FTC Adds New Protections for Consumers Seeking to Work from Home

The FTC has finalized a new rule to protect consumers with additional disclosure requirements for work-at-home programs/business opportunities. The new rule will be effective March 1, 2012. You can read more below. If you have any ABs in this category it might will be important they be able to meet the new requirements outlined by the FTC. 

The final Rule requires business opportunity sellers to give consumers specific information to help them evaluate a business opportunity. Sellers must disclose five key items of information in a simple, one-page document:

• the seller's identifying information;
• whether the seller makes a claim about the purchaser's likely earnings (and, if the seller checks the "yes" box, the seller must provide information supporting any such claims);
• whether the seller, its affiliates or key personnel have been involved in certain legal actions (and, if yes, a separate list of those actions);
• whether the seller has a cancellation or refund policy (and, if yes, a separate document stating the material terms of such policies); and
• a list of persons who bought the business opportunity within the previous three years.

BBB Speaks Out Regarding Rogue Web Sites

Rogue websites are often designed to deceive consumers into believing they are legitimate by replicating popular brands or trademarks that are from respected businesses and entities. However, these sites are often run by criminals who sell shoddy, fake or replicated products that can in many cases endanger consumers’ health and safety.

Moreover, consumers who share sensitive personal and financial information with these sites are exposed to an increased risk of falling victim to other malicious online activity such as phishing scams, identity theft, or viruses.

Before you purchase, the Better Business Bureau (BBB) offers a few online shopping tips:

1. Trust your gut – Offers on Web sites and in unsolicited e-mails can often sound too good to be true. Consumers should always go with their instincts and not be afraid to pass up a “deal” that might cost them more in the end.

2. Use trustworthy Web sites – Shoppers should start with the BBB to check on the seller’s reputation and record for customer satisfaction. Always look for a “trustmark” from BBBOnLine and click on that seal to confirm that it’s valid. If the company is unfamiliar to you, do your homework before buying their products. Reliable companies should also advertise their physical business address and at least one phone number.

3. Protect your personal information – The BBB recommends taking the time to read the site’s privacy policy and understand what personal information is being requested and how it will be used. When placing an order, there is certain information that you must provide to the web merchant such as your name and address. Providing your Social Security number is also not a requirement for placing an order at an e-commerce Web site.

Before making any purchase decisions, visit http://www.bbb.org/

Watch Out for Discount Gift Card Scams

It’s not Black Friday yet, but some of us have already started our pre-holiday shopping. Gift cards can be great present, they let the recipient get something they want, and still show them you are thinking of them because it may be from their favorite store or restaurant. Recently, the BBB received a complaint about a gift card scam on Craigslist.


Here’s what happened: The consumer saw a $1,000 card advertised for $750. She met with the seller and called the number on the card to verify there really was $1,000 on it. She handed over $750 to the seller. The next day, when she went to use the card, there was no money on it. And the scammer was gone.

How it works:

• It could be a faked duplicate card.

• The scammer could have switched cards when the consumer wasn’t looking.

• The scammer might have made an online transaction just minutes before meeting with the consumer. When the woman checked the card balance via phone, the automated machine read the balance before the transaction.

Always listen to your intuition. If you feel there’s something sketchy about the seller, then don’t buy. As in most cases, if it sounds too good to be true, it probably is. If somebody’s selling a $100 gift card on Craigslist for $20, you’ve got to ask why. The safest way to avoid gift card scams is to always purchase gift cards directly from the store.

How to Research a Company Before You Apply

For those of you seeking employment, the internet is a great tool for searching job listings. If you come across a company you are unfamiliar with, it’s important to do your research on how credible this company is before you give out any personal information.


Doing your homework on a company can include:

• Checking with www.bbb.org and other trusted sites

• Googling the company name plus the word “scam”

• Verifying with the IRS, and the Secretary of State where the business is located

• Asking your state Attorney General’s office if the business is on their radar for any reason

• Searching the Internet for the company’s physical location or checking with the Post Office to see if this is a legitimate address

• Never click on a link from an unknown sender, and never give out your personal information to strangers unless you can verify their legitimacy

If you take these steps and find that you are dealing with a legitimate company, then you can proceed with the application process. However, if the company turns out to be a scam, you’ll be happy you did your homework and avoided wasting your time, and potentially having your identity stolen.

