Five Ways Car Rental Agencies Lure Extra Cash Out of Unsuspecting Customers: Internet ScamBusters #264
We hope you had a truly wonderful holiday season. Now, we'd like to start off the new year with a Special Issue on car rental scams, a topic we've never covered.
Car rental companies entice customers with advertised rates as low as $13.99 per day. But when you get to the counter, somehow your contract winds up totaling hundreds of dollars. How does that happen???
Car rental price boosting tactics can increase the price of that so-called "cheap" rental with hidden fees, unnecessary add-ons and last minute hard-sell tactics that wind up taking a large bite out of your budget.
Today we'll tell you which services are scams or unnecessary, and how to find out the real price of a rental car before you make that reservation.
On to today's main topic...
Don't Let Car Rental Companies Take You for a Ride
Has this happened to you: You've booked a great deal on a rental car, only to get sticker shock once you hit the auto rental counter. You wonder: how do car rental companies manage to extract so much extra money?
Here are five ways car rental agencies stretch extra dollars out of that economy rental -- and what you should do about them:
1. Don't Buy the Gas
This is probably the best known way car rental companies boost their profits. There are several variations of this tactic, but a common one is that the rental agent offers you the option of buying a full tank of gas at a "reduced" price. Or you can fill up the tank before you bring the rental car back.
Usually, the so-called reduced price falls within pennies of the gas you can buy at a nearby station. And what happens to any unused gas you leave in the car? You guessed it -- the company gets to re-sell it at a "reduced" price to the next customer.
Unless you are habitually tardy at airports and risk missing your flight, opt to buy the gas yourself before you return the vehicle.
And be sure you understand what a "full" tank of gas means -- or you could be charged a $10 (or more) surcharge!
2. When Upgrades Cost -- Just Say No
Here's a scam one subscriber shared with us:
"My wife was persuaded to upgrade her rental because the car I had reserved for her was 'not powerful enough' for a three hour trip on major highways out in Arizona. Instead of refusing... she paid the $60 more."
When car rental companies run out of the class of vehicle you have reserved -- as often happens with economy vehicles -- they usually offer to upgrade you to a more expensive class for free.
But before they do, they may try to talk you into the upgrade -- and charge you for it.
This is a scam. Just say no and get the vehicle you came for. Or, if they don't have the vehicle you reserved, let them offer you the upgrade for free. After all, it's rare the car you rented "isn't powerful enough." 😉
3. Don't Double Your Insurance
You're at the sales counter and they ask you: Do you want the insurance coverage? Sounds like something you might need, right?
Not always.
Many times the insurance offered by agents duplicates insurance you already have. And at $30 per day, insurance is one of the biggest fees car rental agencies use to boost your bill.
There are at least four kinds of insurance a car rental company may try to sell you:
These coverages are all optional, and in most locations, the company cannot refuse to rent a car to you if you decline them.
If you have comprehensive and collision on your own car, it likely will extend that coverage to a rental vehicle, eliminating the need for a Collision Damage Waiver.
Supplemental Liability Protection is also likely unnecessary. The car rental company already, by law, must carry the minimum liability insurance required and your own policy may provide more coverage. You may wish to get this insurance if you do not own a car.
Personal Accident Insurance and Personal Effects Coverage are usually duplicated in your home, life and health insurance policies.
Important Action: Call your own insurance companies BEFORE you rent a car to find out ahead of time if there is any reason to buy additional coverage. Also call your credit card company. Many credit cards automatically provide car rental insurance as a benefit of using their credit card to pay for the rental -- you just need to find out beforehand.
Finally, be sure that any dents or other problems are clearly marked on your contract before you drive away. You don't want to be charged for someone else's damages!
4. Taxes, Fees and Other Things Your Rental Company May Not Be Telling You
The base fee on your rental may sound great, but to get the REAL price of that rental, you need to know the state sales taxes, local taxes, airport surcharges and licensing fees. Be sure and ask for these before you make your reservation -- or you could be VERY unpleasantly surprised!
A 2005 Travelocity study found that major American airports tacked on an average of 25.8 percent to your total bill in local and state taxes. The worst offender, Houston's George Bush Intercontinental Airport, charged a price 66.1 percent higher than their car rental base price.
