BBB: Beware Gift Card Fraud During Holidays

More than $18 billion in gift cards were purchased in 2005 and projections for 2006 approach nearly $25 billion in total gift card sales. Where there is big money, crooks, criminals, thieves and scammers are soon to follow.

The Better Business Bureau system has issued an advisory through its 129 local BBBs across the United States and Canada warning that a number of scams surrounding gift cards have evolved and consumers should be cautious about where and how they purchase them.

“Gift cards have provided a solution to the age-old problem of deciding what types of gift to buy, but with the convenience of these cards, there is also the possibility of fraud,” said Bill Moak, President of the Better Business Bureau of Mississippi. “We urge consumers to be careful when purchasing gift cards during the holiday shopping season.”

Two types of gift cards exist: Those sold by retailers, which can only be used at that store or sister stores; and bank cards, which can be used just about anywhere. The bank-issued debit cards, however, come with a variety of fees and restrictions.

Gift cards can also be purchased on Internet auction sites, but oftentimes these cards have been stolen and ultimately hold no value.

In another scam, crooks copy down the numbers on the back of gift cards displayed on retail store racks, then wait several days in hopes the card is sold before calling to find out the balance left on the card. When they find one with a balance, they go online for a free shopping spree using that card number, essentially picking the pocket of the legitimate customer or gift card recipient. Another scam involves corrupt cashiers who pocket newly loaded cards and hand customers blanks.

The Better Business Bureau offers several protective measures consumers can take to guard against ending up with a fraudulent gift card:

• Buy from reputable sources, preferably directly from the store and, if possible, not off a rack. The BBB discourages buying gift cards from online auction sites because it's difficult to know whether the card is stolen or will arrive with the promised amount.
• Do not rely solely on a sales clerk or cashier to select a cards from publicly inaccessible stock, e.g., behind the counter. Always personally examine the card for signs of tampering – specifically looking for evidence of the PIN number having been exposed.
• When buying a gift card, keep the original purchase receipt with the card as proof of purchase.
• Immediately after buying a gift card, ask the cashier to scan the card itself to ensure the card is valid and has the proper value.
  

If an individual does find that they have been the victim of a gift card scam, the BBB suggests the following actions:

• Retain the proof of purchase receipt.
• Most gift cards will have a toll free telephone number on the back of the card for consumers to report problems through company customer service representatives.
• The BBB encourages use of company customer service operations as a first step in the process – as opposed to returning to the point of purchase where personnel will have little authority or opportunity to resolve the issue.

For additional tips, or to file a complaint, contact the Better Business Bureau at 800.987.8280 or online at www.bbbms.org.

Watch Out for Social Security "Phishing" Scam

The Better Business Bureau (BBB) of Mississippi is warning Mississippians about an email scam which purports to warn consumers about a Social Security benefit increase, but is really a "phishing" scam, which seeks confidential information from consumers which could be used in identity theft.

Consumers have called and emailed the BBB to notify us of the scam, titled, “Social Security Announces 3.3% Benefit Increase for 2007". One consumer from the Jackson area reported that her husband had received the email, which warned him to go to a special website to update his information by Nov. 11, or risk suspension of his Social Security account.

The Social Security Administration has issued a warning about this scam, which may be accessed at http://www.ssa.gov/pressoffice/pr/colaPhishingScam-pr.htm.

To avoid being a victim of phishing or other email scams, here are a few things to keep in mind:

• Do not respond to any unsolicited or unexpected email.
• Do not click on any links in the email.
• The best thing to do is to hit the "delete" button immediately. If you have a spam or phishing filter on your email browser, make sure it is active and working.
• If any email or website asks you for personal information, do not respond, or enter any information.
• If the email appears to come from a legitimate source, and you have reason to believe it may be legitimate, call the company or agency and ask them if it is indeed legitimate.

To report receipt of this email message or other suspicious activity to Social Security’s Office of Inspector General, please call the OIG Hotline at 1-800-269-0271. (If you are deaf or hard of hearing, call the OIG TTY number at 1-866-501-2101). A Public Fraud Reporting form is also available online at OIG’s website http://www.socialsecurity.gov/oig/hotline/index.htm.

If Your Business Sends Commercial Faxes, Know the Rules

The Better Business Bureau reminds businesses that use the fax machine to advertise to check their compliance with new federal commercial fax rules, some of which took effect August 1, 2006.

In general, it is unlawful to send unsolicited fax advertisements (using a fax machine, computer or other device) to any business or place of residence without the recipient’s prior express permission (received in writing or orally). Specifically, a business is permitted to send unsolicited fax ads only if (1) it has an established business relationship with the recipient, who voluntarily provided their fax number and (2) the first page of the fax transmission contains information on how recipients can “opt out” of future unsolicited fax ads.

An established business relationship means the relationship was formed by a voluntary two-way communication between the recipient and sender on the basis of a purchase, transaction, inquiry or application regarding products or services offered by the sender. The relationship has to be one that was not previously terminated by either party.

