longer cost-prohibitive. Think of it like an ultra inexpensive insurance policy for small business owners and wealthy individuals.
RIP-OFF ALERT: A sophisticated identity theft ring responsible for $1.5 million in thefts has been cracked by federal prosecutors, according to The Los Angeles Times.
Some 53 alleged criminals posed as bank representatives via e-mail or over the phone to get otherwise savvy victims to divulge personal account information. The info was then used to empty out bank and brokerage accounts. A part of the $1.5 million stolen was routed overseas to Egypt, where another 47 un-indicted co-conspirators remain at large.
This is one of the unintended consequences of dealing with such large organizations today. We don't know who we're doing business with. So unless you're being contacted by an employee who you have longstanding personal experience with, don't divulge any sensitive information. Clark instead recommends calling your bank or brokerage house and asking them if they really requested any updated info on the account.
Keep in mind that banks are duty bound to restore your funds in the event of a breach. However, there is no similar law requiring the restoration of money for a brokerage or mutual fund account.
So if you have a meaningful amount of money in a brokerage house, check your account several times a week. Executive producer Christa and her husband avoided financial Armageddon this way when a hacker targeted their account.
RIP-OFF ALERT: The Federal Trade Commission has filed nearly 400 actions against scammers promising people easy access to their supposed share of the $787 billion stimulus law.
More than 270,000 businesses and individuals are believed to have already fallen prey to offers of "free government grant money" that can allegedly be used for bills, travel, education, health care and more.
Among the organizations targeted were Grant Connect, LLC; Grant Writers Institute and its telemarketers; and a robocall and website operation working under the name "Cash Grant Institute." Of course, the FTC's reproaches are really just a slap on the wrist. It's not as if they'll result in any jail time for the perpetrators.
Come on, people. Do you really think Uncle Sam has money burning a hole in his pocket for you?! Don't fall for it.
RIP-OFF ALERT: The Orlando Sun's Etan Horowitz has written about a new Facebook scam you need to know about.
Here's how this one unfolds. The criminals look for someone who is popular on Facebook and then hack in to take over their account. Then they send private messages to friends stating that they're stranded overseas after having been robbed and need money to fly home.
People with big hearts who don't know any better may actually wire money overseas to the scamsters in a misguided effort to help a friend who is supposedly in need.
If you encounter a similar scam, you can report it to Facebook using their 419 scam form.
But Clark has a cold recommendation to help you stay safe. If somebody on a social networking site contacts you with this kind of plea, do not even consider sending them money until you have a voice conversation with them to verify.
And even if it is legit, should you give them money? Well, that's a personal choice. Clark's only advice is whenever someone ask you for a "loan," you should treat it in your own mind as a gift. If you get paid back, be shocked!
RIP-OFF ALERT: As social networking gains in popularity, so too does the prevalence of scamsters pushing supposedly amazing work-at-home opportunities.
One company called Easy Tweet Profits claims you can make up to $873/day online. They even claim one person earned $400,000/year using their method of tweeting your way to success. The catch? By signing up for their program you agree to be charged just under $50/month!
There are a whole host of other companies with similar names (usually involving "make money" or "make profits") that suggest social networking can be a cash cow. But their game is all the same.
Whether you're talking about something you see on Craigslist, MySpace, eBay, Facebook, MySpace, Twitter or whatever's the next hot thing, you've got to be wary.
The FTC is cracking down on three prominent "get rich quick" schemes that robbed consumers of $300 million.
John Beck/Mentoring of America is the marketer behind "John Beck's Free & Clear Real Estate System," "John Alexander's Real Estate Riches in 14 Days" and "Jeff Paul's Shortcuts to Internet Millions." People who bought into any of these programs were unknowingly signed up for additional monthly charges of $40!
"To con artists, today's challenging economy presents just another opportunity to play on consumers' worry and bilk them out of money," David Vladeck, Director of the FTC's Bureau of Consumer Protection, said in a statement.
On our show, we've seen a steady rise of calls and e-mails about these "dare to be rich" programs that are often marketed through seminars and hotel-ballroom presentations.
As Clark said back in the 1990s, be very wary when someone tells you about a magic strategy to get rich in real estate.
The consumer champ knows a man who had a great career that many would consider a dream job. But he was a bit bored with it. This man responded to an infomercial, went to a hotel ballroom and got so fired up that he quit his job in mid-career and borrowed 100% of the cost to buy rental properties in three states. Not a smart move.
The whole philosophy with these kinds of schemes is to get rich using OPM (other people's money). It dovetailed perfectly with the loose lending standards of the '90s.
And it's very similar to what happened before the stock market collapse of 1929. Back then, you could borrow up to 90% of the cost of a share. More recently, the failed Lehman Brothers and other institutions were allowed to do 30:1 bets. They only had three cents in the game out of every speculative dollar. The results were disastrous in both instances.