Warning: StubHub Email Scam Making Way Around Internet

Many people have reported being hit by a scam email this morning, that appears to be from StubHub (it isn’t) and says it is charging your credit card a huge sum to pay for boxing tickets to a match in Nevada.


StubHub says this scam has been hitting them since 7 a.m. this morning. Anyone who has had a StubHub account (and even some who haven’t) may be at risk.

According to StubHub, these are the precautions you should take:

• If you receive the scam email, DON’T login. It may steal your passwords and then give thieves access to your StubHub account where valid credit card info may be stored.

• Change your password if you have an account at StubHub – right away. Go directly to the StubHub site to do that, not through an email.

• Send a copy of the scam email you receive to safety@stubhub.com so they can investigate.

This is what the email looks like:

Tips to Help Reduce the Risk of Identity Theft

According to a February 2011 Javelin Strategy & Research report, more than 8.1 million identities were stolen in 2010. On average, victims were responsible for paying $631 in out-of-pocket costs, such as those to cover fraudulent debt or legal fees, which is a significant rise from $387 in 2009. The California-based market research firm says the increase may stem from thieves focusing more on new account debit card fraud.


The climbing costs may provide individuals with even more incentive to secure credit protection and other helpful services that may allow them to better monitor their credit reports and scores. While a credit and fraud protection program can be a great asset, consumers should also make sure to take the proper steps to lower their risk of identity theft.

Here are six tips that may help consumers better defend against thieves.

1. Avoid throwing away any private documentation - bills, credit card offers, bank statements - that contains personal identifying details without first running it through a paper shredder. Visit www.chicagoshreds.com to find free shredding events in the Chicagoland area.

2. Take receipts after a purchase and check their listed amounts against credit card bills. This approach may help a person identify any fraudulent charges on his or her statements.

3. People should avoid carrying their Social Security cards out of their home unless it's absolutely necessary. Similarly, they should not share their nine-digit numbers with anyone unless they've properly verified the person or company.

4. Individuals who plan to take a vacation should ask to have their mail delivery temporarily suspended. Taking this approach may help prevent thieves from pilfering important financial material from mailboxes while people are out of town.

5. Use a different password for each online account. Consumers who use the same codes across all of their accounts run the risk of having all of their information exposed if a single account is compromised. In addition to using a variety of different passwords, individuals should also make sure to construct their keys with a combination of numbers, capital letters, and, if possible, symbols.

6. Researching and staying abreast of the latest online fraud tactics may help consumers protect their credit reports and scores from an identity theft-related scheme. Knowing what scams are out there can help individuals practice safer Web browsing behavior.

Flood Damaged Vehicles May Turn Up for Sale

Even living thousands of miles away from areas damaged by Tropical Storm Irene and Tropical Storm Lee, flood damaged vehicles could make way to car dealers in your area.


Once on used-car lots, flood damaged vehicles may be sold at deep discounts relative to the going rates of similar used vehicles. However, this is a time to be wary if buying from sellers not disclosing about a vehicles’ exposure to the storms.

With the vehicle identification number (VIN), shoppers can check the National Insurance Crime Bureau to see if vehicles have been salvaged or stolen.

The risk of buying a flood damaged car should add an additional layer of scrutiny to what always should be a rigorous process. Shoppers need to take extra steps when looking at a car including:

• Check used cars thoroughly for evidence of soot, grime and water damage. After a visual inspection, the car should be taken to a mechanic, who can put the car on a lift and run diagnostics on the electrical system.

• A car that’s been waterlogged can have an unmistakably musty odor similar to a wet basement.

• Start the car, drive it and listen to the engine.

• A potential buyer should put hands over everything, checking for dampness as well as soot or grit.

For more information on finding businesses you can trust, visit www.bbb.org