Y2k Scams

Everyone is aware of how the Year 2000 problem (Y2K) can possibly affect our lives. Computer systems that are only programmed to recognize dates with two digits instead of four will interpret the year 2000 as 1900, causing computer failures.

In addition, the Y2K problem has provided scammers with another avenue to ply their trade.

Here are some of the ways that scammers have used the Y2K problem to their advantage:
 

• Individuals posing as representatives of credit card issuers have called cardholders and stated that their credit cards will not work after January 1, 2000, unless they attached a new magnetic strip to the back of their credit cards. The impostors then asked for account numbers and other confidential information so that they could mail the strip to the cardholders.  In reality, these impostors are attempting to obtain confidential information of the cardholders to access their credit card accounts.

• Individuals posing as financial institution employees, auditors or others have called customers and stated that their existing accounts are not Y2K compliant. The impostors then asked the customers for their account numbers under the pretext of transferring money from existing accounts to “special Year 2000 safe accounts” while the institution corrects Year 2000 problems. In reality, these impostors are trying to obtain the customer’s bank account number to withdraw money from the customer’s account.

• The Better Business Bureau has issued a warning about individuals selling a product called a book safe. The book is an ordinary published hardcover book with a large mid-section of pages cut out into which money can be placed. The book safes are shipped directly to the customers.  However, once the company ships these books, these companies have each customer’s address. With the address and knowledge that the customer will stash his or her money in the book safe, the company can then send a thief to steal the money.

• Individuals posing as representatives of a Bell phone company call individuals stating that as a result of Y2K,  Bell needs to convert to a new computer system. The impostor takes down all your phone numbers, including roll over lines, data, and fax numbers. The impostor then uses this information to switch your long distance service.

• There are consultants and businesses selling services or software that aren’t Y2K compliant or don’t fix Y2K problems as promised.

• Companies are selling so-called “survival supplies” (i.e., bottled water, candles, communication devices, canned foods, “guaranteed” access to fuel, etc.) at exorbitant prices.

To avoid these scams, keep the following in mind:
 

• never give out any personal information such as your account numbers, personal identification numbers (PIN) or other account information for Year 2000-related purposes. Furthermore, banks or credit card companies already have this information and would not ever call you to obtain it.

• in general, never give out account information, credit card or social security numbers, or other personal information to any one over the telephone or in response to an email request unless you initiate the call or contact.

• review your account statements on a timely basis. One type of fraud however includes individuals who redirect your mail to obtain personal information and then use your account information to their benefit. If you don’t receive an invoice from your credit card issuer, contact them to find out why.

• review your account statements to confirm that all the charges made to your credit account or withdrawals to your bank account were made by you and report any discrepancies.

• If you receive any call from someone requesting confidential information, then alert your bank or credit card issuer.

• Beware of any person advertising that he or she can fix your Y2K problems at “no cost”.

• Carefully evaluate the cost of any Y2K survival kits. Compare the cost of building your own kit with the cost of the kit being offered.

• Don’t be fooled by the Y2K mania that will occur around the turn of the century. Be on guard for Y2K hoaxes that will attempt to duped you.

• The best defense is simple common sense. Get informed and be vigilant.

If you are a victim of a Y2K scam, let us know so that we can alert others.

<< Return to Consumer Scams, Shams and Spams