Outsmarting the Con Artists What you need to know about scammers. FALL 2009

Outsmarting the Con Artists

Scammers work overtime devising fraudulent money schemes that they hope you’ll buy into. But you can stay one step ahead of their game.

BY LISA HURT KOZAROVICH
FALL 2009

When the federal government announced folks who collect Social Security would be receiving a $250 stimulus check earlier this year, the con artists were ready.

Before the checks began arriving in May, scammers were calling local residents, convincing some that in order to receive the check they’d have to fill out an application over the phone and provide additional information, including Social Security numbers and bank information.

According to Janie Miller with the state Cabinet for Family and Health Services, the scammers have made a business out of knowing just when to hit — like after the recent flood that swamped Louisville — and just who to target.

“They drive around looking for homes that might need work, have older cars in the drive, no play sets — they’re looking for senior citizens they think they can scam easier,” said Sgt. Robin Shouse of the Louisville Metro Police Department’s Crimes Against Seniors Squad.

One of the most common scams against seniors is by people purporting to be contractors, promising a good deal on work to a home, but demanding payment in advance, Miller said.

“People know this happens, but they think it’s going to be somebody looking dirty, suspicious. These people show up, all happy, nice, looking like their son or daughter, and they trust them,” Shouse said, recalling one such case she worked.

In that case, a scammer promised to complete some driveway work for an elderly man, and convinced the man to pay $1,400 upfront. No surprise to Shouse, the man didn’t show up to do the work, but he did come back — this time explaining he needed to borrow $600 to get his truck fixed before he could finish the job. When the alleged contractor didn’t return a third time, the victim called police. By then, the crook was long gone.

That’s why Shouse is reminding residents that the recent flood has created a prime opportunity for con artists to show up, offering to clean up residents’ yards or do home repair.

“A common scheme involves coming to your door and claiming that they are doing repair work in the neighborhood. The con men will tell you that they were driving by and noticed that you could use some work done on your property, or they’ll mention they were doing work for a neighbor,” Shouse said. “The fraudsters claim that they can give you a one-time deal because they are doing other jobs in the area. They will ask for money up-front and accept only cash. They will then perform inferior work or no work at all and disappear with your money.”

Even more frightening is the recent case of two men in Louisville posing as police officers and talking their way into homes of seniors. The men, dressed in suits and ties, hit up several homes, telling residents they were investigating a bank robbery or counterfeiting operation. They’d ask to see any money in the home, pull out a binder and tell the resident that the money’s serial number matched the missing money and would have to be confiscated.

In one situation, the men convinced a gentleman in his 70s to withdraw large amounts of cash from three ATM machines allegedly to check the serial numbers of all his cash. The suspects have not been caught.

“We don’t want people to feel stupid — these scammers are professional, they know just what to say, how to act, they can be very convincing,” Shouse said. “Especially in the case of door-to-door salesmen. A lot of people they’re conning grew up in an era when door-to-door sales were legitimate — some of their fathers were salesmen — so they trust them. But you can’t trust them anymore. That’s why we tell people, ‘Don’t do any business from door sales.’ With all the phones, e-mail, and websites, businesses just don’t send salespeople out door-to-door anymore.”

But when a young student arrives at the door, selling magazines to help pay for college or raise money for charity, residents can be caught off-guard. Don’t be, warns the Better Business Bureau (BBB).

Since May 2008, the national Better Business Bureau has received nearly 1,500 complaints from consumers in 46 states about student-age scammers selling magazines door to door.

To start, the price of the magazine subscriptions are often marked up about 300 percent and never arrive. The scammers can also steal important information, even a person’s identity, from the information on the check. And not only are consumers defrauded, many organizations make victims of their own employees, promising extra money or prizes they never receive.

Whether the con is a home improvement scheme, a lottery scam or any of the hundreds of other frauds perpetrated every day, the Louisville BBB received more than 4,200 new complaints of scams during the first six months of 2009.

In some cases, consumers can recoup their money, according to the state Attorney General’s Office.

Under Kentucky’s three-day-cooling off period law, consumers who make a purchase they want to cancel can do so and receive a full refund for items over $25. Keep the receipt and the company must provide the refund within 10 days. Salespeople are required to reveal this rule during their pitch; if they don’t, assume it’s a scam.