Microsoft Xbox Live members are the newest group being targeted by a sophisticated phishing attack. Better Business Bureau of Southern Arizona urges gamers to exercise caution when “leveling up” to new unsolicited emails.

Reports indicate that Xbox Live members are receiving emails directing them to fraudulent look-alike websites where they are instructed to enter their account information to allegedly collect “free” Microsoft points. However, once the personal information is entered, scammers have access to credit card details linked to members’ accounts. Perpetrators then proceed to draw small amounts from accounts over several weeks to remain undetected. Details reveal that thousands of gamers lost roughly $150 each before the scam was discovered.

BBB recommends the following tips for gaming safely:

Look out for “free.” Be wary of deals that seem too good to be true. Microsoft rarely gives away points for free.

Password strength is key. Utilize complex passwords that combine letters, numbers and symbols. Never use common passwords like “password;” and avoid simple number sequences like “1122.”

Login information is private. Legitimate companies—including Microsoft—will not make unsolicited requests for account information via email or phone; only log in using dependable browsers and gaming consoles.

Understand “trusted” sites. Only utilize official gaming websites for account management tools; make sure to navigate to legitimate company websites through reliable channels.

Study the bill. Examine monthly billing statements carefully and look for any inaccuracies or mysterious charges. Report strange fees to the bank or credit issuer and company responsible.

Microsoft insists that Xbox Live has not been hacked, but confirms that many of its members have been victims of this scam and advises customers to visit xbox.com/security to report compromised accounts. For other online consumer tips, visit www.tucson.bbb.org.

As scammers seek to exploit holiday generosity, Better Business Bureau of Southern Arizona urges consumers to protect well-intentioned donations.

According to the Nonprofit Research Collaborative’s November 2010 Fundraising Survey, the majority of all charitable contributions are made in the last quarter of the year—October to December. Not surprisingly, scammers ramp up efforts during this time in hopes of snagging funds for themselves.

“Charities rely on giving season donations for the following year,” said Kim States, BBB President. “When fraudulent charities or dishonest solicitors intercept donation dollars, it leaves legitimate organizations and those they serve in a difficult position.”

BBB Foundation’s Charity Review Program, which has comprehensive local Charity Reviews, has compiled top tips to protect consumers and their donations:

Verify Validity: Don’t let emotional appeals and high pressure tactics dictate donations. Visit tucson.bbb.org/charity to research local BBB Charity Reviews. Utilize online search engines and databases like GuideStar.org and CharityNavigator.org.

Spotlight Spending: According to BBB’s 20 Standards of Charity Accountability, publicly soliciting charities should spend at least 65 percent of total expenses on program activities. Be leery when solicitors declare that all proceeds go to the cause, but fail to substantiate claims. Seek out the Internal Revenue Service Form 990 from publicly soliciting charities; this form should be made available with appeals.

Protect Payments: Avoid giving cash and make checks payable to charities, not individual solicitors. Always request receipts or confirmation codes for donations.

Find more wise giving tips and BBB Charity Reviews at tucson.bbb.org/charity or give.org

Layaway has become increasingly popular with the challenging economic times. Many find it very helpful during the holidays to be able to space out payments. However, Better Business Bureau of Southern Arizona warns that putting an item on layaway may result in a loss of money or the item itself if you don’t read the contract carefully.

BBBs around the country have received complaints in the last year from consumers whose layaway purchase did not turn out the way they anticipated.

Consumers mainly place furniture, toys and jewelry on layaway and do so at a variety of stores, including national chains, local retailers and pawn shops.

“It’s important to know the policies up front. For instance, a lot of items might not be eligible for layaway on big sale days so call the store before you head down and stand in line on Black Friday, for instance,” said Kim States, BBB President. “Also, the worst thing that can happen with layaway is the company going out of business. So be sure to only sign up with a reliable retailer.”

BBB suggests that consumers consider the following when using layaway this holiday season:

How long can the item be on layaway?

It’s important to know that some items have a time limit and once that time is up, the item is returned (more…)