National Grid Utility Scam Targets Businesses

National Grid is warning consumers about a utility bill payment scam. Scammers are calling National Grid customers and claiming to be a official representatives. They have been calling businesses in the Rhode Island area and claiming that the businesses have a past due account balance. The scammers threaten to turn off the business' utilities if immediate payment over the phone is not received. 

National Grid warns customers that they do call about past due balances, but they do not demand immediate payment over the phone. 

Customers should contact National Grid if they believe they have been contacted under fraudulent circumstances or if they believe they have been victim to this scam.

If you are contacted by an alleged National Grid representative, BBB advises you to end the conversation and contact National Grid. This way, customers will know who they’re contacting and can inquire about any outstanding bills.

As always, never give out personal or banking information to unfamiliar people. For more information, visit, http://www.abc6.com/story/23110034/national-grid-warns-customers-about-scam. 

Beware of "Free Directory Update" Calls

BBB advises small businesses to be careful when receiving phone calls that claim to be offering a free directory update.

BBB recently received complaints from companies that reported being contacted by representatives of IntegriTel Wireless of San Antonio, Texas who claimed to be with the Yellow Pages and later receiving bills for Search Engine Optimization (SEO) services they didn't order.

Bruce MacDonald of Massachusetts was among those who reported the company. MacDonald reportedly got a call on Feb. 19, 2013 at his business. MacDonald said the caller claimed to be updating a free directory with Yellow Pages, but later billed his company for services he did not ask for.

“They called, saying they wanted to update our free Yellow Pages listing,” MacDonald said. “They asked if I was authorized to speak for my company and I said ‘no.’ They asked the name of our company again and our phone number—the number he called. I asked, ‘This is a free listing?’ and they said yes, they were updating our business address. They told me our address and asked me to repeat it. The phone call lasted about three minutes.”

MacDonald said his company received a bill in the mail on April 2, 2013 from IntegriTel Wireless for $49.99 for SEO services. A week and a half later, he said, the company got another bill for $99.98 for two months for SEO services.

MacDonald said he researched IntegriTel and found it to be associated with a Yellow Pages scam. He filed complaints with the Massachusetts Attorney General, the Federal Trade Commission and Better Business Bureau and said he hasn’t heard any more from them or received another bill.

“We check every invoice and match them to purchase orders,” MacDonald said.

BBB offers these tips for business on “free directory” offers:

• Route the calls to a single employee. Any calls to confirm directory listings or advertising should be forwarded to one employee or small department. That employee should be trained in how to confirm that a directory is legitimate and keep a list of every directory your company has agreed to be in. This ensures that your advertising and directory listings are tracked, and prevents scammers from claiming that another employee agreed to charges.
• Watch for fraud. Alert your accounting personnel to be on the lookout for disguised solicitations, fake invoices and fraudulent phone calls. Read directory offers carefully, including any small print. Look for terms and conditions, as well as costs.
• Don’t give out damaging information. If you do receive a phone call about a directory update, be sure not to provide payment on the phone. Even a simple “Yes” answer to any question could be recorded and used to claim that your company agreed to be billed.
• File a complaint. If a scammer is sending you bogus bills, speak up. Visit bbb.org to complain to BBB. And let the FTC know by filing a complaint at ftc.gov or calling 877-FTC-HELP (1-877-382-4357). Concerned about business directory fraudsters’ threats to tarnish your credit if you don’t pay? 

Dun & Bradstreet Reports Phishing Email Scam

Did you receive a customer complaint email from Dun & Bradstreet recently? It may be a phishing scam. According to a recent release on the D&B website, a spammer sent out a large number of emails purporting to come from D&B (alert@dnb.com) alleging that a complaint requiring prompt action had been made against the recipient. Like many phishing scams, the email looks real. In this case, the scammer used the Dun & Bradstreet Credibility Corp. logo and even the correct contact information.

Dun & Bradstreet, is working hard to identify the spammer and recommends contacting D&B (866-584-0283) if you ever doubt the origin or content of a D&B email.

