BBB Buzz

BBB Advice on the Layaway Process

The current economy has left many shoppers on a budget and searching for more affordable methods of paying for big-ticket items and holiday gifts. This holiday season, many families will be turning to alternate forms of payment to make ends meet. With many stores offering layaway services, the Better Business Bureau of Minnesota and North Dakota (BBB) is offering advice on how to use this payment plan in lieu of credit cards.

Once considered a dated, old-fashioned method of payment, layaway services are back in vogue, with many businesses now dusting off their layaway plans for today’s beleaguered consumers. Buying items on layaway is different from putting them on a credit card because the buyer isn’t charged interest on the purchase and can’t take the item home until it is paid off. When purchasing items on layaway, the buyer must typically make a down payment of 10 to 20 percent and pay any service or plan fees for the store to hold the item for them. The customer then typically has 30 to 90 days to make periodic payments to pay off the balance. Once it is paid off, the customer can take the items home.

“Layaway services can be a great alternative to the using a credit card,” said Dana Badgerow, president and CEO of the BBB. “However, it’s extremely important that customers take note of the fine print and understand all the terms.”

As a complement to in-store layaway, some stores provide online layaway services for purchasing items through the retailer’s website. Additionally, third-party businesses have sprung up for the purpose of setting up layaway plans online between customers and retailers that don’t already have a layaway program. Customers make periodic payments to the third-party layaway service provider. Once the item is fully paid for, the business then buys the item from the retailer and ships it to the customer.

When buying items on layaway, the BBB advises consumers to get everything in writing and offers the following checklist of questions to ask:

• How much time do I have to pay off the item?

• When are the payments due?

• How much do I have to put down?

• Are there any storage or service plan fees?

• What happens if I miss a payment? Are there penalties? Does the item return to inventory?

• Can I get a refund or store credit if I no longer want the item after making a few payments?

• What happens if the item goes on sale after I’ve put it on layaway?

• Does the retailer or third-party layaway service have a good BBB rating?

For more advice on how to be a savvy consumer this holiday season, visit www.bbb.org/us/bbb-news.

The mission of the Better Business Bureau is to be the leader in building marketplace trust by promoting, through self-regulation, the highest standards of business ethics and conduct, and to instill confidence in responsible businesses through programs of education and action that inform, assist and protect the general public. Our hours of operation are 8 a.m. to 5 p.m. Monday through Friday. Contact the BBB at www.bbb.org or 651-699-1111, toll-free at 1-800-646-6222.

2011 Better Business Bureau Integrity Award Recipients Announced

The Better Business Bureau of Minnesota and North Dakota (BBB) announced the recipients of the 2011 BBB Integrity Awards at a ceremony held at the Guthrie Theater in Minneapolis last week. This year’s keynote speaker was Ron James, the President and CEO of the Center for Ethical Business Cultures at the University of St. Thomas. Best Buy was the presenting sponsor.

“The Integrity Awards celebrate businesses that share our mission of advancing marketplace trust,” said Dana Badgerow, President and CEO of the BBB of Minnesota and North Dakota. “We salute the commitment to ethics this year’s winners and all of our finalists have made.”

The 2011 Integrity Award winners are:

• Category I (1-10 Employees): Boy’s Electric. Boy’s Electric in Eden Prairie, MN is a local, family-owned company with electricians that have been serving Minneapolis, St Paul, and Waconia and surrounding areas for over 20 years.

• Category II (11-50 Employees): Latuff Brothers Auto Body. Latuff Brothers Auto Body in Saint Paul, MN is a family-owned auto body shop that was founded locally by the Latuff family in 1933.

• Category III (50+ Employees): North Star Resource Group. North Star Resource Group in Minneapolis, MN offers individuals and businesses a comprehensive range of resources to promote long-term financial well-being.

Businesses that were chosen as finalists were: Kammaron Design, Inc., Minneapolis, MN; Mark O. Finney, DDS, New Brighton, MN; Seraphim Communications, Saint Paul, MN; Waterfilters.net, Zumbrota, MN; Lumber One, Avon Inc. Avon, MN; Park Dental, Roseville, MN and State Bank & Trust, Fargo, North Dakota.

