Better Business Bureau of Southern Arizona is warning of advanced fee loan company, Billerica Financial, allegedly located in Auburn Massachusetts. BBB was made aware of Billerica Financial after consumers contacted BBB to inquire about Billerica Financial’s business practices.

Billerica Financial, which markets itself nationwide, offers personal loans for an upfront fee of over $800, with no request for verification of ID, date of birth, social security number, or any type of collateral. BBB attempted to contact Billerica Financial by phone and by mail to inquire about the business. The company provided no response.

The business website states their address is 48 Sword Street in Auburn MA. This address is occupied by an unrelated legitimate business. Billerica Financial is not licensed by the Massachusetts Division of Banking, or by any other state, to disperse loans, as is required by law

BBB recommends that consumers shopping for a loan look for the following red flags of an advance-fee loan scam:

Red Flags: Be wary of:

• Guaranteed approval. It’s a warning sign if the company promises loan approval before the borrower applies.
• Pressure to act immediately. Advance fee loan schemers will try to get consumers to send money or give out personal information (bank account information, credit card and Social Security numbers) before providing any paperwork.
• Hidden fees. Be suspicious if the lender understates loan costs or won’t provide a written summary of all fees associated with the loan.
• Evasive tactics. Be wary if a company refuses to provide location information. If they hesitate to reveal their physical location, it is usually a ploy to avoid law enforcement detection.
• Internet lenders. When applying for loans online, the consumer may have to fill out a detailed application; providing bank account information and other personal details. If the lender does not abide by strict privacy policies or fails to secure their website, identity theft risks abound. Additionally, some internet lenders may attempt to bypass state usury, licensing and consumer protection laws by residing in states with lax regulations or outside the U.S.
• The lender is not registered in your state to do business. Check with the state’s financial or banking regulators.
• The lender asks you to wire money or send a money order before you can receive the loan. You might be asked to wire money to another country. Consider this a giant red flag.

The BBB recommends the following tips when shopping for a loan:

BBB Tips:

• Don’t buy into bogus loan promises. If a loan offer is made and you must pay to get access to the funds, it is a scam. It is illegal for telemarketing loan providers to offer a loan and require an upfront payment before it is issued.
• Never wire money or send money orders to obtain a loan. Legitimate lenders won’t pressure you to wire funds. Never send funds to a third party.
• Be wary of loan approval or financing guarantees. Be suspicious of any lender that pre-approves loans or financing without checking your credit status or contacting references—especially if you have bad credit or no credit record. (more…)

Consumers nationwide are receiving suspicious emails that appear to be from Intuit, a tax preparation software business. The messages encourage recipients to click on a link and update their Social Security Number or Employer ID Number in Intuit’s online system. However, the email is a phishing scam, and the link leads to a third-party website that downloads a virus on to users’ computers.

What does the email look like?
The email appears to be from update@intuit.com or security@intuit.com addresses. The messages also use a variety of subject lines including: “Please verify your tax information ASAP,” “Correct tax information is needed” or “Tax information needed within 30 Days.”

Steps to take:

• Do not click on the link in the email
• Forward the email to spoof@intuit.com
• Delete the email

For more information, please read the security information on Intuit’s website.

See Better Business Bureau’s complete scam directory for more information about breaking scams in your area. To find a tax preparer you can trust this tax season visit www.tucson.bbb.org.

Consumers expecting a tax refund might be looking forward to filing their taxes early this year, but Better Business Bureau of Southern Arizona warns to be cautious of tax preparers who claim they can get larger refunds than their competitors.

According to IRS investigators, some preparers may use their clients’ personal information to file falsified returns, and may keep most of the fraudulent refund for themselves while leaving you on the hook.

It’s important to note that the taxpayer is ultimately responsible for the accuracy of all information on a tax return, even if someone else prepares it.  Individuals with fraudulent tax returns can face significant prison time as well as payment of back taxes with interest and penalties.

BBB recommends following these tips from the IRS:

• Avoid preparers who base their fee on a percentage of the refund.
• Use a reputable tax professional who signs the tax return and provides you a copy.
• Consider whether the individual or the tax preparation firm will be around to answer questions about the tax return months, or even years, after the return has been filed.
• Check the preparer’s credentials.  Only attorneys, certified public accountants and enrolled agents can represent taxpayers before the IRS in matters including audits, collections and appeals.
• Find out if the preparer is affiliated with a professional organization that provides its members with continuing educational resources and holds them to a code of ethics. (more…)