If you use social networking sites such as Facebook and MySpace, you could be setting yourself up for identity fraud, the Better Business Bureau of Mainland B.C. warned as it released its list of top 10 scams for 2007.

Linda Pasacreta, the president of the bureau, said the amount of information that people post on the popular social networking sites is alarming.

"One study shows that 60 per cent of young people using social networking sites posted their date of birth and almost one in 10 give their home address," said Pasacreta as she released the list Tuesday at a news conference in Vancouver.

"Users of Facebook post personal, intimate details about themselves like a pet's name or their mother's maiden name, all set up for identity fraud," said Pasacreta.
 
The BBB issued the following warnings about the top 10 scams for 2007:

1. Prize pitches with a catch: "Some sweet-talking person calls or writes to you claiming you have won some great prize, such as an all-expenses-paid trip or a huge sum of cash. The only thing is that you must send them money, be available for a home delivery or a special presentation, or provide them with some very personal information such as your bank account number. In the end, you don't get the prize and the scammer gets your money with little or no chance that you will get it back," the BBB warns.

"There's a chance for a 'sequel' to this scam — in a 'Recovery Pitch,' the scammer takes this a step further. He has the money and now he wants more by calling previous victims telling them he's law enforcement and that he's found the victims' money, but of course the victims have to send money to get their money back."
 
2. Cheque overpayment schemes: "In this scam, fraudsters typically target people selling a product through classified ads, online bulletin boards or people looking for work on employment postings. The scammer sends a cheque for the listed product or service that is more than the negotiated price. The original cheque is usually stolen or is bogus, and by the time the victim has cashed and returned the excess funds, the scammer has disappeared with the money and the product."

3. Door-to-door marketing: "Consumer complaints about high pressure and misleading sales practices of some door-to-door salespeople, including gas marketers, put this topic on the list. Be very careful when agreeing to do business with a door-to-door contractor or salesperson."

4. ID theft: "What do social networking sites like Facebook and MySpace have in common with unsolicited e-mails, PIN-pad machines and credit card skimmers? They are all being used as a means to steal your personal information for fraud. Whether you innocently set up a detailed profile on a website that anyone can access, respond to 'phishing' e-mails, click on a link to access what appears to be your bank or another reputable agency, or respond to an unsolicited call, by providing personal information you could inadvertently be giving a criminal your identity."

5. Advance fee loans: Scams offering loans for anyone with bad credit, for a small fee. "You should never have to pay cash in advance for a loan. Many people have filled out their application for their loan, sent in their hard-earned money and then have never heard back from the company."

6. Health claims and cure-alls: "Beware of too-good-to-be-true advertisements claiming 'rapid' and 'effortless' weight loss, stop smoking or 'miracle' cures with 'newly discovered' treatments for disease and illness. These scams may put your health at risk if proper medical treatment is delayed or compromised."

7. Guaranteed vehicle brokers: "After listing your used vehicle for sale in the classifieds, you receive a call advising you that they have a purchaser for your vehicle. They ask for a fee guaranteeing that the purchaser will pay more than the vehicle is advertised for.… Your vehicle is not sold, the guarantees are not followed through and you are out of pocket the funds you have given this company."

8. Bogus credit offers: "These offers appear to be a legitimate debt consolidation or counselling service. The catch is that they ask for a substantial fee to help you reduce your debt. In exchange, they promise to contact your credit card companies to negotiate lower interest rates on your credit cards. In reality, the company sends you information on how you can lower your interest rates by contacting your credit card companies directly and negotiating."

9. Unscrupulous moving practices: "Some moving companies have unethical practices that tarnish the industry: charging hidden fees or providing low estimates and then, at delivery, charging more or holding your goods in storage until you pay."

10. Affinity fraud:  "In about half of all investment frauds, scam artists will target religious, ethnic, or close-knit community groups by gaining trust and encouraging group members to invest their funds in fake investment opportunities that promise guaranteed high returns, tax breaks and little financial risk."

The list was developed jointly by the BBB, the Business Practices and Consumer Protection Authority of British Columbia, the Competition Bureau of Canada, BC Crime Prevention Association and British Columbia Securities Commission.