How to Avoid Rip Offs and Scams

How to Avoid Rip Offs and Scams Maggie Rodriguez: Now that the holiday shopping season is here, scam artists are rationing up the ways that they separate consumers from their cash. Here with some advice for all of us is CBS News Business and Economics Correspondent, Rebecca Jarvis. Good morning, Rebecca. Rebecca Jarvis: Hi, Maggie. Maggie Rodriguez: So how prevalent is this? Because most of us consider ourselves pretty smart when it comes to these things. Rebecca Jarvis: But it's becoming increasingly prevalent. We saw these crimes — especially on the Internet — go up 22% last year. This is where the scam artists are really looking to find people to scam on the Internet, at ATMs, in gas stations. These are some of the places we'll point out. Maggie Rodriguez: Okay, let's talk about the ATMs. They're using these — these skimmers, which are not new, right? Rebecca Jarvis: They're not new, but they're increasingly technologically savvy at getting your money. What a skimmer is, is it's something that attaches to an ATM, possibly even a gas station machine at the gas pump. And what it does, when you swipe your debit card or your credit card, it skims the information it takes your information from you, and then steals money from your account. The important thing to do if you want to try and stay away from these, and keep yourself less at risk is to A work in cash, or B if you can't work in cash, use credit cards instead. And also, avoid using those non-bank ATMs. They are much more at risk for this than the actual bank ATMs. Maggie Rodriguez: It's so important. I — I don't use my debit card for any expense. Because if they have that information, they have your bank account. Rebecca Jarvis: It's inaudible. Maggie Rodriguez: A credit card you can call the company and say cancel my credit card or don't charge me for this. Rebecca Jarvis: It's much more likely that if you do get scammed on a credit card you'll be reimbursed. Maggie Rodriguez: Exactly. Rebecca Jarvis: Whereas a debit card is attached to your account and they can take the money directly out of your account. It's much harder to get that back. Maggie Rodriguez: What is smishing? Rebecca Jarvis: So smishing is something that is on the newer side. It's where you'll see a text come through on your cell phone or your mobile device, and it will tell you to call a number. That number when you call it will prompt you for account information it'll ask you for information about yourself, information about all of your bank accounts. And they're posing in many cases as your bank. What you want to do is never ever call these numbers. If you get a text, or even if you get an email telling you to call your bank, make sure that you actually call the customer service number on your card, on your bank statement instead. Maggie Rodriguez: Make sure it's legit. Rebecca Jarvis: Exactly, to make sure that it's legit. Maggie Rodriguez: Okay. Sometimes when I'm shopping online these things pop up asking me to join membership programs. What are those? I never know. Rebecca Jarvis: Oftentimes so — and in many cases its right after you've made a purchase. So you've already given out your credit card information, and all of a sudden a new ad pops up and says join our club, you're going to get a special discount or you're going to get some new product that we're offering today for free in many cases. The reality is they're likely not free. They're trying to get you to jump into this membership program that is going to end up charging you lots and lots of money down the road. So don't sign up for these deals. In many cases they are scams. And instead, always read the fine print. Make sure that anything you're making as far as purchases go online that you know what you're purchasing beforehand. And you'll likely get an email if you have made the purchase. Opt out if you feel uncomfortable with it. Maggie Rodriguez: Okay. And lastly we should not assume that all fraudulent charges on our cards are going to be in huge amounts, right? Rebecca Jarvis: Yes. In many cases the fraudulent charges, because the scam artists are getting more and more savvy are small, 10 to 20 cent charges. And last year there was a group that did this to the tune of 10 million dollars, by just scamming so many people over a course of time that those 10 to 20 cent charges on their cards was turning out to be much bigger. So watch for those little charges. Maggie Rodriguez: Be vigilant, I get that takeaway. Thank you so much, Rebecca. Rebecca Jarvis: Thanks, Becky.