Remember, you make money the old-fashioned way -- one step at a time. There's no overnight (or 14 day) way to do it.
RIP-OFF ALERT: Here's a case of the shoe now being on the other foot! Some unsavory consumers have come up with a new way to rip off businesses who sell their wares by phone, internet or mail order.
What being called "friendly" fraud by The Wall Street Journal has spiked by 50% in the last 6 months, according to some retailers.
Here's how it works: A consumer will order an item, receive it through the mail and then dispute the charge with their credit card company. They'll say they never received the merchandise, or it was misrepresented, or whatever other lie they can devise.
Businesses are fighting back any way they can. One retailer documents the entire packaging and shipping process with digital photos so they can dispute a charge-back if one arises.
Others have found that signature confirmation or other tracking methods are equally effective insurance policies.
The monetary toll of friendly fraud can be staggering. One photo equipment supplier averages $130,000/week in fraud orders. About a third of those are of the friendly fraud nature. The rest are people using phony credit cards to make off with expensive equipment.
There's actually nothing "friendly" about friendly fraud at all.
RIP-OFF ALERT: The unemployed are the newest "fat target" for identity thieves, according to The Chicago Tribune. Scamsters are running fake help wanted ads, phony job search services and bogus resume-posting websites.
In the past, Clark has talked about the efforts that Monster.com made to warn people about employment scams. It's important to note the scamsters are not affiliated with Monster.com in any way.
So what kind of info are people divulging that they shouldn't be? Social Security numbers, their mother's maiden name and their addresses for the last 5 years!
That's basically everything an identity thief needs to build a new profile as if they were you or take over your existing accounts.
According to The Chicago Tribune article, there's been a 400% rise in this type of fraud since the recession began.
In some of the more sophisticated frauds, someone may even mock interview you to convince you that you're a strong candidate for a job…and then turn around and ask for your sensitive info.
RIP-OFF ALERT: We've all been so browbeaten into watching for viruses on our computers that it was only a matter of time before crooks wised up and started creating viruses that actually mimic common anti-virus warnings.
That's the idea behind what's called "scareware," which are bogus virus warnings that actually load a virus on your computer when you click on them! You don't even have to download anything. You're caught from the minute you click on the impostor pop-up window that supposedly alerts you to an existing virus!
Executive producer Christa recently had her computer compromised by a pop-up that masqueraded as a virus warning from Norton Antivirus. It even displayed a virus count as many popular antivirus programs will do.
So if you see a pop-up window that seems to be from your antivirus program, don't click on it. Instead, go directly to the antivirus or spyware program on your desktop and run it from there so it can find any security threats.
Clark particularly likes SpyBot Search and Destroy for protecting his computer. It's a free download that asks for contributions, but they're not required.
Finally, Christa also recommends having multiple browsers like Firefox, Chrome and others. The idea is that you can still try navigating around the web even if scareware hits your usual browser.
RIP-OFF ALERT: We've all seen the ads running constantly on bad late-night TV that promise you can turn your unloved gold jewelry into cash.
The Los Angeles Times recently ran a piece on Cash4Gold.com -- one of the most popular of these outfits that make such promises. The newspaper found that the amount of money you get is pitiful compared to the jewelry's worth. In one instance, a man sent in $150 worth of gold and got a check back for 15 cents!
Cash4Gold.com isn't the only company running such an operation. Others include Dollars4Gold, GoldKit and GoldPaq, according to the newspaper.
In a separate investigation, Inside Edition had a jewelry expert grade the value of the raw material in 23 samples before sending them off. The assessment came in at nearly $1,000…and Cash4Gold sent a check for $209.81 -- roughly 20 cents on the dollar!
It's like the Midas touch in reverse.
Be particularly wary of turning to an "insta-answer" option like selling your old jewelry online when you're feeling desperate. Payday loans and early tax refund loans also fall into the "insta-answer" category.
The truth is that a piece of jewelry is never worth what you originally paid. Part of what you buy is a sentimental attachment. Remember that jewelry is not an investment…unless it's an investment in the heart.
RIP-OFF ALERT: Clark has a new warning about the online sale of cameras and other electronics. The attorney general of the state of Texas has brought charges against 2 online retailers accused of "unlawful bait-and-switch schemes."
Consumers who would make a purchase would receive refurbished, broken or used gear that was advertised as new! Worse still, once word got around about the sites to avoid, the people behind the sites would simply set up other websites with different names so they could continue ripping people off.
Clark has some advice for those who are going to buy on the Internet. First, stick only to sellers that have multiple positive ratings -- not just one or two glowing postings from family and friends. You can use Epinions.com to vet out potential vendors or Google their name plus the words "rip-off" or "scam" to see what kind of gripes are out there in cyberspace.
