Scams

Overpayment Scams

The Attorney General's Office has received numerous complaints from consumers across the state reporting multiple variations on an overpayment scam. In this scheme, a thief selects the victim after browsing through classified ads for a car or other large-ticket item offered for sale. The thief pretends to be an interested buyer from out of town and sends payment in the form of a cashier's check, money order or personal check. The payment typically arrives in an amount greater than the purchase price.

The Attorney General's Office offers the following tips to avoid falling prey to this scam:

• Know who you are dealing with. Independently confirm the buyer's name, address and telephone number. Keep in mind that most legitimate buyers would want to see a car before buying it.

• Never accept payment for more than the purchase price of the item, no matter how tempting. Never wire money to the buyer or a third party at the buyer's request. If the buyer insists that you wire back funds, end the transaction immediately – legitimate buyers won't pressure you to send money.

• If possible, accept only cash. If you do accept a check for payment, do not turn over the car until you verify that the check has cleared the issuing bank.

• Request a check drawn on a local bank or a bank with a local branch, which allows you to make a personal visit to make sure the check is valid. If you cannot get a check from a local bank, call the bank where the check originated and ask if it is valid. Get the bank's phone number from directory assistance or an internet site you know and trust, not from the person who gave you the check.

• Resist any pressure to "act now" If the buyer's offer is good now, it should still be good after the check clears the issuing bank.

Any citizen who believes he or she has been a victim should call the Attorney General's Fraud Hotline toll free at 1-866-9-NO-SCAM (866-966-7226) or may file a complaint online at Citizen Services Contact Form | My Florida Legal.

Lottery Scams

Do not believe you have won a prize in a lottery in which you never participated.

Lottery scams are incredibly popular. These frauds are likely to be advanced fee frauds which aim to defraud honest people of their hard-earned savings.

Typically, the potential victim, or 'target' receives a notification by unsolicited mail or e-mail that they have won a large prize in a lottery even though they never even signed up to play. Often, the target is the sole winner or one of a very small group of winners. The target is asked to maintain confidentiality either for security or tax reasons to avoid duplication of claims.

Targets are told that winners were selected by a computer ballot system or by random searches in open address books and e-mail address lists. It is usually claimed that the lottery operates under governmental or international control using names such as the 'Spanish National Lottery', 'Sweepstake Lottery Company' to create the impression of an apparently bona fide lottery institution.

Usually a named contact point (claim manager or paying officer) is assigned to assist the 'winner' to claim his/her prize. Telephone and fax numbers or Internet website addresses are provided but postal addresses are rarely given.

Winners will be told they have a short time period within which to claim their prize before the money is returned to the lottery association or a governmental institution. To claim the prize, the winner must provide detailed personal information on an application form provided by the claim manager. Copies of identification documents are requested to prove the winner's real identity.

The target can choose whether to receive the money by wire transfer, a new bank account which needs to be opened, or by meeting the claim manager or one of his assistants and picking up the money directly. The target is then asked to pay several advance fees which are required to transfer the money using Western Union or other similar companies. These fees might include licensing fees, registration fees, and various forms of taxes and attorney's fees. Advance fees may also be required to open new bank accounts into which the money is to be transferred. All may seem plausible to unsuspecting victims and are required to be paid in cash before the winnings can be released. The fraudsters take a 'scattergun' approach by contacting large numbers of people knowing full well that most people will see through the scam. However, a certain percentage will be naïve enough to be taken in.

Sometimes money will be handed over to the victims at a meeting, but in all known cases where this has happened, the notes were found to be counterfeit.

General Advice

Always be suspicious if you are asked to pay advance fees in order to get a prize! If it seems too good to be true - it probably is!

Be aware that your identity details can be used by the offenders to commit criminal offences in your name, to get access to your bank accounts, or to open up lines of credit in your name.

Recommendations:

• Do not reply to any of these messages

• Do not send any money

• Do not send or hand over identification documents - not even copies

• Never surrender details of your bank accounts or payment cards

If you are already in contact with these criminals or have already paid advance fees:

• Save all received and sent email and text messages

• Save all documents of transactions and remittances

• Never agree to meet the criminals in person in order to receive a prize - you will not receive any money and you may be putting yourself in danger

• Contact your local police immediately and follow their advice

Phishing Scam

Phishing is the term coined by Internet scammers who imitate legitimate companies in e-mails to entice people to share usernames, passwords, account information or credit-card numbers.

The term Phishing comes from the fact that Internet scammers are using increasingly sophisticated lures as they "fish" for users' private information. The most common ploy is to copy the look and feel of a web page from a major site and use that design to set up a nearly identical page that appears to be part of the company's site.