The opt-out notice must appear on the first page of the fax transmission (at either the top or bottom), present “clear and conspicuous” information on how to opt out of future faxed ads, and provide a cost-free opt-out mechanism that is available 24 hours a day, 7 days a week. Cost-free mechanisms can include a toll-free telephone or fax number, e-mail address, Web site, or a telephone or fax number that is local for the recipient.

The opt-out notice must state that the recipient can request that the sender not send any future faxes and that failure to comply with the request within 30 days is unlawful. In addition to the opt-out notice, every unsolicited fax must include the date and time of transmission and the registered name and phone number of the company sending the fax.

Be aware that in-state commercial faxes are still governed by state statutes, many of which do not exempt faxes sent to recipients who have an existing business relationship with the sender. Make sure your business is adhering to any pertinent state rules.

BBBs remind businesses who send fax ads to make sure fax and telephone opt-out lines are properly staffed and to honor opt-out requests within the 30-day window. More detailed information on commercial fax requirements is available on the Direct Marketing Association’s Web site (http://www.the-dma.org/).

Auto Theft Myths versus Facts

In 2005, a vehicle was stolen every 25.5 seconds in the United States, based only on data for the 1,235,226 stolen vehicles reported to the National Crime Information Center (NCIC). Using the FBI’s average valuation of $6,173 per stolen vehicle, this amounts to over $7.6 billion in losses in 2005 – just in vehicle value alone. (see press release at www.nicb.org)

“Auto theft is an expensive crime, so it is important to be prepared in advance to handle your vehicle being stolen. But all too often, consumer attitudes about preventing vehicle thefts are based on misconceptions, which can lead to expensive consequences for the unprepared victim,” says Carolyn Gorman, Vice President of the Insurance Information Institute (I.I.I.), a non-profit consumer education organization.

Impossible To Totally Avoid Being A Victim
Victims like Stephen Cox say it can be nearly impossible to avoid being the victim of an auto theft, even for those who install anti-theft devices or park in a secure area. Speaking from personal experience, Cox, who is Vice President, Communications for the Council of Better Business Bureaus, says, “Car thieves, like home burglars, are not usually deterred by a single layer of protection.” Cox had two vehicles stolen in a three-year period when he was living in California, both of which had manufacturer-installed security systems that were disabled by the thieves. These included a Pontiac Firebird with a CLUB anti-theft device that was stolen in daylight and a Nissan 300ZX that was stolen at night from a gated community.

Robert Bryant, President and Chief Executive Officer of the National Insurance Crime Bureau (NICB), the insurance industry’s theft and fraud fighting organization, suggests the more layers of protection on your vehicle, the more difficult it is to steal. “Motorists driving theft-prone vehicles need to take additional steps such as installing a visible deterrent like a steering wheel lock, alarm or other type of disabling device.”

While it is important for consumers to know how to help prevent vehicle theft, the “Wiser Drivers Wise Up” program is focused on educating drivers to be better prepared to handle a vehicle theft when it does occur (www.wiserdrivers.com), with information provided by a team comprised of the Insurance Information Institute (I.I.I.), Council of Better Business Bureaus and the National Insurance Crime Bureau (NICB).

Myth: Most Thefts Occur in Unprotected Areas. Despite conventional wisdom, parking in an unprotected area does not mean your vehicle is more likely to be stolen. An FBI report on “Crime in the United States” indicates that more than one-third of all vehicle thefts occur at a home or residence, compared to only two of every 10 vehicle thefts occurring at a parking lot or parking structure. Vehicles that are stolen from highways, roads or alleys, including carjacking, account for the least number of thefts.

Myth: Stolen Vehicles Are Usually Found. Drivers who believe their stolen car will eventually be found also may be making a false assumption, especially if their vehicle has been missing for more than six days. Although about one-half of all stolen vehicles are recovered, the first few days are critical. Even if the vehicle is recovered, it may be completely totaled. The longer the vehicle is in the possession of criminals, the less chance of recovery. Interestingly, Fridays and Saturdays are the days with the highest frequency of motor vehicle theft and Mondays and Tuesdays have the highest recovery rates.

Myth: Insurance Always Provides a Rental Car. Another common misconception many insured drivers have is that once they report a stolen car, their auto insurance will automatically cover a rental car until their vehicle is found or they are authorized by their insurance company to buy a new one, which can take several weeks. Unfortunately, although insurance for theft is included in the comprehensive part of an auto insurance policy, this coverage may not automatically include coverage for a replacement rental car for a stolen vehicle. Since replacement rental car coverage is only a couple dollars a month, it can cost more for a one-day car rental than for a full-year of coverage.