Many times Clark is willing to pay more to buy from a reputable seller.
Second, pay only with a credit card -- not a debit card or check. With a credit card, you have the right to dispute the charge if your merchandise never shows up or is not what was advertised.
Remember, a deal is not always a deal, particularly if you're dealing with hoodlums.
RIP-OFF ALERT: In most states, there are public records of who is falling behind on a mortgage. That's created an opportunity for swindlers who show up at your doorstep with a "personalized foreclosure rescue package" for you.
Likewise, we've all seen the "stop foreclosure now" signs on the side of the road. The punch-line in both cases is that you have to pay money upfront to stop the foreclosure. The average amount these swindlers steal from people is around $3,000, according to a recent New York Times report.
Meanwhile, there are some legitimate parallel tracks you can explore if you're facing foreclosure. These include seeking free counseling from a local affiliate of the National Foundation for Credit Counseling or going through the HOPE NOW Alliance. Be forewarned that Clark thinks the latter is a "political puff piece"; he'd prefer you go with the former option.
Lastly, you can try contacting your lender directly if you're in dire straits. It's surprising how many people won't talk to their lender when they get in trouble. Bad move.
RIP-OFF ALERT: Have you noticed that Clark is hitting numerous rip-off alert sounders these days? The last time we had so many back-to-back warnings was during the recession of the early '90s. Back then, the Internet was only used by researchers and some government types. But today it's a prime form of communication. Little wonder then that many scams have morphed and gone online.
Facebook, the hugely popular social network for people in their 20s and 30s, has proven to be a breeding ground for get-rich-quick schemes, according to The Washington Post. Clark wants to emphasize that this is through no fault of Facebook's; rather it's a testimony to the portal's immense popularity that criminals are coming to them to tap into their audience.
Know that any promises for magic amounts of money for little work are suspect. Remember that the next time you see an online come-on to make $30,000 per transaction doing some work-at-home business.
Small business owners need to be aware of a new round of scam letters, e-mails and faxes relating to website domain registrations.
Clark recently took a call from an entrepreneur who received a domain name expiration notice for a site she owned. The woman forwarded the letter to Clark and it looked completely legitimate with barcodes, a pricing list and more.
But the other side of the letter contained a page of mice type in light grey ink that you couldn't read to save your life. After using a magnifying glass, Team Clark was able to determine that it was a solicitation from a company who wanted to essentially hijack the woman's domain and move her registration.
These notices are similar to the phony Yellow Pages and Internet advertising scams, according to Clark. As a small business owner with a web address, be on your guard for these hijackers who want to rip you with exorbitant fees. Don't fall for their ploys.
Police officers do an important job in our society, putting themselves in harm's way for the public good. When a police officer pulls you over, it's a natural assumption that they're the real deal. Very rarely it will be an impostor -- and it always makes big news. In the Internet world, however, it's much harder to tell friend or foe.
The hottest way to steal your personal info right now is through pop-ups or other ads that claim to be for antivirus programs. A new report suggests that 30 million of us have been fooled in this way. That's 1 in every 7 adults! Panda Labs -- a company selling legitimate antivirus software -- reports there's now 7,000 phony solicitations from the bad guys out there in cyberspace.
Don't click on those pop-ups about antivirus software! Ignore those e-mails about free services!
A North Carolina State study found that a majority of us believe when a dialog box pops that the people initiating the Internet chat are legit. Don't fall for it. The Internet does not have brave men and women running around acting as police officers to protect you. You've got to be your own cop on the beat.
If you need antivirus software, see our suggestions for free or low-cost options. And heed this warning: Don't visit our messageboards looking for a link. Yes, we police our forums with the help of a team of moderators, but we can't ensure that every thing on the forums is completely legit.
In related news, be wary of e-mails promoting secret shopping and mystery shopping. It used to be that you'd get taken for $20 or $30, but now the scammers are angling for $2,000 or more. You should never pay to be a mystery shopper -- whether it's $20 or $2,000.
Finally, Christa read an article in the Pocono Record that reports the money transfer scam -- an oldie but baddie -- is back. Here's how it works: You're contacted to act an intermediary who transmits money for others. You're sent a check and told to keep 10% of it and wire the rest to a certain person or business. It turns out to be a stolen checking account number, perhaps from a real business. When the police come after you for cashing fraudulent or washed checks, that's when you get to wear some new jewelry -- handcuffs! Don't do it!
RIP-OFF ALERT: Scamsters have been getting very sophisticated in their phishing attempts following the numerous bank failures in our nation. Clark himself says he received a phishing attempt that looked very legitimate after the Wachovia collapse.