For any email that you suspect may be a phishing scam:

• Do NOT click on any links or attachments.
• Read the email carefully for signs that it may be fake (for example, misspellings, grammar, generic greetings such as “Dear member” instead of a name, etc.).
• Be wary of any urgent instructions to take specified action such as “Click on the link or your account will be closed.”
• Hover your mouse over links without clicking to see if the address is truly from the sender. The URL in the text should match the URL that your mouse detects. If the two do not match, it is most likely a scam.
• Delete the email from your computer completely (be sure to empty your “trash can” or “recycling bin,” as well).
• Run anti-virus software updates frequently and do a full system scan.
• Keep a close eye on your bank statements for any unexpected or unexplained transactions.

Read the full alert, here. 

Has Your Business Received Calls Threatening to Turn Off Your Electricity?

BBB is advising local businesses to hang up on callers claiming to be from utility companies who demand an immediate payment to avoid having electricity shut off.

A business owner told BBB that her business received a call from William Gonzalez who claimed to be with the “shut down department” of the Illuminating Company. Gonzalez told her that her power would be shut off at 12:30 today unless she made a payment immediately. He claimed her recent check to the utility was being returned because it wasn't enough to cover the amount owed. She was instructed to pay $1850.33 using a Green Dot MoneyPak card.

The business owner later confirmed with their electric company that the call did not come from them and that her account was current.

This scam is being reported in many states. The callers are described as having heavy accents and use phone numbers with local area codes.

Scammers frequently try to install a sense of panic in victims in attempts to get quick cash. They usually request payment by wire transfer, credit card, or – most recently – Green Dot Money Pak cards.

Do your research. If you receive a call claiming to be from your utility company and feel pressured for immediate payment or personal information, hang up the phone and call the customer service number on your utility bill.

Vanity Awards Prey on Small Businesses

Be cautious of emails from marketing companies posing as legitimate credentialing organizations. The emails say that you've won their 2013 "Best of – fill in the blank" award for your industry and congratulate you for joining "such an elite group of small businesses."

You are then offered the opportunity to purchase a plaque, a crystal award or both at a cost ranging from $79.99 to $199.98. A complimentary digital award image and personalized press release are also included in the package.

The awards can be part of a widespread scheme designed to get businesses to pay for vanity awards of little or no value. They mirror offers made in the past by U.S. Commerce Association, an organization whose phony vanity awards were the subject of several BBB complaints.

Phony vanity awards prey on small businesses who are trying to make their companies stand out in their industry. The program's website tells business owners that "a select few have been able to benefit from the strategic value of business awards" and that "a business award can be an account executive's ace-in-the-hole."

BBB offers the following tips to businesses to avoid being taken by this or similar schemes:

Most awards of value to any business will come from a local business organization such as a chamber of commerce or a known, recognized trade organization for a specific industry. Award schemes often have little or no value to the business within the community in which they do business.

Most businesses are not charged to receive honors that they are awarded. If you are being charged to receive a plaque or trophy, it is likely a money-making scheme that has little to do with business performance.

Start With Trust. Always check with the BBB before doing business with a company, even if they seem to be doing you a favor. If it sounds too good to be true, it probably is, especially if you have to pay for the honor.

Rhode Island Secretary of State Warns of Deceptive Mailing

Small businesses owners should be on the lookout for a deceptive mailing that claims to be from Rhode Island Corporate Compliance. According to ABC6, the letter asks businesses to fill out a form and attach a $125 check. Many businesses are being misled because the documents look official.

In April 2013, a similar mailing scam targeted Maine businesses and was sent from Corporate Records Services, located in Augusta. The letter offered to complete corporate meeting minutes for a $125 fee. Other states including Massachusetts, Georgia, Ohio and Indiana have issued warnings against deceptive mailing scams from Compliance Services.

BBB encourages business owners to do some research on any solicitations they receive that ask for payment, even if the document looks official.  Do not provide business information or a payment until you have completely checked out the offer and organization.

Yellow Pages Look-A-Like Scams

As a small business owner, have you received an official looking invoice from what appears to be the Yellow Pages? This scam continues to gain steam despite numerous investigations and enforcement actions taken by the FTC.   

The “walking fingers logo” and the Yellow Pages name have no copyright or trademark protection, making it easy for scammers to make it appear legitimate. 

If you receive an invoice like this, you should request additional information from the solicitor and check with your local Yellow Pages for affiliation. 

