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 During
the holidays, citizens of Nevada and others throughout the country face the
potential for various frauds and scams. Below are some of the top
scams to watch out for during the holiday season.
Be careful buying GIFT CARDS this holiday
season!
Gift cards are
often a great option for gift giving. They are convenient and allow
the recipient to choose exactly what they want from particular
store. However, they are not without risk, especially in a down
economy when many businesses – who might issue gift cards – are
going bankrupt.
What kind of
gift cards are there?
Retail Gift Cards are sold by
retailers and restaurants and can be used only with those merchants.
Retail gift cards may have expiration dates or a fee for inactivity
that sometimes is called a “dormancy fee.”
Bank Gift Cards carry
the logo a payment card network like VISA or MasterCard, and can be
used at any location accepting cards from that network. There are
more likely to be fees for activation, maintenance, or transactions
on bank gift cards than on retail gift cards.
What are the
risks with gift cards?
If
you buy gift cards from a display rack that has various store cards,
you may become a victim of theft.
Scammers may be jotting down the card numbers in the store, then
waiting a few days and call to see how much of a balance is on the
card. Once they find the card is “activated”, they go online and
start shopping. To protect yourself, buy your cards directly from a
customer service person, making sure they pull them from a secure
spot behind the counter.
In a
down economy, some businesses may go bankrupt, making your gift card
unusable.
So, if you already have
gift cards, use them as soon as possible. If you get any for holiday
presents, do the same thing. Why take a chance the store could
close? This also reduces the chance you’ll lose the card or forget
about it
What should I
look for when buying a gift card?
To be sure that you and the recipient
get the most of out of your card or certificate, be aware of the
following.
In the 2005 legislature, there was a
new law passed that requires businesses to provide consumers with
additional information if the business places an expiration date on
gift certificates.
Always look for:
1. The
expiration date must be printed plainly and conspicuously on the
front or back of the gift card in at least 10-point font. It must be
readily visible before you purchase that gift card.
2. If
the expiration date is not printed on the card, a toll-free number
must be provided and accompanied by a statement advising you that
you may call the number and obtain the balance of the gift
certificate and the expiration date.
3. If
the business imposes a service fee on the card, that fee must also
be stated on the gift certificate in 10-point font and visible prior
to purchase.
The service fee information must
include:
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The amount
of the service fee. |
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The event(s)
that would cause the service fee to be imposed. |
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If the service fee
will be imposed on the basis of inactivity, the duration
of inactivity which must not be less than 3 continuous
years of nonuse, that will cause the service fees to be
imposed |
What do you do if you have a problem?
According to the FTC, if you have a
problem with a gift card, contact the company that issued the card.
If you can’t resolve the problem at that level, you may want to file
a complaint with the appropriate authorities:
For cards issued by retailers,
contact the Federal Trade Commission at
ftc.gov
or call toll-free: 1-877-FTC-HELP. Or you may file a complaint with
your state Attorney General (for a list of state offices, visit
www.naag.org.)
For cards issued by national banks,
contact the Comptroller of the Currency’s (OCC) Customer Assistance
Group by calling 800-613-6743 or sending an e-mail to:
customer.assistance@occ.treas.gov.
The OCC charters, regulates, and supervises national banks.
Sources:
http://www.msnbc.msn.com/id/27929359/page/2/ and
http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt010.shtm
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Avoiding eBay Scams during the Holidays!
Here are some
things to watch out for when shopping eBay for the holidays:
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Fakes - Entire factories exist to make very convincing copies.
Anything from iPods to Gucci bags. |
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Feedback - there are many ways to get false feedback. Sellers help
sellers, false identities, etc. |
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Shill Bidding - people bidding for their own goods, under
different names, to drive the price up. |
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Item not as described - Descriptions that lack detail or talk up
shoddy broken products. |
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Rip-off postage costs - The price is cheap but the postage is
ridiculously high.
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To avoid being scammed:
As always, if it sounds too goods to be true, it is!
xx
Dealing with High-Pressure Sales Tactics during the Holidays!
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Salespeople are often
taught not to take “no” for an answer. |
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During these challenging economic times, when salespeople – like
the rest of us – are struggling to bring home a paycheck or keep
their jobs, they may be even more inclined than usual to ramp up the
pressure when trying to sell you something. |
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Know your rights! You don’t have to give in to high-pressure
tactics. |
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Some hints that you’re being pressured:
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A foot in the door |
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An arrogant tone |
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Increased voice volume |
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A hint of anger |
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Or total disregard to your comment “I’m sorry, I’m not interested”
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If you’re on the phone, hang up.
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If they’re at the door, close the door.
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If you’re at a store, walk away.
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Remember that you are in control of your buying decisions. Feel
free to walk away if you’re not being treated well. |
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Never allow a salesperson to make you feel intimidated in any way.
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If you feel you were unduly pressured to make a purchase, contact
Consumer Affairs at http://fyiconsumer.org
xx |
Name-a-Star
Scams!
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It’s a lovely,
romantic gesture, perfect for the holidays: naming a star after a
loved one. |
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While there are several companies that will claim to name a star
for you, be aware that none of them have the legal right to do so.
