BBB warns of summer scams preying on job seekers, vacationers

CHICAGO (WLS) -- As summer approaches, scammers are turning up the heat to get to your money.

A warning for job seekers: in the first three months of this year, the Better Business Bureau Scam Tracker received reported losses of nearly $840,000, up over 250% compared to the same time last year. With a median loss of over $1,500 during that timeframe, job hunters tell BBB the financial impact is devastating.

How do employment scams work?

Like many scams, those perpetuating employment fraud are seeking at least one of two things from their potential marks: money or personal and financial information. Because normal employers have close access to both regularly, it leaves many with their guard down.

The BBB Institute for Marketplace Trust found those in the 18-34 age range at the most at risk for employment scams.

Most common employment scams reported to BBB:

Reshipping scams - In these scams, fraudsters hire people to ship items, almost always outside of the country. They may use excuses about different laws in their country or the difficulty in obtaining certain pieces of technology, like computers.

Car Wrap scams - While it may seem different, these scams use fake checks meant to convince potential employees of the legitimacy of the company. These types of scams are well-known to law enforcement agencies and regulators, but the scams' effectiveness means fraudsters continue to deploy them widely. In a car wrap scam, a check is sent, deposited, and the victim is asked to send a money order or buy gift cards to pay a company to put temporary advertisements on their car.

Mystery Shopping scams - In mystery shopping scams, the fraudsters ask a victim to participate in an "undercover" review of a money order company like MoneyGram or Western Union or to rate a company's practices around selling gift cards. Using fake checks, victims can go all in before they know they have been scammed.

Red flags for potential job scams

Jobs requiring you to pay money

Remote jobs involving checks

Cold calls about jobs

Higher-than-average pay

Interview processes done strictly over email

Fake URLs, company names and photos; impostors of well-known companies

Mystery shopping, reshipping, check-cashing and car wrap job offers

BBB Tips and recommendations

When searching for a job online, expect to encounter job scams. They are widespread and come in various forms.

Research companies offering jobs at BBB.org.

Find a number on the business's website and call to confirm the job or offer is real.

Check the email address to ensure that it is connected to the company.

Be cautious providing personal information to unverified recruiters and online applications.

Never pay a stranger for a job.

With the sun out and their guard down, vacationers are also quickly finding themselves on the hook for lifelong commitments, involving fraudulent timeshare and vacation club sales. While they're easy to get into, these contracts are incredibly difficult to escape.

An investigative study by the Better Business Bureau, "Unpacking Timeshare and Vacation Club Sales," examines patterns of consumer complaints, dollars spent and lost, customer reviews, related scams, and more.

Key Findings:

Consumers often feel misled about the amount and frequency of fees charged for timeshare maintenance.

Timeshares are nearly impossible to sell, positioning exit companies to offer misleading guarantees with hefty fees.

To trick buyers, scammers copy high-pressure sales tactics used by real timeshare sellers.

Imposters use the address in amenities of a timeshare or vacation club, combined with the owner's personal information, to trick victims into paying bogus fees.

STATISTICS (Reported to BBB about timeshare sales, vacation club, timeshare exit businesses and vacation-related scams.)

Nearly 30,000 complaints with $32 million disputed

Almost 10,000 negative reviews

1,116 BBB Scam Tracker reports with losses of $3.5 million

BBB has monitored deception in the timeshare industry and warned consumers about timeshare exit companies for nearly half a decade. But skilled sellers continue to con buyers into unfavorable deals that often worsen when desperate investors offload purchases through the timeshare exit industry.

BBB urges the timeshare-related industries to self-regulate by establishing and following ethical sales practices. Timeshare companies of all types should cease high-pressure sales tactics at pitch meetings and ease restrictions for long-time, non-delinquent customers who wish to cancel their timeshare.

BBB tips for anyone considering a timeshare or exit company:

Extensively research timeshare properties, vacation clubs or exit companies and thoroughly read contracts for language about lifetime commitment, heirs' obligations, maintenance fee increases or guarantees.

Beware of misleading or high-pressure sales tactics. If you feel like someone is trying to push you into a deal, walk away.

To sell a timeshare, contact the resort directly and see if they have a resale or a buyback program.

Be realistic about what you can get for your timeshare. Most of these contracts are not investments and may return considerably less than you paid.

If it sounds too good to be true, it is. There are deals to be found on travel, but scammers know consumers want to save money and take advantage of them.

Be wary of paying timeshare exit companies all fees upfront until services are ready.

If you are planning an upcoming trip, also keep an eye out for hotel booking scams. BBB Scam Tracker has gotten multiple reports of travelers falling victim to lookalike websites. Always confirm you are on the right website before making hotel reservations.

How the scam works

You search for hotels in the city you plan to visit. Among the top search results is what appears to be an official hotel website or a legitimate travel booking agency. When you click the link, you find a website with professional photos from the hotel and reasonable pricing.

Everything looks normal, so you decide to book a room. You enter your credit card information and check out. However, when you review your credit card statement, you notice you've been charged a much higher rate than you agreed. It turns out that you weren't on the official hotel website after all! You accidentally clicked on a third-party site without affiliation with the hotel.

When you contact the company to cancel your reservation, you may not be able to get through to anyone. And even if you do, they'll likely tell you you've made a non-refundable reservation. The best they can do is cancel your reservation and charge you for it anyway.

How to avoid hotel booking scams

• Only book hotels through official websites. The best way to avoid this kind of scam is to check and double-check you are on an official hotel website before you enter your credit card information. Scammers are pros at building fake lookalike websites to fool you into giving up your information. Look closely at the URL to ensure you are on the hotel's official website or a booking agency you know and trust.
• Only make reservations through secure websites. You'll also want to ensure websites and their payment pages are secure, meaning they start with https:// and display a padlock symbol. If a web page isn't secure, don't enter your personal information and close the tab.
• Watch out for misleading ads. Look at search results carefully. Just because a website is the first result on the page doesn't mean it's legitimate. Watch out for high-ranking ads that scammers could sponsor.
• Research businesses you aren't familiar with. If you find a booking site that looks professional but you haven't heard of it before, proceed with caution. Search for reviews on third-party websites and keep a close eye out for reports of scams. Never share your personal information with a person or business until you know they are trustworthy.