Consumer's Edge Special Consumer Alert: LivingSocial Hacked

To my readers, I just read a news report that LivingSocial, purveyor of daily deals, has been hacked.  You can read the story here.  As a precaution, the CEO has reset all passwords and is recommending customers change theirs on other sites which use the same password.  For example, if you use the same password for credit card accounts, bills, banks, etc. change immediately.

Like many, we have multiples of accounts for e-mail at work, home, banking, credit cards, etc.  It can be tempting to use the same passwords for each, but it is not advisable.  For some tips on creating, and remembering passwords, I consulted this article, which among other tips, suggests using pass phrases: thecatatemylunchwhileiwatched, for example, is not one that would be easily guessed.

Stay safe.

--The Edge

Avoid Getting Ripped Off By Contractors, Vendors, or Other Businesses

Whether we'd like to admit it or not, know it or not, we all have been, or will be scammed.  From shoddy work, to work never performed, there's an opportunist out there wanting to make a fast buck.  I will discuss a few tips that you can use to help prevent being the victim of fraud, and, what you can do afterwards if you feel you have been victimized.

First, if the contractor is unknown to you, do a check on Angie's List, which is an online repository of trusted contractors that have been vetted by customers.  Think of it as crowd-sourced reviews, like Yelp, etc.  There's a cost, however, which is why I haven't joined yet.  Still, if you plan to have a lot of work done with multiple vendors, it might be worth a limited membership.

Second, the always free Better Business Bureau, provides both accredited and unaccredited business listings.  The BBB has been around for decades and provides excellent background checks on companies.  And, any complaints about them might be posted here.

Third, check with friends, family, or neighbors.  Have they heard of this contractor?  Did they have work performed?  What was their experience?  A trusted opinion from someone you know is even better than any online review.  Bonus tip: can you see the work performed?

Fourth, the web, of course.  Doing relatively simple Google searches could lead to red flags.  Does the address look valid?  Street Maps can help.  Is there a website?  We know that a business is much more than just a website, but if they don't have one, some caution is warranted. 

Fifth, pay with a credit card.  Credit card companies will usually take the brunt of a fraud claim in the event that you are taken for a ride.  Pay with cash, you will never see it again.  Pay with a check, there may be some recourse, as at least there's a paper trail of sorts, but don't hold your breath.

Sixth, don't pay in full.  Half down, half later.

Now that we have taken some basic precautions, let's discuss what happens if you are a victim.  

First, depending on the severity of the issue, file a police report.  You may not be able to get your money back, but you can be a good citizen and help prevent further crime.  Plus, banks, for example, might not move on something until they have proof that the fraud occurred.  If one takes the time to file a police report and risk legal trouble if falsified, it's pretty much a sure-bet the crime happened.

Second, in addition to filing a police report, document everything!  Times, dates, places.  Any sort of paper trail that you might be able to build.  Are they on the web?  Did they create any sort of invoice or other tracking document?  Again, even the tiniest scrap of data could lead to clues on how to stop someone cold.

Third, if you used a credit card, call up the credit card company and report the fraud.  You might have to cancel your cards out of a precaution, too.  A pain, but definitely worth the hassle.

Fourth, file with the BBB.  Put the word out that the 'perps are bad news.  You may not get paid back, but you can "pay it forward" and help someone else.

Fifth, put it out on the web.  Sites like Yelp are great.  For travel-related experiences, Trip Advisor is great.

Sixth, relax.  Own up that you got scammed and just take it as a lesson learned.  "Fool Me Once, Shame On  You.  Fool Me Twice, Shame On Me."

--The Edge

Don't Get Scammed From Unknown Phone Numbers

Ever get a mysterious phone call on your home or cell phone, and you don't have caller ID?  Between credit card offers, travel companies, newspaper subscriptions, and the like, there's a good chance telemarketers will be calling you.  But, you can fight back.

If someone calls me and I don't immediately recognize either the area code, or phone number for that matter, especially 800 or 866 ones, I usually kill the call by hitting "ignore" on my phone.  Of course, you can always just not answer, too.  Then, just in case the call is legitimate, I will go to Google and type in the phone number, using the dashes like this: 925-555-XXXX.  If Google itself doesn't directly tell you what the number is, there are many other sites, such as 800 Notes, which provide testimonials from those that received the mysterious phone call.  

