MN Commerce Dept launches senior fraud prevention campaign

SAINT PAUL – The Minnesota Commerce Department is convening a series of free public forums to provide information for older Minnesotans and their family caregivers on how to protect themselves and their money from common scams and fraud.

Older adults are often targeted for financial exploitation. It is estimated that one out of every five persons over the age of 65 has been victimized by a financial swindle, with older Americans defrauded out of nearly $3 billion each year. The threat of senior financial fraud is expected to grow as the senior population itself grows.

To provide older Minnesotans and their loved ones with the knowledge and tools to stop fraud before it starts, the Commerce Department is working with law enforcement, social service agencies and groups such as AARP Minnesota, Minnesota Elder Justice Center and Senior LinkAge Line (Minnesota Board on Aging).

A free copy of the Commerce Department’s financial fraud prevention toolkit can be requested by email at consumer.protection@state.mn.us or by phone at 800-657-3602. It is also available on the Commerce Department website (mn.gov/commerce).

Senior Fraud Prevention Events

Monday, December 4, 11:00 a.m. Hennepin County Library-Edina 5280 Grandview Square, Edina

Tuesday, December 5, 9:30 a.m. Cora McCorvey Center: Heritage Park, 1015 N. 4th St., Minneapolis

Thursday, December 7, 12:30 p.m. Rochester Public Library, 101 2nd St. SE, Rochester

Friday, December 8, 11:00 a.m. Whitney Senior Center, 1527 Northway Dr., St. Cloud

Tuesday, December 12, 11:00 a.m. Duluth Public Library, 520 W. Superior, Duluth

Thursday, December 14, 2:00 p.m. Realife Cooperative of Phalen Village, 1355 Phalen Blvd., St Paul

Bogus IDBS Bills Designed to Defraud Businesses

Burnsville, MN - July 30, 2013 - The Better Business Bureau of Minnesota and North Dakota (BBB) is issuing a nationwide alert on IDBS, a nebulous online firm which purports to be a provider of web design, website development, and e-commerce services. The BBB has determined the company, which also does business as Internet Data Business Services, is sending phony invoices to businesses across the U.S, and advises business owners to be on high alert for these bills.

"This appears to be a clear-cut billing scheme," said Dana Badgerow, president and CEO of the BBB of Minnesota and North Dakota. "IDBS sends phony invoices out in droves in the hopes that some portion of the businesses that receive them will just pay them, assuming they’re valid.” 

To date, the BBB has received ten complaints against IDBS, which operates out of a UPS Store in St. Paul, Minnesota. Businesses who have received bills – for roughly $600 – from the company state they never contracted with them and received no services. IDBS has responded to all complaints brought to their attention by the Better Business Bureau so far and resolved them by agreeing to wipe out the alleged balances. However, the BBB feels this is a small concession as these bills are not real.

“It’s tough to give this entity too much credit for resolving complaints filed against them, when there is no transaction upon which to base the bills in the first place,” added Badgerow. “It’s like thanking someone to put out a fire which they started.”

The BBB and the Federal Trade Commission (FTC) suggest a few simple precautions to put a stop to paying for goods or services you haven’t ordered.

Designate certain employees as buyers. For each order, the designated buyer should issue a purchase order to the supplier that has an authorized signature and a purchase order number. These purchase orders can be electronic or written. The order form should tell the supplier to put that number on the invoice and bill of lading. The buyer also should send a copy of every purchase order to the accounts payable department, and keep blank order forms secure.

Train Your Staff. Advise employees who are not authorized to order supplies and services to say, “I’m not authorized to place orders. If you want to sell us something, you must speak to ________ and get a purchase order.” Establish a team of employees who order and receive merchandise or services and those who pay the bills to develop some standard procedures.

Check All Documentation Before You Pay Bills. If you receive merchandise, the receiving employee should verify that the merchandise matches the shipper’s bill of lading and your purchase order. Pay special attention to brands and quantity, and refuse any merchandise that doesn’t match up. Don’t pay any supplier unless the invoice has the correct purchase order number, and the information on the invoice matches the purchase order.

