The Better Business Bureau of Southeast Texas recently released a warning that unscrupulous scammers are illicitly using the name of the Better Business Bureau to scam online shoppers out of their money when purchasing expensive items.
BBB's in Arizona, California, Florida, Georgia, Ohio, South Carolina, Tennessee, and Texas have received queries from online shoppers who were directed to use non-existent BBB services to pay for their purchases, or received invoices with a bogus BBB heading, after purchasing jet skis, cars, motorcycles, and other expensive items listed on EBay, Craigslist, Carbuyer.com, and Motorcycletrader.com.
Successful buyers received notification from the seller that the transaction would be "...handled securely through the Better Business Bureau Company's insurance service". When buyers emailed the sellers, they were told that their emails would be forwarded to the BBB. The BBB would then let the buyer know if they were a preferred customer, and could then complete the transaction. Nest the buyers would receive an emailed invoice instructing the buyer to solicit payment, typically through Western Union, to an agent of the BBB. The invoice is signed, "Better Business Bureau Customer Support", and states that the BBB will hold the proceeds until the merchandise is received and inspected by the buyer, allegedly offering a degree of security to the buyer. The destination of the money thus wired was commonly in Greece, Ireland, or England.
Another variation of this scam is that the invoice is sent apparently from the "Better Business Bureau Finance department" and features the well recognized BBB name and logo on an "International Trading" letterhead. Another buyer received an email alleging to be from the Better Business Bureau and containing a "verified BBB Seal member Profile" for the online seller. One Florida victim was told to utilize the "BBB Auto Buyers Protection program", which is of course, bogus.
Michael Clayton, president and CEO of the Better Business Bureau of Southeast Texas stated, "These thieves are falsely using the BBB name to inspire trust and confidence on the part of the buyer. The BBB has reported the fraudulent activity to several law enforcement authorities and has taken steps to prevent others from being victimized by demanding that individuals involved cease and desist from using the BBB name to pursue their extortion schemes." Mr. Clayton advised that consumers take note of the following: The BBB does NOT operate a "Better Business Bureau Insurance Service", and does NOT offer a "BBB Auto Buyers Protection Program"; The BBB is NOT a "preferred insurance provider" for EBay or other entity; The BBB does NOT manage financial transactions for online merchants; The BBB does NOT issue profiles or reports on individuals, the BBB does issue reports on businesses.
The bogus emails received by the prospective buyers which encourage them to utilize the "Better Business Bureau Managed Transaction", emphasizing that the BBB is an objective third party which will protect online buyers and sellers, also states that the BBB is highly effective in completing successful transactions. The email goes on to state that the BBB is highly effective as it resolves thousands of cases monthly from eBay and other online marketplaces, and treats personal information with "utmost care", and has a strict privacy policy in place. The email may also state to the buyer "Once your payment has been verified by our specialized department, you will be liable for 100% refund." Another email promised that the seller would not be paid until the buyer accepted the merchandise, or a three day inspection period had expired.
The BBB has communicated the problem with eBay, explaining the nature and scope of the scam, to which eBay replied, "On our Web site and in e-mails to users, eBay consistently warns against being lured off the eBay marketplace to complete a transaction, as well as against ever using a wire transfer service, such as Western Union, to pay for products. The perpetrators in this scam appear to be encouraging victims to engage in both of these unsafe trading activities."
Bogus email addresses affiliated with this scam include support@bbb-paysafe.com, support@bbbsafe.com, and support@inc-bbb.com. At least one email was from "Better Business Bureau Customer Support", and had a hyperlinked (trademarked) BBB Torch logo which was linked to the legitimate bbb.org website. Some of the emails were allegedly from "Square Trade Better Business Bureau", and "Better Business Bureau Financial Department".
Prospective buyers were lured by what they referred to as "great prices", with at least one instance alleging that the watercraft listed was in perfect condition, and was being sold for so little because the seller was "... passing through a divorce with my wife and need to get rid of the watercraft." Victims were scammed in amounts ranging from $3500 to $10,000.
The BBB advises consumers to always contact the BBB when there are questions about the legitimacy of an offer, and to check with the BBB when its name is being used in an unusual or questionable fashion. The BBB operates a website at www.bbbonline.org that lists merchants meeting BBB online standards.
Remember the old cliché that if it appears too good to be true...
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