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The only group that can legally name stars (and the only star
names that show up in catalogs) is the International Astronomical
Union (http://www.iau.org/), and they don't name stars after people.
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If you want to do it anyway, just because… remember that the
visible stars were sold a long time ago. Star Naming Companies are
now offering stars you can’t see without a professional-grade
telescope, meaning you won’t be able to point it out to your loved
one and say “that’s your star”. |
xx
Protecting Yourself from Fake Charities and Fraudulent Charitable
Solicitations!
With the holidays fast approaching, many people are considering
donating to charities. To avoid being scammed, before you ever hand
over cash or pull out the checkbook, it’s important to check
potential charities out as thoroughly as possible.
Here are two websites that can help you do that:
Also, check the charity out by searching the Better Business
Bureau’s charity database. Visit
http://us.bbb.org and click on “BBB for Charities and Donors”.
Tips to Avoid Being Scammed by Charitable Solicitations
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Do not give cash. Legitimate charities will take a check. |
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Do not succumb to pressure. No legitimate organization
will insist that you contribute immediately. |
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Do not give to unregistered charities. Check with your
State Department of Justice/Attorney General's Office Charities
Division to see if your state requires registration. If it does,
check the charity out. |
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Be careful of pledges you don't remember making. If you
have doubts, check your records. |
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Be careful not to give personal information such as your
social security number or mother's maiden name to anyone
soliciting over the phone. |
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Recognize false claims of tax-deductibility. Ask for
written proof of tax-exempt status. |
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Never give out your checking account number or credit card
number to anyone you don't know soliciting for a charity over
the phone. Ask for an address and offer to send a check. |
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If the solicitation is for a law enforcement charity, ask
your local or state police if they've ever heard of the group.
If they haven't, chances are it's not real. |
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Ask how much of your donation is going to the charity.
Even if professional fundraisers are truly soliciting for a
charity, they may be keeping most of the donations as fees. It's
often better to give directly to support charities and public
services in your area. |
xx
How to Use Your Debit Card Safely
during the Holiday Season!
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The best way to protect your debit card
during the holidays is not to use it! |
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Unfortunately, these cards typically put
consumers at much greater risk than credit cards because they
offer fewer consumer protections in the event of a loss. |
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IMPORTANT! The VISA or MasterCard
logo on your debit card only allows you access to those
merchants which accept those payment methods. The logos do not
give you the same protection as the credit cards do. |
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And because these cards access funds
directly from your bank account, your money will remain missing
while you and your bank sort out any theft, which could mean
bounced checks, late fees, and numerous other problems. |
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Even worse, some crooks have learned to
use “skimming” devices to steal card information off merchant
card-swipe machines. Debit or check cards pose a substantially
greater risk to consumers in the event that a card swiping
device is “skimmed.” |
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If you enjoy the convenience of paying for
your everyday purchases with plastic, consider opening a no
annual fee credit card account with a small line of credit for
those purchases. |
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Be sure to promptly pay off your bill in
full each month to avoid any fees and finance charges. Don’t use
credit cards on which you carry a balance for this purpose
because that would increase your finance charges.
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How can you protect yourself?
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Immediately deduct your debit card
transaction and fees from the balance in your checkbook.
Also, keep your debit-card receipts so you can compare them to
your bank statement. |
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Safeguard your account number and PIN.
See tips on how to do this at the end of this guide. |
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Check your monthly statement and
balance to spot any unauthorized transfers. |
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Read the account balance printed on
your ATM receipts. A suspicious drop in your balance could
be a tip-off that a thief has tapped into your account.
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IMPORTANT!
"Dirty
Dozen" Tax Scams for 2008
The IRS
recently issued its 2008 list of the 12 most egregious
tax schemes and scams. These
scams include:
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1.
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Phishing |
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2.
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Scams related to the Economic Stimulus Payment |
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3.
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Frivolous Arguments |
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4.
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Fuel Tax Credit Scams |
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5.
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Hiding Income Offshore |
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6. |
Abusive Retirement Plans |
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7. |
Zero Wages |
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8. |
False Claims for Refund and Requests for Abatement |
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9. |
Return Preparer Fraud |
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10. |
Disguised Corporate Ownership |
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11. |
Misuse of Trusts |
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12. |
Abuse of Charitable Organizations and Deductions |
Click here for full
information
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♦
Don't carry your Social Security number or
card.
♦
Never give a business or service provider
your number without first determining
whether it's absolutely necessary.
♦
Ask your employer what's being done to
protect your number and other personal data
from theft.
♦
Be careful when choosing a tax preparer.
Remember that he or she will have access to
your Social Security number and other
personal financial information.
♦
Make sure your preparer has installed
updated versions of anti-spyware and
anti-virus software on computers used for
tax work.
♦
When filing federal tax returns online, make
sure to use services directly linked to
www.irs.gov.
♦
For state tax filings, make certain to use
only links directly from your state's
official home page.
♦
Never respond to e-mail inquiries about your
taxes. The IRS does not use e-mail to
communicate about tax matters. The inquiries
may be a "phishing" scheme aimed at stealing
your identity.
♦
If you get a written IRS notice that makes
you think someone may have used your Social
Security number fraudulently, call the IRS
quickly by responding to the name and number
on the notice.
Sources: IRS, Webroot Software
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