If you have been a victim of this type of scam, contact us at bbb.org.

Businesses: Hang Up on Utility Bill Phone Scam

Scammers are calling small businesses and impersonating utility staff, claiming to be collecting on late bills.

How the Scam Works:

The phone rings, and the person on the other line identifies her/himself as a representative from your local electric, water or gas company. He or she tells you that you are late on your bill. You need to pay immediately, or your utilities will terminated.

However, instead of accepting payment by credit card or check, the caller wants you to pay by prepaid debit card. The scammer instructs you to obtain a prepaid debit card and call him/her back.

Prepaid Debit Cards and Scams:

Prepaid debit cards are becoming an increasingly popular method of payment for scammers. Wire transfer services have tightened their security, so crooks have turned to these prepaid cards instead. The cards are difficult to trace, and you do not need photo identification to collect or spend the money.

Be sure you treat a prepaid debit card like cash and remember that transactions cannot be reversed.

Tips for Spotting a Utility Scam:

Because local gas, water and electric companies do sometimes contact their customers by phone, it can be difficult to tell a scammer from a real agent. Here are some tips:

• If a caller specifically asks you to pay by prepaid debit card, this is a red flag. Your utility company will accept a check or credit card.
• If you feel pressured for immediate payment or personal information, hang up the phone and call the customer service number on your utility bill. This will ensure you are speaking to a real representative.
• Never allow anyone into your business to check electrical wiring, natural gas pipes or appliances unless you have scheduled an appointment or reported a problem. Also, ask utility employees for proper identification.

Have you received any suspicious calls lately?

Fake Scanner Emails Infect Office Computers

You are at work, and you receive a message from what you think is your office printer/scanner. It appears that someone sent you a copy of a scanned document.  The name doesn't ring a bell, but you open the attachment anyway.

When you click on the file, you find that it isn't a scanned copy of the latest office report. It’s really a link to a third-party website that will download a virus to your computer.  These viruses phish for personal and banking information on your machine. 

The settings in the email header have been faked, so the messages appear to come from an internal email address. However, with so many workplaces failing to set strong passwords, it is possible that your scanner was hacked.

As always, variations of the scam exist. Most recently, scammers have disguised malware as emails from Hewlett-Packer and Xerox scanners. But scammers will hijack any famous manufacturer’s name to lend credibility to their scam.

NOTE: Hewlett-Packard, IBM and Microsoft are BBB Accredited Businesses. Hewlett-Packard is also a BBB National Partner.

How Do I Protect My Work Computer From Viruses: 

While your work computer is not your personal property, downloading a virus is great way to ruin your work day. Here are tips for protecting your office computer:

• Create strong passwords. Don’t leave the factory presets or use easy to crack passwords. See Microsoft’s tips for creating strong passwords.
• Don’t believe what you see. Scammers can make emails appear to come from an account at your office. Just because it’s an “@yourbusiness.com” address does not mean it’s safe.
• Be wary of unexpected emails that contain links or attachments. Do not click on the links or open the files.
• Beware of pop-ups. Some pop-ups are designed to look like they’ve originated from your computer. If you see a pop-up that looks like an anti-virus software but warns of a problem that needs to be fixed with an extreme level of urgency, it may be a scam.
• Keep anti-spyware, anti-virus and anti-spam software up to date.  Your office’s IT department probably has your computer programmed to conduct regular scans and updates. Let these run as planned.

Have you received an email like this?

Important Tips for Businesses Regarding Checks

A BBB-accredited ad agency in San Antonio, TX recently discovered that bogus checks claiming to be from their company were being used in an over payment/money wiring scam. The checks looked very professional, with the company name and actual routing and account numbers.

People who answered work-at-home want ads on Craigslist were caught up in the scheme. One woman was asked to send out fake checks on behalf of the scammers and was paid by Western Union. When she noticed the Western Union payment was in someone else’s name, she called the real ad agency and asked, “Am I working for you?” The answer was “no.”

She had already sent out 200 bogus checks.

According to the ad agency, the scammers somehow intercepted a check that was sent to a client. They knew something was wrong when someone tried to cash it in another state. Scammers “washed” the check and used it as a template for numerous fake checks in the ad agency’s name.