Likewise, the airport may charge additional fees -- such as concession recovery fees and customer facility charges -- that can ratchet up the price as much as 10 percent.
Unfortunately, these taxes and fees are hard to avoid -- but you should at least know about them in advance. You might avoid these last fees by renting your car from an off-airport location, but make sure it's worth the inconvenience and any extra transportation expense first.
5. The Fine Print
Some car rental companies charge different rates based on the length of your rental, when you arrive, etc. If your flight is delayed, this can mean your plans -- and your rates -- change.
Car rental companies used to just look the other way -- but now they are more likely to enforce these rules. And these rules are usually buried in the fine print.
So ask them about any charges if your flight is delayed or if there are any other penalty charges -- before you rent. Will there be any drop-off fees if you have to change the airport to which you return your car? What about if you need to cancel your reservation? It's important to understand the costs beforehand so you can make an informed decision.
In summary, car rental base rates sometimes are intentionally low-balled to lure customers to the counter. Don't be fooled. Get the REAL car rental price before booking a reservation, find out your insurance needs ahead of time, and don't pay extra dollars for gas or unnecessary car rental upgrades.
Time to close -- we're off to take a walk. See you next week.
Bogus debt collection agencies, online dating chat robots, and an "Energy Department refund": Internet ScamBusters #263
Before we tell you about today's three Snippets, we wanted to draw your attention to Snippet #2, because it is part of a whole new class of scams that we think will grow exponentially over the next year.
Although this scam will most likely not hit countries other than Russia until February, be sure you check it out -- even if you never visit online dating sites. That's because although this scam is starting via online dating, it will soon move to other venues.
Today's Snippets are:
- Beware Fake Debt Collection Agencies
- A New Type of Scam: Online Dating Bots Flirt Via Chat
- New Scam Notifies People of "Energy Department Refund"
And now for today's Snippets...
Beware Fake Debt Collection Agencies
Aside from vampires, werewolves and zombies, debt collectors are among the scariest creatures ever conjured by the human mind. Just kidding -- sort of.
We say "sort of" because some scammers are using people's fear of being labeled "deadbeats" to extort money from honest, creditworthy consumers.
Posing as a collection agency representative, the con artist will contact a victim by mail, email or telephone, claiming the person owes a specific dollar amount to a particular company.
To convince victims to wire money to pay the "delinquent accounts," scammers will threaten to report "overdue bills" to credit bureaus, take some form of legal action or even drain money from victims' bank accounts without their consent.
Ironically, real "deadbeats" probably wouldn't fall for this scam, since they have no intention of repaying their creditors. But upright citizens may doubt themselves, thinking they've forgotten to pay a bill.
And, because the sums involved tend to be fairly small, some people may be tempted to just pay the "bill" and "get it over with."
Do NOT "pay off" these scammers!
Instead, contact the actual creditor to learn if someone opened an account in your name. This is important because you could be a victim of identity theft -- and not know it.
If there is no delinquent account, contact local police to file an incident report. If possible, record the phone number of the scammer using your caller ID, and then notify your bank.
And don't just assume the caller is a scammer. You may have been a victim of identity theft or mistaken identity. Order a free copy of your credit report from one of the three major credit bureaus and check your history.
Assume nothing -- even if the scammer has lots of information about you, including your Social Security number, address, etc. Then take action to preserve your good credit and your hard-earned money!
A New Type of Scam: Online Dating Bots Flirt Via Chat
A new class of bots (software robots) have found their way onto online dating forums, and we predict this is just the beginning of a new class of scams that will probably grow very fast.
These programs mimic online flirting with the goal of getting victims to provide personal information.
The first of these programs is called CyberLover. Unfortunately, CyberLover is good enough at automating its chat so that victims have a hard time recognizing that it's an automated robot rather than a real person.
Further, CyberLover can establish up to 10 "relationships" in 30 minutes. That means that scammers can use this software to automate the scamming process: rather than having to spend time themselves, they can unleash this software to find hundreds or thousands of victims at a time.
CyberLover can be used for financial and identity theft, as well as leading to "personal" websites that deliver malware.
Currently, CyberLover is targeted at Russian dating sites. However, it won't be long until we see similar bots in other countries (probably next month).
