Super Saver - The Top 5 Scams

(WZZM) - Derek Francis sat down with the president of the West Michigan Better Business Bureau to find out the top 5 scams that get reported.

Foreign Lotteries

If you have e-mail, chances are you've received an e-mail telling you that you have won a lot of money in a foreign lottery.  They ask you to send a little money or give them your bank account number and in exchange you will get access to your "winnings." Chances are you also know by now that it's a scam.  According to Phil Catlett, the President of the Western Michigan Better Business Bureau, it is one of the top five scams out there. 

"If they ever ask you to send money in advance, never do it," Catlett tells me. "The reality is, if it's too good to be true, it probably is."

Catlett gets complaints into the Better Business Bureau daily and often people still don't know they're being scammed.  "People are trying to convince us that this is true because the person sounded so nice.  'This is different than all the others.'"

Not only are the foreign lotteries a scam, Catlett says they're also illegal.  "Of course there are no winnings.  Foreign lotteries are illegal in the United States.  It's just another scam for them to get your bank account information." 

Mystery Shopper/Counterfeit Check

"The consumer gets a check, which is counterfeit by the way, with instructions to cash the check and distribute it as outlined in the letter," Catlett explains. "You are then told to send a large portion to someone via Western Union or money grant and you get to keep the rest." 

Catlett says these types of scams often use real company names so if you try to look them up, they appear legitimate.  "One in Manistee doesn't want their name released, but the other is Douglas Auto Tech in Bronson, Michigan.  The scammers actually list the name of these legitimate businesses on their fake check."  

Often even your bank can't tell the difference until it's too late, and you're stuck with paying it all back.

Timeshare Resellers

"They'll send you a letter saying 'we have a buyer for your time share and if you would like to sell, contact us.'  They will give you documents that have some advanced fees in there for getting this lease done.  It's an official looking lease document," says Catlett. 

Once you send in the money to cover the advanced fees, you're out that money and you haven't sold your time share.

Advanced Fee Loan Brokers

Catlett says, "The scam targets those with poor credit.  They promise loans regardless of credit worthiness or their credit score.  Once the consumer makes a payment, the loan never happens," and you are out that payment amount.

Package Pick-up Postcard

The card either is usually on your front door and it tells you to come to the post office to pick-up your "winnings." 

"Well, you know what you're going to get?  An offer to buy a trip.  It's a travel package that they're offering to sell you.  Some of these vacation packages exist, some do not," says Catlett.  "Just throw it away!" 

Good advice, because with the ease and low cost of the internet, there are more "scams" out there than ever before.  If you get caught in just one, it could cost you a lot of money.