Know Your Rights. If you receive supplies or bills for services you didn’t order, don’t pay. Don’t return unordered merchandise, either. Treat any unordered merchandise you receive, like a business directory or even office supplies, as a gift. It’s illegal for a seller to send you bills or dunning notices for merchandise you didn’t order or ask you to send back the merchandise — even if the seller offers to pay the shipping costs.

Report Fraud. If a billing or directory scam has targeted your business, file a complaint with the BBB (bbb.org) and the FTC (ftc.gov). You also can report scams to the U.S. Postal Inspection Service and your state Attorney General.

The mission of the Better Business Bureau is to be the leader in building marketplace trust by promoting, through self-regulation, the highest standards of business ethics and conduct, and to instill confidence in responsible businesses through programs of education and action that inform, assist and protect the general public. We are open 8 a.m. to 5 p.m. Monday through Friday. Contact the BBB at bbb.org or 651-699-1111, toll-free at 1-800-646-6222.

Commerce Department Exposes Fraudulent Timeshare Schemes

SAINT PAUL, MN –The Minnesota Department of Commerce has uncovered eleven unlicensed sham companies targeting timeshare owners falsely claiming to be able to sell or rent their properties and scamming them into paying thousands of dollars in transaction costs that never result in a sale or rental of their properties. In every case, the company used a fake street address on their website and in the materials they provided to timeshare owners. The addresses either did not exist or were for buildings in which the sham company was not a tenant. In one instance, a company used fake Minnesota business registration and license documents to convince a timeshare owner of its legitimacy. The Commerce Department ordered the eleven sham companies to immediately halt their alleged illegal activity in Minnesota.

The investigation comes on the heels of a Minnesota Department of Commerce enforcement action in late 2012 against Renaissance Marketing  for running an alleged “bait and switch” timeshare scheme that targeted consumers across the country. The initial investigation triggered further complaints about companies offering to sell or rent Minnesotans’ timeshares often using fake Minnesota addresses.

“The Department took swift and decisive action against these alleged schemes duping timeshares owners,” said Commerce Commissioner Mike Rothman. “These sham companies are preying on people desperate to sell their timeshares with the intent to scam and defraud them out of thousands of dollars.”

The sham companies went by the names of: Global Properties Specialists, Integrated Escrow Services, Platinum Resort Services, ABS Consulting Company, World Transfer Title, Premium Properties Management, Net Management Group, Concord International Title, Continental Property Solutions, Twin Cities Property Advisors, and World Event Management.

Concord International Title, Platinum Resort Services, ABS Consulting Services, and World Transfer Title all used fake Minnesota addresses, while Net Management Group claimed to be based in Michigan and World Event Management claimed to be based in Colorado. Global Properties Specialists claimed an Arizona address but maintained it was affiliated with and used Integrated Escrow Services, which it represented had a Minnesota address. The Department’s repeated efforts to contact and obtain information from these companies by email, U.S. mail, and telephone calls went unanswered.

The Department’s investigation found that the scams all followed a similar pattern like the one used by Global Properties Specialists. Based on statements made by the scammed timeshare owner, Global Properties Specialists cold called the Michigan timeshare owner about selling their Costa Rica timeshare property and ultimately led the timeshare owner to believe that it had a buyer for the property. The timeshare owner reported that Global Properties Specialists further stated it would guarantee the sale of the owner’s interest in the property. Based on those representations, the timeshare owner agreed to wire cash in the amount of $6,550, which Global Properties Specialists claimed was a necessary transaction fee for service. After wiring the initial payment, Global Properties Services advised the timeshare owner that an additional payment of $11,790 was necessary to pay a 15% sales tax plus a 3% foreign investment tax. After they had wired the second payment, the timeshare owner was again contacted by Global Properties Specialists for yet another $4,585 for a payment of a 7% commission. After making the third payment, the timeshare owner received an email from Global Properties Specialists stating that an additional payment of $4,422 was necessary for a bank surcharge. The timeshare owner declined to make the final payment, after which Global Properties Specialists stopped answering the timeshare owner’s telephone calls and emails.

