10 Worst Everyday Scams and How to Avoid Them

1. Employment Agency Scams

Too many employment agencies take advantage of people who are looking for a job. Some charge upfront fees, guarantee employment, send you to jobs that don't exist, make you pay for training, such as security guard or OSHA training or bartending classes, in order to get a job. All of these things are illegal. Only use a licensed employment agency, be sure to get DCWP's tips first, and file a complaint if you have a problem. Visit DCWP online at nyc.gov/dcwp or call 311 to check an employment agency's license status and complaint history or to file a complaint about an employment agency.

2. Towing Scams

If you park in a private lot where a sign says that it's reserved for customers only, your car could be towed if you leave the area. But some tow companies will try to tow you even if you don't leave or will tow your car around the corner and then try to get you to pay more than the legal rate and to pay in cash to get your car back. If a car is about to be towed from the lot, the drop fee for unhooking a car is $62.50. If you've been towed, the fee is $125 for the towing and three days of storage. Tow companies must accept at least two major credit cards. Also, if you're in an accident, only use the tow company called by NYPD. It's illegal for tow companies to just show up on the scene of an accident and offer to tow your car. For more tips about towing, to check the license status of a tow company, or to file a complaint, visit nyc.gov/dcwp or call 311.

3. Immigration Assistance Scams

If you need legal advice about immigration, only go to an attorney or someone who is
accredited and works for an organization that is recognized by the Board of Immigration
Appeals. Immigration service providers can only offer clerical services and must follow local laws about contracts, signage, and disclosing fees. In New York State, a notary public, or notario público, cannot give legal advice, draft legal papers, or review documents for legality. Get tips about using an immigration service provider at nyc.gov/dcwp.

4. Predatory Schools

There are hundreds of for-profit schools in New York City that enroll New Yorkers in courses for everything from air conditioning repair and cosmetology to medical technician training. Some use high-pressure recruiting tactics and may mislead you into taking out a lot of financial aid and then make it difficult to complete your degree so you’re forced to take out more aid. Do research about multiple schools, don’t sign up the day you visit, and get the tuition cancellation policy in writing. If
you have a problem, call 311 to file a complaint against a school of higher education.

5. Electronics Store Scams

Some electronics stores prey on customers, especially tourists, by selling refurbished electronics as new and trying to sell unwanted accessories or extra warranties that may not cover more than the manufacturer’s and retailer’s warranties. Recently, some stores sell SIM cards with a special SIM card Agreement that consumers are required to sign. Then, in the event of data overage, consumers are charged high rates for usage. Research the product you want to buy and compare prices before you shop. Only shop at an electronics store that has a DCWP license, check the refund policy before you pay, and take the box with you in case you need to return the item. Examine the product closely to make sure it’s not used or rebuilt and be sure it will work in your hometown. Get an itemized receipt and look closely for hidden fees or add-ons.

6. Parking Ticket Scam

Beware of text messages that appear to come from CityPay or the NYC Department of Finance that ask you to open attachments or click on links to confirm parking ticket payments. CityPay does not send text messages about parking tickets. Ignore and delete the text message. If you want to check
on the status of a parking or camera violation, visit nyc.gov/citypay.

7. ATM Skimmers

Some identity thieves install skimmers on ATM machines that can read the information on your card. These small devices are hard to detect and go over the normal card slot. Use ATMs that are in the bank lobby or under video surveillance and always cover the keypad when you enter your PIN in case there’s a hidden camera. If you notice tampering with an ATM, don’t use it and report it to the bank. Get more identity theft prevention tips at nyc.gov/dcwp.

8. Phone Scams

There are a number of phone scams where the caller claims to be collecting a debt and
threatens the victim into making payment.

Green Dot Card Scams: NYPD warns that people are losing thousands of dollars in a
phone scam involving Green Dot MoneyPak cards. The caller claims to be collecting a debt from a utility company like Con Edison or the IRS, or that a family member has been hurt or is in danger. The caller threatens that the victim must make payment immediately with Green Dot MoneyPak or that they will lose their heat or electric or face possible deportation or criminal prosecution. Never wire money or provide the numbers of a Green Dot or other prepaid card to someone you don’t know.

IRS Phone Scam: Callers pretending to be from the IRS threaten that the victims owe money or that they are entitled to a huge refund. Scammers often use fake names and IRS badge numbers and sometimes follow up with a call from the police department or DMV to verify the claim. They may even have the last four digits of a victim’s Social Security number and manipulate caller ID to make it appear to be the IRS. The IRS will never call or email you for your personal or financial information. If you get a phone call from someone claiming to be from the IRS but you suspect it is an impostor, call the IRS at 800-829-1040 and then file a complaint with the Federal Trade Commission through the online complaint assistant: reportfraud.ftc.gov.

9. Grandparent Scam

When seniors get an email or phone call in the middle of the night stating that their grandchild
is in serious trouble due to a car accident, jail time, detention in a foreign country, or any other emergency scenario, the first reaction may be to help by sending money quickly. However, creating that sense of urgency is part of a sophisticated scam that preys on the elderly. What makes the conversations with fake police officers, lawyers, and doctors convincing is that the caller may know personal details about the supposed victim and the caller ID may be manipulated to appear legitimate. Sometimes the caller will even impersonate the troubled grandchild. The financial losses tend to be thousands of dollars, so resist the pressure to act quickly and instead contact family to confirm the story and avoid wiring money based on a phone or email request.

10. Rental Listing Scam

If you respond to a rental listing on a third party website like Craigslist, be wary of people who pretend to be real estate agents and then collect the money without owning the listing. When you’re apartment hunting, never complete an application or give advance payment before seeing an available listing and never wire money or use a prepaid card like Green Dot MoneyPak. Red flags include an “agent” claiming that he is out of town but has arranged for the keys to be delivered to you once you make payment.

DCWP encourages consumer complaints and works with businesses to get back your money.
To file a complaint with DCWP or check the license status of a business, visit nyc.gov/dcwp or call 311.

For more consumer tips, read 10 Things Every Consumer Should Know.