Winners of the Student of Integrity Scholarships, which are awarded to high school seniors who demonstrate – through essay – their understanding of integrity and how they have applied that in their lives, were also announced. Judges’ decisions are based on the students’ commitment to ethics and integrity, rather than their grade point average.

“This scholarship is unique because it is based on the student’s personal experience and the choices they’ve made,” said BBB Event Coordinator Mackenzie Kelley, who oversees the scholarship awards. “Once again, our scholarship applicants this year clearly demonstrated they understand the importance of doing the right thing.”

Winners of this year’s Student of Integrity Scholarships are:

• Hawi Tilahune, Coon Rapids High School – $5,000
• Valentina Benito-Correa, Benilde-St. Margaret’s High School – $2,500

The BBB Integrity Awards are presented each year to companies who exemplify ethical behavior and display integrity in all aspects of their operations; toward their employees, vendors, customers, and within their community. Companies must also uphold BBB standards. Winners are chosen by an independent panel of judges. Nominations are currently being accepted for the 2012 BBB Integrity Awards and may be made by customers, vendors, or even the company itself.  Visit www.thefirstbbb.org for more information or call Mackenzie Kelley at 651-695-2482.

The mission of the Better Business Bureau is to be the leader in building marketplace trust by promoting, through self-regulation, the highest standards of business ethics and conduct, and to instill confidence in responsible businesses through programs of education and action that inform, assist and protect the general public. Our hours of operation are 8 a.m. to 5 p.m. Monday through Friday. Contact the BBB at www.bbb.org or 651-699-1111, toll-free at 1-800-646-6222.

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BBB Announces Integrity Award Finalists

The Better Business Bureau of Minnesota and North Dakota (BBB) is proud to announce the 2011 finalists for the prestigious Better Business Bureau Integrity Awards. The 12^th Annual Integrity Awards ceremony, presented by Best Buy, will take place Monday, October 24 at the Guthrie Theater in Minneapolis from 6 – 9 p.m.

The BBB presents the Integrity Award each year to companies who exemplify ethical behavior and display integrity in all aspects of their operations; toward their employees, vendors, customers, and within their community.  The Integrity Award is open to all for-profit businesses located within the Minnesota and North Dakota region. Each year, the BBB invites anyone to nominate a company they feel demonstrates exceptional ethics. Nominees are then offered the opportunity to submit an entry to the BBB, where a panel of independent volunteer business and community leaders review the entries and choose the winners. Companies compete in different categories based on number of employees.

The 2011 BBB Integrity Award finalists are:

• Category I (1-10 employees):

Boy’s Electric, LLC, Eden Prairie, MN

Kamarron Design, Inc., Minneapolis, MN

Mark O. Finney, DDS, New Brighton, MN

Seraphim Communications, Inc., Saint Paul, MN

• Category II (11-50 employees):

Latuff Bros., Inc., Saint Paul, MN

Lumber One, Avon Inc., Avon, MN

Waterfilters.NET, Zumbrota, MN

• Category III (51+ employees):

North Star Resource Group, Minneapolis, MN

Park Dental, Roseville, MN

State Bank & Trust, Fargo, ND

“The Integrity Award is a high honor, and we take great pride in presenting it to the worthy businesses in our region that embody ethics and integrity,” said Dana Badgerow, President and CEO of the BBB of Minnesota and North Dakota. “These companies remind all of us in the business community about the importance of sound practices and putting customers first.” Recipients of this year’s Integrity Award will be announced live at the event on Monday, October 24 at the Guthrie Theater, 818 South 2nd Street, Minneapolis.

This year’s keynote speaker is Ron James, the President and CEO of the Center for Ethical Business Cultures at the University of St. Thomas. Prior to this, James was president and CEO of Human Resources Group, a division of Ceridian Corp. He also served as Minnesota’s top executive officer at US West Communications Inc. He teaches business ethics for graduate programs at the University of St. Thomas. In addition to serving on many boards, including Best Buy Corp., Allina Hospital and Clinics, and the Greater Twin Cities United Way, he participated in President Bush’s economic forum focusing on corporate responsibility and restoring trust and integrity to the American business system.

Tickets for this event are available to the public and can be purchased online at www.thefirstbbb.org/registration or by contacting Mackenzie Kelley at mkelley@thefirstbbb.org or 651-695-2482. Pre-registration is required.

