>> Production funding and educational outreach for Biz Kids is provided by a coalition of America's credit unions, where people are worth more than money.

A complete list of individual credit union funders is available at wxxi.org.

>> Every day, America's credit unions help members with their financial needs and with programs like Invest in America.

It's only fitting that credit unions support Biz Kids because financial education is what we do.

Learn more at lovemycreditunion.org.

>> How would you like to be a fabulous Biz Kid?

Travel to exotic destinations?

Live the glamorous Biz Kid lifestyle?

Well, now you can!

>> Can you believe this?

Using the Biz Kids name to hustle people?

>> This has all the signs of a scam.

>> Getting rushed, requesting personal information, money up front, ridiculous guarantees.

>> It sounds too good to be true.

It must be.

>> A Biz Kid should be able to recognize a scam.

>> Definitely.

And because we are Biz Kids, we still get to do this stuff, right?

>> What do you mean?

>> I mean, you know, time is running out, so maybe I could just make a quick phone call to determine whether I'm... >> It's guaranteed!

>> ♪ When making money is the aim ♪ These kids they bring their game.

♪ They're the Biz Kids!

Can you dig it?

♪ They know what's up, they let you know just how to make that dough.

♪ They're the Biz Kids.

Right on!

♪ So learn a little more about bringing money through the door.

♪ They're the Biz Kids!

Right on!

♪ >> Nobody wants to be scammed.

>> But every year it happens to thousands and thousands of people.

>> That's why you need to know what scams are.

>> How to spot them.

>> And what to do if you get scammed.

>> Scams can come in the form of unwanted phone calls.

>> Or emails.

>> Door-to-door solicitors.

>> And the Internet?

Don't get me started.

>> Many scammers use similar tactics that should look like bright red flags when you see them.

>> Are you expected to pay up front?

>> Do they want you to give them your personal information?

>> Like birth dates?

>> Social security numbers?

>> Credit card accounts> >> Do you feel like they're fast-talking you?

>> Or rushing you to make a decision?

>> Because, if you do... >> (slow audio) Slow down.

>> If it doesn't seem to make sense... >> It's because it doesn't.

It's a scam.

>> Don't be a tool.

>> It's a drag to get fooled.

>> Now, before we start the lesson today, I want you guys to see the amazing score that I made on the way to school today.

Check out this.

This guy got two graduation watches and wanted to get rid of one of them, so I got this for, like, a hundred bucks!

I mean, look at this.

I mean, bling like this is, like, $1,000.

I got it for $100.

I was like a shark.

I'll tell you, he didn't see it coming.

You've got to get up pretty early to pull the wool over this wiley worm!

Ha ha!

(whirring, clunking sounds) >> Wait.

What's that noise?

Sounds like it's coming from your watch.

>> What?

It's watch noise.

Watches make noise.

That's watch noise.

>> Well, some tick, but they don't grind or whatever that is.

I don't think that's a real... >> Yes, it is!

I mean, look at this!

This is an awesome piece of bling that's like, you know, thousands of bucks.

>> Uh, Substitute Teacher, you got scammed.

>> Yeah, you totally got owned.

Sorry.

>> Oh, no.

>> Well, it's like they say, Substitute Teacher-- if it seems too good to be true, it is.

>> This can't be happening.

All right, okay, calm down, calm down.

Okay, I'm going to find this guy, and I'm going to get my money back.

I mean, he can't have gone very far.

You just stay here.

I'll be right back.

>> Do you think we should follow him, like, in case he gets lost?

>> Probably, but my watch says it's recess time!

>> Recess!

>> I'm Danny.

I tried to buy this, but I got this.

Right now I work at GolPost.

It's a video post-production house.

I do editing and compositing and motion graphics.

I've always had a passion for filmmaking.

I've just really enjoyed telling stories.

Scene 76, take two.

Okay, let's get the tracking shot now.

In high school I was a part of the senior video club.

The summer right after high school, I decided that was probably the best time for me to get my own camera.

So I looked at cameras for a while, and the Canon XL1S really jumped out at me.

I decided that's the one that I wanted to get.

I found a camera for $1,500 and then I couldn't believe it.

I was like, "That's only half the price of what I was expecting them to be."

I was really excited.

The seller had really good feedback.

It looked like a pretty legitimate deal.

After I had committed to buy the product online, the person selling it said, "Since this is such a big purchase, I think we should pay for it through this really secure escrow site."

An escrow company is basically like the middleman to make sure that the buyer and seller are safe when you're transferring money and goods.

After I sent the payment, I'd say about a week went by before I was really starting to worry that maybe this isn't going to work out.