Here's one example of what's been going on: Within minutes of the original plan for Citibank to take over Wachovia, the scamsters were blasting out e-mails. Each message said that in order to access your Wachovia account, you'd have to fill out an online form that asked for all kinds of personal info. Unfortunately, many people fell for it because they were dumbfounded by the news of the day about Wachovia.
Meanwhile, The Los Angeles Times report that British researchers have found sophisticated phishing scams such as this one have a 90% success rate. That's really scary!
The takeaway here is that you should never reply to any supposedly legitimate e-mail from a financial institution asking for personal info. Nor should you ever click on a hyperlink in an e-mail that supposedly takes you to your bank or brokerage house's website. If you are in doubt, close out the e-mail in question; open a new browser window; and type the URL directly to verify the info contained in the e-mail.
Think you may have already given up sensitive info? Then immediately contact your financial institution and tell them you need to restrict access to your account.
RIP-OFF ALERT: There's a sophisticated ruse going on right now where criminals use the triple threat of e-mail, phone calls and text messages to trick you into yielding your account information.
This trio of messages will look and sound completely legitimate. They may prompt you to call a seemingly legit toll-free number and talk to an "investigator," or direct you to a website that looks real with logos from your bank, credit union or brokerage house.
The truly scary thing is that the criminals already have access to all your contact info. The Kansas City Star reports that the FBI and Secret Service are aware of this scam. So beware if you get hit with this trifecta of phishing (e-mail), vishing (voice mail) and smishing (text).
What should you do if you think you're on the receiving end? Don't divulge your PIN number or other sensitive information. Go to your real bank's website, look for the contact info and call them that way. Don't respond back to what you see in an e-mail, even if it looks legit.
Yes, Clark wants to make you paranoid.
Think you may have already fallen prey? Contact your bank and tell them to check into it before the suspected crime progresses any further.
RIP-OFF ALERT: The Federal Reserve sets the interest rates it controls at 2%. Prime rate for good borrowers is around 5%. Contrast that with the stories of desperate people who take out loans on the web with interest rates as high as 2,000%. Clark doesn't know anyone who gets up in the morning and actually wants to get ripped off with a loan at 2,000%!
The penny-pinching guru recalls the original Rocky movie, where the famed title character worked for the mob beating up people who couldn't pay their loans. But even the mob in that era didn't charge 2,000%. Yet today, with a click of the mouse, you can borrow yourself into oblivion.
According to a report in The Chicago Tribune, one surprising category of borrowers tends to fall prey to these outrageous online loans. That's people who earn about $35-65K/year. These folks will usually look for loans if they're short on money for the bills.
Clark believes online predatory lenders are sociopaths. They know the difference between right and wrong, yet they don't care about the harm they're causing to families. So put this in the back of your mind if you ever reach that point of desperation.
Business Week, meanwhile, reports that business owners are getting loans with interest rates of more than 50%. While that may not sound excessive by comparison, it's extremely high for business owners.
Retail and restaurants are often targeted for these kinds of loans. The modus operandi of the lenders is that they make an advance against future credit card receivables, which are then redirected to be deposited to them, not to the business owner. It's like mortgaging your future.
Remember Doug Flutie's famous 1984 Hail Mary pass? Well, these business loans are kind of like that. But even though that pass connected, it's not the kind of chance you want to take with the future of your business.
RIP-OFF ALERT: You've heard of phishing, right? That's where you get those scam e-mails purporting to be from your bank or other financial institution. Now there's a new phenomenon called "whaling." According to CNET.com, top corporate executives and business owners have been getting e-mails alerting them to a bogus U.S. District Court subpoena. When you click on the link in the e-mail, you're taken to what looks like a real subpoena. But it's not, and it loads a key-logger virus onto your computer. The key-logger captures all your account numbers and passwords, and it even alerts the criminals when you log on to your bank or brokerage account. The criminals then sign in, change your password and steal your money.
Phishing is targeted at the general public. But whaling only targets the big fish in corporate America or small business owners, hence the name. It's been estimated that 2,000 people have fallen prey so far to whaling. If you're among them, here's what you need to do: Run an anti-virus program on your computer to remove the key-logger. Clark has a couple of suggestions for spyware blockers that you might want to check out. Then change all your passwords at your bank or brokerage house.
RIP-OFF ALERT: File this one in the "News of the Weird" bin. An Internet-based virtual world called Second Life has spawned rip-off artists who scam users out of very real money. Second Life is a virtual community where you create a new you and live out a second identity in a digital world. Scammers got into Second Life and set up a virtual bank. But it's not real, right? Well, here's the rub: They got people to deposit real money with the promise of large returns. The Chicago Tribune reports the scammers made off with $75K.