Myth: Anti-Theft Devices Are Easy to Install. Pay a competent professional to wire, install and test the anti-theft system because there is too much complexity in today’s vehicles for an untrained person to cut into a vehicle’s electronics. Don’t select the installer on price alone; check with the Better Business Bureau (www.bbb.org) for a report to see if the business is reputable. Also, ask if the alarm system technician is certified by the Mobile Electronics Certification Program (MECP). If not, you may want to look elsewhere. And, make sure the shop provides a written warranty and will take the time to show you how the anti-theft system works so that you are comfortable with its operation.

Myth: Thieves Are Not Interested in Older Vehicles. Those who believe that older vehicles are of no interest to thieves should think again. In 2005, the top five model years stolen were 1991,1995,1989,1994 and1997, respectively, according to The National Insurance Crime Bureau (NICB), which combats auto theft by investigating cases referred to it by insurers and through its online databases. “Older vehicles are most often taken for their parts which are no longer manufactured and are too difficult or expensive to obtain,” said Robert M. Bryant, president and chief executive officer of NICB. Unfortunately, motorists with older vehicles who have dropped comprehensive coverage to save money are not covered for theft and do not qualify for replacement rental car coverage. NICB also publishes annual lists of the top thefts by region and by year, make and model, as well as most popular colors stolen and other information, including tips to help avoid theft using its “Layered Approach to Protection” at www.nicb.org.

The bottom line is not to wait until after your vehicle is stolen to find out you don’t have the coverage you think you have. Consumer Reports (www.consumerreports.org) advises drivers to review their auto insurance policy once a year, including coverage you must have, coverage you’ll probably need, and additional types of coverage, including roadside assistance and rental reimbursement.

Supported by 1,000 major property and casualty insurance companies, the National Insurance Crime Bureau (www.nicb.org), based in Chicago, and is a not-for-profit organization dedicated exclusively to fighting insurance fraud and theft through criminal investigations, industry training and public education programs. For more information on fraud and how it affects everyone, please visit www.nicb.org.

The Insurance Information Institute (www.iii.org) is a non-profit, communications organization supported by the property/casualty insurance industry.

The Council of Better Business Bureaus, based in Arlington, VA, is the umbrella organization for Better Business Bureaus (BBBs) which are supported by 380,000 business members nationwide. The Council and all local BBBs are private, non-profit organizations funded by membership dues and other support. BBB reports on insurance companies, agents and agencies and other types of businesses can be accessed at www.bbb.org.

BBB Advises Seniors: Intruders Don’t Always Arrive on Foot! Family Members Urged to Help “Scam Proof” the Homes of Elderly Relatives

With the weather turning cooler, many seniors will spend more time at home, which is not always a safe haven. The BBB is urging families of seniors to safeguard their homes against scam artists.

Scam artists today are not looking for items to steal. They seek to obtain personal information (Social Security, bank account and credit card number) and money. And, unlike traditional burglars, scam artists are happy to find someone at home, particularly if that person is a senior citizen.

“Con artists consider seniors to be easy prey and choose their entryway accordingly: the telephone, the front door bell or the mailbox,” said Bill Moak, president of the Better Business Bureau of Mississippi, Inc.

Seniors can be vulnerable due to their trusting nature, their age and their living conditions. It is not unusual for seniors to trust strangers who are friendly, earnest and claim to have their best interests at heart or to be assisting the less fortunate.

The BBB recommends that family members, neighbors and friends of elderly citizens take a three-pronged approach – Check, Protect and Defend -- to help them from being defrauded.

• Insist that your elderly relative check with the BBB whenever they receive a phone call, a piece of mail, a flyer or a visit from an unknown person, business or charity. Urge them to call the BBB before they let anyone into their home, hand over any money or personal or financial information, sign any contract or donate any money.
• Teach them to protect their personal information. They should not carry their Social Security card in their wallet or purse. Warn them to never give out their mother’s maiden name, their Social Security number, bank account number or credit card number to an unknown individual, no matter how tempting the offer.
• Help defend against scam artist intruders. Put the senior’s phone number on the National Do Not Call registry (phone 1.888.382.1222) to reduce calls from telemarketers. Post a “No Solicitation” notice by their front door. Help them to sort through their incoming mail. Explain why they shouldn’t respond to certain advertisements and point out suspicious mailings. Watch TV with them to check their interest in infomercials. Discourage them from sending money in response to “too good to be true” offers.

“Vishing” is the New “Phishing”

Better Business Bureaus frequently warn that scam artists are the first to take advantage of new technology. The latest example of scammer ingenuity is the use of Voice over Internet Protocol (VoIP) phones to steal people’s financial information. This new scam is called “vishing” -- short for “voice phishing.”

It can work one of two ways. In the online version, the con artist sends a blast e-mail, disguised to appear as though it’s from a financial institution, an online payment service or other well-known business. The e-mail may sport a trusted logo, typically reports a “security” problem with the recipient’s account and urges the victim to call a telephone number to “straighten things out.”