The seller wouldn't respond to emails.

I never got my camera.

I never even got anything that said that the money transfer actually went through.

So after I got scammed, I was basically out my $1,500.

No camera.

I started to kind of question the escrow company.

I looked up the escrow company on the Better Business Bureau's website.

The Better Business Bureau is an organization that basically keeps track of how businesses deal with their customers.

They didn't have any kind of listing, so I started doing searches for this company, and stuff started popping up like "fraud, not real escrow company."

I had no idea that the scam could be that the escrow company isn't real.

But when the escrow company is the one that's scamming you, then they do get your money.

A year after I got scammed, I finally got my camera, but I learned a valuable lesson.

All right, action!

If anything seems fishy at all, do not commit to buying it right then.

Do a ton of research and make sure everything checks out.

Okay, cut!

That was perfect!

Hey, Biz Kid, if you're going to buy online, do your research.

>> Ah, I see you're looking through my favorite site, Crudslist.

>> Don't waste your time with that.

Besides, don't you have homework to do?

>> Yeah, I'll get to that in a second.

Look at this incredible deal.

I've never seen this guitar for this cheap.

>> Right.

Musicians are crazy.

You better act fast before he comes to his senses.

>> Now, hold on.

Think this through.

>> No!

If you do that, you're going to lose this deal.

Look, just give him your credit card number.

He'll do the rest.

>> This deal is so good I can't believe it.

>> Go, go, go!

Go!

Yeah, yeah, yeah, yeah, yeah!

>> Remember, if things look too good to be true, they probably are.

>> Yeah, you're right.

>> No!

>> I should get to my homework.

>> You know, I really wish you'd stop with this "too good to be true" line.

>> Touchy, aren't we?

>> Ow!

>> Coming this fall from Biziversal Pictures: >> Hurry up!

They're gaining on us!

>> Don't worry.

The car's right over there!

Come on!

>> Come on, come on!

Start the car!

>> The car won't start!

>> What?

>> I don't know.

The dealer said it was almost brand new.

He said there were years left on it!

>> Well, he was scamming you!

>> Oh, no!

>> Stanley, do you remember when you bought the car, and I told you to research the dealer?

Honesty and quality of vehicles and customer reviews-- these things are really easy to find online.

>> I know, I know.

>> You didn't do any research at all, did you?

>> No.

Go ahead, yell at me.

>> Well, that's really not going to help us now, is it?

>> You're getting the windows dirty.

Please, stop!

>> Stop, stop!

>> Yes, Madam, what may I do for you?

>> I'd like to return this package.

>> What seems to be the problem?

>> Well, the sign said I could make money from home being a secret shopper, stuffing envelopes.

I paid big money and they send me this box.

Now what do I do?

It's a scam.

I've been hoodwinked!

>> Hmm, that's one of the oldest scams in the book.

>> Most scammers are doing something illegal when they scam.

They're criminals.

>> And then there are scams that are completely legal.

They happen all the time, and no laws are broken.

>> Usually this involves selling you things that you don't even need.

>> Fast-talking salesmen often try to push extended expensive warranties on products that already have a perfectly good warranty from the manufacturer.

>> Scam!

>> And then there are the people that are trying to sell you all these fancy add-ons for your computers and your phones and things that you don't need.

>> Scam!

>> Purchases are emotional.

Don't get alarmed into over-buying.

>> That would never happen to you because you're as smart as you are good looking.

>> I am?

>> Are you kidding?

You could be a model.

>> I could?

>> Yeah, all you need are some professional headshots.

This entire package is just three easy payments of $49... >> Whoa!

>> Oh, and Scam takes a beating.

It's hit after... >> Every year hundreds of people are scammed into thinking that they're going to be the next big model or superstar or singer, all for just a small price-- a price that keeps growing and growing.

>> In reality, no reputable modeling agency or publisher is going to ask you for money up front.

>> It's easy to be sucked into it because it's nice to get the attention.

But remember this-- if they're asking for money up front, it's a scam.

>> I still think you're good looking.

>> And it's all over for Scam!

He's down for the... >> I'm Lauren and I'm going to be a model.

>> I'm Tiare and I'm going to be an actor.

>> When I think about being a model, I dream of meeting a whole lot of different people.

>> The attention, I guess.

>> Having everybody know who you are.

>> We heard an advertisement calling for children to come in and audition.

>> My story started when my parents saw the ad on the computer, and so they were like, "Oh, this would be fun for her to do."

>> I went to the audition, and I tried out.

I got called back.

>> They did tell us, if you were going to be the one that got a call, you know, you were well on your way.

>> There you go.

>> I felt really excited, like there was big things that were going to happen.