Action: Always use common sense. Don't provide financial or other personal information. And be on the alert that you may be flirting with a robot. 😉
New Scam Notifies People of "Energy Department Refund"
These days, many people are trying to reduce their electric and heating bills -- whether to cut down on their "carbon footprint," save money, or both.
Knowing this, phishing scammers are sending emails to consumers, purportedly from the Department of Energy (DOE), claiming that recipients are entitled to a refund from the DOE of $408.58, reports consumeraffairs.com.
"The DOE believes that the purpose of the scam is to infect victims' computers with malware that will allow hackers to steal sensitive information, such as user names and passwords.
"The subject line of the email says 'User Notification' and informs the recipient that an analysis of their bills shows they are due a refund." To receive the refund -- of course -- the person must click on a link in the message, which then infects the computer.
Here's one simple tip to avoid this scam: Be aware that the DOE does NOT "collect revenues from, or issue refunds to, the general public via email."
In other words, all of these emails are part of the phishing scam, and should be immediately deleted!
You can learn the "basics" about phishing scams in our Phishing Scams: How You Can Protect Yourself article.
That's it for this year, but we'll be back next week with another issue. Happy New Year -- we'll see you then!
10 steps to avoiding a bogus credit card offer: Internet Scambusters #600
Can you spot the difference between a genuine credit card offer and a scam?
We've got 10 things you should be aware of in this week's Scambusters issue, plus information of what to do if you have bad credit.
And in our Alert of the Week we highlight another phony credit card deal -- this time one that comes with bogus airline tickets.
Let's get started...
Why That Great Credit Card Offer Could Be a Scam
It's a pretty safe bet that at some time in the past year -- and lots of times before -- an enticing credit card offer has dropped into your mailbox, either online or at the end of your driveway.
And you've probably had your share of telesales calls offering you similarly "great deals."
Some offers, especially the snail-mail variety, come from genuine card companies -- and mostly they end up in the trash (after being shredded of course -- you do shred them, don't you?).
But some are simply bogus, while others, even if "genuine," impose such restrictions on the user as to render them worthless.
Often they bear a name you've never heard of, or one that sounds similar to, but is slightly different from, a well-known brand.
Usually too, they offer a great deal, like rock bottom interest rates or guaranteed acceptance, even if you have a bad credit record.
That makes such cards very appealing to the very people who can least afford them, but, in truth, any of us might be tempted -- if we don't check them out carefully.
A few months ago, the Office of the Comptroller of Currency warned of "a fictitious entity" calling itself a bank and claiming to be associated with a legitimate bank (which it was not) offering credit cards.
Applicants were told they had to pay an upfront "deposit" of up to $900. Deposit checks were cashed but applicants didn't get a card.
In another incident, people who applied for a card were asked for a substantial fee. When applicants received their cards, they found they could only be used in certain retail outlets and catalogs selling outrageously overpriced goods.
However, it's not always as easy as you might think to detect phony credit card offers.
For instance, referring to the two examples just given, sometimes legitimate issuers will ask people with a bad credit record to pay a deposit and will also usually severely limit the initial line of credit.
These are known as "secured credit cards" and the deposit may be returned after a year of good repayment history.
And, of course, it's certainly not unusual for card issuers to charge an annual fee, though this is usually quite modest, in the $50 to $100 range.
So what can you do to avoid falling for the scam deals?
Here are 10 actions you can take.
Email & Direct Mail
1. A mailed offer should include the name of the "chartered depository institution" behind the offer. Check this with the Federal Deposit Insurance Corporation to see if the bank is registered.
2. A solicitation should include a customer service phone number. Call it and quiz the rep about the bank making the offer. No number? No deal.
3. Most legitimate issuers don't charge application or processing fees. Even if they do, the sum should be just a few dollars. If it's a three-figure sum, skip it.
4. If you must apply for a secured credit card, contact reputable banks or credit unions yourself to make an application, rather than responding to solicitations.
5. Be on your guard if the card on offer seems to be of special status like "VIP," "Platinum" or "Gold."
This is not always a red flag since legitimate companies, such as American Express, do make these offers -- but it is a red flag if it comes from someone you've never heard of and never done business with.
Telesales
6. If it's an automated, recorded call, it's almost certainly a scam since "robocalls" are illegal.
7. If you've registered with the Do Not Call Registry and receive an unsolicited offer, it's likely also a scam because you shouldn't be receiving such calls.
