Staff Writer
July 31, 2008 04:00 am
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By DAN HEATH
CHAMPLAIN -- Champlain has again earned a dubious honor from the Better Business Bureau as the scam capital of upstate New York.
The Better Business Bureau of Upstate New York covers all of the state except New York City and Long Island. In a news release, Bureau President David Polino warned people to be on guard against offers from companies purporting to be located in Champlain and other communities near the Canadian border.
MANY COMPLAINTS
Polino said 15 percent of all the complaints filed with his office come from this area.
"Nearly 20,000 complaints are filed with our BBB each year. Over 3,000 of those complaints involve companies with Champlain and nearby cross-border addresses. The address presents very tricky business."
The number of complaints is down from about 6,000 in 2003.
Common scams involve business directories, credit-card companies, grant offers, advance loan fees and discount health-care plans.
JUST MAIL BOXES
A typical business-directory scheme can involve what seems like an innocent phone call. The caller often misrepresents the firm as having a New York location, when it is actually just a mail drop box for a Canadian company.
The employee is asked for their name, phone number and address, then told their business will be listed in the next directory.
Small businesses and consumers are the most frequent targets, Polino said.
"Sometimes, that's all it takes. People discover they've been scammed when a bill arrives or their deposit check clears and they find out the company they've spoken to is actually located in Canada," Polino said.
"Millions of dollars land in the hand of these scammers each year."
ABSURD'
The Better Business Bureau files show more than 600 companies that list a Champlain address. Most are Canadian companies that want to make victims feel safe, that they are dealing with a U.S. firm.
"We open new company files nearly every week for Champlain. For an area this small, it's absurd," Polino said.
The volume has led the Better Business Bureau to create a special process for dealing with the complaints. They work with authorities on both sides of the border, including the Federal Trade Commission, Canadian Competition Bureau, FBI, U.S. Postal Inspection Service, Royal Canadian Mounted Police and the Canadian Anti-Fraud Call Centre.
MAKING PROGRESS
The Better Business Bureau says those efforts are working. The number of new files concerning cross-border companies using Champlain and Plattsburgh addresses has decreased from 133 in 2005 to 118 in 2006 and 90 in 2007.
C. Steven Baker, director of the Federal Trade Commission's Midwest Region, said consumers and businesses need to use information and tools to avoid fraud.
"The BBB offers consumers a Web site that creates access to a company's history. With more detail, consumers will be better suited to separate an unethical business from one that can be trusted."
Louis Robertson of the Canadian Anti-Fraud Call Center said the scams are a problem for both potential victims and legitimate business owners who might lose customers because they list a northern New York address.
The center works with the Royal Canadian Mounted Police, U.S. law-enforcement officials and the U.S. Postal Inspection Service to fight the scammers.
HARD TO PROSECUTE
Prosecution is difficult, due to the different jurisdictions involved and because some companies operate on the fringe of legality. The companies often simply shut down or switch names and addresses at the slightest hint of trouble.
Polino appreciates the efforts that are having an effect but wants to see even more done.
"Our Champlain watch should become a scam watch for every small-business owner and consumer. This area is notorious and needs to become a red flag for anyone considering a business deal with a company purporting to be located in Champlain."
dheath@pressrepublican.com
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