The newest scam involves gift cards sold at stores and given as Christmas presents.

Gift cards are often displayed on racks in stores. Usually they come in several styles and they are not activated until you purchase them and give them a value.

However, scammers are writing down the numbers on the backs of these cards. They can then later call an 800 number to find out if the card has been activated and use the numbers to make purchases online, effectively using up the card before the recipient has a chance to even open his gift.

One way to combat this would be to have the cards set behind a counter or available only at the register from the clerk. If you buy a gift card this year, insist on one that has not been on a display rack where it was accessible to anyone wanting to record the numbers on it.

The online Christmas shopping season has already begun and 114 million consumers are expected to use this avenue fronm now until Christmas. If you will be doing some or all of your shopping online, the Better Business Bureau offers a list of questions to keep in mind to make your shopping experience a safe and secure one.

1. Is your computer protected? Make sure your computer is equipped with updated spam filters, anti-virus and anti-spyware software, and a secure firewall. Check for and install any new security updates for the programs on your computer and its operating system.

2. Are you in the right frame of mind? You can shop with speed and ease on the Internet, but you still need to shop smart. If you’re tired or distracted, you may want to postpone your online shopping expedition until you can be fully cyber-”aware.”

3. Do you trust the merchant? To check on the seller’s reputation, look for feedback comments from other customers or conduct Web searches. Check with the Better Business Bureau (www.bbb.org) for a report about the retailer’s marketplace record. Look for a “trustmark” from BBBOnLine or another reputable organization and “click” on that seal to confirm that it’s valid. You can search for BBBOnLine merchants by gift category or other key words at www.bbbonline.org.

4. Do you have all the details? Don’t do business with any retailer that does not provide its physical address and a contact telephone number for customers. You should know how much the product or service costs; if there are shipping and handling charges; the delivery time-frame; if a warranty or guarantee is offered; the seller’s privacy policy and the retailer’s cancellation and return policy. Print out a copy of your confirmation page in case you need it later.

5. Will your online purchase be secure? Look in the address box for the “s” in https:// and in the lower-right corner for the “lock” symbol before paying. Don’t be fooled by spoofed sites that feature convincing “security” measures. If you have doubts about a site, right-click anywhere on the page and select “Properties.” This will let you see the real URL (Web site address) and the dialog box will reveal if the site is “not encrypted.”

6. Will your personal information be protected? Read the site’s privacy policy to understand what personal information is being requested and how it will be used. If there isn’t one posted, consider that a warning that your personal information may be sold to others without your permission.

7. Are your instincts telling you to beware? Listen to your gut. If you’re dubious about a merchant; if the Web site appears to be suspicious; if the offer seems “too good to be true,” trust your instincts. Check with the BBB.

8. Is that e-mail legitimate? If someone e-mails you unexpectedly to ask for personal information, be very suspicious. Legitimate businesses do not send e-mails claiming problems with an order or an account to lure the “buyer” into revealing financial information. Pick up the phone and call the contact number on the Web site where you made the purchase to ask if there was a problem with your transaction.

BBB Offers Tips for Safe Shopping Online This Holiday Season

Scammers have been using the internet to bilk consumers out of money and personal information with great success. Now the FTC has an online resource for consumers to hone their skills at identifying investment scams and research investment opportunities, promotors and references.

At OnGuardOnline consumers can read up on some ways to avoid investment scams or play an online game Invest Quest. As players move around the game board, they are asked questions related to investing online, such as deleting unsolicited requests for personal information, checking investment tips against unbiased sources, and using a security token. Correct answers have players investing wisely, and gaining life milestones: a car, home, education, and retirement. Wrong answers can place players in the unfriendly hands of hackers, identity thieves, and investment scammers.

An article at Consumer Affairs warns that scammers are pulling out an old con to fleece unsuspecting investors. The scam is called the “pump and dump”.

The scammers buy up stocks that are selling for pennies a share. The scammers then send out millions of emails that encourage victims to invest in the company’s stock. The result is that trading in the stock increases, rapidly driving up the share price. When the stock hits a high point, the scammers sell off their shares and the price of the stock falls dramatically. Those who invested on the advice of the email lose money as the stock’s price falls to its original worth.

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