Early bird tickets (dinner included) are available at the following rates until October 1st:

• Accredited Business pricing:
  • Individual tickets are $65
  • 10 tickets for $585
  • Non-Accredited Business pricing
    • Individual tickets are $85
    • 10 tickets for $765

After October 1st, individual ticket prices will be $70 and $90, 10 tickets will be $630 and $810, respectively.

This is the fifth year that the BBB will present its Student of Integrity Scholarship Awards to high school seniors who demonstrate (through essay) their understanding of the impact ethical decisions have had on their lives. One $5,000 and one $2,500 scholarship will be presented to students to use towards the colleges of their choice.

“These scholarships are a wonderful way to reward students who have faced moral dilemmas but have found the inner strength necessary to do the right thing,” said Lisa Jemtrud, Foundation Director for the BBB.

Best Buy is the 2011 Integrity Awards presenting sponsor. Additional sponsors for the event are: Think Mutual Bank; Clear Channel Radio; The Minneapolis/St. Paul Business Journal; ABRA Auto Body & Glass; Financial Concepts, Inc; CenterPoint Energy; Northland Group; Memory Vision and Rippe Print. 2011 Student of Integrity Scholarship sponsors are: Custom Remodelers, Inc; Hubbard Broadcasting; BBB Center for Character Ethics and Valley Pools & Spas.

The mission of the Better Business Bureau is to be a leader in building marketplace trust by promoting, through self-regulation, the highest standards of business ethics and conduct, and to instill confidence in responsible businesses through programs of education and action that inform, assist and protect the general public. Our hours of operation are 8 a.m. to 5 p.m. Monday through Friday. Contact the BBB at www.bbb.org or 651-699-1111, toll-free at 1-800-646-6222.

Would-be Pet Owners Nipped by Scams

Pet lovers seeking new canine companions are often surprised, and sometimes discouraged, to discover how expensive a purebred puppy or dog can be. Purebreds can cost anywhere from hundreds to thousands of dollars, not including veterinary, shipping and pedigree costs. That’s why the Better Business Bureau of Minnesota and North Dakota (BBB) is cautioning consumers to watch out for classified ads offering purebred puppies for free or at prices that seem too good to be true.

Earlier this month a classified ad ran in Penny Savers USA, an online portal for online classifieds and coupons, offering free Yorkshire terrier puppies – a breed that typically sells for $250-$2,000 apiece.

The advertiser was listed as having locations in Minneapolis and Duluth. The consumer who reported this questionable ad to the BBB also stated that when she emailed the advertiser to express interest in adopting a puppy, they assured her they would cover all fees. However, shortly afterwards, when she received an email stating that the breeders were at the airport ready to ship the puppies but needed $170 for “ownership transfer,” she suspected the offer was a scam – and she was right.

Puppy scams often hook people with offers of free puppies, collect money for bogus fees, such as shipping or ‘ownership transfer,’ and then never deliver the advertised puppies or dogs. Many of these scams originate in Africa, especially Cameroon. This May a student in Minnesota lost over $1,000 to one of these scams when they tried to purchase a puppy online. The business listed itself as having a Minneapolis address but was actually operating out of Cameroon.

In some cases people selling a puppy or dog are at risk of becoming the victim of a scam. An individual who placed an ad in the Duluth News Tribune to sell puppies contacted the BBB recently to report that they had been contacted by a scammer. The email the seller received from the scammer, who claimed to be hearing impaired and only able to communicate through text or email, was rife with grammatical errors, and offered to send “a certified check or money” to cover the cost of the dog plus shipping costs. The scammer instructed the seller to cash the check immediately, deduct the sale price and send the amount of the shipping fee to “the head office of the company that handles shipment via Western Union.” Had the seller followed those instructions, they would have discovered the check was no good and they would have been out the shipping fees they had inadvertently wired to the scammer.

