The 10 biggest scams of 2013The Better Business Bureau was busy last year. Make sure you don't fall for these nefarious schemes in 2014.

Every year, Better Business Bureau receives thousands of calls and emails from consumers who have been scammed ... or from the lucky ones who have dodged scams by being wary. Some scams are widespread, getting a lot of people for small amounts. Others are more narrowly focused, but take people for thousands or tens of thousands of dollars. The Federal Trade Commission’s Consumer Sentinel Data Book estimates that Americans lost $1.4 billion to scams in 2012.

The Council of Better Business Bureaus, the umbrella organization for the 113 local BBBs across the U.S. and Canada, culls its annual “Top Ten Scams” list from a variety of sources, including reports from consumers, some of whom have been victims of scams; from federal agencies; and from other reliable information sources.

According to the BBB, these are the scams that seemed to be the most widespread, aimed at the most vulnerable, growing in popularity, or just plain audacious. These are the BBB’s top 10 scams of 2013.

Medical alert scam

A new twist to the telemarketing scam hit 2013 hard. With promises of a “free” medical alert system, the scam targeted seniors and caretakers and claimed to be offering the system free of charge because a family member or friend had already paid for it. In many cases, seniors were asked to provide their bank account or credit information to “verify” their identity and, as a result, were charged the monthly $35 service fee. The system, of course, never arrived and the seniors were left with a charge they had trouble getting refunded. The BBB says be wary of “free” offers that require your personal information upfront and always verify with the supposed friend or family member that the caller says paid for the service.

Auction reseller scam

Many people turn to eBay and other online auction sites to sell used items they no longer need, and relatively new electronics seem to do especially well. But scammers have figured out a way to fool sellers into shipping goods without receiving payment. Usually the buyer claims it’s an “emergency” of some sort — a child’s birthday, a member of the military shipping out — and asks the seller to ship the same day. The seller receives an email that looks like it’s from PayPal confirming the payment, but emails are easy to fake. Always confirm payment in your eBay and PayPal accounts before shipping, especially to an overseas address.

Arrest warrant scam

In this scam, con artists are taking advantage of technology that can change what is visible on Caller ID, and allowing them to pose as the office of the local sheriff or other law enforcement agency. They call to say there is a warrant out for your arrest, but that you can pay a fine to avoid criminal charges. Of course, these “police” don’t take credit cards; only a wire transfer or prepaid debit card will do. Sometimes these scams seem very personal; the scammer may refer to a loan or other financial matter. It may just be a lucky guess, but don’t be fooled into thinking you are about to be arrested.

Invisible home improvements

Home improvement scams vary little from year to year, and most involve some type of shoddy workmanship from unlicensed or untrained workers. The hardest for homeowners to detect, and therefore the easiest for scammers to pull off, are repairs or improvements to the areas of your home that you can’t see: roofs, chimneys, air ducts, crawl spaces, etc. Scammers may simply knock at your door offering a great deal because they were “in the neighborhood,” but more and more they are using telemarketing, email and even social media to reach homeowners. Helpful videos on YouTube can add legitimacy to a contractor, but consumers have no way of knowing if the video is real or “borrowed” from a legitimate contractor. Check out home contractors before saying yes.

Casting call scam

This isn't as widespread as some other scams, but it seems to be on the increase in recent years, thanks to the popularity of television talent shows like “American Idol” and “Project Runway.” Scammers pose as agents or talent scouts looking for actors, singers, models, reality show contestants, etc., and use phony audition notices to fool aspiring performers into paying to try out for parts that don’t exist. There are several ways this plays out. It can simply be an unscrupulous way to sell acting lessons, photography services, etc., or it can be an outright scam for things like fees for online “applications” or upcoming “casting calls.” Even worse, the information provided on an online application could be everything a scammer needs for identity theft.


Foreign currency scam

Investments in foreign currency can sound like a great idea, and scammers frequently use real current events and news stories to make their pitches even more appealing. They advertise an easy investment with high return and low risk when you purchase Iraqi dinar, Vietnamese dong or, most recently, the Egyptian pound. The plan is that, when those governments revalue their currencies, increasing their worth against the dollar, you just sell and cash in. Unlike previous hoaxes, you may even take possession of real currency. The problem is that they will be very difficult to sell, and it’s extremely unlikely they will ever significantly increase in value.