Which brings up some important tips for businesses regarding checks:

• Monitor your accounts payable. Stop payment on the check and send out another one if too much time goes by and the check appears to be “lost.”
• Use tamper resistant checks. Checks with security features make it harder for crooks who may intercept them to counterfeit or alter them.
• Keep track of check orders. Notify your check supplier and bank if you order checks that don’t arrive in a reasonable amount of time.
• Keep checks secured. Keep reserve supplies of checks, deposit slips and other banking documents locked up and limit the number of people who can access them. 
• Keep your eye on the ball. Don’t leave checks or other bank records unattended while you serve customers. Someone might take them while you aren’t looking.

Beware of Facebook “Fan Page Verification” Scam

Do you have a Facebook page for your business? If so, beware! There’s a new phishing scam that is targeting admins and page owners, according to Hoax Slayer. 

The scam works like this; the user receives an email, which purports to be from Facebook Security, telling them about a new security feature for page owners called the “Fan Page Verification Program.” 

The email explains that to complete the process, the user must choose a 10-digit number that will be assigned as a security code. It threatens that if you do not choose a code, your page will suspended because it is “not considered safe for the wide audience.” 

The link provided at the end of the email brings the user to a fake “Fan Page Verification Program” website, where they are prompted to enter their Facebook login details and the 10-digit code.  However, this is nothing more than an attempt to steal Facebook account details.

If you receive an email like this, BBB recommends that you:

• Do not click any links in the email
• Delete the email
• Keep your virus software up-to-date

(Image courtesy of  http://www.hoax-slayer.com/fan-page-verification-scam.shtml)

Businesses: Don't Fall for Fake 'BBB' Emails

Companies Beware of Business Directory Scams

Your Better Business Bureau is warning businesses to be on the lookout for invoices from a company called AYPR Inc. which claims to be based in Duluth, Minnesota. Those who have complained state that the company is billing for services they did not order or authorize. The company has an F rating due to questionable business practices and a pattern of complaints.

AYPR Inc. claims to publish business directories and attempts to charge companies for being listed or featured in those directories. However, in many schemes of this nature, businesses are tricked into paying for services for which they weren't interested or were not aware they would be charged. Often times the invoice provides the name of an actual employee (either present or former) who “authorized” the charges. In many cases, the employee is not in a position to authorize purchases.

In addition to the Duluth address, which is actually a mail shipping and services store according the BBB of Minnesota and North Dakota, AYPR claims to have addresses in: Colorado, Idaho, Indiana, Louisiana, New Jersey, New Mexico, North Dakota, Oregon, Texas, Utah & Wisconsin.

Here’s how directory schemes often work. An employee is contacted usually by fax and asked to fill out a few vague questions to confirm basic company information. What the employee doesn’t realize is that by simply providing this information, they open the door to future billings. The faxes contain fine print stating that by signing and returning the form, the business is agreeing to be charged and listed in the directory, which may or may not even exist. The business is often invoiced for hundreds or even thousands of dollars.

These scammers sometimes pretend to be verifying or renewing a company’s “existing” directory listing. They send urgent invoices, create confusion and count on an organization paying to avoid being hounded. When companies refuse to pay, the scammers use high-pressure tactics such as bullying, threatening collection or legal action.

BBB and the Federal Trade Commission (FTC) have the following tips to avoid being the victim of a scam:

• Designate only certain employees to make company purchases.
• Train your staff to direct calls to only employees authorized to order supplies and services.
• Check all documentation before you pay bills. Make sure you intentionally purchased the items for which you have been billed.
• Know your rights. If you receive supplies or invoices for services you didn’t order, don’t pay. It’s illegal for a seller to invoice you, send threatening notices for merchandise you didn’t order or ask you to return the merchandise.
• Report fraud. Report this type of scam to the BBB, the FTC, the Postal Inspection Service and the Colorado Attorney General’s Office.

Beware of Business Identity Theft

The most sophisticated identity thieves are now pursuing even bigger payoffs by targeting businesses. Because businesses have higher credit limits and make larger purchases than consumers, charges by scammers are less likely to be noticed by owners, accountants and creditors.


ID theft aimed at stealing directly from a business isn’t the only type of commercial identity theft. Another form of business identity theft happens when a scammer poses as the company in order to rip off unsuspecting consumers. Following are examples of common business identity theft schemes identified by BBB.