8. If the call seems to come from a bank or card issuer you already do business with, remember that you can't be sure who's really on the end of the line and shouldn't give information or take action based purely on that call.
9. It's also illegal for a third party, such as a telemarketer, to charge an upfront fee for supposedly guaranteeing to get you a card.
10. In general, you don't to pay anyone to get you a credit card anyway. Speak to the card issuers or banks yourself.
That won't cost you a cent and is just as likely to succeed as any third party service.
And, if you do have credit problems, consider getting professional counseling support before applying for cards.
The National Consumers League warns: "Fraudulent credit card companies may also claim that they can repair your bad credit for a large upfront fee. But you can correct inaccurate information in your credit files yourself for free, and no one can erase negative information that is accurate."
Alert of the Week: Did a free pair of "US Airways" tickets just turn up in your mail or inbox along with a solicitation to apply for a free air miles credit card?
Sorry, but the tickets and the card offer are worthless and any information you supply will be used for identity theft. Check out US Airways' Scam Alert page.
Is becoming a mystery shopper to earn money a scam? The truth may surprise you: Internet ScamBusters #194
As we promised, today we have a very special issue for you. Over the years, we've had thousands of subscribers ask us about whether becoming a mystery shopper was a real way to earn money -- or was it just a scam?
Today, we have the answer for you -- and you may well be surprised.
We interviewed Cathy Stucker, who has been a mystery shopper since 1995. She is the author of The Mystery Shopper's Manual, an excellent and very popular book about mystery shopping. In addition to the following interview, you can learn more about mystery shopping at Cathy's website:
We think you'll find that Cathy knows a LOT about the truth about mystery shopping.
The Truth About Becoming a Mystery Shopper
If you assume that every offer to become a mystery shopper is a scam like most of our subscribers do, you're in for a surprise. Today we're delighted to share an interview Audri did with an expert on the topic, Cathy Stucker.
Cathy has been a mystery shopper since 1995 and she's helped thousands of people become mystery shoppers. She was selected by the Mystery Shopping Providers Association to present their Gold Certification Workshops.
Audri: Welcome Cathy!
We're really excited to finally get the real scoop on mystery shopping. We've now been publishing ScamBusters for over 11 years, but we've only mentioned mystery shopping once, and that was in connection to popular home based business scams. Yet, mystery shopping is a topic a lot of our subscribers want to know more about. So let's get started...
Let's begin with: what is "mystery shopping" and what do mystery shoppers do?
Cathy: Mystery shoppers are "undercover customers" who gather information about service, quality, cleanliness and other issues on behalf of business owners. We go into stores, restaurants, banks, apartment complexes, and all kinds of businesses posing as customers.
We ask questions, make purchases, return merchandise and other things that regular customers do, but with a twist.
Mystery shoppers are also making observations about cleanliness, service and other issues. Afterward, the mystery shopper completes a report form.
Audri: Many people think that mystery shopping is a way to get paid for your opinions.
Cathy: That is one of the most common misconceptions about mystery shopping.
As a mystery shopper you're not saying what you thought about the experience; you are reporting what happened.
Most of the questions on a mystery shopping report are yes/no questions. Were you greeted within 30 seconds? Was your order run up correctly? Were you given a receipt?
Audri: And mystery shoppers get paid for this? Who pays them and why?
Cathy: Mystery shoppers are hired by businesses that want to know about their customers' experiences.
For example, if you own a chain of restaurants, you might want to know how long customers wait to be seated, if servers tell customers about the daily specials and suggest additional items, if plates and utensils are clean, if the food is properly prepared, and if customers are thanked and invited to return.
You might use that information to recognize and reward your top performers and to determine training needs and other deficiencies that may exist.
Audri: What kinds of businesses use mystery shopping?
Cathy: Almost any organization that has contact with customers may use mystery shoppers to evaluate how they appear to their customers. That includes retail stores of all kinds, banks, restaurants, hotels, salons and spas, housing (including apartments, new home sales, assisted living facilities and others), health care providers, and others.
Even government agencies get mystery shopped to determine how well they serve their citizen "customers."
Audri: Fascinating. Should someone who wants to be a mystery shopper contact the businesses they want to shop for?
Cathy: Most companies have their mystery shopping programs managed by companies that specialize in mystery shopping.
