HO, HO, HO! How to avoid holiday fraud

Tuesday, November 27, 2007

With the holiday shopping season in full swing, consumers need to know how to keep from losing their hard-earned money to scams. The National Consumers League provides the following tips for a happy and fraud-free holiday.

• Check out unfamiliar companies. Go to www.bbb.org to find the Better Business Bureau in the area where the company is physically located and look for information about complaints. Keep records and receipts of the transactions in case you run into problems and need help later.
• Avoid giving to bogus charities. Most states require charities to register with them and file annual reports showing how they use donations. Check with your state or local consumer protection agency. The Better Business Bureau Wise Giving Alliance also offers information about national charities. Call 703-276-0100 or go to www.give.org.
• Read the fine print when considering a trial offer or subscription-based gift. Considering giving a gift that involves a subscription, such as a gym membership, or a “gift of the month”? How will you be notified when it’s time for renewal or when the free trial period is over? Will you be charged automatically? Make sure you know what you’re getting yourself — and the recipient — into.
• Want to buy a puppy for that special someone? Be aware that some ads on the Internet that feature purebred dogs for sale or “free” for the cost of shipping are bogus.  You send the money but there is never a bark at your door. Tell-tale signs of a puppy scam include when the person: doesn’t provide any physical address; uses a free email service; and offers the dog for much less than a purebred of that type would normally cost.
• Found a bargain in an online auction? Understand how the auction works, and check out the seller before you bid. Use safe ways to pay, like a credit card. If you use a 3rd party payment system, read the terms carefully to understand what protection, if any, it offers if something goes wrong. Know what to expect regarding delivery and return options.
• Keep an eye on your credit card and bank statements. Notify the bank immediately if there are unauthorized charges or debits, if you were charged more than you should have been, or if you never got what you were promised.
• Don’t fall for offers of easy money. Con artists target people who have credit problems with offers to get them loans or credit cards, guaranteed, as long as they pay a fee upfront. But these crooks will take your last dime and give you nothing in return. Set a realistic budget for gift-giving and stick to it. If you need advice about handling your debts, go to the National Foundation for Credit Counseling, www.nfcc.org, to find the closest nonprofit credit counseling service.