The Department’s investigation also found that the title company, Integrated Escrow Services, with which Global Properties Specialists represented it work with to complete the sale, used a fake Minnesota address and had supplied an Oregon resident with a fake Minnesota real estate and driver’s license, and a fake Minnesota business tax registration to bolster its credibility.

The Department worked with the Better Business Bureau of Minnesota and North Dakota in the investigation of these companies.

“Minnesotans need to exercise due diligence when selling their timeshares,” said Commissioner Rothman. “These scams are becoming increasingly prevalent and sophisticated, and Minnesotans should check with the Department of Commerce to confirm the licenses of purported timeshare resellers. Further, those who are considering the initial purchase of timeshares need to educate themselves on the potential benefits and disadvantages of timeshare ownership.”

 

 

 

 

 

 

The Commerce Department offers the following advice on selling and purchasing timeshares .

Timeshare Resale Scams

Timeshare reseller scams have multiplied over recent years and companies or individuals posing as resellers have scammed individuals out of thousands of dollars through false promises and upfront fees.

1. Always check with the Minnesota Department of Commerce to confirm the licensing claims of any reseller. Anyone selling timeshares in Minnesota must have a Minnesota real estate license.

2. Resellers identify timeshare owners through public databases and real estate records. An agent will cold call or mail materials to consumers offering resale terms that are often too good to be true. Be very cautious of high pressure sales tactics and offers requiring you to pay upfront fees. These tactics are a red flag the offer could be a scam.

3. A search of the caller’s telephone number, address or reseller contact information on an internet search engine will quickly expose a fraudulent company. Do this before signing a contract or sending any money.

4. Resale values are generally a fraction of the original purchase price. Anyone offering a purchase price that sounds too good to be true is too good to be true.

Purchasing a Timeshare:

1. Compare the cost of purchasing and owning a timeshare with the cost of staying at a hotel room in the resort area you are considering. Be aware that timeshares carry additional fees, such as monthly maintenance, taxes, brokerage fees and finance charges.

2. Timeshares located outside the country do not carry the same consumer protections that otherwise might be available domestically.

3. Know your cancellation rights before you sign any contracts. If a right of rescission is not among the contract terms, ask that it be included in the final contract.

4. Use an escrow account controlled by a licensed third party if purchasing undeveloped property. If it is developed, visit and inspect it carefully prior to signing a contract.

5. Always consult with a real estate attorney prior to signing a contract.

6. Timeshares offered or sold to people in Minnesota must be registered with the Minnesota Department of Commerce. Call 651-296-6332 or 651-296-4973 to find out if the project is registered.


The Federal Trade Commission provides a wealth of information for individuals to consult prior to making a timeshare purchase.

The Better Business Bureau of Minnesota and North Dakota has additional resources for timeshare investors. Check their website for more information.

For complaints regarding timeshare sales, contact the Securities Registration and Enforcement Section send an e-mail to securities.commerce@state.mn.us<securities.commerce@state.mn.us> or visit Securities Registration and Enforcement Section<http://mn.gov/commerce/topics/securities/general-information/> of the website.

MN Dept of Commerce Recognizes Insurance Fraud Awareness Week

SAINT PAUL, MN –To raise awareness, the Minnesota Department of Commerce is highlighting Insurance Fraud Awareness Week, February 11-15, 2013. Insurance fraud costs an average family about $950 a year, and insurance companies and consumers across the United States an estimated $80 million a year, according to the Coalition Against Insurance Fraud.

“Everyone pays for insurance fraud one way or another,” said Commissioner Mike Rothman. “To help combat insurance fraud, on behalf of the State of Minnesota, the Commerce Department Insurance Fraud Division investigates insurance fraud crimes to help stop criminal fraudsters and bring them to justice.”

To combat insurance fraud in Minnesota, the Department of Commerce Insurance Fraud Division (IFD) was created by the State Legislature in 2004 to review reports of insurance fraud, respond to complaints of suspected insurance fraud generated by law enforcement agencies, refer alleged insurance fraud to appropriate law enforcement agencies including county attorneys, the U.S. Attorney’s Office, and others for criminal prosecution, and assemble evidence and prepare charges. The IFD team is comprised of detectives, analysts who assist with the casework, and a computer forensics specialist.