Scam texts

With online and mobile banking skyrocketing, it isn’t a surprise that scams quickly follow. One major tactic recently is the use of scam texts, known as “smishing,” to steal personal information. They look like a text alert from your bank, asking you to confirm information or “reactivate your debit card” by following a link on your smartphone. Banks of all sizes have been targeted, and details of the scam vary, but the outcome is the same: scammers get your banking information, maybe even your ATM number and PIN. You may even inadvertently download malicious software that gives the scammer access to anything on your phone.

Do-Not-Call scams

The National Do Not Call Registry (U.S.) or the National Do Not Call List (Canada) offer consumers a free way to reduce telemarketing calls. Scammers call anyway, of course, and they’ve even found a way to scam consumers by pretending to be a government official calling to sign you up or confirming your previous participation on the Dot Not call list. In one variation, scammers ask for personal information, such as your name, address and Social Security or Social Insurance number. In another, scammers try to charge a fee to join the registry. Either way, just hang up. These services are free, but sharing personal information with a scammer could cost you a lot.

Fake friend scam

Did you ever get a friend request on Facebook from someone you already thought was your friend? If you hit ‘accept’, you may have just friended a scammer. A popular recent scam has been the theft of people’s online identities to create fake profiles, which can be used in a variety of ways. A new friend can learn a lot about you to scam you later, “recommend” sketchy websites that download malware, use your account to scrap information on your other friends, even impersonate a military officer or other trustworthy person to perpetrate a romance scam. Be careful on social media, keep your privacy settings high, and don’t share confidential information. You can’t always be sure that your friends are really your friends.

Scam of the year: Affordable Care Act scam

Scammers had a field day with the Affordable Care Act, or Obamacare, using it as a way to fool Americans into sharing their personal information. Scammers would call claiming to be from the federal government and saying the would-be victim needed a new insurance card or Medicare card. However, before they can mail the card, they need to collect personal information. Scammers do a lot to make their requests seem credible. For example, they may have your bank’s routing number and ask you to provide your account number. Or, they may ask for your credit card or Social Security number, Medicare ID, or other personal information. But sharing personal information with a scammer puts you at risk for identity theft.




 from MarketWatch

Michigan motorists bent out of shape by potholes, lack of reimbursement
Lansing

Drivers can file claims with state or local road agencies for blown tires, bent wheel rims and other damage in what already has become an especially nasty pothole season. But their chances of collecting are slim.

Hundreds of claims filed with the state since 2010 have resulted in payouts totaling just over $3,300 to six motorists, according to the Michigan Department of Transportation. None of the 128 claims lodged between Oct. 1 and Feb. 14 has been paid, a department spokesman said.

Motorists with pothole damage in Oakland County have fared a little better. Of 75 claims filed since Oct. 1, seven totaling $3,464 have been granted, said Road Commission for Oakland County spokesman Craig Bryson.

The state takes responsibility for interstates and U.S.- and M-designated roadways; the counties are responsible for county roads.

The situation promises to worsen as a result of the extreme freeze-thaw cycle of a frigid winter and continued underfunding of road repairs. Some drivers’ frustrations are boiling over.

“We should be getting something better for all of the money we spend on the roads,” said Archie Fonville, 77, of Ecorse, who wrecked two tires on his 2006 BMW in a pothole encounter on Interstate 75 near Springwell. His November claim for $204.40 was rejected by the State Administrative Board.

Fonville said he was headed to church when the pothole loomed ahead. He couldn’t change lanes because there was truck next to him. He filed a claim for just one tire, he said, because the other one was old.

“I still feel I should be reimbursed in some kind of way,” Fonville said.

Dr. Rudolph Demercurio, a Farmington Hills optometrist, said he feels fortunate to have collected $400 from the state for two blown tires on his Cadillac from a pothole in the same area of I-75 near Springwells on a Friday evening in February 2013. His claim initially was rejected, but approved on appeal.

Demercurio said he was one of eight motorists with disabled vehicles waiting for wreckers along the interstate about 8 p.m. while State Police directed traffic around the pothole, which appeared to have been patched once and reopened.

“You drive around in Ohio, you don’t see the type of potholes we have here,” Demercurio said. “I think it’s poor workmanship, or they just don’t allocate enough money to ever fix the roads.”

Few claims eligible State law says state and local road agencies are liable only for damage from potholes that have gone 30 or more days without repair, or if negligence can be proved. It means drivers whose wheels slammed through jagged paving that appeared overnight or during the past few days are unlikely to be reimbursed.