This whole strange episode is an early warning signal that even in your play area on the 'Net there are people who aren't playing at all. Folks are more likely to let their guard down in Second Life. But this is no different than going on vacation and getting your wallet or camera stolen because you didn't safeguard it. Clark also says to be wary anytime you're promised huge returns; it could be a classic Ponzi scheme. Beware when words like "guaranteed" are thrown around. The only thing that's guaranteed is that your wallet will get burned. Meanwhile, the Better Business Bureau has put out an alert that's particularly timely: As people have financial hiccups because of the slowing economy, they're more likely to be susceptible to a variety of "Get Rich Quick" schemes. For example, Clark recently took 2 calls on currency exchange scams. Be sure to avoid this one.
Clark wants to warn you about a new e-mail scam making the rounds. Criminals have been gaining access to e-mail contact lists and sweeping out all the addresses. They then send out a very distressed note in your name to every contact on your list. The e-mail will claim that you're in financial, legal or medical trouble and that you desperately need money right away. The criminals hope that even one or two of your closest friends will respond with an offer of funds. Public e-mail services such as Yahoo! have been hit by this scam, according to The New York Times. Sometimes the criminals will even change your password while they're in your account. At that point, it can be very difficult to reclaim your e-mail address. So if you get a suspicious e-mail from a relative or friend, call them first and find out what's going on before you give them your money. On a related note, there's now a $5 security key that really helps secure your PayPal account. The key generates a random code every 30 seconds that you must use to access your account. Even if a thief has your e-mail address and password, they still won't be able to get in without the code. These kinds of security keys have become so inexpensive yet so invaluable. Clark hopes that brokerage houses and banks will soon be offering these devices to customers.
Have you heard of Hannah Montana? No doubt you can answer affirmatively if you're a parent with a young child or teen. Montana is a teen actress/musician with her own Disney show. She is also the daughter of country star Billy Ray Cyrus. In addition to her TV career, Montana performs her music live around the country. Her shows are a very hot ticket for those in the "tween" age group. There's been a big brouhaha over ticketing for Montana's recent concert dates. Unfortunately, scalpers were able to use software to fool Ticketmaster into selling them all available tickets online. Parents who wanted to take their children to see Montana perform had to go through scalpers to get tickets. Now a federal judge has issued an injunction making it illegal to use the software. This is just one indication of how the ticket market is in turmoil. Another example comes from the world of sports tickets sales. The New England Patriots recently filed suit against their season ticket holders who used StubHub to sell tickets for games they weren't able to attend. The Patriots instead wanted season ticket holders to use their team's monopoly website to resell tickets. The court ruled that StubHub had to disclose the names of all buyers and sellers, and the team is penalizing sellers by taking away their season passes! How unfair is that?
Sometimes people call in to the show and complain about having credit cards with interest rates of 28 or 30 percent. But that pales in comparison to something Clark recently heard about. The Kansas City Star reports that some online lenders make loans in the amount of $500-$2,500 dollars at 650 percent interest! These people are loan sharks and they're spreading like locusts because of the Internet -- even in states that don't permit lending of this type. But these lenders are still making illegal loans across state lines. The people who make these loans are complete and total scum, according to Clark. These lenders say they're taking on big risk by lending to people with bad credit or no credit. They're also arguing in various federal courts that they are not subject to the state laws where they're lending, but rather only in the states where they're set up. That's the same deal with the credit card companies. Many years ago the Supreme Court ruled it is legal for a bank to set up its credit card operation in a state where there are no rules. That's why so many credit cards are based in South Dakota or Delaware. So now these scum Internet lenders are invoking these rights too. Will it fly? This will ultimately be decided as it works its way through higher courts. All you need to know is that when you see an Internet loan offer, you must turn your back on it. Don't take hard times in your life and make them worse.
Earlier this week, Clark told you about a security breach at Monster.com where hackers stole the names, addresses, phone numbers and e-mail addresses of 1.3 million people. There have been so many breaches over the years that we're almost numb to news about them. But now there's reason to believe that the Monster breach could affect more than just a million people. Nobody knows the exact number -- it's just larger than previously thought. So if you've ever posted your information on Monster.com, you need to be aware that criminals are calling people up and pretending to be potential employers or banks to get additional personal information. Once they get your additional info, they have all they need to take your identity or empty your bank account. You should only divulge sensitive information in person at a potential place of employment or a bank. The web is too anonymous and dangerous of a place to share your info via e-mail.
Last spring just around tax time, Clark started hearing about a lot of people who received an e-mail scam that appeared to be from the IRS. Now the same scam has resurfaced. Here's how it works: You get an e-mail that appears to be from the IRS saying they owe you small refund usually around $139.50. The e-mail is branded with the IRS logo and looks legit. It originates from an address that ends in .us, which most people think is a sign of authenticity. A .us domain name, however, is the same as a .com. The real IRS website is a .gov, since it's a government organization. The bogus e-mail explains that the money will be deposited into your account -- provided that you send your account number and secret access code. If you comply, your account will be cleaned out by cyber criminals. Know that the IRS will never ask you for your banking info in an e-mail. Meanwhile, there's a similar scam circulating that appears to be coming from Coca-Cola. This one isn't legit either, so watch out!