The BBB offers the following tips to avoid scams when you’re looking to adopt or sell a pet:

• Beware of ads with multiple misspellings and grammatical errors; many pet scams come from overseas, particularly Africa, so scammers usually do not have a good grasp on the English language.
• When selling a pet, never deal with people who offer to send you a check for more than the requested amount under the conditions that you wire the extra money back to them or any of their affiliates, such as deliverers or handlers. A good rule to follow is never wire money to people you don’t know.
• If purchasing a pedigreed pet, be sure the breeder provides documentation of the parents’ registration with the American Kennel Club. This ensures that the pet is in fact a legitimate pure-bred animal. It is then your responsibility to register your pet with the American Kennel Club.
• After purchasing a purebred pet, keep all paperwork including receipts, proof of registration and proof of parents’ registration.
• Bring all pets to see a veterinarian immediately for an independent examination, any necessary shots, and to establish a baseline for later health care.
• When purchasing from a pet store, be sure to ask for a detailed history of the pet’s origin. Unfortunately, some pet stores supply from unsafe and inhumane puppy mills.
• The Humane Society offers healthy pets for free, but keep in mind that previous ownership may influence a pet’s demeanor. Some adopted pets have been subject to abuse, neglect, or poor conditioning. Be prepared to commit time and patience to helping your new pet adjust to his/her home.

BBB Advises Businesses to watch for Bogus Billings

The Better Business Bureau of Minnesota and North Dakota (BBB) is being contacted by businesses in Minnesota and North Dakota regarding unexplained bills from a company called Minneapolis Classified Publishing. The businesses contacting the BBB say they have not dealt with this company and believe the billings are fraudulent.

“Based on what we’re hearing from business owners, we have definite concerns about this company and their billing practices,” said Dana Badgerow, president and CEO of the BBB.

Copies of bills forwarded to the BBB show Minneapolis Classified Publishing makes no effort to substantiate the charges, ranging from $400 to $500, outside of some vague language regarding an ‘initial set-up fee.’  In an effort to learn more about this company, the BBB called the toll-free number at the bottom of the invoices in question. An operator answered, ‘Career Classified Publishing Corporation,’ which is a company located in Chicago, Illinois. That company has a C rating with the BBB of Chicago, with six complaints filed against them – two of which have been closed as unresolved. Five of those complaints involved billing issues.

The BBB is advising businesses who receive bills from Minneapolis Classified Publishing not to pay them, and to report them to the U.S. Postal Inspection Service at 1-877-876-2455.

It’s against U.S. Postal Service regulations to mail a bill or invoice that is actually a solicitation, unless it bears a clear disclaimer that the unsolicited invoice is for information only and not a request to pay. The best protection against phony invoices is knowledge and vigilance. Businesses should alert their accounts payable staff to be on the lookout for disguised solicitations; carefully review invoices from companies with which they do not normally do business; establish effective internal controls for the payment of invoices, and verify all invoices with the person who authorized the charges.

If you receive a bill or solicitation you believe to be fraudulent, contact the BBB at 1-800-646-6222.

The mission of the Better Business Bureau is to promote, through self-regulation, the highest standards of business ethics and conduct, and to instill public confidence in responsible businesses through programs of education and action that inform, protect and assist the general public. Our hours of operation are 8 a.m. to 5 p.m. Monday through Friday. Contact the BBB at www.bbb.org or 651-699-1111, toll free at 1-800-646-6222.

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BBB cautions consumers on “Penny Auctions”

Online “Penny Auctions” are quickly gaining popularity, and though they claim to offer consumers the opportunity to win quality merchandise at low prices, the Better Business Bureaus of Minnesota and North Dakota and Central Florida (BBB) are reminding people that purchasing bids only provides consumers the right to bid on an item; they do not guarantee any product in return. The BBB has also noted an uptick in consumer complaints regarding penny auction websites recently.

“Penny auctions” typically work like this: consumers visit websites where they’re told they can win auctions and receive products at exceptionally cheap prices, like a new iPad for $80. They then buy “packets” of bids at a particular rate, such as $1 per bid. If a consumer buys 100 bids, then that person is giving the website $100 straight away, which gives him/her an opportunity to bid 100 times, but does not guarantee any product in return. According to Moneywatch.com, consumers must pay a fee of 50 cents to $1 each time they bid, depending on the site, and each new bid extends the auction time by fifteen seconds. So while an eBay auction with two minutes left will end in exactly 120 seconds, a penny auction with 15 seconds left could go on for several hours – as bidders watch their account balances shrink.