Defrauding the Business
A crafty ID thief can do a lot of damage with a company’s Employer Identification Number, including gaining access to bank and credit card accounts or opening up new lines of credit under the business’s name. Business identity theft can also be perpetrated by scammers—and sometimes even employees—who purchase items in the company’s name either for personal use or to resell.

Phishing E-mails
Phishing e-mails are a common example of business ID theft, and all are designed to defraud consumers. Phishing e-mails are spam disguised as messages from a business or government agency, and are used to coerce sensitive financial information from the recipient or to install malware and viruses on recipients’ computers.

Defrauding Consumers
In many cases, criminals will hijack a company’s name and reputation to commit consumer fraud, such as advance fee loan or lottery scams. Scammers use and leverage the company’s identity and good reputation to create a trustworthy façade behind which they operate their scam. In BBB’s experience, business owners are usually alerted to the identity theft by angry consumers who were ripped off by the scammers.

Following are steps BBB recommends small business owners take to mitigate harm if their business identity has been stolen.

Alert the Authorities
Business owners need to immediately contact their local police department if they believe the company’s identity has been compromised. In some cases where bank or credit accounts have been compromised, law enforcement investigators may want the accounts to remain open in order to track down the thieves. If scammers are using the company’s name on phishing e-mails or with phony Web sites, business owners can also contact the FBI’s Internet Crime Complaint Center at www.ic3.gov.

Alert Bank and Credit Card Companies
If scammers are accessing the business’s credit or bank accounts, forging company checks or opening up new lines of credit, it’s important for a small business owner to notify financial institutions involved in order to limit any further unauthorized transactions. Before closing any accounts, the business owners will want to receive the go-ahead from law enforcement so as not to jeopardize ongoing investigations.

Alert the Public
If the company’s identity has been stolen and is being used to rip off customers, warning the public is a top priority to prevent additional people from becoming victims. An easy first step is to prominently post a warning on the company’s home page briefly explaining the threat. Depending on the scope of the scam, business owners might also want to consider alerting media or making direct contact with customers via phone or e-mail. Businesses can also contact their BBB  for help in getting information out to consumers quickly.

Review Credit Report
If the business is a sole proprietorship, then the same consumer protections apply as if an individual’s ID were stolen—such as access to free credit reports and the ability to place a fraud alert on the report. Unfortunately for most businesses, monitoring their credit history is not that easy. Business credit reports exist; however, they don’t typically include the information necessary for detecting fraud. Small and medium-size enterprises can, however, increase internal controls and monitoring of accounts in order to better track abuses. 

Employment Tax Schemes – A Way to Save Money and Land in Prison

BBB encourages business owners to be intimately involved in tax filing and payment processes – including knowing all of the details if a third-party is handling the process on behalf of the business.

Also, BBB is advising businesses to be aware of six common ways companies have gotten into hot water for employment tax non-compliance. 

Hiring unreliable third-party payers
Most payroll service providers and professional employer organizations provide upstanding service. But there are some less-than-reputable third-party payers who fail to pay the collected taxes to the IRS. Employers should check with BBB (www.bbb.org) to find a trustworthy third-party payer, and once hired, regularly verify that payments are being made on their behalf.

Believing frivolous arguments
Unscrupulous promoters use misleading arguments to encourage businesses to avoid paying employment taxes. Don’t fall victim to incorrect interpretations of tax laws or the improper use of Form 941c to attempt to secure a refund of previously-paid employment taxes.

Offshore employee leasing schemes
Don’t do business with shady promoters affiliated with offshore companies who misuse the otherwise legal business practice of employee leasing. Consult with reputable legal and tax experts before entering into employee leasing arrangements.

Misclassifying worker status
Don’t be tempted to incorrectly treat employees as independent contractors to avoid paying employment taxes. If the employer has the right to control what work will be done and how it will be done, the worker is an employee.

Paying employees in cash
There is nothing wrong with compensating an employee in cash, as long as the business recognizes that employment taxes are owed regardless of how the employee is paid.

Filing false payroll tax returns
Preparing false payroll tax returns or understating the amount of wages on which taxes are owed is illegal.