Scammers pop up during economic downturns

Every time the economy tanks, we see some distinctive scams that come out of the woodwork.

I remember in the 1970s decline, my first years with the BBB, we saw the emergence of Glenn Turner and his “Dare to Be Great” pyramid scheme. The Jimmy Carter economic slump saw another giant pyramid scam, the “Airplane.” A few years after that, we had the “dot com” recession and an explosion of Nigerian mail and e-mail rackets that cheated Americans out of millions of dollars.

Each downturn seems to possess its own characteristic frauds.

This current recession has seen plenty of rackets. Consumers get letters that they have won imaginary contests but must send money to claim their prize. Or they get a phone call that they qualify for a “free government grant,” which they never need to pay back “” but must send cash first.

But the two distinctive frauds overwhelming us this recession are very clever and nasty. Despite BBB warnings, these two scams extract big money from innocent, gullible, or trusting folks.

ABOUT THE BBB

Companies can choose to belong to a local BBB and are evaluated based on the number and resolution of consumer complaints. The agency also monitors advertising claims. The BBB contends that its value to the business community is based on its neutrality. It acts as an intermediary to resolve disputes between customers and businesses and provides information on ethical business practices.

For more information about the BBB online: search.bbb.org

To reach the local office: BBB of NW Ohio & SE Michigan 7668 King’s Pointe Rd., Integrity Place Toledo, OH 43617

Web site: toledo.bbb.org
E-mail: info@toledobbb.org
Office phone: 419-578-6000
Business evaluation reports: 419-531-3116

March 4, 2010
source: toledoblade.com