A new year means a new scam, this time, targeting cell phone users. Like traditional “phishing,” “smishing” schemers often pose as banks or lottery sweepstakes asking customers to contact them immediately about a pressing issue that needs to be discussed.

Victims of the bank scam are often asked to call a toll-free number and provide information, such as their debit card or account number and password, to a fake automated system. Victims have complained they have received text messages claiming their bank account is frozen with a toll free number to call to clear things up.

“These hackers are looking for you to respond with vital information that can ultimately lead to identity theft,” said Kim States, BBB President. “In the cases of the lottery ‘smishing’ scam, hackers want you to wire over money before receiving your ‘prize,’ one of the biggest red flags of a ‘smishing’ scam.”

Text messages such as “Win cash now!” and “Short on cash? Reply here!” are all red flags that a lottery sweepstakes “smishing” scam is in the midst. Many of these messages come with embedded links that can ultimately spread viruses to the phone if clicked.

The Better Business Bureau advises consumers to do the following if they suspect they have fallen victim to a “smishing” scam.

Never reply to the text message. Schemers are preying on victims that text back and ultimately verify that the text has been sent to an active cell phone. If the message has a link in it, never click it. (more…)

Better Business Bureau, as well as law enforcement officials across the country, are warning consumers that debit and credit card skimming is on the rise, and that consumers should be mindful anytime they use an ATM to get cash.

Card skimming is a crime that involves the, ‘skimming’ or stealing of information implanted in your card’s magnetic strip. This is accomplished when a criminal attaches a device at the mouth of a card-acceptance slot that records the data on your card as you slide it in. The criminal returns to the ATM or gas pump at a later time to collect the device containing all of the stolen account information.

According to a recent article in The Wall Street Journal, this scam is becoming even more sophisticated. The article quotes Brian Krebs, a computer security expert who says that criminals no longer have to return in person to collect the device and that the information can be sent to them wirelessly via text message.

“Paying for gas using a card and using ATMs are such common transactions. With this crime increasing and becoming more refined, consumers need to be very cautious when making these transactions and extremely vigilant of their accounts,” said Kim States, BBB President.

BBB offers the following tips when using ATMs or paying for gas by card:

· Use your credit card at the gas pump instead of your debit card. This way, if you become victimized you haven’t lost the money directly. You can contact your credit card company and they will get the fraudulent charges removed. If money is stolen directly from your bank account, this could have much worse consequences for you and getting the money replaced could take quite some time.

• Avoid using ATMs that are not located at a bank. These ATMs are often less secure so thieves have more opportunity to tamper with them.
• Look closely at the machine you are putting your card into. If it appears compromised in any way, (i.e. plastic sticking out, anything out of the ordinary (more…)

The housing market in the United States may not be thriving, but business is booming for foreclosure rescue and loan modification scammers.

The US Government Accountability Office (GAO) released a report in July 2010 entitled “Home Ownership Preservation”.  It says that: “The current foreclosure crisis has provided persons who may perpetrate mortgage foreclosure rescue and loan modification schemes with unprecedented opportunities to profit from homeowners desperate to save their homes. In March 2010, we reported that national default and foreclosure rates rose sharply from 2005 through 2009, to the highest level in 29 years. The most recent data from the Mortgage Bankers Association, which are for the first quarter of 2010, show that the number of home loans with payments more than 60 days past due, and therefore potentially facing foreclosure, is 2.7 million.”

The GAO report says there are two main types of foreclosure rescue and loan modification scams: advance-fee loan modification schemes and sales-leaseback schemes, with advance-fee schemes being the most common.  In an advance-fee scheme, someone charges you a fee in advance to negotiate a deal with your mortgage lender.  They may even offer a money-back guarantee.  But the usual outcome is that they take your money (the average is about $3,000), provide little or no service, and then refuse to refund the fee.  In a sales-leaseback scheme, the scammer persuades you to transfer your deed to them by offering to assume your payments and let you pay rent while you get your affairs in order.  They promise to sell the (more…)