The recipient, who knows better than to click on imbedded hyperlinks in strange e-mails for fear of being “phished,” feels safer calling a telephone number. The area code might be a local one they easily recognize or appear to be toll-free. When the victim calls, they reach an automated attendant prompting them to enter their account number, password or other private information for “security verification” purposes.

Some “vishers” use automated dialing programs to “cold call” victims. The caller ID device may list a legitimate-looking local phone number, to inspire trust from the recipient. A prerecorded message (or sometimes a live “employee”) claims the victim’s account has been compromised or needs updating or verification. The victim is asked to enter their account information, which is digitally transcribed onto the hard drive of the scammer’s computer.

The BBB offers consumers these tips to protect against “vishing” scams:

• Typical “vishing” e-mails imply urgency, ask you to verify account information, and may contain misspellings.
• If you receive a “vishing” phone call, hang up. Call your bank, using the phone number on the back of your debit or credit card, and report the matter.
• Banks do not use prerecorded messages to handle security issues. If they telephone you to report suspicious use of your card, they do not need to request identifying information because they already have that on record.
• Do not automatically trust a phone number based on its area code. Con artists can hack into Caller ID systems, and VoIP users can assign any area code to a phone number.
  

If you think you have been a victim of “vishing” visit the FTC’s Identity Theft Web site at http://www.consumer.gov/idtheft/con_about.htm.

BBB: Watch for Postal Job Scams

The Better Business Bureau of Mississippi is warning Mississippians to not fall for ads promising federal jobs, in exchange for hefty up-front fees.

Signs on utility poles and in classified ads promise you can make excellent money working for the U.S. Postal Service and other federal agencies. One ad recently seen in Jackson promises you can make an average of $57,000 per year working for the U.S. Postal Service. However, the BBB called the number and were told that, in exchange for a $99 fee, job-seekers would get a training manual and a test to take at home. Although the representative would not name the company for which she worked, she promised that an 80% or higher score on a job test would guarantee employment.

“Consumers should know that these companies are looking to cash in on something that consumers can get for free,” said Bill Moak, President of the Better Business Bureau of Mississippi. “In addition, don’t believe any guarantees that you will get a job. Unfortunately, people who are jobless are often asked to pay money they can ill-afford to lose.”

The U.S. government’s Office of Personnel Management (OPM) makes federal job listings available for free through local libraries, and on the Internet at www.usajobs.opm.gov. There are no charges for applying for any federal job. Federal agencies and the U.S. Postal Service never charge application fees, sell study guides for job tests, or guarantee that an applicant will be hired. If positions require a competitive examination - and many do not -the federal agencies doing the hiring usually offer free sample questions to applicants who sign up for the exam.

To help you recognize federal job scams, the Better Business Bureau, along with the Federal Trade Commission, suggest you be aware of the following types of ads or techniques used by scam artists.

Ads that offer information about "hidden" or unadvertised federal jobs.
Ads that refer to a toll-free phone number. Often in these cases, an operator encourages you to buy a "valuable" booklet containing job listings, practice test questions, and tips for entrance exams.

Classified ads or oral sales pitches that imply an affiliation with the federal government, guarantee high test scores or jobs, or state that "no experience is necessary."

Toll-free numbers that direct you to other pay-per-call numbers for more information. Under federal law, any solicitations for pay-per-call numbers must contain full disclosures about cost. Also the solicitation must make clear if there is an affiliation with the federal government. You must have a chance to hang up before you incur any charges.

If you have questions about a company's advertisement for employment services, contact the BBB at www.bbbms.org. Information is also available from the Federal Trade Commission at www.ftc.gov and the U.S. Postal Inspection Service at www.usps.com/postalinspectors.

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Hoax Alert: Cell Phones and the Do-Not-Call Registry

Despite an e-mail warning that continues to circulate on the Internet, it is not necessary to register your personal cell phone number on the National Do Not Call (DNC) Registry to be protected from telemarketers!

Inquiries to the Better Business Bureau indicate that many consumers are still confused about this issue. The DNC Registry does accept registrations from cell phones, as well as land lines. So, those who would like to register their cell phone number may certainly do so, for free. However, if you have not yet done so, there is no need to be concerned that your personal cell phone number will be released to telemarketers at any time in the near future.

"This is a hoax that has been circulating on the Internet for some time now," said Bill Moak, President of the Better Business Bureau of Mississippi. "Cell phone users can relax. Their numbers will not be targeted by telemarketers in the near future."

According to the Federal Trade Commission, which operates the National Do Not Call Registry, it is not necessary to register cell phone numbers on the DNC Registry to be protected from most telemarketing calls to cell phones.

The BBB joins with the FTC to correct common misperceptions concerning cell phones and the DNC Registry.

Contrary to the e-mail, cell phone numbers are NOT being released to telemarketers, and you will NOT soon be getting telemarketing calls on your cell phone.

There is NO deadline by which you must register your cell phone number on the Registry.

