STORY:
Y2K Scams To Watch Out For

Warnings going out for bogus bankers, overpriced survival supplies, fake Y2K fixes

Warnings of possible Y2K scams are now being issued by the Better Business Bureau to consumers as well as businesses. The unpredictable nature of the computer Y2K crisis is a perfect opportunity for scam artists to prey on the public's fears of uncertainty says fraud experts.

The BBB is combating the problem with "Year 2000 and You," a publication featuring the latest Y2K preparedness information from the BBB, the American Red Cross, the Federal Trade Commission and the Federal Deposit Insurance Corp.

The brochure warns of opportunists looking for investors to finance phony Y2K solutions; consultants or businesses selling services or software that aren’t Y2K compliant or don't fix Y2K problems as promised; solution providers pitching miracle Y2K solutions at prices that sound too good to be true; and exorbitant prices being charged for services and so-called "survival supplies" (i.e. bottled water, candles, communication devices, canned foods, "guaranteed" access to fuel, etc.).

Some of the scams the BBB want people to look out for include -

Bogus Bankers: A scam artist poses as a representative from your bank and discloses that the bank is not completely Y2K compliant. He asks for your personal account information and informs you that in order to alleviate possible catastrophes such as having your account balances wiped out, the bank is transferring all customer accounts to specifically designed bond accounts or to an investment company (possibly to fix the Y2K problem). This "safe haven" is allegedly immune to any Y2K glitches until the bank is fully compliant with Y2K requirements. The con artist can use your personal bank information to get at your money or make charges to your credit or debit accounts.

Credit Card "Stickers": A scam artist poses as a service representative from your credit card company. She claims that the company is sending out replacement strips or "red dots" to stick over the magnetic strip on the back of your credit card to ward off possible Y2K problems. She also warns that anyone not having this replacement strip will be unable to use his or her credit card. In order to complete this process, you are told that you must provide your credit card account number for verification. If you give her your number, the con artist could make unauthorized charges to your credit card accounts.

Trojan Book Safes: A product called a book safe for cash is being offered to consumers to hide their cash in the event of Y2K-related bank problems. This "safe" is an ordinary published hardcover book with a large mid-section of pages cut out. Inside the cutout section is a money tray that holds up to 100 bills. Companies that produce these book safes ship them directly the customer’s home. Once shipped, these companies have each purchaser's address and are able to easily keep a tab on whom has cash stashed in their homes. Thieves can then be sent out to steal the customer’s cash, because they know exactly where the money is hidden.

Funny Money: Targeting mainly senior citizens, a scam artist calls and claims to be a federal government employee. He says that, because of Y2K, seniors will not get their social security checks and that their paper money will be no good. He tells the senior citizen to turn their assets into paper money and mail all of it to him so he can turn it into gold and mail it back to them. Of course, the con artist keeps all the cash for himself.

Bogus Bells: The scam artist calls and identifies herself as being with one of the Bell phone companies. She explains that, because of Y2K, the phone company is converting to a new computer system, and they need to "verify" all your phone numbers, including roll over lines, data, and fax numbers. Armed with these numbers, the con artist then switches your long distance service.

Source: Better Business Bureau

DATE: 9/02/99

For more E2000 stories, click here:
news | events | Y2K | today's news

Marketplace
Books
Collectibles
Celebration Supplies
General Merchandise
Travel Packages