Job seekers who entered their information in the Monster.com database may be at risk of identity theft following a massive security breach at the company. Identity thieves managed to steal the names, addresses, phone numbers and e-mail addresses of 1.3 million people. So beware if someone claiming to be an employer calls or e-mails asking to screen you as a potential employee. If they're an identity thief targeting you, they may ask you to divulge your social security number, mother's maiden name or place of birth. These are some of the remaining key pieces of info they'd need to steal your identity. If you think you've already been targeted or may be in the future, you're best option is to do a credit freeze. Consumersunion.org offers a comprehensive list of states that have credit freeze laws on the books. If you're already a victim, it's free to do a credit freeze. But you may have to pay some nuisance fees if you just want to do a freeze as a preventative measure. Right now 10 million people have their identity stolen each year. So why is there no national credit freeze law? The problem is that Congress is in cahoots with bank lobbyists who want to repel all freeze laws -- even those on the state level. We'll keep you posted...
If you have kids, you probably know that Facebook is big among teens. This social networking site is becoming one of the main ways that young people communicate with each other online. But the problem is that if you want to use Facebook, you have to list info about yourself on a public page. This makes you a target for identity theft. A recent study found that nearly 50 percent of Facebook users put enough info -- things like birth date, hometown, family information and more -- to aid ID thieves. Kids don't understand the risks inherent in using some of this new social networking technology. It should be up to parents to educate themselves so they can have an intelligent discussion with their kids about the issue. Clark advises parents to sign up for their own accounts and figure out how these things work so they can safeguard their kids.
Have you been receiving phony e-greeting cards in your inbox lately? If you open these, you might get spyware and others kinds of malware on your computer. Clark is really upset about this trend because e-greeting cards should be a pleasant thing. Unfortunately, something so innocent has been corrupted. The latest incarnation in this rip-off scheme works in the following way: Criminals send out bogus e-greeting cards and if you open it, you download a program that steals e-mail addresses from your contacts list. Once the criminals have those e-mail addresses, they send out another fake e-greeting that appears to be coming from you, staring the cycle all over again. The worst part is that when you opened the initial e-greeting, you probably also unknowingly downloaded a key logger program. This program tracks every key you type, including usernames and passwords for your bank, brokerage or mutual fund accounts. Under the law, you are protected if money is stolen from your bank account, but not from your brokerage or mutual fund account. Some brokers have issued their own policies that allow for customer protection. But the bottom line is that you must run anti-virus and anti-spyware software on your computer. Clark likes Spybot - Search and Destroy, a free program that will eliminate key loggers and other spyware on your system. Hopefully the legitimate e-greeting businesses will find a way to regulate their industry so people can again have faith in their products.
Through the years, some con artists have gotten rich by selling people swamp land in Florida. They were really selling people a dream, and they found a way to get them to suspend belief and buy the land without seeing it. The new equivalent of swampland in Florida is desert land in Utah. The New York Times reports that charges will be filed against cons who sold parcels in Utah over the phone and Internet to people in the United States, Europe and Australia. The land was supposedly adjacent to a very metropolitan city. But when people would go to Utah to see their new homestead, they'd find that the city didn't even exist! Worse still, the land they'd purchased could not be developed.
This new twist on the old rip-off scheme started when cons learned about a Utah land rush and bought up property that couldn't be developed. Then they subdivided the land and sold five-acre spreads to rip people off. Clark has two simple rules to follow when buying land. First, never buy property without first seeing it. Second, make sure the land has water rights or it's going to be useless to you. This second caveat is especially important if you're buying in one of the mountain states. The New York Times article was cute in a way, according to Clark. They sent a reporter to find one of these "conveniently located" parcels in Utah. The reporter got to the location -- some 150 miles away from Brigham City -- and found an area where the only inhabitants were a snake, a beetle and a lot of large ants! Let the buyer beware!
Did you know that if a criminal gets your credit card number, they can show their "generosity" by donating money to charity using your credit card? Why are criminals doing this? This is happening because the charities will let the criminal know if the card is verified and still active. More importantly, it's a great way for criminals to test if the card will be reported stolen, according to a story Clark read in Newsday. Criminals can then sell your verified card number for three times the value of an unverified card! If someone steals an unverified number, it's worth $6; if it is verified, it sells for $18. The Red Cross has reported 700 fraudulent donations using stolen cards last month alone! Therefore, if you see a small unauthorized charity donation on your bill, be alert. Clark says the solution to this problem is so easy. The credit card companies should do what is done in Europe by inserting a smart chip in the card which requires a secret code. So even if someone steals your card, if they don’t know your code the card can’t be used. The result in Europe is that credit card fraud is nowhere near the problem it is in the United States. So why are we still using '60s technology to print out credit cards here? It seems like the banks would rather deal with the fraud that occurs and then clean up the mess after the fact, rather than spend the money proactively to get things done right in the first place.