Federal Communications Commission (FCC) regulations prohibit telemarketers from using automated dialers to call cell phone numbers. Since such dialers are standard in the industry, most telemarketers are barred from calling consumers on their cell phones without their consent.

The national associations representing telemarketers have stated that their clients do not intend to start calling consumers’ cell phones.

There is only one DNC Registry. There is no separate registry for cell phones. To register your cell phone number or home phone number, you must call from that phone number (the toll-free DNC number is 1.888.382.1222). Or, you may register online at www.donotcall.gov and respond to a confirmation e-mail.

While the telecommunications industry has been discussing the possibility of creating a wireless 411 directory, according to the FCC, even if a wireless 411 directory is established, most telemarketing calls to cell phones would still be illegal, regardless of whether the number is listed on the federal government’s National Do Not Call Registry.

Understanding Your Credit Score

Many consumers and even businesses are confused about credit scoring, but this important number can help determine whether lenders will extend credit to you. It's important to understand not only what is your credit score, but what factors go into it.

Basically, information in your credit report or credit file is used to formulate your credit score. This number can range between 300 and 850, depending on the credit reporting agency.

Each credit reporting agency uses a different scoring model, so your credit score may vary from agency to agency. The most commonly used model is the FICO (Fair, Isaac Credit Organization) score. All scoring models are mostly influenced by the following: how you pay your debts and how much debt you owe. When formulating your score, each agency pays close attention to:

• Your payment history. Do you pay your credit accounts on time? Are there bankruptcies or other negative items on your record?
• How much you owe. What is the total owed on all of your account? What percent of your available credit are you using? Is your debt load manageable?
• The length of your credit history. For how many years have you demonstrated responsible credit management?
• Have you recently applied for or opened new credit accounts?

Most people have a credit score in the 600s and 700s. Scores above 700 are a sign of financial health and can earn you relatively low "prime" interest rates and favorable lending terms. People with scores about 760 are charged the lowest rates.

If your credit score is below 600, lenders will view you as "high risk". They could turn down your credit application. You may have to use a "sub prime" lender who will offer you less favorable payment terms. You will be charged much higher interest rates and will probably have to make a larger down payment.

If you are married, be aware that you and your spouse do not share a credit score. In fact, each spouse has a separate score that reflects his or her own past credit history.

The BBB warns consumers to not be fooled by people who claim to be able to raise your credit scores. Although fixing errors in your credit report can affect your score, the best way to raise your score is to pay your bills on time, try to control credit spending, and monitor your credit report carefully. You can get a free credit report once per year by visiting www.annualcreditreport.com. For more information, visit the Federal Trade Commission website at http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre24.htm.

Security Tips to Protect Laptops, PDAs and Cell Phones

More and more businesses are providing employees with laptops, personal digital assistants (PDAs) and cell phones for speed, convenience and mobility of communication. The benefits can be enormous, particularly for business travelers. So can the security risks, if proper precautions are not taken.

Before handing out these high-tech communication tools, the Better Business Bureau advises business to instruct employees how to protect the security of data that is being transmitted or stored. The following guidelines may prove helpful:

• Always keep your laptop, PDA or cell phone within sight, even when at the office. Lock your business cell phone and PDA in a secure location when not in use. If possible, secure laptops in secure locked cabinets or safes overnight.
• Keep your portable device within eyesight and easy reach when traveling. Stealing laptops at airports and from trains and restaurants has become a popular data theft technique.
• If at all possible, do not store any sensitive customer or employee data (such as bank account numbers, ATM codes, Social Security numbers and credit/debit card info) on these portable devices.
• If any employee (a salesperson or telecommuter, for instance) needs to take customer data, employee date or other sensitive information off business premises on a laptop, CD, flash drive or other portable device, insist and make certain that the data is encrypted.
• Password-protect access to the laptop, DA and cell phone. Also make use of passwords to protect Internet access, e-mail, voicemail and address books.
• Turn off the devices when not in use.
• Do not download or accept file downloads from unknown sources.
• Do not share portable communication/organization tools with others.
• Back up all data regularly and keep back-up disks and other back-up materials in a locked, secure area. There are many web-based backup solutions now available from various vendors.

A final word of caution from the BBB: Do not assume that laptops are the only devices that can be hacked into. Criminals can hack into cell phones and steal stored files, contacts and voice mails. Viruses can also significantly disrupt cell phones. Cell phone owners should check with their providers regularly for updates on security features to make certain they have configured their settings for maximum security.

These and other guidelines to help businesses protect customer data are included in a toolkit, Security and Privacy - Made Simpler™, developed by the BBB and available for free download at http://www.bbb.org/securityandprivacy/.

Don't Be Conned by Foreign Lottery Scams

In recent months, Mississippi consumers have been reporting increasing solicitations by foreign "lottery" scams, which promise payouts reaching into the millions of dollars, but are in reality designed to capture bank account information and other information from consumers. The Better Business Bureau (BBB) of Mississippi receives dozens of calls and emails daily from consumers.

