Legal News Headlines

 
Copyright 2008 Gannett Company, Inc.
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 July 8, 2008 Tuesday
FIRST EDITION

SECTION: MONEY; Pg. 3B

LENGTH: 729 words

BYLINE: Sandra Block

BODY: 

Your 401(k) plan has been shot full of holes. You're worried about your job. With gas prices topping $4 a gallon, you'll have to spend your vacation rediscovering your backyard.

At times like these, it's more important than ever to be on the lookout for scams designed to exploit fear and desperation. Here's a look at some of the latest swindles:

*Oil- and gas-drilling schemes. With the price of oil topping $140 a barrel, it's no surprise that con artists are pumping out energy-related scams. Along with shady oil and gas schemes, swindlers are promoting investments in energy-efficient technologies, says Karen Tyler, president of the North American Securities Administrators Association.

Before investing in any venture, ask the promoter for a prospectus, which provides financial data on the company. Check with your state attorney general and the Securities and Exchange Commission to see if the person has drawn complaints from consumers or regulators, says Steve Weisman, author of The Truth About Avoiding Scams.

"All too often," he says, "the people who are scamming you have scammed others before you, and there are complaints against them."

*Mileage boosters. As gas prices have soared, consumers have been inundated with ads for additives and gadgets that will purportedly enhance their vehicles' performances, according to the Better Business Bureau.

Before buying any of these products, the BBB says, consider this: If someone had actually invented a product that could boost your mileage by 40%, he wouldn't need to use spam or cheesy websites to drum up business.

*Social-networking fraud. Be wary of virtual "friends" who offer to let you in on a great investment. The wide-open nature of social-networking sites, such as Facebook and MySpace, create a fertile environment for fraud.

Many members of social-networking sites post information about themselves on their profiles, making it easy for con artists to target potential victims, Tyler says. Con artists can also use these sites to promote investment scams, she says.

Check your statements

During tough economic times, it's also important to watch your spending. That means carefully monitoring your credit card statements. The BBB says it's received hundreds of complaints in the past 12 months from consumers whose credit cards were billed for services they say they never signed up for.

The BBB traced the charges back to Affinion Group, a company that offers membership programs such as PrivacyGuard, an identity-theft protection service, and Shoppers Advantage, which offers discounts on online purchases.

The consumers who signed up for these programs bought items online, such as movie and airline tickets, says Alison Preszler, a spokeswoman for the BBB. After they completed their purchase, she says, a pop-up offer appeared, offering a gift card or discount on future purchases. Consumers who clicked on the offer were automatically enrolled in a membership program. Under a pre-arranged agreement, Preszler says, the company from which they'd made the online purchase then provided their credit card information to Affinion.

James Hart, a spokesman for Affinion, says consumers need to click several times -- not just once -- to enroll in the programs it offers. Once they've signed up, he says, they receive e-mail or letter explaining the service. The company has a liberal refund policy for consumers who change their minds, Hart says.

Preszler says the complaints point up the importance of regularly reviewing your credit card statements. Checking your statements is also one of the best ways to protect yourself against identity theft. And now, consumers who are concerned about identity fraud have another tool in their arsenals: free credit monitoring.

Under the terms of a settlement to end a class-action lawsuit, TransUnion, one of the three major credit bureaus, has agreed to offer six to nine months of free credit monitoring to consumers. If you had a credit card, car loan, mortgage or any other credit reported to the credit bureaus Jan. 1, 1987, through May 29, 2008, as nearly all U.S. adults did, you qualify for free credit monitoring.

In addition to alerts about changes in your accounts, you'll receive unrestricted access to your TransUnion report and credit score. To sign up, go to www.listclassaction.com or call 866-416-3470.

To suggest columns, e-mail: sblock@usatoday.com

LOAD-DATE: July 8, 2008