A new scam using the BBB name popped up this morning, and has been received by consumers and businesses across the U.S. and Canada, including many BBB offices.

How the Scam Works:

Two versions of the email have been received. One claims to be following up on a complaint filed with BBB, the other is asking for updated contact information “as a service to BBB Accredited Businesses.”

Both are good fakes – they use correct grammar and follow formats often used by BBB, so they look quite realistic. Both refer the recipient to an online form, and the address appears to be that of a local BBB. However, if you hover your mouse over the web address (the part that begins with http), you can see that the real address is not BBB at all. DO NOT CLICK ON THE LINK! The link actually takes you to a rogue website that downloads a Trojan virus on your computer.

BBB is working with a professional deactivation service to take down the websites that are spreading the malware, and we have reported the incident to the FBI and other law enforcement agencies. Consumers are urged to delete suspicious emails and keep their anti-virus software up-to-date at all times.

Example of the Phishing Email:

Thank you for supporting your Better Business Bureau (BBB).

As a service to BBB Accredited Businesses, we try to ensure that the information we provide to potential customers is as accurate as possible. In order for us to provide the correct information to the public, we ask that you review the information that we have on file for your company.

We encourage you to use our ONLINE FORM to provide us with this updated information. The URL below will take you directly to this form on our website:

http://app.alaskaoregonwesternwashington.bbb.org/sbq [LINK REMOVED]
(UserID: 882600422 Password: mcvn34JDF3r54f)

You may also complete the form on the reverse side of this letter and mail to PO Box 1000; DuPont, WA; 98327; or fax to (206)436-5496.

Please look carefully at your telephone and fax numbers on this sheet, and let us know any and all numbers used for your business (including 800, 900, rollover, and remote call forwarding). Our automated system is driven by telephone/fax numbers, so having accurate information is critical for consumers to find information about your business easily.

Thank you again for your support, and we look forward to receiving this updated information.

Sincerely,

Accreditation Services

With the worldwide attention the recent Colorado tragedy has received, Better Business Bureau of Southern Arizona is warning those who want to help to be on guard and avoid charity scams.

Events like the one in Aurora can prompt charity fraudsters to exploit the emotional aspects of the tragedies to their advantage. Be especially cautious of any plea that is long on emotion and short on necessary details– such as where your donation goes, and how it will be used.

Individual fundraisers have already been started in the name of victims and survivors. These are managed most likely by family members of victims and survivors, employers, and other affected parties.

However, similar fundraisers may also crop up that appear to be legitimate but may not be. They may be set up by someone completely unrelated to those affected or someone posing as a friend, family member or otherwise related individual. Here’s how to try to steer clear of such scams:

• Verify a fundraiser’s legitimacy before donating
• Do not donate money on the spot to someone who comes to your door or solicits in a public place. Check them out first, no matter who they say they are.
• Know that fundraisers for individuals are not subject to many of the IRS requirements, laws, rules, or standards that traditional charitable organizations are. This also means that donations are generally not tax deductible. It may also be a real tax headache for recipients to receive direct donations as opposed to receiving donations through tax-exempt charitable organizations.

Other Tips:

• Beware of charities that use names or similar sounding names of well-known and trusted organizations. This may be a deliberate attempt to confuse their scam with a legitimate organization or fundraiser. Always verify they are who they say they are.

• Do not give donations over the phone. You cannot easily verify who is on the other end. Either donate to the organization in person or by mail- only sending to a verified and trusted address or on the charity’s secure and trusted website.

• Do not ever pay with cash (pay with check or credit card) and be wary of anyone that wants to send a courier or use an overnight delivery service to pick up your donation. Do not ever pay via wire transfer. Requests for wire transfers are always a huge red flag in any scam.

• Refuse high-pressure appeals. If the organization is legitimate, they’ll still need your donation tomorrow or whenever you are ready to give.

• Check out charities with the BBB. Charity reports can be found at www.bbb.org. Note that individual/memorial funds will not have a BBB report as they are not subject to our standards because they are not organizations that can be reviewed.

Be very careful online. And to ensure that your donation is getting into the right hands, stick with what you trust and what you’ve verified. The website, www.givingfirst.org is a helpful resource that lists several nonprofits that have are actively supporting causes related to the tragedy.

With the cost of college outpacing inflation and crimping family budgets, students and their families are eager to find scholarships and other awards to help pay for higher education.

Better Business Bureau of Southern Arizona advises students and their parents to be wary of websites, seminars or other schemes that promise to find scholarships, grants or financial aid packages for an upfront fee.

Some companies promise a money-back guarantee, but set so many conditions that it can be almost impossible to get a refund. Others tell students they’ve been selected as finalists for a grant or scholarship but must pay a fee to be eligible for the award.

In some cases, for a fee, a company will agree to handle the paperwork that makes a student eligible for financial aid. However, the standard application process for financial aid is most often the Free Application for Federal Student Aid (FASFA), which students and their parents can complete themselves at no cost by visiting www.fafsa.ed.gov.

College financial aid offices require the FAFSA to assess a student’s eligibility for need-based aid. Most universities are willing to advise prospective students on how to apply for aid. They will also answer questions about financial aid packages offered when a student is accepted for admission.

BBB offers these tips for students looking for financial aid:

• Don’t be pressured. Don’t be rushed into paying for help at a seminar. Be cautious if a representative urges you to “pay now” to avoid losing the opportunity.
• Ask questions. Ask about fees associated with the service or process and if the company provides refunds. If a company is reluctant to answer any questions you have about the service or the process, walk away.
• Turn to a school counselor. Guidance counselors and college financial aid offices are a great resource and can help students search for information on scholarships.
• Get details in writing. Everything that was discussed, promised or included in the package should be clearly written out and explained.
• Research the company. Check the company’s BBB Business Review at www.tucson.bbb.org.