"Don't be fooled by these con artists," said Bill Moak, BBB Mississippi President. "Participating in these schemes can get you into trouble in more ways than one." Moak notes that not only can you lose all the money in your bank accounts, you could be subject to identity theft, and participation in foreign lotteries is prohibited by federal law.

Of special note is the "El Gordo" Lottery, which comes in a variety of forms. Recently, a consumer sent the BBB a copy of a solicitation supposedly originating from the "Santa Lucia Security Company S.A." in Madrid Spain, which promises the recipient that their "lucky number" has been drawn, entitling them to a payout of $615,810.00.

The lucky "winners" are instructed to act quickly to claim their prize, and to keep the letter confidential to avoid "double claiming or unwarranted taking of an advantage of this program by participants." A form is included with the letter, with instructions to write down the recipient's name, address, contact information, bank account and routing numbers, and even next-of-kin, and to send the form to an address in Rome, Italy.

"The best place for these offers is the shredder," Moak advises. "Consumers should not respond in any way to these offers."

Here are some additional tips:

• Participation could be illegal.
• There are no secret systems for winning foreign lotteries.
• If you play, expect more offers.
• Don’t give credit card and bank account numbers to scammers.

The Federal Trade Commission has a special section with more information on this and other cross-border fraud at http://www.ftc.gov/bcp/conline/edcams/crossborder/coninfo.htm.

FTC Settles with Online Contact Lens Company Over Alleged Failure to Verify Prescriptions

The Federal Trade Commission has recently settled with a company which sold contact lenses over the Internet. The company, Walsh Optical, sells contact lenses on the sites http://www.lensworld.com/, http://www.contactmania.com/, and http://www.contactlensworld.com/. The company was cited by the FTC after allegations the company had failed to verify contact lens prescriptions, as required by the Contact Lens Sales Rule. The company paid a $40,000 fine and agreed to monitoring of its online activities.

When buying contact lenses (or any prescription product) over the Internet, consumers should become suspicious when the retailer:

• Fills a contact lens prescription unless the seller has either received a copy of the prescription or verified the prescription.
• Fills a contact lens prescription if the prescription is inaccurate, expired, or otherwise invalid.
• Alters contact lens prescriptions.
• Represents that consumers can get contact lenses without a prescription.

"With the online sale of contact lenses and other prescription products skyrocketing, there are a lot of companies out there, and your health could be at risk if prescriptions are not followed," said Bill Moak, President of the Better Business Bureau of Mississippi. "It's important to ensure that you thoroughly check out the company before doing business with them, and to make sure the company follows the prescription to the letter."

Here are some more tips for purchasing contact lenses or glasses online:

Make sure the company asks for your prescription information, and check with your optometrist or ophthalmologist to ensure that the company has checked with them to verify the prescription.

Keep careful records of any online transactions.

Note any return policies, which should be prominently listed on the website.

Make sure the website is secure by looking for the letters "https" in the address bar and a padlock symbol on the bottom of your browser. This helps to ensure your information is kept secure from hackers.

Check licensing requirements. Companies selling contact lenses and glasses in Mississippi are required to be licensed by the Mississippi State Board of Optometry.

For more information, or to see the complete report from the Federal Trade Commission, click on http://www.ftc.gov/opa/2006/08/walsh.htm.

BBB Warns Consumers About Fake Check Schemes

Counterfeit check scams are defrauding consumers across the country according to complaints filed with the Better Business Bureau and state Attorneys General.

The most common type of scheme involves a counterfeit cashier’s check, traditionally considered a trusted form of payment. Unfortunately, the advent of high quality printers and scanners is making it easier for counterfeiters to produce official-looking checks of all types and caliber, including cashier’s checks.

The problem occurs when a consumer deposits the counterfeit check in a bank account and, a few days later, asks the financial institution if the money is “available.” When told yes, the consumer assumes that they can safely draw upon that money. That is not the case! Until the financial institution can confirm the funds have been “finally collected”, the consumer is responsible for any funds they may withdraw against that check deposit. The amount of time it can take for the bank to finally collect the money can vary, particularly with out-of-state or out-of-country checks.

In most cases, victims report that they wired money to the check issuer only to find that the deposited check was uncollectible. This has happened to consumers who were told they won an international lottery and were advised to pay a clearance fee or taxes out of their “winnings” check; consumers who responded to work-at-home opportunities and were told to deposit a cashier’s check and then wire money elsewhere; and to online auction sellers who accepted certified checks for payment from far-away buyers and sent the merchandise, only to discover later that the checks were counterfeit.

The BBB and State Attorneys General offer tips to evaluate the legitimacy of checks you receive from individuals or businesses that you do not know:

• Independently verify that the check is drawn from an actual account at a legitimate financial institution.
• Do not rely on the telephone number listed on the check.
• Use directory assistance to get the telephone number of the financial institution and call them to verify the check.
• Do not rely on the money until the funds have been finally collected by your financial institution. Funds “availability” is not good enough.
• If you have any questions about whether a transaction is legitimate, talk to your bank or credit union.
  