There are hundreds of mystery shopping companies located all over the world.
Audri: So mystery shopping is legitimate? Frankly, I assumed most of it was a scam.
Cathy: Yes, there are an estimated 2-½ million mystery shoppers working for hundreds of mystery shopping companies.
However, the interest in mystery shopping has brought the scammers out of the woodwork. Anyone interested in mystery shopping should use caution when considering a mystery shopping opportunity, and only deal with legitimate mystery shopping companies.
Audri: So, how can we tell if a mystery shopping company is on the up-and-up?
Cathy: Companies belonging to the Mystery Shopping Providers Association go through an approval process and agree to uphold ethical standards. You can learn which companies are members at the MSPA website.
Do not assume that a company is not legitimate if they do not belong to the MSPA, but if a company is a member of MSPA, then it is a company you can trust.
Audri: So how can we spot a scam?
Cathy: If a company asks you to pay a fee to apply, run.
Mystery shopping companies will not charge you to complete an application. The companies that want to charge you may not always be scams, but they are not mystery shopping companies.
Most of the time they promise that you will get access to jobs by paying them, but you can get access to the same jobs (and better ones) directly from the mystery shopping companies for free.
Be suspicious of outrageous claims. If they tell you that you'll make $50 or $100 an hour, or that you will get to keep free designer clothes, or if they try to make it sound as if mystery shopping is money for nothing, it is probably a scam.
Audri: That makes sense. OK, so mystery shoppers don't make $100 an hour. How much do they earn?
Cathy: Shoppers are typically paid by the job not by the hour.
Shopper pay may range from $8-$10 for a simple assignment, up to $20, $50, $100 or more.
The fee paid to the mystery shopper generally takes into account how much time is required to do the shop and complete the report. Fees may be higher for shops that require specialized knowledge or skill, or for remote locations that are difficult to fill.
Another factor in shopper pay is the amount of any reimbursement included with the shop. Some types of shops, such as banks and apartment complexes, generally would not have any reimbursement because there is no required purchase.
Restaurants typically reimburse the cost of a meal for the shopper and a guest. Some of these shops only provide reimbursement with no additional fee, but your reimbursement might be $60, $75, $150 or more.
Audri: Do mystery shoppers get to keep everything they buy on a mystery shop?
Cathy: Some retail stores do include a small purchase allowance, usually just a few dollars.
The really cool free stuff comes when you are evaluating services. I've had lots of restaurant meals paid for, as well as haircuts at high-end salons, dry cleaning, even getting the oil changed in my car.
Some mystery shops may include free hotel stays, spot services, admission to movie theaters or amusement parks, print and copy services, and lots of other stuff that you either have to or want to buy.
Audri: OK, I understand that mystery shoppers are usually paid by the job, not the hour and that they sometimes get free meals, etc. Can you give our subscribers some range of what they might expect to earn per hour (with and without the free stuff)?
Cathy: There are so many variables that it is almost impossible to give a rate, especially when you consider the free stuff. However, expect that an experienced mystery shopper should be able to make $10 an hour and up.
At first, it takes shoppers longer to prepare, do the shop and the report, but with experience you get more confident and the requirements become more familiar. Also, as you get experience, you qualify for the high-end shops that with fees and freebies provide a much higher rate of return.
Audri: Is it possible to make a living as a mystery shopper?
Cathy: It is possible, and but not easy.
Most mystery shoppers do this part-time or in their spare time, as a way to make extra money.
Full-time mystery shopping would require being very organized and working with a large number of mystery shopping companies.
It would also help to be open to doing assignments other than mystery shops. For example, many mystery shoppers also accept assignments for merchandising, audits, demos, surveys and other market research projects.
Audri: What experience or qualifications does someone need to become a mystery shopper?
Cathy: There is no special training or experience required to be a mystery shopper. What is most important to mystery shopping companies is that you are reliable, observant, and have good writing skills.
If you have experience in customer service, such as working in retail or the hospitality industry, that is helpful but not required.
Audri: I've heard about certification programs. Is it necessary to be certified to become a mystery shopper?
Cathy: There are several different kinds of certification. Many mystery shopping companies require that you go through their certification programs before they will give you assignments. This is just to make sure you've read through all the guidelines and requirements for doing shops and understand them.
