Fraudsters and scam artists are coming out of the woodwork as the holiday shopping season reaches its peak, and watchdogs are sending out one simple message for consumers.
Watch your back.
“Consumers who are online during the holidays need to be aware of scams related to theft,” said John Breyault, vice president of public policy, telecommunications and fraud for the National Consumers League.
Online sales on “Cyber Monday,” Nov. 30, were up 14 percent compared with a year ago, according to the market research firm Coremetrics — likely portending another spike in online shopping in the coming weeks.
And with more people shopping online, they need to be especially careful of Internet-related scams.
Breyault cautioned against several notable scams: e-cards from apparent acquaintances that say “Click here for a holiday message!”; fake online payment sites; and messages from social networking sites such as Facebook or Twitter.
“I think there’s always a challenge with technology in educating consumers,” he said. “Just because it’s new doesn’t mean it’s secure.”
And when no less than the wife of Doyle Niemann, an assistant state’s attorney for Prince George’s County, falls victim to a debit card skimming scam, it’s clear that no one is safe.
Karen Morrill, Niemann’s wife, used her debit card to buy a gift in Prince George’s County a few weeks ago. Later, she pulled up behind a white van at a gas station automated teller machine and noticed that it had swung back around behind her when she left.
On Monday, her bank called. “Did you buy $400 worth of tires in Baltimore?” they asked.
Merrill hadn’t.
“My card never left my van,” she said. “Now I’m scared to use my debit card.”
She was issued a new card and eventually got her money back. But some aren’t so lucky.
Raymond France, a veteran who served in Iraq and Afghanistan, told the Senate Commerce, Science and Transportation Committee about a fraudulent company, Value Max, making withdrawals from his account.
He’s not alone. Many others have also posted online complaints about the company.
“This company caused me both mental and financial hardship,” he said. “It took me close to a year to recover my money. Money that I did not give them permission to take.”
“It is still unclear to me at this point how they were able to access my account,” he continued. “This is nothing short of theft.”
Federal and local law enforcement officials are moving to target such scammers, as well as large-scale, organized retail crime — cracking down on criminals accused of stealing huge quantities of merchandise in stores and reselling it online. The National Retail Federation is pushing for federal legislation to assist the crackdown.
But watchdogs also are imploring shoppers themselves to take precautions.
“Simple steps, like looking for the ‘secure site’ padlock on your browser page when shopping, or making sure you’re buying from a reputable company, can prevent potential headaches down the road,” said Scott Silverman, executive director of Shop.org.
Classic pitch lines to beware
» “Enhance your manhood!”
» “Earn Big Money Stuffing Envelopes!”
» “The death tax will wipe out your estate when you die, leaving your children with nothing.”
» “Send in baby’s birth certificate and get a savings bond from Gerber.”
» “Burn Fat While You Sleep!!!”
» “See the steamiest pictures on the Web, absolutely free!”
» “You have a large cash settlement in Canada.”
» “Stop fat formation now!”
» “We’re checking your husband’s credit card.”
Source: consumeraffairs.com
As debit and credit cards are swiped to the bone, careful onlookers also have ample opportunities to gather private information.
And with people browsing and shopping online more frequently, scams are progressing beyond those of the Keystone Kops fraudsters who ripped off homeowners by posing as plumbers or carpenters.
“It’s getting more sophisticated for frauds and scams, besides the guy who [roams] through your neighborhood and says, ‘I’ll fix your house,’ ” said Bill Lowrance, a McLean-based attorney.
So the next you get a “Click here for $20” message embedded in a holiday greeting from a “friend” –don’t say you haven’t been warned.
Violeta Ikonomova contributed to this report.