Perpetrators of insurance fraud come from all walks of life and usually act out of either perceived financial pressures at home or work, or perceived opportunities to “beat the system.” They rationalize that they “deserve” it or are “owed” the money and sometimes convince themselves they will pay it back or that no one will be adversely affected by the fraud.

Insurance fraud comes in many forms and sizes, including heinous crimes and organized criminals. It also arises in various insurance lines, from life insurance to homeowners. Sometimes it involves issuing fake policies, pocketing the premiums, and making false statements with the Minnesota Department of Commerce. Fraud scams are perpetrated by individuals, policy holders, unethical medical providers and career criminals. Sometimes fraud includes incidents of arson, false theft reports, bogus injury claims from accidents, and phony work-related injury reports.

The Minnesota Department of Commerce receives tips from companies and individuals to report suspected fraud. Minnesotans can report fraud anonymously by calling the Insurance Fraud Division at 1-888-FRAUDMN (1-888-372-8366).
More information about insurance fraud in Minnesota can be found on the Minnesota Department of Commerce website<http://mn.gov/commerce/insurance/topics/fraud/>. Consumers with complaints or questions may call the Minnesota Department of Commerce at (651) 296-2488 or toll free, 800-657-3602.

Beware of Frauds/Scams

The Moorhead Police Department has noticed a concerning increase in the number of Fraud – Scam reports recently. Over the last two weeks, eighteen different Fraud reports were taken by Moorhead officers. The reported scams varied; however they often shared the common goal of “theft by deception”.

A variety of phone scams were among those reported. Often involving an alleged relative needing financial assistance for arrest bail, car repairs, etc. Unfortunately, these financial predators were successful in a number of these incidents and have prompted us to remind the public once again to please be very cautious with your personal funds. “Grandparents” have been the target of choice.

Be extremely careful with providing personal information over the telephone. Often falsely associating themselves with companies or organizations they are given account numbers that allow them later access to bank accounts.

Reported computer scams have been ranging from fake overpayment checks being sent for payment of advertised items on Craigslist to notifications that they have won a prize and need to provide personal information.

Several of the complainants indicated that they were able to identify that they were being lied to through extensive questioning of the caller. The callers would hang up once they were exposed as imposters.

Consumers report problems with Fargo online company

December 1, 2010 – St. Paul, MN – The Better Business Bureau of Minnesota and North Dakota (BBB) has received complaints against OnSaleFurnitureDepot alleging non-delivery of products. OnSaleFurnitureDepot is an online furniture company which claims to operate out of an apartment in Fargo, North Dakota.

Customers state that after ordering and paying for merchandise on the company’s website (www.onsalefurnituredepot.com), their merchandise was never shipped. They also state subsequent messages left with the company via phone and e-mail have not been returned.

“This is an unfortunate matter,” said Dana Badgerow, president and CEO of the BBB of Minnesota and North Dakota. “A quick online investigation reveals there may be several other people out there who are in similar situations as the customers we’ve heard from.”

When the BBB tried to access the company’s website today, it re-directed to a page with the following message: ‘The website you are trying to view is currently experiencing difficulties, please try again later.’ A call to the company’s listed phone number was answered by a recorded message saying the user was not available, though messages were being taken. Five complaints against the company are pending. In all five cases, customers report they paid for their merchandise with a Green Dot MoneyPak card.

Green Dot MoneyPak is a money transfer service. On their website, Green Dot MoneyPak urges their customers to treat their MoneyPak number like cash and to only use their payment system with approved partners and companies they can trust. They also state that once you provide your MoneyPak number and the money is sent, Green Dot cannot provide refunds.

When shopping online, the Better Business Bureau advises customers to:

• Check the company’s rating at www.bbb.org. A quick Google search is also advisable.
• Pay with a credit card – Under federal law the shopper can dispute the charges if he or she doesn’t receive the item.
• Use a reputable escrow service.
• Trust your instincts – Offers on websites and in unsolicited e-mails can often sound too good to be true. Consumers should always go with their instincts and not be afraid to pass up a “deal” that might cost them dearly in the end.