There is no charge for these certifications, and they are specific to the mystery shopping company.
The Mystery Shopping Providers Association also provides two levels of certification for shoppers. Silver certification is completed online, and the Gold certification is obtained by attending a one-day workshop. There is a charge for these certifications.
No company requires that you be certified in order to become a mystery shopper for them; however, many MSPA member companies give preference to MSPA certified shoppers when making assignments. (Full disclosure: I present the Gold certification workshops sponsored by the MSPA.)
There are other certification programs available; however, most are not recognized by mystery shopping companies.
Before paying for certification, ask what mystery shopping companies recognize the certification and what the benefits of certification are.
Audri: If someone wants to become a mystery shopper and avoid getting scammed, how should they get started?
Cathy: Mystery shopping is not a full-time job. Shoppers work as independent contractors and take assignments from many different companies.
The best way to get started is to apply to as many mystery shopping companies as possible.
The best way to avoid getting scammed is not to register with any company that tries to charge you a fee to apply.
Audri: What kind of information will mystery shopping companies ask for on the application?
Cathy: In addition to the basic information, such as name, address, telephone number, etc., some mystery shopping applications ask questions that might make you uncomfortable.
For example, applications may include demographic questions such as age, gender, marital status, number of children, and race. These questions are asked so they can match you to available assignments.
For example, shoppers between the ages of 21 and 27 are needed for age verification shops. The shoppers might be asked to go to a store and by alcohol or cigarettes to see if they are asked for identification.
Race is important in matched pair testing. This is where two or more people of different races are sent into a financial institution with identical credit histories to see if they have an identical outcome.
There might even be questions about what kind of car you drive, if you have pets, if you wear glasses, if you own a digital camera, and others that seem ridiculous.
Each question is on the application because one or more of that company's clients need shoppers that match a particular profile.
Mystery shopping companies in the United States will ask for your Social Security number. This is required because they may have to report your income to the Internal Revenue Service.
Before entering sensitive information such as a Social Security number online, verify that you are on a secure site. Look for "https" at the beginning of the URL, and the image of a lock at the bottom of your browser window.
If anything about the site makes you uncomfortable, you may not want to apply and give them your personal information.
Audri: As the publisher of ScamBusters, entering Social Security numbers makes me very uncomfortable. If you have to enter your Social Security number (and I understand why the company needs this info), I recommend that subscribers please do everything they possibly can to make sure they aren't on a scam or phishing site.
Check out our website for more info, including this article on SpoofStick.
Let's move on. How can people find mystery shopping companies located near them?
Cathy: Shoppers may work for mystery shopping companies located in their city or state, or across the country.
What's most important is not where the mystery shopping company is located, it is where they have clients. Unfortunately, it is almost impossible to know which mystery shopping companies need shoppers in your town.
Therefore, the best thing to do is to apply to as many legitimate mystery shopping companies as you can find. Most mystery shopping companies have websites and accept applications online. You can do a search in your favorite search engine for "mystery shopping company" or similar terms to locate sites where you may apply.
Keep your credit card in your wallet, because you will also find many sites that are not mystery shopping companies. Never pay a fee to apply. I recommend applying to at least 20 to 30 companies to start, and then to more as you have time.
Audri: I'd like to propose an even better idea so subscribers know the mystery shopping companies are legit. If you are serious about becoming a mystery shopper, then you should definitely check out Cathy's excellent book, "The Mystery Shopper's Manual."
Here's why I mention it now: when you order Cathy's book, you'll receive a bonus download file with clickable links for more than 100 companies hiring mystery shoppers. That way you don't have to find the mystery shopping companies yourself -- or worry about whether or not they are legit. Click here now.
OK. What about people who are not located in the U.S.?
Cathy: There are mystery shopping companies all over the world. To locate companies in your country, do an Internet search for terms such as "mystery shopping company" and the name of your country.
One more important bit of advice to avoid mystery shopper scams: NEVER cash a certified check and send cash to someone.
This is an old scam (I'm sure you have seen it before), but it is now being used to scam people interested in mystery shopping.
Sometimes the bad guys even use the names of legitimate mystery shopping companies when recruiting via classified ads. Mystery shopping companies will not ask you to cash a check and send the money to them. You will be out all of the money when it turns out that the check was forged or stolen.
