Scam of the day – November 4, 2017 – FTC obtains court order against credit monitoring scammers

In the February 15, 2017 Scam of the Day I first told you about the Federal Trade Commission (FTC) getting a temporary restraining order against Credit Bureau Center LLC, Michael Brown, Danny Pierce and Andrew Lloyd as a part of its legal action against them on charges that they operated scams involving phony rental property advertisements and offered “free” credit reports for which they charged monthly amounts to their victims’ credit cards.  Now nine months later, a court has issued a final order against Danny Pierce and Andrew Lloyd in which they will pay $762,000 to settle the FTC’s claims.  Litigation continues against the other defendants.

According to the FTC, the scammers placed Craigslist advertisements for rental properties they were not authorized to represent and in some circumstances even placed advertisements for properties that did not even exist.  When people responded to the ads, the victims were told that before they could see the properties they had to get a free credit report from the defendants’ websites’ myscore.com, creditupdates.com and freecreditnation.com in order to qualify to be considered for renting the properties.  The “free” credit reports, however, were far from free because the fine print in the agreement to obtain the “free” credit report required the victim to enroll in a credit monitoring service with a continuing monthly charge of $29.94.  According to the FTC, the victims never were shown properties even after getting the required credit report and the scammers ignored all communications from their victims after the victims signed up for the credit monitoring service.

TIPS

Advertisements for rental units and vacation rentals that are not owned by the scammers placing the advertisements is a common scam.  It is easy for scammers to get photos and other information about rental units and vacation rentals from legitimate websites and post them to lure victims into sending money to the scammers as a deposit.

A good way to protect yourself from this type of scam is to do a Google or other search engine search with the address of the property to see where it may turn up and who is listed as the owner.  Another good source of information is to go online to the Tax Assessor for the city or town where the property is located and confirm that the name of the property owner matches the name of the person attempting to rent you the property.

In regard to “free” credit reports, you should never have to give a credit card number for a free service although often scammers require this.  You should also carefully read any contract you make.  There rarely is anything fine in fine print.  The victims of this particular scam would have seen that they were signing up for a recurring charge if they carefully read their contract.

Finally, carefully monitor your credit card statements and bank accounts often to discover fraudulent charges as soon as possible.

Scam of the day – February 15, 2017 – FTC gets court order halting phony rental property scam and free credit reporting scam

The Federal Trade Commission (FTC) has obtained a temporary restraining order against Credit Bureau Center LLC, Michael Brown, Danny Pierce and Andrew Lloyd as a part of its legal action against them on charges that they operated scams involving phony rental property advertisements and offered “free” credit reports for which they charged monthly amounts to their victims’ credit cards.

According to the FTC, the scammers placed Craigslist advertisements for rental properties they were not authorized to represent and in some circumstances even placed advertisements for properties that did not even exist.  When people responded to the ads, the victims were told that before they could see the properties they had to get a free credit report from the defendants’ websites’ myscore.com, creditupdates.com and freecreditnation.com in order to qualify to be considered for renting the properties.  The “free” credit reports, however, were far from free because the fine print in the agreement to obtain the “free” credit report required the victim to enroll in a credit monitoring service with a continuing monthly charge of $29.94.  According to the FTC, the victims never were shown properties even after getting the required credit report and the scammers ignored all communications from their victims after the victims signed up for the credit monitoring service.

TIPS

Advertisements for rental units and vacation rentals that are not owned by the scammers placing the advertisements is a common scam.  It is easy for scammers to get photos and other information about rental units and vacation rentals from legitimate websites and post them to lure victims into sending money to the scammers as a deposit.

A good way to protect yourself from this type of scam is to do a Google or other search engine search with the address of the property to see where it may turn up and who is listed as the owner.  Another good source of information is to go online to the Tax Assessor for the city or town where the property is located and confirm that the name of the property owner matches the name of the person attempting to rent you the property.

In regard to “free” credit reports, you should never have to give a credit card number for a free service although often scammers require this.  You should also carefully read any contract you make.  There rarely is anything fine in fine print.  The victims of this particular scam would have seen that they were signing up for a recurring charge if they carefully read their contract.

Finally, carefully monitor your credit card statements and bank accounts often to discover fraudulent charges as soon as possible.

Scam of the day – October 31, 2014 – Free credit score scams

Based on the information contained in your credit reports, your credit score can have a significant effect on whether you are granted a loan and at what interest rate, whether you will be hired for a job, whether you will be sold insurance, whether you can rent an apartment or many other purposes.  We all have a right to an annual free credit report from each of the three major credit reporting agencies, however, your free credit report will not provide you with your credit score.  Recently many people are receiving emails with offers to provide a free copy of your credit score.  Unfortunately, as with any other email or text message that requires you to provide personal information such as your Social Security number which is required to obtain your credit report or credit score, you cannot be sure that the offer is legitimate.  In some instances, companies offering to provide “free” credit reports or scores are actually signing you up for a continuing service that you may not either desire or need.  These sites generally ask for your credit card number, but tell you that they only need the credit card number for verification purposes.  Of course, that it is a lie.  If you were getting something free, you would not need to provide a credit card number.   They are getting your number to use it to charge you monthly fees for services that you may not have thought you ordered.  Even worse however, are scams in which the company offering to provide you with your free credit score is actually just scamming you in order to get your Social Security number which they will use to make you a victim of identity theft.

TIPS

As I always say, you cannot trust any email or text message to be legitimate.  Never click on links, download attachments or provide personal information in response to unsolicited emails or text messages.  The risk is too great.  If you want your free credit reports from each of the three major credit reporting agencies, Equifax, Transunion and Experian, the only place to go is the website www.annualcreditreport.com.  It is important to monitor your credit report not just to find evidence of identity theft, but also to find mistakes that may appear on your report that can adversely affect your credit score.  As for your credit score, the website www.creditkarma.com is a legitimate website that you can trust, that encrypts your data and provides your credit score for free.