IRS representatives have put out an even more urgent warning about the fake e-mails supposedly coming from its agency. In February, there were 12 phony e-mails circulating. Now, there are 64 e-mails circulating. So, it’s clearly working on some people. The e-mails claim the IRS needs information from you. After getting your social security number, your name and maybe even your credit card number, the criminals take over your account. Sometimes they take over your identity, which is much worse. The IRS would never send out an e-mail asking you to send your personal and financial information in an e-mail message. So what can you do if you’ve responded? First contact your credit card company and file a police report regarding the possible identity theft. Also, add fraud alerts on your credit report and, if possible, freeze your credit file. That way the criminal will not be able to create accounts under your name.
Clark has heard quite a bit from listeners recently about “deferred rebates.” With these rebates, you supposedly buy items from retailers for a higher price than they’re worth and down the road you get a full refund. Typically, it’s online sellers who jack up prices and they go bust before people get their money. The worst example was a woman who had spent $27,000 on overpriced products only to learn the company went bust. Now, there is a new twist on it that ensnares business owners. According to the Boston Globe, these deferred rebate companies have been going to retailers in New England and asking for a portion of their sales in exchange for refunds down the road. One of the companies was “Cash Back America,” and it hooked retailers by claiming they could boost their profits. So, if you are a retailer and you sell a customer an item for $1,000. The retailer then pays Cash Back America $135 or 13 percent in exchange for the promise that the customer will get a full refund three years from now. But there are all kinds of rules and requirements that ultimately invalidate your rebate. One of them is keeping an electronic calendar telling you when you get your refund. How ridiculous is that? Well, people buy in because they want a deal. If it sounds too good to be true, it usually is.
Have you gotten an e-mail about a problem with mailing your tax return? If so, trash it and warn your friends. The e-mail supposedly comes from the IRS, but the IRS does not communicate with people via e-mail. It’s a scam. Someone is trying to rip you off. Also, the IRS wants to remind people who didn’t file a return in 2003 may be owed money. Those people can now can file a tax return for 2003 up until April 17 and get back the money they’ve been owed.
Clark wants you to be aware of a dangerous, new phishing scam out there that purports to be from the National Credit Union Administration. It targets people who are members of credit unions and it looks very official. Not only are the graphics very real looking, but the link in the e-mail looks real too. You never want to update your information or your accounts through an e-mail. Always go to the Web site itself or call the organization.
Clark has gotten a steady increase in calls from people who think they’ve won the lottery. This hoax is so bad right now that The Dallas Morning News has a story about the “Unlucky Seven” worst scams out there, and lotteries are – without a doubt – No. 1. Spain, Germany and Holland are just three of the countries that supposedly have lotteries. An 86-year-old woman featured in the story ended up giving more than $88,000 to these crooks. She was told upfront she needed to cover “administrative costs.” Then, each time, it was something more. She never recovered her money, and the crooks were never caught. When you get these e-mails, you want to believe they are real. They certainly look it. But if they ask for money – even a little – to get you your money, it’s a scam. Throw the paperwork in the trash. The second biggest scam is home repairs. These people get upfront money and then do shoddy work or no work at all in some cases. Work-at-home scams are in position No. 3, and phony charities are No. 4. These scams often affect seniors more than others, but everyone is at risk. Fraudulent “living trusts” come in at No. 5. You need a living trust in only a few circumstances, so most of the people are just trying to sell you insurance products. No. 6 is e-mail phishing scams. And, No. 7 is probably the ugliest of the “Unlucky Seven.” It’s when you’ve already been scammed and a service offers to help you recover your money. The very same people who took your money the first time are the ones behind this, and you give them more trying to get it back.
Have you heard of “spear phishing?” it’s the newest, dangerous form of e-mail phishing. It’s more insidious than regular phishing because the person sending it knows exactly who you do business with and what kind of accounts you have. So the e-mails they send are very convincing and people open them without hesitation. They could come from a credit union, stockbroker or friend’s e-mail address. And once you open it, the crooks have access to your account numbers and passwords. If you open one of these e-mails and realize it’s not a legitimate communication, you need to assume that someone has installed what’s called a “Trojan Horse” on your computer. Until you’ve loaded a spyware program like “Spybot – Search and Destroy” or Norton, do not go to any of your financial accounts and log in. The program records your keystrokes and then the crooks sell this information to the highest bidder. Banks have another year to let your information out without protection, so practice extra caution with e-mails from now on.