Those who have been victimized by a phony check drawn on a federally insured financial institution should phone the Federal Deposit Insurance Corporation at 877. 275.3342, and report the incident to the Mississippi Attorney General's office at 800.281.4418. If the check is drawn on a foreign bank, contact the United States Secret Service at 202.406.5572 or go to www.secretservice.gov.

Will Your Auto Insurance Weather the Storm?

Hurricanes, floods, tornadoes and hailstorms can wreak havoc your car, as well as your home. But when it comes to insurance, people shopping only for the lowest rates too often don’t notice their lack of certain types of coverage until they try to make a claim.

The number of vehicle losses due to hurricanes, floods, tornadoes, large hailstorms, firestorms and other severe storms nearly doubled in the five years between 2001 and 2005, according to ISO's Property Claim Services (PCS) unit, the recognized authority on insured property losses from catastrophes in the United States, Puerto Rico and the U.S. Virgin Islands.

The number of reported claims for vehicle loss from natural disasters recorded by PCS increased steadily, from 485,150 claims in 2001 to 982,350 claims in 2005, for a total of 3.3 million losses over the past five years. PCS's numbers track auto insurance claims on vehicles with insurance policies that include comprehensive coverage, which covers damages or loss due to natural disasters, catastrophes or events other than a collision with another car.

"Drivers spend a lot of money on auto insurance and it is important for them to be as familiar as possible with what their coverage includes when they're making their purchase decision," said Bill Moak, President of the BBB Mississippi. "But too often, people shopping only for the lowest rates don't notice their lack of certain types of coverage until they try to make a claim."

The best advice is to be prepared to know what your auto insurance covers and what you should do if your car is damaged in a storm by following these tips:

• Know what your insurance covers. Be familiar with the details of your coverage. For example, don't wait to find out that your policy doesn't include comprehensive or won't automatically cover costs for emergency roadside assistance or a replacement rental car.
  
• Report damage as soon as possible. If your car is not drivable, your agent or claims center may be able to save you time and money by having the car towed directly to the repair facility instead of to a temporary storage facility. In addition, arrangements may be made immediately to provide you with a replacement rental car, if your policy includes this coverage.
  
• Know what your deductible is and any other additional charges before authorizing work. Expect your insurance adjuster, claims representative or repair facility appraiser to review the damage with you and explain the repair process, including the use of original or generic auto parts. Before authorizing repairs, know what your deductible is, as well as any additional charges you will be expected to pay once repairs are complete.
  
• Ask about warranties on repairs. Ask whether your insurer has a repair facility referral program that offers a written limited or lifetime repair warranty backed both by the repairer and insurer for as long as you own your vehicle.
  
• Do business only with a reputable company. Obtain insurance from companies, independent brokers or direct marketers that have a proven track record of handling auto insurance claims effectively. Get a referral or contact your Better Business Bureau or Mississippi Department of Insurance.

According to the Insurance Information Institute (I.I.I.), a non-profit organization, comprehensive coverage will reimburse you for loss due to damage caused by something other than a collision with another car or object, such as fire, falling objects, catastrophic storms, vandalism, or contact with animals such as birds or deer. Flooding also is covered by auto insurance, as long as your policy includes comprehensive.

Comprehensive insurance is usually sold with a $100 to $300 deductible, though you may want to opt for a higher deductible as a way of lowering your premium. Comprehensive insurance will also reimburse you if your windshield is cracked or shattered. States do not require that you purchase comprehensive coverage, but if you have a car loan, your lender may insist you carry it until your loan is paid off.

"But, even if you have comprehensive coverage, it is not always guaranteed to meet your individual needs," says Carolyn Gorman, vice president of the I.I.I. "For example, you may be surprised to discover that after a storm your auto insurance does not automatically cover the cost of a replacement rental car while your car is in the repair shop or you wait for authorization for a new car from your insurance company."

She added that an individual could end up paying as much as $1,000 to rent a replacement car. "But rental reimbursement coverage, which is only a couple of dollars a month, covers the cost of a rental car while your car is being repaired or you are waiting for authorization for a new car. This means that renting a car for one day can cost more than one full-year's coverage for rental reimbursement," Gorman said.

As part of a nationwide consumer education program, entitled Wiser Driver Wise Up, the Council of Better Business Bureaus and the Insurance Information Institute have teamed up to inform and educate drivers to review their auto insurance policy annually to make sure they have adequate coverage for various types of incidents, including severe storms. The "Wiser Drivers Wise Up" program includes a detailed Web site at http://wiserdrivers.com/

The Council of Better Business Bureaus says that some of the least expensive options may not be mentioned to those shopping for the lowest premiums. In addition, since many people purchase automobile insurance several years prior to making a claim, they may forget what their coverage includes. If they don't have the coverage or don't know to ask if the cost is covered when they make a claim, they can end up paying more than they anticipated.