Don’t Take the Bait from a 'Phishing' Scam

According to the Federal Trade Commission (FTC), the emails pretend to be from businesses the potential victims already have a relationship with. These include, their Internet service provider (ISP), online payment service or bank. The “phisher” tells recipients that they need to "update" or "validate" their billing information to keep their accounts active and direct them to a "look-alike" Web site of the legitimate business, further tricking consumers into thinking they are responding to a bona fide request. Unknowingly, consumers submit their financial information - not to the businesses - but the scammers, who use it to order goods and services and obtain credit. Other related crimes include credit card fraud or theft and identity theft.

There are several steps you can take to make sure you never fall for one of these scams:

• If you get an email that warns you, with little or no notice, that an account of yours will be shut down unless you reconfirm your billing information, do not reply or click on the link in the email. Instead, contact the company cited in the email using a telephone number or Web site address you know to be genuine.

• Avoid emailing personal and financial information. Before submitting financial information through a Web site, look for the "lock" icon on the browser's status bar. It signals that your information is secure during transmission.

• Review credit card and bank account statements as soon as you receive them to determine whether there are any unauthorized charges. If your statement is late by more than a couple of days, call your credit card company or bank to confirm your billing address and account balances.

• Always ensure that you're using a secure server when submitting credit card information. To make sure you're using a secure server, check the beginning of the web address in your browsers address bar - it should be https:// rather than just http://.

• Contact your bank or credit card company if you think you may have replied to a fraudulent E-Mail with sensitive personal information.

• Report suspicious activity to the FTC. Send the actual spam to spam@uce.gov. If you believe you've been scammed, file your complaint at FTC.gov, and then visit the Attorney General’s identity Theft Web site at MyFloridaLegal.com/IdentityTheft for information on how to protect yourself from identity theft.

For additional information on SPAM Enforcement please visit our SPAM page.

Small Business Scams

Small businesses have increasingly become the target of scam artists who use their knowledge of small business practices to fraudulently induce these businesses to pay for services never performed or for products never delivered. These scam artists use a number of different techniques which include: sending phony invoices for items never ordered; using prizes as an inducement to sell overpriced office equipment and supplies; sending phony invoices or correspondence appearing to be from the Florida Division or Corporations or another government entity. Consider the following to avoid small business scams:

Verify invoices.

Employ procedures to verify any and all incoming invoices prior to payment. Compile a listing of all suppliers with whom you normally do business by name, address and phone number and make the list available to anyone responsible for the payment of your invoices.

Educate your employees.

Make your workers aware of the most common types of scams against small businesses. Obtain pamphlets and literature concerning small business fraud from your local police agency or consumer affairs bureau. Post this information at your business.

Don't buy over the phone.

Unless you have a previously established relationship with a supplier of business or office supplies, never make orders or purchases over the phone. Scammers sometimes obtain the names of business employees and assert that these persons have placed orders on behalf of the business. Instruct your employees to verify the order with the person who placed it.

Ask for verification of offers in writing.

If a caller makes an offer regarding the provision of goods or services that interests you, request that the offer be made in writing and forwarded to you for review. Be wary if the caller refuses to forward this information to you or to otherwise provide references.

Beware of prize or "free trial" offers.

Small business scam artists often offer prizes or “free” gifts as an inducement for the business to purchase their products. Be aware that these "prizes" are usually overpriced or are of inferior quality. In addition, by agreeing to a “free trial” offer you may be unwittingly enrolling in negative option plan, in which you will be charged monthly until the enrollment is canceled.

Beware of solicitations that appear to be bills or official mailings from federal, state, city or county governments.

Before sending payment or providing personal or confidential information, confirm with the government entity that the mailing is legitimate, and any document being purchased is required to conduct business. Pay special attention to fine print and look for disclaimers which may indicate that the mailing is a solicitation or that the document offered is unnecessary. Also, be wary of any company whose staff uses high-pressure sales tactics to convince you that your business is in need of a particular document in order to continue doing business.

Do not be influenced by a money-back guarantee.

While a money-back guarantee is nice to have, these guarantees are only as good as the companies offering them.

File a complaint.

If you suspect you or your business has fallen victim to a small business scam, file a complaint with the Attorney General’s Office online at MyFloridaLegal.com or by phone toll-free at 1-866-9-NO-SCAM. Additionally, you may wish to file a complaint against the company with the Federal Trade Commission at www.ftc.gov/complaint and with the Better Business Bureau at www.bbb.org.

You may also file a complaint with the Florida Department of Agriculture and Consumer Services, which acts as the State's consumer complaint clearinghouse, at FloridaConsumerHelp.com.

Yellow Page Scams

Small businesses all over the nation are receiving solicitations that appear to be invoices from the local Yellow Page Directory. The invoices are usually sent by out-of-state companies that publish a directory that contains a limited number of businesses and has limited availability to consumers. Many directories do not get published at all. Before you pay an invoice for a Yellow Page Directory advertisement, familiarize yourself with the following:

Why are the invoices confusing?