One penny auction website – Grabswag.com – advertises frequently through Facebook pop-up ads and falsely claims BBB Accreditation. Complaints indicate Grabswag’s website claims to offer ten “absolutely free” bids for new customers who sign up with them. However, while conducting a secret shopping investigation recently, Dana Badgerow, president and CEO of the BBB of Minnesota and North Dakota, discovered the site required a credit card number and other personal information in order to receive the “absolutely free” bids. Shortly thereafter, Grabswag billed her account for $99, which is the price for a “Starter Pack.” When she tried to cancel after noticing the charge, the company’s call center (which is located in the Philippines and operated by a third party) refused to provide a refund in full but instead proposed successively better “resolutions,” going from offering a 50% refund to a 75% refund. Though Grabswag maintained they do not grant full refunds, they eventually agreed to issue a full credit.

“The company’s terms and conditions did not disclose any charge upfront, which is a huge concern,” said Badgerow. “What’s also concerning is that in some Internet browsers the terms and privacy policy do not open or allow the reader to scroll past the first paragraph. People have no way of knowing what they’re getting into.”

The BBB of Central Florida currently maintains the report on Grabswag’s parent company, Nextown Technologies, LLC. There is an alert on Nextown Technologies’ profile regarding the non-disclosure of the $99 charge, as well as pending complaints with that Better Business Bureau, all having to do with that concern.

The Better Business Bureau and the Federal Trade Commission advise customers to use caution when dealing with pay-to-bid online auction sites and offer the following tips:

• Always refer directly to www.bbb.org for legitimate business ratings. Click on any website’s BBB Accreditation logo to view their BBB profile; if you are not directed to a BBB profile, the business is claiming false Accreditation. Also, verify the seller’s identity and check on their reputation. Some sellers may use a forged e-mail header, making it impossible to contact them if you need to.
• When you find a site that you feel comfortable doing business with, watch several auctions without bidding as a way to give yourself a frame of reference as to how the site works. It’s important to pay close attention to what you’re bidding on and how much time is left – every time a bid comes in, several seconds gets added onto the end of the auction, so save your bids until it’s close to the end.
• Remember that bids ONLY provide the consumer the right to bid on an item, and do not guarantee any product in return.
• Do not accept any offers to “free” trials that require a credit card number or personal information.
• Be cautious if the seller asks you to pay by check or money order. Some online sellers have put items up for auction, taken the highest bidder’s money and never delivered the merchandise. What’s more, consumers who have paid by certified check or money order have had little recourse when it came to getting their money back.
• Try to pay by credit card. If you don’t get the merchandise, you can challenge the charges with your credit card issuer.
• Ask about using an escrow agent, or paying by COD. Most escrow services charge a fee, so you may want to consider this option only for larger purchases.
• Ask how you’ll get follow-up service, if you need it. Many sellers don’t have the expertise or facilities to provide service for the goods they sell. Is this important to you?
• Avoid impulse bids and purchases. Online auctions may be enticing, but always research the product before bidding to understand a fair price.
• Ask about return policies. Returning merchandise to an online seller may be difficult.

For more information about online auctions, visit the FTC’s web site on the Internet at www.ftc.gov.
Reporters: for more information or to schedule an interview with a BBB of Minnesota and North Dakota spokesperson, contact Dan Hendrickson at 651-695-2463. To speak with a BBB of Central Florida spokesperson, contact Holly Salmons at 407-478-2958.

The mission of the Better Business Bureau is to promote, through self-regulation, the highest standards of business ethics and conduct, and to instill public confidence in responsible businesses through programs of education and action that inform, protect and assist the general public. Our hours of operation are 8 a.m. to 5 p.m. Monday through Friday. Contact the BBB at www.bbb.org or 651-699-1111, toll free at 1-800-646-6222

Sweepstakes Scam has Duluth Tie

A sweepstakes scam which conned a consumer in Roanoke, Virginia recently leads back to Duluth, Minnesota. The Better Business Bureau of Minnesota and North Dakota (BBB) was contacted by the BBB of Western Virginia last week after a consumer in their area reported mailing a money order to someone in Duluth to pay fees on purported sweepstakes winnings of $1.5 million dollars. The winnings were non-existent and the consumer lost the money they sent to the Duluth address.