Understanding the differences in insurance coverage can be confusing. "Many of us think that we have adequate coverage, but most of us don't find out until after we contact the insurance company what is not covered," says Moak.

Both the Insurance Information Institute and the Council of Better Business Bureaus advise drivers to take a few minutes to read their policy or talk to their insurance agent once a year to make sure they have the coverage they want and need. The best advice is not to assume anything when it comes to insurance. If a specific coverage is not listed and explained in the policy, the loss probably won't be covered. For more details, go to http://www.iii.org/individuals/auto/a/basic/.

"Microsoft Outlook Award" Lottery Scam Hitting State

Consumers call us often asking about letters and emails they've gotten. Jim A. of Jackson has forwarded us a copy of an email that promises 100 million Euros (About $78 million) for an "Microsoft Outlook Award" lottery, then goes on to ask for personal information. All of this is to be sent to an address in Amsterdam, Netherlands. Of course, Jim never entered any lottery.

If you get this email, the best thing to do is to delete it immediately. This is a relatively new scam to hit our area, and we don't know if the intent is phishing or just an attempt to sucker a few unwitting victims out of their hard-earned money. Regardless, you don't have to be a victim.

Getting Off the Lists

Are you buried under an avalanche of unwanted mail? Do you get solicitations from telemarketers when you least want it? There is something you can do. You can Opt Out! There are several methods for getting your name off telephone and direct mail lists. Most recently, the nation's four Credit Bureaus (TransUnion, Experian, Equifax and Innovis) have begun providing a service to remove your name from receiving mailings from "preapproved" or other unsolicited credit-card offers. Below is a list of some of the resources available to you. You have the power, so take control!

Preapproved credit card offers:

• Toll-free (automated system): 1.888.567.8688
• Web: www.optoutprescreen.com
  

General Direct Mail

• Toll:free (automated system): 1-888-5-OPTOUT
• Web: http://www.dmaconsumers.org/cgi/offmailinglist#howto
  (This will cost you $5 to register online, or you can download a form to be sent by U.S. mail for free).
  

Email "Spam"

• Web: http://www.e-mps.org/
  

Do-Not-Call Lists

• Federal List – www.donotcall.gov
• State List – http://www.psc.state.ms.us/

Welcome to the BBB Mississippi Weblog!

Welcome!

This weblog (or "blog") is the site for breaking news, bulletins, and information you need to know. It will contain information from our consumers here in Mississippi, as well as our sister Better Business Bureaus around the nation, and a variety of other sources.

This site will be growing daily and weekly, as we add new news and information. There will also be many new features which will allow you to ask questions and provide input. You can subscribe easily to this blog, to get notification of new postings and information.

I encourage you to read the postings on a regular basis. Often, you will read about scams and schemes that we are hearing about from consumers like you, as well as topics like identity theft and phishing . We believe the best way to protect you is to provide you with information so you can protect yourself. As someone once said, "Forewarned is Forearmed." Thanks for reading!

-- Bill Moak, President, Better Business Bureau of Mississippi

Choosing a Financial Planner

Consumers look to financial planners to provide objective, knowledgeable advice about managing an important aspect of their lives: their money. Because the field is largely unregulated, however, the title "financial planner" does not guarantee any level of qualifications or expertise. Consumers therefore need to exercise caution when choosing someone with whom to entrust financial resources.

Recommendations from friends, relatives, and colleagues may be a good first step to finding a financial planner. Carefully consider the education and professional background of prospective planners. Financial planners who hold the designations RFC (Registered Financial Consultant), CFP (Certified Financial Planner), or ChFC (Chartered Financial Consultant) or who are members of the National Association of Personal Financial Advisors have codes on ethics, honesty, and conflicts of interests which they are obligated to uphold.Once you have selected a prospective planner, schedule a preliminary interview. Question the financial planner about his or her professional background, education, employment history, investment philosophy, and areas of specialization. Ask for the names of recent clients and examples of plans and monitoring reports. Does the planner keep current on financial matters through continuing education and training? Also ask how the financial planner expects to be compensated (e.g., fees, commissions, or a combination of the two) and get a written estimate of the cost for services.

Remember, a good financial planner should help you get a clear picture of your financial situation and lay the foundation for future investment decisions. Beware of planners who offer few or no alternatives in your investment plan, which may indicate the planner's intent to steer you into a fraudulent scheme or sell a specific product for the commission. Similarly, avoid planners who use high-pressure sales tactics or promise unusually high rates of return on investments. Be on guard for possible Ponzi schemes that can masquerade as tax shelters, precious metals, commodities, high-tech stocks, and other investment vehicles.

Further protect yourself against fraud by contacting your Better Business Bureau and Secretary of State's Office to determine if the planner has a background of noncompliance with state and federal laws or a history of complaints.