CHICAGO (WLS) — Consumer Protection Week begins on Sunday, March 5, and the Better Business Bureau has some important information to help you avoid falling victim to scammers.
The BBB and FTC will host a live webinar on Wednesday, March 8 at 3:00 p.m. to inform consumers of their rights and educate the public about fraud and identity theft prevention. The webinar, titled “Avoid Top Business and Consumer Scams Happening in Northern Illinois,” is in partnership with the City of Chicago’s Department of Business Affairs and Consumer Protection. You can register here.
While scammers work year-round, there are a few key things to watch out for during the spring and summer months. As spring break approaches, scammers are ready to offer fraudulent vacation rentals, fake third-party bookings and travel sites designed to lure customers looking for deep discounts to get away.
“Many consumers are now making their spring break travel plans and finalizing payments, some of which will fall directly into the hands of fraudsters,” said Steve J. Bernas, president and CEO of the Better Business Bureau. .” Scammers often take advantage of consumer habits and take advantage of trending online searches, luring customers with great deals on popular destinations or all-inclusive packages. While these scams happen year-round, now is the peak time.”
According to the Federal Trade Commission, there were more than 53,800 reports of travel fraud in 2021. Travelers lost more than $95 million.
Additionally, Bernas said, “The best way to protect yourself is to start planning early, so you don’t rush to make deals at the last minute. Scammers take advantage of consumers in a hurry and may not have time to verified that they are booking with a legitimate location or business. Always verify and be sure to check for customer complaints or reviews on BBB.org.”
The most reported travel scams are:
Cons of vacation rentals – Scammers lure vacationers with the promise of low rates and great amenities. “Owner” creates a false sense of urgency – such as telling potential clients that another vacationer is interested in the rental – to receive payment before doing sufficient research or questioning the legitimacy of the ad.
“Free” holiday scams – Often offered as an enticing prize, these force victims to pay taxes, fees and other charges before they learn the offer is fake. Even when booking with a legitimate company, beware a low price can mean travel restrictions, additional air freight charges, port charges, taxes, tips and other fees.
Hotel scams – When staying at a hotel, beware of scammers who use various techniques to obtain credit card information, including fake calls to the front desk, “free” WiFi connections, and delivery of fake food.
Scams of third-party booking sites – If you book your airline tickets, hotel or other travel through a third-party website, be sure to exercise caution. The BBB Scam Tracker continues to receive reports of scammers claiming to be online airline ticket brokers. In a common version of the scam, travelers pay with a credit card and receive a call from the company asking to verify personal and banking information after making the payment.
To avoid falling victim to travel scams, the BBB recommends:
Get the travel details in writing – Before making the final payment, get all travel details in writing. Details should include the total cost, restrictions, cancellation penalties and airline and hotel names. Also, review and keep a copy of the airline’s and hotel’s cancellation and refund policies, as well as the cancellation policies of the travel agency/place of booking.
“Too good to be true” offers. – If the deal or discount seems too good to be true, it probably is. Scammers often use this tactic to lure potential victims and use aggressive “limited time” language to entice travelers to pay before researching.
Avoid tying up money or using a prepaid debit card – These payments are the same as sending cash. Paying with a credit card offers some protection and dramatically limits liability from a fraudulent purchase.
Call the rental owner – Unless you’re using a service that verifies properties and landlords, don’t negotiate a lease by email alone. Many scammers do not live in the country. Speaking to the owner on the phone or via video call and asking detailed questions about the property and local attractions will help clarify whether the listing is genuine.
Unsolicited offers – Be especially careful if you “win” a free trip without participating in a contest or lottery. This is especially true if the offer is time-sensitive and requires the consumer to accept and pay for the offer immediately or risk going to another “winner.” Check the official website of the company the offer originated from to verify if it is legitimate.
The BBB is also warning consumers buying used cars that unscrupulous sellers are expected to try to pass off flood-damaged vehicles from California as standard used cars here.
If you’re in the market to buy a used car, BBB advises that there are many great auto dealerships in the area. Consumers should do their due diligence before making a purchase. The best place to start is by checking BBB.org for company ratings and reviews. BBB is a free referral source for finding businesses you can trust.
Once owners of damaged cars settle with insurance companies, the vehicles are easily refurbished and resold. These vehicles are usually featured at auto auctions, street sales, and in classified ads and social media.
“Thousands of cars damaged by California’s January storms will be dried out and shipped to other states,” Bernas said. “Fraudsters will try to trick people with fresh upholstery, new carpets and bargain prices. Often, broker buyers will deliberately hide a car’s history as a flood-damaged vehicle through what is known as ‘title washing’ and sell it to an unsuspecting buyer in a state unaffected by the calamity”.
Bernas noted that “the current lack of available used cars presents an even greater risk to consumers and a lucrative opportunity for scammers.”
Corrosion can take years to show up among the many possible mechanical problems faced by flooded cars, eventually when it can cause electrical and mechanical problems.
“By the time the problems become apparent, the seller is gone and the new owner is left with an unreliable vehicle, along with no recourse against the seller,” Bernas said.
BBB Tips for Determining If a Used Car Has Flood Damage:
Ask to see the title. Check the date and place of transfer, verifying where the vehicle came from. Ask if the title is stamped “salvage” or came from a state recently damaged by flooding. Consider purchasing a vehicle history report for the vehicle, which includes information on whether the car has ever been labeled as “salvage” or “flood damaged” in any state.
Check the dashboard carefully. Examine all gauges to ensure they are accurate and free of water marks. Look for indications that the control panel may have been removed.
Check the electronic components. Test the lights, wipers, turn signals, radio, heater and air conditioner several times to make sure they work. Also, bend some wires under the dash to see if they bend or break, as wet wires become brittle after drying.
Check the interior spaces. Look in the trunk, glove compartment, and under the seats and dashboard for signs of mud, rust, or water damage. Check for open drain holes in the bottom of the vehicle.
Check the condition of the fabrics. Look for bleached, faded or moldy upholstery and carpets. Recently shampooed carpets may be cause for concern. The carpet that has been replaced may fit too loosely or may not match the color of the interior.
Get a vehicle history report from a database service. The National Crime Bureau’s free database lists flood damage and other information. But be aware: NICB reports are only useful if the car was insured.
Don’t forget to check under the hood. Look for water, mud or grit in the spare wheel well or around the engine compartment under the hood.
Take a sniff test. A strong smell of cleaners and disinfectants is a sign that there may be a mold or odor problem.
Research the dealer. Always view the merchant’s BBB business profile on BBB.org. Look for the BBB seal, “The Mark of Better Business.”
Get an inspection. Before buying any used car, consider getting a pre-purchase inspection from a trusted mechanic.
If you’ve been the victim of a scam, report it at BBB.org/ScamTracker. Sign up for BBB’s free consumer newsletter, BBB Edge, at BBB.org/ChicagoBuzz. Visit BBB.org or follow @ChicagoBBB on social media.