The BBB advises consumers to be extremely leery of letters, faxes, emails or phone calls telling them they’ve won prizes, lotteries or sweepstakes. “Sweepstakes scams are prevalent nationwide and they tantalize people with promises of instant wealth for relatively low upfront payments,” said Dana Badgerow, president and CEO of the BBB. “For a chance at a big payday, many people figure laying out $500 to $3,500 of their own money is worth any risk. We’re here to tell you it’s not.”

In the case of the Roanoke consumer, they were contacted by phone and told they had won the prize of $1.5 million dollars. Originally, they were told they would need to pay $3,500 upfront to receive their winnings, but the consumer told the scammers they couldn’t afford that. After settling on a fee of $250, the consumer mailed that amount to a Duluth address. According to the United States Postal Inspection Service (USPIS), which investigated this matter, there is an individual in Duluth actively participating in this scam. This individual is believed to be keeping a small portion of payments they collect and wiring the rest to Jamaica, a hotbed for scams targeting Americans. This person has been warned their mail will be monitored and that they run the risk of being arrested if they continue to process payments from victims of this scam.

“Postal Inspectors want to remind individuals if you are contacted by anyone that directs you to send money to pay for a prize or sweepstakes that you have won, odds are it’s a scam,”said U.S. Postal Inspector Jeffery Long. “Before you send money away, run the offer by a friend or family member to see if they think it’s a good idea. Always be sure to do your homework first.”

Sweepstakes and lottery scams steal millions of dollars from unsuspecting people every year. Legitimate lottery or sweepstakes companies will never ask you to pay money upfront in order to collect your winnings. They will also not ask you for personal information. If you receive any form of notification that you are a prize winner in a lottery or sweepstakes, contact the BBB (www.bbb.org) and check it out before you become the next victim of this type of scheme.

If you fall victim to a sweepstakes scam, report your experience to local law enforcement. If the mail service was involved, you should contact the USPIS at https://postalinspectors.uspis.gov/.

The BBB is also warning consumers not to take part in perpetrating sweepstakes scams. People sometimes respond to job postings they find online offering employment processing payments or shipping merchandise from their homes. They often don’t realize they’re going to work for scammers and their ‘job’ involves forwarding payments from scam victims or reshipping stolen merchandise (or merchandise paid for with stolen credit cards) out of the country. Worse, their compensation is a small portion of the illicit proceeds they forward on to the operators of the scam or a flat payment for each order they re-ship. According to the USPIS, people who assist criminals in schemes like this are committing a felony. To avoid becoming tangled up in a reshipping scam, consumers are advised to steer clear of any questionable employment offers and not to accept packages at their address for people they don’t know.

If you’ve been tricked into participating in one of these reshipping scams, you should:

• Cease communication with operators who try to solicit your help in reshipping items.
• Keep all correspondence (emails, faxes, etc.) related to these scams.
• If you already have merchandise from such an offer, don’t mail it. Contact the U.S. Postal Inspection Service at 1-877-876-2455. They’ll help return stolen items back to the rightful owners.

The mission of the Better Business Bureau is to promote through self-regulation, the highest standards of business ethics and conduct, and to instill public confidence in responsible businesses through programs of education and action that inform, protect and assist the public. Contact the BBB at www.thefirstbbb.org or 651-699-1111, toll-free at 1-800-646-6222.

Online Scammers Turn to Reloadable Debit Cards to Defraud Consumers

The Better Business Bureau of Minnesota and North Dakota (BBB) and the Minnesota Department of Public Safety’s (DPS) Alcohol and Gambling Enforcement Division (AGED) are warning consumers that online thieves have found a new method of siphoning cash from them: Green Dot MoneyPaks. MoneyPaks, which are sold in stores throughout the U.S., are reloadable debit cards normally used to make same-day payments or add money to prepaid cards or PayPal accounts. In recent weeks, both the BBB and the DPS have noted a significant increase in schemes where scammers either tried to solicit or were able to collect payments via MoneyPak for merchandise, advance fee loans or sweepstakes prizes that all proved to be fraudulent or nonexistent.

