Personal finances scams lead 2009’s Top 10 list

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Scammers in 2009 followed the financial woes of individuals as they preyed on people’s difficult economic conditions and concerns about the general economy, according to the Better Business Bureau’s summary of dishonest business dealings for the past year.

Following are the Top 10 scams of last year.

• Work-at-home and fraudulent employment opportunities. These scams promise high income for minimal work and minimal effort.

• Credit repair and debt negotiation/settlement services. Debt negotiation companies claim that they will negotiate with a consumer’s lenders to lower the total amount of debt owed for an upfront fee.

• Grant and government job finding entities. Now more than ever consumers are looking for financial assistance to help them finance projects and debt, as well as paying for school. Entities claiming to assist in grant research, grant applications, or conducting grant or government-oriented seminars with the aim of helping consumers find applicable grants or government employment, should all be regarded with caution.

• Mortgage foreclosure rescue/loan modification scams. Due to foreclosure information being publicly available, many scammers contact desperate home owners and promise to save their home.

• Check scams. Consumers receive a check in the mail, allegedly for winning a sweepstakes, lottery or promotion. The consumer is urged to deposit the check, and then write another check from their own bank account to cover alleged taxes or fees.

• Advance fee lenders. These scam artists offer quick and immediate loans despite credit history and with little to no background check. The catch: The consumer is requested to pay advance fees before they receive the loan

• Mystery/secret shoppers. A Web site will often asks that you “register” and pay a fee in order to receive information about a certification program, a directory of mystery shopping companies, or baseless guarantees of obtaining mystery shopping positions.

• Phony directories and Yellow Pages. Phony directories or Yellow Page scams usually target small to medium sized businesses. Solicitors call businesses to “renew” or “re-enroll” an existent yellow pages listing or advertisement. Many companies or their employees are misled into accepting the alleged “renewals.” The illegitimate directory provider immediately sends an invoice for this service, usually in the amount of hundreds of dollars, and threatens businesses with collections or credit report damage should they dispute the charges or decline to pay.

• Not so “free” trials. Many Web sites offering a free trial for products do not disclose the billing terms and conditions or do not have such details prominently displayed on their Web site.

• Phishing, fake E-cards and smishing. Phishing is a crime and a high-tech scam that uses spam to deceive consumers into disclosing their personal information. Scammers create a legitimate-looking e-mail from a bank or financial institution. The e-mail asks for a confirmation of the consumer’s account and personal information. Recently scammers have tried to take advantage of the H1N1 scare as a new way to lure consumers into giving up personal information that would allow the scammers access to personal data. “Smishing” is the practice of sending a phishing message to steal credit card or identity information via cell phone text messaging.