Common Scams

Every year the Marblehead Police Department receives many reports from residents who have been defrauded, or who suspect that scam artists are attempting to defraud them.  It has been often said, "there are no new scams, only new victims."

Common Scams:

Bail Scam:

A telephone call is received from a "lawyer" who claims to be representing a relative of yours (grandson, nephew, etc.) who is in "trouble" with the law and "desperately" need money for bail. You are instructed to wire funds via western union to a location in another city where the scam artist pockets your money.

Bank Scams:

The "Bank Examiner" suspects impersonate bank employees, police officers, FBI agents, etc.  The suspects may display badges or other forms of identification that look "official".  They contact a victim either by telephone or in person and explain that a "dishonest employee" of the victim's bank is embezzling funds, and request the victims help in apprehending the "dishonest employee" by withdrawing a certain sum of money from their account.  Arraignments are made to meet with the victim to "turn the money over" to them as evidence, with the promise that when the arrest of the "dishonest employee" is made, the money will be returned.  Of course it never is.  Residents are advised that no law enforcement officer or bank employee will ever ask you to remove funds from your bank accounts for any reason.

Check Scams:

You decide to sell your automobile or some other article of value via the Internet or a newspaper ad.  You are contacted by a "buyer" who offers to buy your car "sight unseen" and informs you he is mailing or overnight shipping you a check in the amount you are asking for your property.  When the check arrives, you realize that it is for more than the agreed purchase price.  When you contact the "buyer" to inform him of this (usually via a cell phone number or an untraceable land line phone) he informs you that a mistake was made, and asks you to still deposit the check, and to forward the excess money to him (usually in the form of a certified bank check).  The problem is that the original check sent to you is a high quality counterfeit, which is totally worthless.  When that check clears through the banking system and is remitted back to your bank, they will seek payment from you.

Home Improvement Scams:

"Contractors" offering to do driveway repairs or sealing, roofing, chimney, or masonry repairs approach you at home offering a great "deal" on repairs.  Often the repairs are shoddy or substandard, or not completed at all.  The original estimate price is inflated (a quote of $50 to seal coat a driveway is inflated to $500 when the "contractor" states his price quote was $50 "per gallon" for the sealer).  Intimidation or threats may be used to collect money.  On occasion the home repair turns into a diversionary burglary.  Another favorite scam is the "deposit scam" this involves taking a down payment for work from the victim, and then never completing the job or in some cases never even starting the work.

Imposter Burglars Scam:

The utility impostor burglars impersonate city workers or utility men claiming to work for the Water, Electric or Gas Company.  The usual ploy is to gain entry to your residence under the pretext of checking for a water or gas leak, or to check the electric panel.  These criminals usually work in "teams" or 2 or 3.  Once entrance to the residence is gained, one of the suspects may ask the homeowner to accompany them to the basement to "check for leaks" or to "point out the electric panel".  The accomplices will then search and burglarize the residence.  It is common for these suspects to tell the victim that they "overpaid" their last months utility bill, and that the homeowner is due a $10 or $20 "rebate".  The suspect will then offer the victim a $100 bill and observe where the victim goes to get change for the bill.  This information will be conveyed to the accomplices who then burglarize and steal money and other valuables.  Marblehead residents are advised that Town Utility workers wear work uniforms and drive distinctive Town of Marblehead vehicles with Town Seals on the doors, which display blue "Municipal" license plates.  Town employees are issued photo ID cards.  No Town worker or any employee of Keyspan (The Gas Company) will ever offer money to a customer for any reason.

Lotto Scam:

You are contacted by telephone, letter, or email and informed that you have won a major lottery prize (the Canadian lottery, Irish sweepstakes, etc.)  The lotto scammer informs you that in order to collect your winnings, all you have to do is forward the tax payment on the winnings to them to receive your check.  The scammer will then direct you to money wire funds to them via Western Union or some other remittance service.  Needless to say, this is the last you see of your money.  In recent years, Canada has been a major site for this type of fraud.

Mall Scam:

A victim is contacted by telephone, often at their place of business, by subject who identifies himself as "Bob the UPS Driver" or "Bill the FedEx Delivery Worker" etc.  The perpetrator then tells the victim that a "great deal" can be had on plasma TV's, DVD players, camcorders, etc. because his "friend, brother-in-law, nephew" etc. works at the mall in a large department store or electronics store and can get "overstocked" merchandise at a huge discount.  The suspect will inform the victim that he can buy as much merchandise as he wants, quoting him prices for the merchandise that are of half or less the retail value.  The suspect then arranges for the victim to meet him at a specified location at the local mall, and tells the victim to bring cash with him for the purchase.  The victim meets with the suspect, turns over the cash, and in turn receives what appears to be a receipt for the merchandise "ordered".  The victim is then instructed to go to the stores pickup area or loading dock to pick up their "bargains".  At that point the victim discovers that the "sales receipt" is counterfeit, and that they have been ripped off.

Merchandise Scam:

You are approached by "salesmen" who are operating out of a van or cargo truck who are offering steep discount on "quality" stereo equipment, or tools, or other items.  The usual story is that they represent the manufacturers directly; the merchandise is excess overstock, etc.  The merchandise is usually sealed in cartons, perhaps with a brand name appearing on the cartons.  This scam is the classic "buyer beware" as the merchandise usually turns out to be a low quality counterfeit product, or even worse, you have just purchased a shipping carton containing a cement block or some type of weight to simulate the product inside.

The Pigeon Drop Scam:

The pigeon drop suspects usually operate in two person teams, often female.  The scam usually takes place in a busy location often near a shopping area or bank.  The first pigeon scammer will approach a victim with an envelope or bag and ask the victim if they "just dropped" the item.  When the victim replies that the item is not theirs the scam artist will open the object and display the contents to the victim.  The contents may appear to be a large amount of money, large denomination checks, or items of jewelry.  Usually a "note" is included stating something like "won this money gambling, hide from the IRS" or "these checks are negotiable by anyone, they cannot be traced".  Typically, at that point the first scammers accomplice appears, pretending to be an "interested stranger".  Scammers one and two then convince the victim to cash the checks (usually counterfeit) or to put up "good faith money" to share in the "found cash" or "jewelry".  One the victim complies with the scammers, they either flee with the cash provided by the victim or complete a "switch" in which they trade the victim cash for an envelope filled with scrap paper or worthless costume jewelry.