“Both of our agencies are noticing that more and more scammers are moving away from seeking payments via wire transfer and instead asking consumers to give them money via MoneyPaks,” said Dana Badgerow, president and CEO of the BBB. “We feel this is likely due to the fact this form of payment is quite convenient for both consumers and scammers — and untraceable.”

The BBB and DPS say any website requesting payment via a MoneyPak is likely a scam. They also say people should be very cautious when using MoneyPaks to pay companies or individuals they don’t know, and want people to understand that once they load a MoneyPak with funds, anyone they share the number of that card with will also have access to those funds.

Bill White, an agent with AGED, says fraudsters will convince consumers to put money into their MoneyPak card, get them to share its serial number, and then the scammers empty the card of funds, leaving consumers empty-handed.

“These scammers are smart and are extremely effective at gaining trust of their victims and convincing them they’ve won a prize,”says White. “The base rule to avoid being scammed is to understand that legitimate lotteries do not require you to pay fees upon winning. In this specific case, never give a MoneyPak serial number to anyone you don’t know.”

In the last two weeks alone, the BBB and DPS have received reports from consumers who:

• Were asked to pay advance fees on bogus loans with MoneyPaks.

• Were told they had won cash prizes of hundreds of thousands of dollars, but would first have to provide payment via MoneyPaks to claim their winnings.

• Purchased heavily discounted home exercise equipment they found advertised on a fraudulent website (www.directhomefitness.com), but after paying hundreds of dollars for it with a MoneyPak discovered the merchandise was nonexistent.

To avoid falling for MoneyPak scams, consumers should:

• Be wary of websites or Craigslist advertisements linking to websites where customers are asked to pay with a MoneyPak card.

• Never give their MoneyPak number to someone they don’t know.

• Keep in mind advance fee loan offers are not legitimate and are targeted at customers and companies who are struggling with debt and poor credit, often making bad situations worse.

• Remember that if you’re told you have pay to a fee  via MoneyPak or wire transfer – to collect a cash prize or sweepstakes winnings, you haven’t won anything.

• Avoid offers that do not accept credit card payments and ask you to purchase a MoneyPak and then provide the MoneyPak number in an email or over the phone.

• Beware of websites requesting MoneyPak as a form of payment even if they display the MoneyPak or Green Dot logo. Consumers should check www.moneypak.com for a list of approved MoneyPak partners.

• Treat their MoneyPak cards like cash. Remember that transactions cannot be reversed.

On their website, Green Dot says MoneyPaks should only be used to reload prepaid cards or accounts you control. They also advise people who are using MoneyPak with PayPal for eBay or other online merchants to transfer money to their PayPal account before paying the merchant; people should not email the MoneyPak Number directly to the merchant. Green Dot also states they are not responsible for the quality or non-receipt of any goods or services.

Consumers who have been scammed by fraudulent offers involving Green Dot MoneyPaks should contact their local law enforcement and file a claim, as well as file complaints with the Minnesota Department of Public Safety (www.mnscams.org) and the FTC (www.ftc.gov).

Another Advance Fee Loan Company Claims Fargo Address

After issuing an alert last week about Fraser Brokerage, a fraudulent online entity claiming to offer consumers advance fee loans, the Better Business Bureau of Minnesota and North Dakota (BBB) has discovered another company, Wakefield Financial, making the same fraudulent offer and also claiming a Fargo address. The BBB has already received four complaints against Wakefield Financial, and in each case consumers wired advance fees and then never received the loans they were never promised.

“Two fraudulent companies like this each claiming a Fargo address in this short of a time period is very unusual,” said Dana Badgerow, president and CEO of the BBB. “But we feel it means the scammers know the Fargo-Moorhead business community is comprised of trustworthy, ethical companies, and thus pretending to be located there will give their false claims more credence.”

Many companies advertise easy loans online at favorable rates, and then seek payments from consumers in advance to secure these alleged loans. Unfortunately, these loan offers are not legitimate and are targeted at customers and companies who are struggling with debt and poor credit, often making bad situations worse. It is the experience of the Better Business Bureau that customers who pay these upfront fees never receive their loans. Generally, once the requested fees are paid the companies making the offers cease contact or their phone numbers are eventually disconnected.