A few weeks ago, after getting one of these 800 number calls, I found out that it was Chase Bank calling me about my credit card to verify some purchases I had made.  I looked up the number and realized that it was legitimate and I am glad I called right away.  However, today, I got a call from Washington, DC, which would make think that it was more likely just an unknown number from a friend, but, it wasn't.  I punched in the number into Google and it was some sort of automated employment survey, according to 800 Notes.

To stop, or at least help prevent, telemarketing calls (there are always workarounds to the laws it seems), you can register on the Do Not Call List here.  This is the Federal Government's national registry of phone numbers that have telemarketers are not supposed to call.  If they do, you can file complaints and they will be fined.

  

How To Avoid Identity Theft

A friend's recent experience with identity theft is a good reminder for us all to be more careful with what we share both online and off. Something that I find quite alarming is the detail people share on sites like Facebook, such as full birth dates.  You can set FB so that it only shows your month and day and not year in the privacy settings.  Of course, it's better not to display this at all.  Moreover, with other sites like LinkedIn, the online business contact/sharing site, identity thieves can gain new victims by piecing together information they glean from this site.  For example, finding out where someone went to school is a great start for them to pose as a potential employer and try to data mine your file from your school by calling them.  Other information, such as 'hometown" is a dead give away.

Even giving out your last 4 digits of your SS# is a problem. I hate to do it but it does process business transactions more expeditiously.  Unfortunately, Uncle Sam's number can be fairly easily hacked, too. Using the last 4 digits of one's Social Security number and finding out where one was born practically gives it away.

In my friend's case, it seems that someone overseas got a hold of his debit card number and charged a modest amount, about $10. Most people, if they do not check their balances regularly, probably would not have noticed such a relatively minor amount.  However, what is happening on the other end is that some unscrupulous people are testing your account to see if the transaction goes through.  He was lucky that his bank caught some suspicious activity and reported it to him. If his bank, nor he, had not noticed it, the thieves might have become more aggressive and either more frequently utilized his account number for small transactions, or just have gone for a "what the heck we will try a big one" and see if it takes.

One other area that is worth keeping an eye on is when you dine out.  Restaurants and credit/debit card processing companies *may* still list your complete account number on your receipt.  If they do, take a pen and black it out.  In the DC area not too long ago, there was an ID theft ring that was being operated out of a few popular restaurants.  While in this case they were using a credit card skimmer, the point is your favorite local restaurant might be a haven for criminals.

The obvious lesson is to check all of your accounts frequently, daily is not unreasonable, especially if you own a business, and report anything that looks odd as soon as you can. While you will not necessarily be on the hook for the purchases, each card issuer's policies may vary, so it is a good idea to know what they are. You can read Visa's, MasterCard’s, Discover's, and American Express' fraud policies here, here, here, and here.

Bottom line: stay safe. You can also learn about this growing crime by visiting the following site.

How To Avoid Getting Scammed

Quick question: the last time you were at the mall, did you see a car on display that could be won?  I did.  Just fill out this card and you will be entered to win a new SUV...sounds great, doesn't?  Ever wonder who actually wins?  Ever wonder if EVERYBODY "wins"?  How would you know?

In the current economy, it's easy to be lured to contests such as this that offer fantastic prizes or trips.  I learned from a friend recently about another one going on.  In this case, the "winner" was chosen to win a trip to Orlando, Vegas, or Hawaii and a $1000 grocery card.  Sounds great, doesn't?  Funny, it seems like the telescammers move from offering gas cards to grocery cards probably depending on what seems to be rising faster.  (They somewhat move in tandem).  Since it sounded too good to be true, I did a bit of research and found out that the company had been referring people to a program that is basically an expensive coupon clipping service.  You can see the complaint here on Complaints Board.  What's more is that in order to claim this $1000 card, one has to attend a hotel ballroom-style presentation (timeshare) for an hour and a half.  You will be subject to over-hyped, high pressure sales tactics from beautiful people designed to get you excited.  Although there is no obligation, you will no doubt feel pressure from the sales team.

Next time before you take advantage of an offer that sounds outlandish, check out sites like RipOffReport or Complaints Board, or simply search for scam + [name of company, or prize].  Lastly, be careful with any hotel ballroom presentation.  They seem to follow a common pattern.