>> It was relatively expensive, but it included a whole year's worth of classes.

>> Just basically how to walk, stride, how to act.

>> It was $10,000.

>> We did pay about $6,000 for the program that we chose for Lauren.

We did have to split that between two credit cards.

>> So I went to two classes, and then all of a sudden out of nowhere we got an email, and it said that they closed the school and that we wouldn't be going anymore.

>> They had gone bankrupt.

They were not going to be refunding any of our money.

>> I felt really confused, really hurt that somebody could do that.

Not only does it hurt my feelings, but it sort of makes me feel bad for other kids that got scammed, too.

>> Because I paid for Tiare's program on the credit card, I managed to contact them, file a claim and then get all of my money back.

>> I was able to recoup the $4,000 from one of our credit card companies, but the other company was not able to refund the other $2,000.

>> I learned that there's people out there who don't care about what other people think.

They will do anything to get what they want.

>> Don't get scammed, Biz Kids.

>> (laughing) The perfect kids for my insidious new scam!

(laughing) Uh, hey there, kids, want to make some easy money?

>> Easy money?

Doing what?

>> Magazine subscriptions.

You travel to exotic locations and tell people you're raising money for your school.

Of course, you're not raising money for your school.

You're raising money for me.

And then I give you a commission.

It's just that simple.

Just sign this contract, and hop in the van.

>> Hold on a minute.

This is a scam.

You trick poor kids into believing they'll make lots of money and travel to fun places.

You make it sound so fun.

>> But that contract lets you overcharge for the travel, the food, the rooms.

>> Then when they can't pay, you dump them with no money and no way to get home.

What kind of deal is that?

>> I wouldn't do that.

I'm just an honest... >> A scam!

It's a scam!

>> Oh, shut up, kid!

I mean, there's no need to shout.

>> Hands up, sickie!

>> That's him or her!

The real ugly witch in the middle.

>> Ah!

>> We here at Coin Collections of a Lifetime have a special one-time offer, and here it is-- The Birth Year Collection!

For a limited time, and for just four easy payments of $25, we will send The Birth Year Collection directly to your home.

>> Hey, do you think they have a coin collection for my birth year?

It's 1991.

>> These mint condition coins all feature your birth year.

>> I'm sorry, hold on.

I just don't think there's anything that special about coins from 1991.

No offense, but... >> Quantities are limited.

Operators are standing by.

>> I'm sorry.

That's worth, like, 41 cents.

>> You're right.

I mean, there's gotta be tons of coins in circulation with all our birth years on it.

>> Yeah.

I guess the frame is worth something, but... >> But not a hundred dollars.

I mean, that just doesn't add up.

>> Oh, tell you what.

You can buy my coin collection, for one easy payment of $25.

>> Operators are standing by.

>> There are many things... >> Dude, look what just came in the mail.

You've no idea how much I could use a million dollars right now.

>> Well, could you also use a ton of magazine subscriptions?

Because that's all you're going to get.

>> There's no harm in sending it in.

>> Yes, there is.

Then you would be adding yourself to the list of suckers that send in things like this.

>> Spoilsport.

>> Look, if someone's trying to scam you, don't help them.

That goes for your mailbox at home and your inbox in your email.

>> Talking Dog Detective!

>> Hello, Hoverpuppy.

>> I got an email from my friend on Dogbook.

Said he was stuck in a foreign country, so I sent him money.

>> You can kiss your money goodbye, Hoverpuppy.

That's a scam.

Happens to a lot of unsuspecting dogs.

>> Ah!

My money!

>> Here's some basic rules for protecting yourself from scams online.

>> Never open unrequested emails from strangers.

>> Especially if they have an attachment.

>> If you don't know... >> Don't click.

>> And keep your computer from being sick.

>> Scammers are smart.

>> Sometimes an email can look totally legitimate.

>> Like it's from your own financial institution.

>> They just have a few questions.

>> They want you to enter some personal information.

>> Like your birth date or account number.

>> Wrong!

>> Your financial institution would never... >> Never!

>> Ask you for that information.

>> Never give your personal information in an online transaction that you didn't initiate yourself.

>> Never!

>> And be careful with your social network sites.

>> Check your privacy settings.

>> And change your passwords often.

>> You were supposed to say Dynamik and I say Duo.

>> We should probably say it together.

>> Okay.

>> I'm Ryan.

>> And I'm Ashton.

>> And we're the Dynamik Duo.

>> The Dynamik Duo is a Web consulting business that we started, and we actually help other companies build and maintain their Web infrastructures online.

Ashton and I have started over ten online Internet-based businesses.