You’ve probably gotten at least one phishing e-mail since they became the hot target of crooks. They claim to be from your bank or some other institution and tell you that you need to verify your account information. About 2 million people have gotten taken by phishing scams, and one of the first ones involved a fake eBay e-mail. The eBay e-mail claimed to be about PayPal and asked members to update their information because it had been comprised. Tons of people took the bait. One English man, David Levi, had a gang that started this scam. He stole tons of identities and now is going to prison for four years. The rest of the members of the gang were sentenced to two years. Identity theft is a huge problem in the U.S., much worse than in England. So, it’s good to see people paying for their crimes.
How many times have you heard about or received an e-mail scam from someone in Nigeria? It’s known as one of the most pervasive e-mail crimes out there, yet people continue to get taken. The overall umbrella for these scams is known as a “419.” It’s basically a statute under the Nigerian legal code that means “fraud.” There are about a half a dozen scams coming out of this country, and they are all legitimate according to the country. An LA Times reporter went to Nigeria to find out more about these elusive yet prolific scams. He found Internet cafes set up for the purpose of scamming people, mostly Americans. They are actually called 419 cafes, and people who just want to surf the Internet are not allowed in. The people in the business see nothing wrong with what they are doing. In fact, they think it’s something certain types of Americans deserve if we’re willing to believe it. There is the “closest relative” scam, the “gorgeous person in trouble” scam, the “laundered money” scam, the “cheap oil” scam and of course the lottery scam. Nigerians in the business basically think Americans are greedy and willing to do anything for money. Don’t perpetuate that idea. If it sounds too good to be true, it probably is.
Have you heard of crime ware? It’s the term law enforcement has come up with for programs that spy on you and steal your passwords for all kinds of accounts. According to the LA Times, this kind of crime is exploding. It works like this: you open an e-mail or Web site and type in your login and password. These programs capture the key strokes and send them to the crooks. They’re also known as key logging programs. And people have been able to steal tens of thousands of dollars. It’s a new version of "phishing" because you don’t even know it’s happened. The folks at ING Direct have come up with a way to prevent this exact type of crime. Instead of having you punch or type in your code, the site displays a keypad on the screen that people touch with their fingers. Most of other banks aren’t concerned at all. But banks are responsible if a customer’s information if compromised. Bank of America is being sued for allowing criminals to hack into people’s computers and get these numbers. If you’re doing online banking and your bank is not installing better technology, it’s time to move on to a new company.
Clark talked about a scam a few months ago that involved a message on your answering machine, supposedly left for someone else. You were supposed to believe they just misdialed. The message was about a hot stock tip, and people thought they’d lucked into something huge. People would then find a stockbroker and buy stock on that company. But the company being touted had no idea. It was simply a “pump and dump” scam. Criminals create hype about a stock, people buy in, and the criminals dump the stock suddenly, making a killing. Now, it’s happening on cell phones. You receive a text message that looks like it was meant for someone else. It’s a stock tip and people run out and buy in. One company’s stock went up 200 points over night because people thought they were going to score big profits. What you need to know is you should never trade on “inside information.” It’s potentially illegal and almost always wrong. Secondly, never buy into a stock you know nothing about. Criminals are smart. They move from technology to technology and you are a target.
As you may know, there are fake universities operating around the U.S. that will issue you a phony degree if you send them enough money. A bachelor’s degree may cost you $200 or $300, while a doctoral degree costs up to $1,000. According to NBC, Pennsylvania’s Attorney General wanted to see how far he could take the hoax. So, he sent in his cat’s resume. That’s right, his cat Colby apparently earned a master’s degree in Business Administration from Trinity Southern University. The school is supposedly in the Dallas suburb of Plano. Along with the diploma, Colby got a transcript of all the classes he supposedly took to receive his 3.8 GPA. You might find this funny. But if you’re an employer, it can be very damaging. People are “buying” degrees – even doctoral degrees – and passing them off as real because employers don’t check as intently as they should. Reference checking is more important than ever because it’s so easy to buy your education without doing any work.
Clark has been getting an increasing number of calls about a job scam involving PayPal payments. When you’re looking for a job, you probably check out some of the online sites such as Monster.com. On that site, you will see postings for jobs involving making PayPal transactions. You do PayPal transactions for this company using your own PayPal account. You receive credit card payments from people, take 10 percent off the top for your services and then wire the money out of the country. But the scam is that the people you’re wiring the payments to and the people sending you the money are one in the same. They send you payments on stolen credit cards, pretending to be real customers who are buying products from a company overseas. You act as the intermediary. But when it becomes clear that the credit card was stolen, you are left holding the bag. There are several variations of this, but all of them are scams. Whenever someone comes to you asking for help transitioning money from one place to another, RUN! They are only trying to shift financial responsibility to you, and you will be held responsible.
