In 2022, Permian Basin-area consumers and businesses reported multiple scams to BBB, totaling over $15,000 lost for the year. Across Texas, BBB received an average of 250 scam reports per month totaling $1.9 million lost for the year. While the tactics of scammers often shift to take advantage of marketplace trends, online shopping, employment and phishing scams are the most common types of scams reported to BBB from Texas residents, accounting for 49% of all scams submitted to the organization for the year.
To help Permian Basin-area residents avoid scams in 2023, BBB analyzed scam reports submitted by consumers with local zip codes to determine the top five prevailing scams in 2022 and provides a few tips on how to avoid them moving into the new year.
ONLINE PURCHASE
Share of reports: 48%
Amount lost: $3,233
Online purchase scams in the Permian Basin-area vary across a wide range of products, with some consumers losing thousands of dollars on a single interaction. Some of the more costly purchases include industrial construction equipment and fraudulent shipping companies, but some consumers also lost hundreds to online pet purchases. In most cases, buyers are requested to send money through an online payment system, such as Zelle or PayPal. Other items residents attempted to purchase include coolers, sports jerseys and holiday decorations.
To avoid online purchase scams, BBB recommends:
- Avoid too-good-to-be-true deals.
- Use credit cards for online transactions.
- Look up reviews on other websites.
- Check and verify there are multiple methods of contact such as a working telephone number and a real physical address.
EMPLOYMENT
Share of reports: 13%
Amount lost: $0
Employment scams often impersonate well-known and reputable businesses when contacting their victims. While these scams do not often result in a loss of money, the sensitive information provided to a potential employer places the applicant at an increased risk of experiencing identity theft. Scammers often entice applicants for the position by offering high wages, flexible hours and remote working opportunities. They often claim they will pay for the applicant to purchase materials to set up their home office or other work-related expenses. In the Permian Basin area, most reports revolve around data entry, package reshipment or clerical positions.
To avoid employment scams, BBB recommends:
- Beware of unsolicited or immediate job offers and rushed interview processes.
- Insist on communicating with the hiring manager outside of email or text.
- Verify the position is open by checking the official job board for the company.
- Do not deposit suspicious or overpaid checks, and do not send money back due to overpayment through gift cards, a wire transfer or other nontraditional methods.
COUNTERFEIT PRODUCTS
Share of reports: 6%
Amount lost: $50
Fraudulent and unethical businesses often capitalize on the popularity of name-brand items by offering products similar in appearance or name. When the item is received, the buyer is often left with an item that is of significantly less quality than expected and may not even appear the same as what was pictured in the advertisement. Some of the most counterfeited brands include Nike, Beats, LEGO, NFL and Tiffany jewelry. Other companies simply ship a completely different product than what was purchased, with one Permian Basin resident receiving a package of toothbrushes after purchasing a keyboard.
To avoid counterfeit products, BBB recommends:
- Be cautious of name-brand products advertised at a fraction of their typical price at an authorized retailer.
- Pay close attention to the name of the product. For example, Beats by Dr. Dre is not the same as Beats by Dre.
- Beware of look-alike websites and double-check the URL domain and subdomain are accurate. Scammers often switch these to confuse buyers.
- Read product reviews and research the business on multiple sources. Keep in mind that product testimonials on a business’s website can be fabricated.
UTILITY
Share of reports: 6%
Amount lost: $480
Utility scams are present year-round but increase in frequency during extreme weather when residents are more worried of being without central air or heat. While they often impersonate local utility companies, Permian Basin residents have also reported cable and internet service providers being used in a utility scam. These cons normally claim to provide a discount when the resident pays upfront for services over a specified time period, usually two years. After providing payment, the resident contacts the company to schedule an installation date only to learn the offer was a scam.
To avoid utility scams, BBB recommends:
- If threatened with immediate disconnection of service during extreme weather conditions, hang up and contact your utility provider through the number listed on the most recent bill to verify the situation.
- Do not believe anyone who claims an outstanding utility, internet or cable bill must be paid with gift cards.
- Do not trust caller ID as proof the caller is a legitimate representative of the company.
- Be cautious of clicking on any links provided by a supposed representative through email or text.
FAKE CHECK/MONEY ORDER
Share of reports: 6%
Amount lost: $667
Fake checks or money orders is a common tactic in an overpayment scheme by a fraudulent employer, and recent reports to BBB also demonstrate a version of this scam targeting business owners. When used by a fraudulent employer, they will provide a new hire with a check that is substantially more money than what was agreed and claim that a clerical error was made. To make matters right, the excess money should be sent back through gift cards, cash or wire transfer. When the check is eventually detected as a fake by the victim’s bank, they have lost whatever amount of money they ‘returned’ to the employer. When this scam targets business owners, they are often provided with a check for contracting services and directed to use the money to pay other contractors working on a local project. The property owner claims to either live out of state or is otherwise unable to meet in person, and when the check is detected as a fake, the business is out however much money they paid to the additional contractors who are part of the con.
To avoid fake check or money order scams, BBB recommends:
- Do not use any funds from a deposited check until your bank has completed its verification process to determine the check is legitimate.
- While mistakes sometimes happen, a legitimate company will never require additional money from an overpaid check to be returned through gift cards.
- Remain calm if threatened with lawsuits or arrest for refusing to immediately return money, and only return money to the same account the check is supposedly drawing from.
- Whenever possible, meet with potential clients or employers in other ways than just email or text and ensure you have multiple working contact methods for them.
If you have been a victim of a scam, report it to BBB.org/ScamTracker. Information provided may prevent another person from falling victim and helps BBB educate the public about scam tactics.