The BBB of Minnesota and North Dakota has awarded Wakefield Financial a rating of “F” due to their nature of business.

To avoid falling victim to advance fee loan offers, the BBB advises the following:

• If you’re asked to pay a fee upfront or wire funds (or send money via MoneyPak) to receive your loan, the offer is not legitimate. According to the Federal Trade Commission, it’s illegal for companies doing business by phone in the U.S. to promise you a loan and ask you to pay for it before they deliver. Requiring advance fees for loans is also illegal in Canada.
• Be especially leery of websites that provide no contact information and promise fast, easy loans to all who apply regardless of credit.
• Be sure to check the company’s Business Review with the Better Business Bureau at www.bbb.org.
• Remember, the Internet is full of bogus offers. If it sounds too good to be true, it probably is!

The mission of the Better Business Bureau is to promote through self-regulation, the highest standards of business ethics and conduct, and to instill public confidence in responsible businesses through programs of education and action that inform, protect and assist the public. Contact the BBB at www.thefirstbbb.org or 651-699-1111, toll-free at 1-800-646-6222.

Advance Fee Loan Company Claims Fargo Address

The Better Business Bureau of Minnesota and North Dakota (BBB) is warning consumers and businesses to be wary of an advance fee loan company calling itself Fraser Brokerage, which claims a Fargo address. The address the company is claiming, 51 Broadway, is the same as the BBB’s Fargo office. After a quick check of the building and its listed tenants, the BBB has determined the company is not at this address and the suite number they provided does not exist.

“Most offers like this require a little legwork to look into,” said Dana Badgerow, president and CEO of the BBB. “However, in this case, a quick elevator ride was all we needed to do to confirm the company was not where they said they were, a clear indication they are not a legitimate organization.” A BBB representative who contacted the company at their listed number in a separate attempt to verify their address was hung up on.

A consumer contacted the BBB last week to say Fraser Brokerage had offered them a $5,000 loan, but first the consumer would have to make four payments of $147 upfront, a hallmark of an advance fee loan scam. Many companies advertise easy loans online at favorable rates, and then seek payments from consumers in advance to secure these alleged loans. Unfortunately, these loan offers are not legitimate and are targeted at customers and companies who are struggling with debt and poor credit, often making bad situations worse.

Advance Fee loan offers have been around for a long time and seem to surge when money and credit are tight. Offers of this nature are usually found online, in the classified sections of newspapers and magazines, or else potential victims are contacted directly via phone or email. Often with very little or no background check at all, customers are told they qualify for loans. After filling out all necessary paperwork, they are then asked to pay an upfront fee of anywhere from $300 to $3,000. The fee is either paid by wire transfer, often to locations outside the U.S., or debited directly out of the consumer’s checking account. It is the experience of the Better Business Bureau that customers who pay these upfront fees never receive their loans. Generally, once the requested fees are paid the companies making the offers cease contact or their phone numbers are eventually disconnected.

In the case of the consumer who contacted the BBB regarding Fraser Brokerage, they reported company representatives asked them to go to a Walmart and purchase a MoneyPak, which is a means of transferring money quickly and easily. The BBB advises consumers not to send money in this fashion to anyone they don’t know.

The BBB of Minnesota and North Dakota has not received any complaints against Fraser Brokerage, but have awarded the company a rating of “F” due to their nature of business.

To avoid falling victim to advance fee loan offers, the BBB advises the following:

• If you’re asked to pay a fee upfront or wire funds to receive your loan, the offer is not legitimate. According to the Federal Trade Commission, it’s illegal for companies doing business by phone in the U.S. to promise you a loan and ask you to pay for it before they deliver. Requiring advance fees for loans is also illegal in Canada.

• Be especially leery of websites that provide no contact information and promise fast, easy loans to all who apply regardless of credit.

• Be sure to check the company’s Business Review with the Better Business Bureau at www.bbb.org.

• Remember, the Internet is full of bogus offers. If it sounds too good to be true, it probably is!

The mission of the Better Business Bureau is to promote through self-regulation, the highest standards of business ethics and conduct, and to instill public confidence in responsible businesses through programs of education and action that inform, protect and assist the public. Contact the BBB at www.thefirstbbb.org or 651-699-1111, toll-free at 1-800-646-6222.