Most invoices contain the popular “walking fingers” logo and the name “Yellow Pages.” They will often include the consumer’s phone number, an account representative’s name and a request to fix any incorrect information. This is a deceptive technique used to trick the consumer into thinking there is an established relationship. “THIS IS NOT A BILL” may appear on the invoice but returning it may commit the consumer to a future bill. Read the invoice carefully, including the terms and conditions and fine print. Please note courts have ruled that any business can use the “walking fingers” logo and the “Yellow Pages” term.

Ask yourself, “Is this a solicitation or an invoice?”

If it is a solicitation, the consumer has no obligations. The United States Postal Department requires the following disclaimer to be on all solicitations, so consumers should look for it on the “invoice:”

THIS IS NOT A BILL. THIS IS A SOLICITATION. YOU ARE UNDER NO OBLIGATION TO PAY THE AMOUNT STATED ABOVE UNLESS YOU ACCEPT THIS OFFER.

To avoid scams, obtain the following information about the company before responding:

• Who will be receiving copies of the directory?

• Are the directories free? If not, how much do they cost?

• Where will the directory be distributed?

• Call the local Yellow Pages to learn if they are associated with the company sending the invoice.

Remember: Directories given exclusively to consumers who purchase advertisements, and statewide directories may be of little or no use.

Investigate the company.

Before making any commitments, investigate the firm. Research the company online and contact the Better Business Bureau at bbb.org to determine what others have said about the firm. Call the Attorney General’s Office in the state in which the firm is located to find out if there are any consumer complaints against the firm.

File a complaint.

You may file a complaint against a yellow pages directory firm with the Attorney General’s Office online at MyFloridaLegal.com or by phone toll-free at 1-866-9-NO-SCAM. Additionally, you may want to file a complaint against the firm with the Federal Trade Commission at FTC.gov/complaint as well as the Better Business Bureau at bbb.org.

You may also file a complaint with the Florida Department of Agriculture and Consumer Services, which acts as the State's consumer complaint clearinghouse, at FloridaConsumerHelp.com.

Sweepstake Scams

If you receive a letter or phone call telling you that you have won a substantial cash award or other fantastic prize, be extremely cautious. The likelihood is great that you have won nothing of any value and are merely the victim of a slick merchandising trick designed to induce you to purchase the company’s products.

Don’t Pay To Win

Legitimate sweepstakes do not require you to pay anything to receive the prize you have won. If you are told that you must pre-pay taxes, you are probably being scammed. Taxes can either be withheld from a cash award or, more commonly, are reported by the company to the IRS and you declare the prize as part of your annual tax return. You should never have to pre-pay them. Phrases like “shipping and handling charges” and “processing fees” that the company says must be paid prior to delivery of your prize are clear warning signs that the offer is not a legitimate one. Legitimate sweepstakes companies pay the cost of delivery for the prizes they award.

Question Prize Descriptions

That “brand new model car” you are told you have just won for a delivery charge of $29.95 is probably a scale model car that will fit nicely into the bottom of your children’s toy box. Be skeptical of descriptions such as “regulation pool table” and “precious gemstones”. Often these and similar terms are designed to deceive you as to the size, quality and value of the product you have supposedly won. Ask questions and demand detailed descriptions of the prize you are being offered.

Suspect Official Appearing Documents

Legitimate sweepstakes companies do not attempt to mislead you about who they are. If you receive a sweepstakes offering in the mail that gives the appearance of being from a government agency or government sponsored or approved, be suspicious immediately. Similarly, if the mailing or telephone solicitation suggests to you that you must respond immediately and cannot take time to consider or investigate the offering, you are probably being deceived.

Don’t Give Your Credit Card Numbers

Legitimate sweepstakes companies have no need for your credit card numbers. If a company says they need your credit card information “to secure your prize” or “for verification”, there is an excellent chance that this information is really being sought for another purpose that will cost you money.

Investigate The Company

Be sure that the company you are dealing with has a good track record in the business community. Verify their name and address. A company whose only address is a post office box or other mail drop should be dealt with cautiously. Do your homework by contacting the Better Business Bureau in your community and in the community where the business is located. Also, check with the Florida Department of Agriculture and Consumer Services, by calling them at 1 (800) HELP-FLA or by visiting their website at fdacs.gov/ConsumerServices or by contacting the Federal Trade Commission as well as your local county consumer service agencies. If you are dealing with a company whose offices are outside the State of Florida, you should also check with the Attorney General’s Office and state consumer agencies in that state. Finally, you should also check up on any company who makes a sweepstakes offer and with which you are considering doing business by contacting the National Fraud Information Center at (800) 876-7060.