“State law requires that to prove a highway defect claim, the motorist must show that we failed to maintain the highway in reasonable repair,” said MDOT communications representative James Lake. “They must also show that MDOT knew of the condition and had an opportunity to repair it, or the condition existed for more than 30 days.

“Few claims are eligible for payment because potholes form quickly, and when we become aware of them, we work quickly to repair them,” Lake said. “We don’t want vehicles to be damaged, or anyone to be hurt.”

Of claims paid in the past few years, Lake said, the average claim was $555, with a low of $205.49 and a high of $999.99. The most common types of damage are blown tires, bent rims, damaged suspension or damaged steering, he said.

The State Administrative Board, not MDOT, makes the final decision if a claim for less than $1,000 is rejected and the driver appeals. MDOT’s data show that in addition to the six claims paid since 2010, another 44 were rejected on appeal to the State Administrative Board, whose members are the governor, lieutenant governor, secretary of state, attorney general, state treasurer, superintendent of public instruction and transportation director.

Drivers with damage exceeding $1,000 have to file complaints with the Michigan Court of Claims in Lansing.

Other states handle pothole claims differently. In Ohio, drivers with damage worth $10,000 or less file with the Ohio Court of Claims. According to the Ohio Supreme Court’s news site, drivers must show the state highway department had been notified of a pothole and failed to repair it.

The Ohio Court of Claims administrator decides if damages will be awarded after an 81-day process in which the highway department is allowed to file an investigative report and the motorist can reply to the report. If the claim is denied, the motorist can appeal to the claims court judge.

The Illinois Department of Transportation requires “prior notice” and “an adequate length of time to remedy or repair the condition.”

Road funds lacking The normal pothole season still is a couple of weeks away, but Michigan’s rugged roads already are taking a toll and creating business for tire and repair shops.

“We have a whole stack of broken rims and split-open tires from our customers hitting potholes,” said Keith Fenwick, senior assistant manager at a Discount Tire store in Auburn Hills.

Macomb County Executive Mark Hackel said drivers’ troubles with potholes are likely to grow because the Legislature hasn’t approved the funding necessary to fix roads as fast as they’re deteriorating. A Legislature-sponsored study in 2011 showed an investment of at least $1.2 billion more per year is needed now.

“Roads are not getting funded properly year after year, and we’re still waiting for the Legislature to come up with a funding formula for it,” Hackel said.

The 2011 study showed by early the next decade the state should be spending nearly $2.5 billion more per year for repairs on state roads — let alone local roads.

Gov. Rick Snyder repeatedly has called for action on more infrastructure spending, but leaders in the House and Senate have said again this year it’s unlikely lawmakers will approve the necessary tax hikes or changes. At best, it appears they’ll use $200 million to $300 million of a nearly $1 billion state surplus to boost the road repair budget.

The situation led Hackel in late January to make public a promise for prompt response to all calls received by the county dispatch center about pothole damage to vehicles.

“We will get a crew out there and fill it within an hour, day or night,” Hackel said. “We’re not going to wait and put it on a list.”

The Macomb County executive’s pledge is prompted in part by his own experience. Three weeks ago, he hit a pothole that wrecked a tire on his vehicle on 23 Mile near Interstate 94. Coincidentally, he said, it happened in front of a tire store.

State pothole claim process Applicants for state reimbursement on pothole or “highway defect” claims must meet several criteria to qualify for payment:
■ The pothole must be located on a highway with an M, I or U.S. prefix.
■ The motorist must show the state failed to maintain the highway in reasonable repair.
■ The driver must show MDOT knew of the condition and had an opportunity to repair it, or the condition existed for more than 30 days.
■ Claims for less than $1,000 must be submitted to the MDOT regional office or transportation service center that covers the county where the incident occurred. If a claim is for $1,000 or more, it must be filed with the Michigan Court of Claims in Lansing.
A claim form and instructions are available on the MDOT website at: http://www.michigan.gov/mdot/0,4616,7-151-9615_30883-93194--,00.html.
Source: Michigan Department of Transportation

How to report a pothole ■The Pothole Hotline is 888-296-4546.
■ “Report a Pothole” is the first link in the Michigan Department of Transportation’s Spotlight section at www.michigan.gov/mdot.
■196 state highway potholes have been reported to MDOT this year.
Source: Michigan Department of Transportation



From The Detroit News

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