Audri: Excellent advice! This is called the "overpayment scam" and subscribers can read more about it here.
Thanks so much Cathy -- this has been great! You've really taken a lot of the "mystery" out of becoming a mystery shopper -- and offered a great deal of excellent advice on not getting scammed. 😉
Overdue bill threats and phony financial aid offers among the most common utility scams: Internet Scambusters #758
Since most of us rely on utility companies for one or more services, it's no surprise that crooks use them to pull off a number of different utility scams.
In this week's issue, we'll tell you about the most common tricks they use and how to avoid them.
We also have details of the Top 10 locations in the U.S. where you're likely to encounter these tricksters.
Let's get started...
5 Utility Scams and Where You're Most Likely to Encounter Them
We all rely on utility companies to supply us with power, heat, water and more -- but some crooks rely on them as a way of cheating us via utility scams.
Although most of their con tricks have been around for years, scammers still know how to make them seem convincing, and they're still responsible for stealing hundreds of thousands of dollars, probably millions, from us every year.
So, this week, we're putting the 5 most common utility scams under the spotlight to remind you of what they look and sound like and what you can do to avoid them.
Overdue Bill Threats
By far the most common utility scam at the moment is the bogus threat to disconnect your power supply because you're supposedly late with your bill payment.
The crooks usually say your power will be cut within a matter of hours unless you send a wire payment -- causing victims to panic into paying, even though they know they're up to date.
Sometimes, the scammers supply another phone number you're supposed to call, and give you a reference number to use before paying by credit card.
This is even worse because you're also running the risk of having your card details stolen and used for other purchases.
Utility firms simply don't operate this way. They don't cut you off without writing several times and then providing written notice of disconnection.
So, if you get a call like this it's 100% a scam. Hang up. But if you feel uneasy about it, call the utility company using the number you'll find on your latest bill.
Bogus Assistance Offers
Scammers use a whole host of tricks to try to convince victims they can save money on their utility bills.
For instance, they may claim:
You're entitled to a grant -- but you'll be asked to pay a fee upfront. There are no such grants and, even if there were, you wouldn't be asked to pay a fee.
You can save money by paying a lump sum in advance -- that goes straight into the scammers' pockets. As far as we've been able to tell, no utility companies offer this type of discount deal to private homeowners or renters.
You can cut your bills by switching to another supplier (in areas where more than one supplier operates).
Sometimes, these are legitimate calls but the offers often don't stand up to scrutiny. Don't make rash decisions on the spot but check details carefully and speak to your current supplier for genuine comparisons.
Tricks to Get Inside Your Home
Would-be thieves use utility scams to try to get inside your home. They may claim they need to inspect some aspect of your electricity, gas, water or even phone connections inside your home.
Once inside, they "case" the home to look for valuable items either to steal straightaway or to burglarize later on.
Alternatively, they may try to get you to come outside to inspect power or water lines while an accomplice goes inside to steal.
The crooks may wear uniforms and even use marked vans to make themselves look legit but, unless it's an emergency, genuine employees won't turn up at your home without writing to you first.
If they claim it is an emergency, take their ID and phone the utility company to confirm their visit is genuine.
If they're crooks, they'll disappear once they know you're going to check them out.
Equipment You Don't Need
Another doorstep trick utility scammers use is to claim you need some special equipment, such as a water filtration or power monitoring system.
In reality, they're just sales reps. They pretend to be from the utility company to make their deal seem genuine and their offer more convincing.
They may well be selling a legitimate product but if they lied to you about who they are or who sent them, the chances are the equipment they're selling will be overpriced, under-powered and probably unnecessary.
Avoid this scam by shutting the door on these pushy sales people. Utility firms simply don't sell equipment door-to-door or even by phone.
If you do want to know if you need special equipment, ask the companies themselves, not the guy on your doorstep.
Power Outage Rescue
Finally -- and this is a new one on us -- we've picked up reports of scammers exploiting power outages.
It first popped up just ahead of Mother's Day but a fake offer of a $50 gift certificate or coupon from home improvement store Lowe's is still making the rounds.
It's appeared in emails and on Facebook, and the offer is used as a come-on to collect personal information from victims.
The coupon looks legit but just think this through -- since when did anyone, including a retailer, offer people $50 for free? It just doesn't happen!