>> But see, they all haven't been successful because we've experienced some failures due to fraud.

>> So Circuit Breakers, our first businessc led to our first scam, and here's what happened.

We found a guy in Romania who said that he could sell us laptops at $500 apiece.

The same laptops we could get from him on eBay were selling at around $800-1,300.

>> It would be easy for us to sell on eBay and make a profit.

And this is what we did wrong.

>> We had ten auctions that sold for over $1,000 apiece.

And we haven't even bought the product yet.

>> We then received the money back from those auctions, paid the supplier in Romania.

He got the money, sent us a fake tracking number over the course of a couple of days, and the product was never delivered.

>> ♪ Don't risk your buck on bad luck ♪ Don't risk your luck... ♪ >> Wait, is it, "Don't risk your buck on your luck?"

Okay, do it again.

>> I don't know which one it is.

I'm doing too much at once.

>> A lot of fraud exists on the Internet.

As a business, we are accepting credit cards for payment for some of the products that we offer.

>> One of our companies, called LudaKicks.com where we sold customized athletic wear, we experienced fraud.

You know, we had individuals that had stolen credit card numbers, and what they did is they made purchases on our Web site, and then the original credit card holders got upset and wanted their money back.

>> Basically the billing and shipping address didn't match.

We had to prove the purchases, right?

That we actually shipped to the correct billing address and the correct shipping address, and we didn't.

>> Yeah, no, we didn't get it yet.

We're still waiting.

>> We had to pay the client back who actually was a credit card holder, but then we also paid our manufacturers overseas, so we kind of lost twice.

>> We lost over $20,000.

>> Always research a company before giving them your money.

>> So we can't take this anymore, and we put some measures into place called security.

So what this system, our system, LudaKicks.com, will check is what's the credit card number?

Is that a real number?

>> We'll say okay, does the shipping address match the billing address?

>> And if this credit card is notably known for being a fraudulent number, it wouldn't go through our system.

>> And so what happened is these chargebacks started to drop because they couldn't get through our system.

>> ♪ We're jammin' we're jammin' ♪ We're jammin' 'cause we're protected from scammin'.

♪ >> Oh, Isis, I hate this heat!

>> Oh, I know.

Me, too.

>> So how'd you get suckered into this?

>> I was told it'd be easy money.

>> (laughing) Yeah, pay a little up front... >> Then you get a big return in the end.

>> Mm-hm.

But that's not where the money is, is it?

>> No, the real money's getting your friends to join and then taking a piece of their fee.

>> And then their friends join and their friends join.

>> And look how much money all these pyramid schemes are making.

>> Oh, yeah.

The Pharaoh's the only one making money on this.

>> Agreed.

Oh, I did not know it was going to be this hard.

>> Let's just take a breather.

Just a break.

>> Okay.

>> You two!

Back to work!

>> They did not say there would be whips at orientation!

>> The pyramid scheme, don't fall for it.

It's one of the oldest scams in the book.

>> Hola, Pegito.

>> My assistant Brian.

What's up Brian?

>> I'm going to be rich.

All I have to do is give ten dollars to my ten friends.

And they give ten dollars to their ten friends.

>> Brian, it's a big scam.

>> What do you mean?

I'm going to be rich.

>> Only the top person makes money in a pyramid scheme.

Don't be a chump.

>> Winning!

>> Remember how in this episode we've been telling you not to rush into purchases?

>> Well, if you've been scammed, you need to rush.

>> Immediately call and cancel your debit and credit cards.

>> Most financial institutions have 24-hour hotlines for scams, frauds and theft.

>> Tell them your last purchases and where you shopped.

>> Some damage may have been done, but by working quickly with your financial institutions, you can cut your losses to the scammers.

>> And in some cases, your account can be credited for the bogus charges, and you can get your money back.

>> Then you need to protect others by calling the authorities.

>> If this scam happened to you, chances are it's happening to a lot of people.

>> You need to help stop it as soon as possible.

>> Call your state's Attorney General and the Federal Trade Commission.

>> They have special teams to monitor and stop scams, and they need your information to do it.

>> Scammers will always be out there trying something new.

>> So be alert.

>> Be aware.

>> And act fast!

>> Be alert.

>> You know, you can recover if you pull a muscle, but your credit won't if someone steals your identity.

Hi, I'm Heather, and I'm a victim of identity theft.

It's common, and it happened to me in college.

I became a victim of identity theft in my junior year of college.

I was like, "Ooh, I'm 20 years old.

I should have a credit card.

That sounds like such a grown-up thing to have."

And I think as I was researching things online, I accidentally ended up applying for one without realizing it.

