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Keeping Reason in
the Season

Avoiding the “hot gift” scamster

 

Memories of Christmas’s past: Well-intentioned moms wrestling for the only remaining Cabbage Patch kid, fathers leap-frogging mannequins for the precious last beanie baby. Weird how emotion can cloud reason and judgment.

The search for that sought after gift can sometimes even impair the best of judgment. And unfortunately there are some scamsters who are out to capitalize on this as people become willing to pay double the price or more for some a hot item in short supply. Last years’ hot toy was the Sony PlayStation 2 (PS2), which saw eager buyers plunk down as much as $700 U.S., (well above the $299 U.S. suggested list price), to get the scarce gaming consoles.

Unfortunately some of sellers of the gaming stations weren’t exactly playing by the rules! In fact they didn’t have the games to sell, nor any intention of delivering them even if they did. It was a holiday scam. RCMP eventually busted a 20 year old New Brunswick resident trying to flee the country, with operating the scam through the web sites ps2storeusa.com and ps2storecanada.com (which were later shut down). The fraudster was taking credit card numbers with the unfilled promise of delivering the hot gaming consoles.

As the last shopping days of this year approach and two new gaming consoles, along with toys and memorabilia related to popular books and movies such as Harry Potter and Lord of the Rings get scooped up, there will inevitably spring up sites or vendors on auction sites that promise to deliver this seasons’ hot items. What can you do to guard yourself against this? A few points to keep in mind:

  • If the major stores are completely out of them chances are that few, if any individuals, will have many to sell. If it is that great an item your family member, friend or whoever you are buying it for is also likely to have a birthday in the coming year. A truly fantastic item is bound to still be appreciated then.


  • Be leery of on-line stores you’re not familiar with that are offering these products. As was the case last year, some scamsters have very professional and impressive looking web sites that are merely a front to relieve you of your money.


  • If you have doubt about the vendor, check with the Better Business Bureau (BBB) to see if they have had any complaints about the questionable site or vendor. Last year the bogus offer stung so many people in both Canada and the U.S., that the BBB was prompted to issue an international warning. However you may be stung before a news release goes out, so best to check it out first.


  • Keep in mind that sites or individuals selling above the suggested list price are trying to capitalize on the short supply and high demand. Sony, for example, got caught without enough of some key parts to manufacture ample supply of PS2’s in time for the 2000 holiday season. The skeptic in me believes that companies sometimes hold back on supplies to help fuel that demand frenzy. Remember that with hot items supply eventually catches up with demand, (PS2’s are still popular, but in much better supply this Christmas), meaning the price will start to come down.


  • Always check to see if a web site has a secure commerce logo for taking transactions. In addition, if you are using a credit card check with your card company to see if that merchant is even authorized to use that brand of card.


  • Most importantly, remember that the joy of a Christmas (or any holiday) or the love of the person you are giving to, will not depend on that “one gift” that you are seeking. Chances are that years’ from now they won’t even remember that season’s fad item, but still remember the time they spent with you.


If you’ve been stung by a scamster or an unscrupulous business, let others know at our Consumer Posting Board.

For more on shopping on-line, see “Which Will Crash Sooner? Your Computer or Your Cash? A guide to on-line shopping.

Questions? Comments? Suggestions for The MoneyRunner? Write to us at Themoneyrunner@debtfreegrad.com

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