Better Business Bureau of Southern Arizona is warning of two new scams that seek to capitalize on the recent deaths of TV personality Ed McMahon and pop star Michael Jackson.
McMahon’s Dream Foundation Scam
BBB received a call from a consumer on June 24, saying someone contacted them by phone claiming to be from the Federal Trade Commission (FTC). The scammer told the consumer that McMahon, who achieved fame as Johnny Carson’s sidekick on “The Tonight Show,” recently succumbed to cancer and the FTC needed to “clear out” McMahon’s Dream Foundation, based in Las Vegas.
The caller identified himself as “agent Mike Carter,” and claimed that the FTC was conducting a lottery as a means to clear out the foundation; he said the consumer had won $350,000. In order to claim the money the consumer was instructed to send $3,500 via money order as insurance.
An investigation by BBB found that there is no Dream Foundation in Las Vegas, however there is a Dream Foundation based in Santa Barbara. A statement on the Santa Barbara foundation’s Website says: “Dream foundation is not associated in any manner with the Las Vegas Dream Foundation.”
The scammer provided the consumer with a number to call, (202)391-0961, which he claims is for the FTC. A call placed to the number by BBB determined that the number is actually a direct connection to the scammer.
BBB offers consumers these tips to avoid this new version of common sweepstakes scams:
• If you are contacted by someone who says that you have won a lottery or sweepstakes as a result of the recent death of a celebrity, it is a scam.
• Are you being directed to wire money, provide access to your bank account or credit card numbers, or forward any personal financial information in order to claim your sweepstakes or lottery winnings? This is an attempt to steal your money or identity, by a person masquerading as a sweepstakes or lottery official.
• Legitimate sweepstakes companies do not require you to pay taxes, customs fees, shipping or handling, or any other fee before awarding your winnings.
• Did you ever actually enter the company’s sweepstakes? Chances are you did not.
• Do not be deceived by seals, official-sounding names, or terms that imply affiliation with or endorsement by a government entity, celebrity or charity be it here or abroad. It is illegal for a promoter to misrepresent an affiliation with a government organization or other well-known organization.
Use Caution When Buying Michael Jackson Memorabilia
Immediately following the announcement of Michael Jackson’s sudden death, enterprising individuals began selling memorabilia online to take advantage of the increased demand. Better Business Bureau warns that the value of most memorabilia and commemorative items being sold is sentimental and the currently inflated prices for many items will drop over time.
According to Smartmoney, before Jackson’s death, sellers listed an average 200 to 400 memorabilia items daily on eBay, but by the morning following his death almost 20,000 Michael Jackson-related items and memorabilia were for sale on the auction Web site. Items included autographs, gloves, posters, newspapers and even a Cheeto which supposedly predicted the death of the pop star.
In addition to memorabilia, commemorative items are already being mass produced and sold to fans—including t-shirts and special edition newspapers and magazines. Because the value of collectibles is largely dependent on how rare an item is, mass-produced commemorative items are not likely to appreciate in value.
For fans looking to purchase items to help them remember the King of Pop, BBB offers the following advice:
Get educated.
Collectors should research the value of Michael Jackson-related items before they begin purchasing memorabilia, especially if they are interested in purchasing pieces that have the potential for substantial appreciation in value.
Confirm authenticity.
Confirming the authenticity of memorabilia is rarely easy. Autographs can be verified by a third party, but for other items, the collector should feel free to ask the seller questions about the item, including how the seller came to own it. If the seller can’t answer simple questions, then the collector should walk away.
Make purchases with a credit card.
Consumers should always purchase items with a credit card if they are shopping online. If the seller turns out to be fraudulent, then the consumer can dispute the charge with the credit card company and may be eligible for reimbursement.
Purchase items from a reputable seller.
When shopping online stores, collectors should look for the BBB seal on Web sites and click on the seal to confirm its legitimacy. If there isn’t a BBB seal on the site, shoppers should always check a company out with their BBB before they buy at www.tucson.bbb.org
When purchasing items from an individual on eBay, research the seller’s track record by reading buyer reviews. When shopping on Craigslist, go local and never wire money as payment.
Don’t be fooled by empty advertising claims.
Just because the seller claims that the item is of limited edition, it doesn’t mean that there weren’t millions made. If the item is being widely advertised, chances are, it’s too common to actually gain much value over the years.