Fraud Alert 2009

 

Fraud Alert--March 2009

TTY Scam

Small business owners are warned of a new twist on an old scam. Scammers are taking advantage of a technology designed to assist the deaf and mute communities. Those involved in this scam contact businesses through the TTY operator-relay system. This scam works like foreign lottery scams in that the victim is provided a bogus credit card number or check and told to wire the funds to another party.

One local automobile repair business received seven calls from these TTY relay operators in the past two weeks. This business contacted others in the industry and learned that they are also receiving similar calls. The TTY operators are completely legitimate. However, in these cases they relay a message to the business from a scammer using the technology as part of a disguise. 

The publicly funded TTY system allows someone with a speaking or hearing disability to communicate through a relay operator. Originally attached to a home telephone, the TTY system can now be accessed through the Internet.

There are several versions of the scam: a company receives a telephone call from someone using the TTY operator-relay system.  Through the use of an operator, the scammer says they live in the area but are out of state on vacation, and that they require repairs to their vehicle. The scammer tells the repair facility that they want to have the car towed from the vacation spot to their shop for repairs. The scammer then explains that the tow company is having problems with their credit card machine. The scammer gives the repair shop a credit card number and requests the shop to wire the money to the tow company. The scammer offers to pay an additional $100 for the inconvenience. Needless to say the credit card number is later determined to be fraudulent. Other versions of this scam involve a check being sent from the scammer. Working through the TTY system, the scammer’s voice and identity are hidden. While the caller can say she is a business woman from Denver, she can easily be anyone calling from anywhere in the world.

“Be wary when doing business over the telephone or through the TTY network,” warns District Attorney Scott Storey. “Does the story sound feasible? Would someone pay thousands of dollars to have a vehicle towed to a repair facility in Colorado? Ask yourself if it sounds too good to be true. If it is, hang up the phone. When in doubt, call our Economic Crime Specialist Deb Ohno at 303-271-6931.

Fraud Alert--April 2009

As springtime in the Rockies gives way to summer, we continue to enjoy emerald green, lush foliage and mild temperatures. But the wet weather that we have to thank for green lawns and lower water bills also provides an ongoing opportunity for the Travelers. These professional thieves show up every year, usually in the spring, offering home repair bargains to unsuspecting homeowners. They travel across the country, often following severe weather and natural disasters, representing themselves as experienced home repair contractors. In reality they are actually experienced scam artists who are almost impossible to track and prosecute.

This year’s heavy late snow and continued rain, wind and hail caused a great deal of damage to trees, roofs and fences, and makes our community a perfect target for these travelers. They routinely follow hail storms, tornadoes, floods, fire and heavy snow storms, targeting residential neighborhoods and often the elderly.

Travelers are generally polite, persuasive and will offer any type of guarantee to the homeowner in order to make a sale. They have also been known to apply pressure to force a homeowner to pay for shoddy work or to pay in advance of any work being performed. Their vehicles are normally new, clean and contain well-maintained equipment. Travelers are highly active between the months of May and October. Some of the jobs they perform include roof/coating repair, asphalt paving, driveway sealing, house and barn painting, tree pruning, landscaping, utilities repair and auto body scams.

Storey warns, “If you need to have home repair work done, do not enter into a contract lightly.  Once these contractors have your money, if they don’t do the job properly, or at all, you may have little legal recourse. They leave town as quickly as they came, and often there is nothing we can do to help you recoup your losses.”  

The District Attorney’s Office offers the following tips when entering into a contract for home repair:

• Beware of door-to-door contractors. Don’t do business with someone who comes to your door offering you a “bargain,” saying he has material left over from another job. 
• In Colorado, anyone can be a licensed contractor. Ask for references from your friends or neighbors, contact the Better Business Bureau 303-758-8200 or http://www.denverbbb.org/, or call your local consumer advocate before making a decision regarding a  contractor. In Jefferson and Gilpin counties, call Deb Ohno at 303- 271-6931 at the District Attorney’s Office.
• Ask for proof that the contractor is bonded, carries liability insurance and covers his workers with workers’ compensation insurance.
• The contractor’s business card should have a verifiable street address and office phone number. Be cautious of those with only PO Boxes and answering machines.
• Obtain at least three written bids for work you want done. Don’t automatically choose the lowest bidder. 
• Require that the contractor use a written contract that lists materials to be used, charges, costs and the start and completion dates.
• Beware of contractors who want 50% down to purchase materials.  Find out who the supplier is and write the check directly to them.  It is never required by law that money for materials be paid up front.
• Don’t make final payment until you receive a lien waiver. The lien waiver should indicate that the contractor has paid his subcontractors and suppliers, and that you are satisfied with the contractor’s work

Please contact your local law enforcement agency if you suspect there may be a traveler-type scam in your neighborhood.

For more information on who they are, some of the scams and likely targets, check out our website www.districtattorney1.com.

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Last Modified: Oct 2, 2009 10:03 AM