Scammers get sophisticated as economic doldrums continue

Working at the BBB is never boring. Just when I think I have seen it all, a new way to separate people from their money or information surfaces, and I shake my head in amazement.

Feeling cynical is easy when so many people are duped in ways they should have seen coming, but when I step back and understand where the victims stand in life, it becomes a bit easier to offer empathy.

The favorite rip-offs these days involve work or contracts. No, not just work-at-home scams targeting the unemployed. They now include questionable promises of government contracts to area contractors. In the past 10 days, we have seen two elaborate and apparently successful scams target our region.

The first one brought national attention to the Yakama Nation in the wake of the Gulf Coast oil disaster. It involved promises of high-paying jobs waiting in the Gulf region for anyone with any skill level. A couple of supposed do-gooders – a father-and-son pair, the Rosados – offered to transport to the Gulf and pay room and board for anyone who signed up for $40-an-hour jobs cleaning, cooking or providing other support services for BP’s cleanup efforts. They passed out fliers and asked enlistees to provide their names and addresses, Social Security numbers, tribal ID numbers, and to open a bank account if they didn’t have one.

The tribe states that more than 800 people signed up.

The first busload of workers that was to depart for Louisiana never transpired. The Rosados claimed they hadn’t yet secured the required insurance for each hire. Some on the reservation hold out hope the jobs are legitimate, but others are skeptical anything will come of this offer. Meantime, because of the efforts and communication between tribal authorities, the BBB, the FBI and the Washington attorney general’s office, tribal leaders were armed with a slew of information and background to convince those left stranded that they should think twice about heading into the unknown.

The Rosados have a history of unfulfilled promises. Their last business model involved a juice and cheese factory in Oregon City that purported to one day employ 300 people. That pipe dream never panned out.

Many of the Yakama Nation applicants quit minimum-wage jobs anticipating the riches of the Gulf – and helping Mother Earth. Christino Rosado Sr. was no stranger to these tribal members. He had built a friendship with a member who had sold him salmon for years. So is this, perhaps, an example of “friendly fraud”? That’s what we call a relationship crafted and developed for the sole purpose of someone wishing to take advantage of others, usually for economic gain. We see it over and over again with certain demographics, including ethnic groups and church affiliations. We all think at some level, “How can someone I know ever victimize me?” But, sadly, we are wrong to think nothing will ever happen to us, because it can.

The BBB spent a large part of a week investigating this situation, gathering facts, speaking with key players. Because we were tipped off early, hopefully we helped those who needed it so the confusion and damage did not run too deep. Short of the potential for identification theft, authorities are not sure what the Rosados are up to, and that is why the tribe launched its own investigation.

The second offer came from what looks like the U.S. Department of Transportation. Letters arrived via fax telling local contractors they were “registered prospective contractors,” but that some financial information was missing from the file. Due to privacy laws, the government agency needed a release of financial information to move ahead with any procurement decisions. The fax and logo look official. They even provide a fax number so a contractor can send bank account details, tax ID numbers, the signatures of two officers and a cover page with logo. This would, of course, be all scammers need to steal the identity of a company. It happens all the time.

How could anyone fall for any of this? I often ask that question. But when you walk a block or two in someone else’s work boots, you can better understand. If you are one of the large number of unemployed contractors, or one who has seen very few jobs in the last 18 months, you begin to look for opportunity in places you probably didn’t consider before. You begin to want to believe; to ignore those red flags and nagging doubts. The need to believe and trust a solution becomes stronger than common sense. Desperate people make desperate decisions, which make scam artists more successful.

Especially in times like these we need to slow down, double-check and investigate before we invest. As always, start with trust by going to www.bbb.org for any information the Better Business Bureau can provide.