COLLEGE STATION The end-of-the-year holidays are here, which means it’s gift-giving time. People are generous during the holiday season, giving not only to loved ones but to charities and other philanthropic organizations.
But while you’re in a giving mood, remember: don’t get taken.
Many scams are out there, just waiting to take advantage of seasonal generosity, said Dr. Sue Lynn Sasser, Texas Agricultural Extension family resource management specialist.
“One of the key things to remember when shopping whether it’s online or not is to shop with somebody who is reputable,” she advised. “If you don’t know anything about the company, you are at greater risk (of being cheated out of your money.) If you stay with reputable companies, you are so much better off.”
Many times, though, especially when shopping over the Internet, a consumer might want to do business with a small company from another city or with a company he or she doesn’t know much about. In that case, Sasser said, contact the Better Business Bureau in the city where the company is located and find about its reputation locally.
Sasser offered some other advice from the Federal Trade Commission for online shoppers (available on the Web site http://www.ftc.gov/ ):
– Shop with companies you know.
– Protect privacy by giving out personal information (credit card numbers, bank account numbers, Social Security numbers, etc.) only if you know where and why it’s going, and how it’s going to be used.
– Don’t use your log-on password to make purchases. Make up different passwords.
– Pay by credit card, if possible, for maximum consumer protections.
– Make sure the server is secure before ordering. Check for an unbroken key or padlock at the bottom of the window to make sure information is protected.
– Factor shipping and handling fees into the cost of the order.
– Track purchases by keeping printouts of your transactions (including return policies).
While shoppers are in a generous mood this time of year, scams and con artists are not, not even when it comes to charitable giving. Many times consumers, wishing to be generous to charities during the holiday season, give to organizations that are not what they seem to be. Sasser warned about scams that use names similar to those of well-known organizations in order to get donations from unsuspecting consumers.
For example, a con artist might call his or her agency the “American Association for Heart Research,” which sounds a lot like the American Heart Association, a legitimate organization. This use of similar names can be very confusing, Sasser said, especially for older adults who might be susceptible to such “charitable” scams.
Her advice: ask for a phone number to verify the company’s legitimate intent; ask for a brochure or other information in writing; give yourself some time to decide whether or not to donate your money and don’t give to any agency that has to get your money immediately. Sure, Sasser said, sometimes these scam artists will give you an envelope to mail your donations in, “but I want a whole lot more information than an envelope!”
Scams, however, are not limited to the holiday season. They are a booming business all year. Sasser said the FBI estimates that 14,000 illegal telemarketers operate daily in this country. The annual loss to telemarketing fraud is an estimated $40 billion, she said. Some of the more common scams involve home repair and sweepstakes, she said.
If you need to have some repair work done on your home, she said, “again, deal with someone who is reputable. If someone knocks on your door and tells you that you need a new roof, at least get a second opinion. You get a second opinion at the doctor’s office; you need to get a second opinion with home repair.” Especially, she added, if the person who is offering to repair your home came to you instead of the other way around, or if he or she wants money up front or cash only to do the suggested repairs.
Sweepstakes offers also cause problems, she said, adding that research has shown that older adults are often susceptible to these come-ons.
“The belief is, the more you buy (magazine subscriptions, for example), the greater chance you have of winning, and that’s not the case at all,” Sasser said. Many states have passed legislation to protect consumers from these kinds of rip-offs, she said, and many lawsuits have been filed against companies that operate them. Some sweepstakes announce “You have won!” some amazing prize, such as an expensive trip or a new car but you have to send in some money to redeem your prize. That’s hogwash, Sasser said.
“If you’ve won something, you’ve won it. There should be no charge.”
Beware of these kinds of schemes, she said, and never, never believe it when someone tells you he needs your credit card number or bank account number to verify your ID so you can receive your prize. Credit cards and bank accounts are not used as forms of identification anyway these people only want to access your accounts and steal from you. Sasser has some tips for identifying potential scams:
– The salesperson wants you to make your payment right now.
– He or she wants your credit card or bank account number.
– You are asked to call an 800, 877 or 900 number to confirm information, or you are asked to call an area code you aren’t familiar with. “A lot of times, when you do that, they are transferring you to another number outside the United States, and you can end up paying up to $25 a minute” for the call, she said.
– The opportunity the salesperson is offering you is “risk-free” and has a “high rate of return.
– He or she wants you to buy something sight unseen.
– Someone offers you something free, but then wants your credit card number to verify information or pay for shipping and handling. “Free is free,” Sasser said.
– Written information about the product or organization is not available.
– The company’s address is a post office box number.
– You are asked for your Social Security number or other personal information.
– Payments are to be in cash only.
– You are asked to help solve crimes, such as bank theft or embezzlement.
– The transaction is supposed to be kept secret.
Sasser also offered ways to avoid being taken by one of these scams: – Stop and think before you buy anything or take part in proposed money-making venture.
– Ask questions.
– Don’t pay for something that’s free.
– Don’t give out your Social Security number, credit card number, address or phone number, or any other personal information.
– Don’t buy anything over the phone unless you initiated the call.
– Buy only from reputable companies.
– Ask for references and check them.
– Carefully check phone bills, credit card bills and bank statements each month to verify they are accurate.
– Don’t make financial investments without professional advice.
– Compare prices and terms before purchasing anything.
– Get estimates; ask if there’s a fee for the estimates.
– Don’t pay for something until you are satisfied with the results.
– Don’t pay for something you didn’t order.
– Ask to be removed from mailing lists and calling lists.
– Read all contracts carefully before you sign, or ask someone you trust to read and explain to you.
– Say “no” if you don’t want something.
– If you are a victim of a scam, report it!
– If you don’t want to talk to a telemarketer, hang up. Close the door on door-to-door salespeople.
Sasser said to remember the truth of the old adage: If something sounds too good to be true, it probably is. In addition to the Federal Trade Commission Web site at http://www.ftc.gov/, Sasser recommends the Texas Attorney General site at http://www.oag.state.tx.us for more information about scams, frauds and how to protect yourself from them.
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