And then when they sent the credit card in the mail, I thought that it was junk mail, and so, you know, I didn't even open it, and I just tossed it into the garbage can.

Which then someone was just able to scoop in, pick it up, open it up, and be like, "Oh, hey, there's a credit card in here."

And they somehow managed to activate it, and from there created another card in my name, which had an even higher limit.

So then about a year later I started getting collections notices saying that I was in debt on these two cards, about $10,000-11,000 on one and then $4,500 on the other one.

I definitely thought they had made a mistake.

No, I don't have an account with that bank.

>> We're showing you do.

>> What?

>> Yes, you have a credit card with us.

>> Credit card?

>> Yes, a credit card.

>> No, I don't have a credit card.

>> Yes, you do.

>> And then they sent it to me in writing, and there it was in my hand, "You owe $10,000."

$10,000?

>> Yes ma'am, $10,000.

>> Are you kidding me?

>> No, I'm not.

>> I'd like to speak to your fraud division.

>> You can't.

They're busy.

>> Yeah, you know, it takes you ten seconds to cut up your mail, and it's taken me five years to clear up my credit report.

Hey, Biz Kids, stay on your toes about identity theft.

>> The key to financial self defense is to identify threats.

Now, you.

>> Huh?

>> Come help me demonstrate.

You will defend yourself against the threat of scams, as represented by this opponent.

>> Master, my opponent didn't bow!

>> No, because a scam does not respect you.

Now pretend this seller is walking down the street and sees you, and thinks you're an easy mark to buy something from him.

>> I only buy if I'm certain of the transaction and the seller.

>> Good, good.

But the seller says you must pay up front, wants you to send money via a wire service.

>> That is not a safe and reliable means of exchanging money.

>> Excellent.

But what if the transaction can only be completed if you provide your social security number and your bank account numbers?

>> I never freely provide that information.

>> Well done.

But the seller's still coming for you, won't leave you alone.

What do you do then?

>> I am protected by the Federal Trade Commission, who enforce rules against scams, frauds, flimflams, bamboozles, swindles, cons, chicanery, double-dealing, hoaxes, identity theft.

Want a piece of this?

>> Uh, no.

I'm good.

Well done.

You learned.

Good learner.

>> My name's Amanda and this is Kiki.

(slow audio) My four thousand dollar cat.

>> Hi there.

>> Hi.

How are you doing?

>> Good.

How are you?

>> Kiki is a mixed-breed cat, and I've had her for almost three years.

>> When I got back from the holidays, I noticed that Kiki wasn't acting herself.

She was losing weight and sleeping all of the time.

I brought her to her regular vet, and we were going to have a check-up in two weeks, and within that two-week time she took a turn for the worse.

I was really concerned.

My regular vet was not open, so I had to contact an emergency vet.

They called me the next day and said she needed a blood transfusion because she had ingested rat poison.

They made it sound like this was the only procedure that we could do to save her.

When I picked up Kiki four days later, her total bill at the emergency vet was almost $4,000.

I also showed her regular vet the records from the emergency vet, and she found that a lot of the procedures and tests that were done were not needed.

It made me think I had been scammed.

>> I'm assuming this was first, but it's still in high-normal range, which is what made me mad.

>> It was important for me to keep good records from the emergency vet so that Kiki's regular vet could find proof that the emergency vet scammed me.

And it allowed her to file a claim with the Indiana Attorney General.

>> Hey, Biz Kid, Kiki says... >> Don't be a victim of a pet scam.

>> It's an average day in the mall, and Marguerite is about to sign up for her first stupidphone.

>> Uh, excuse you!

>> Oh, no need to apologize.

I'm here to save the day.

Oh, I wouldn't do it if I were you.

You haven't taken the time to read the fine print.

>> Blah, blah.

It's just the usual stuff.

It's on everything.

>> That's what they all say!

>> It's Fine Print Man!

Yes, Fine Print Man!

Able to read the fine print!

>> Stand aside!

Ah, yes, I see.

The fine print contractually holds you for three years to this deal.

You'll have to pay $500 if you terminate early.

>> Whoa!

>> It also says you won't be able to update your phone without renewing the three-year contract.

Also, if you'd like to use the Internet with this phone, you'll have to pay an extra $30 a month.

And that's not the worst of it.

You're agreeing to pay $15 a month insurance, one dollar for every text you send, and no rollover minutes.

Really?

No rollover minutes?

>> Could I see those glasses?

>> No, no, sorry.

Special prescription.

But anyone can be a superhero if they just take the time to read the fine print!

>> Thanks, Fine Print Man.

You saved my butt.

>> No thanks necessary.

But now I must be off.

Some poor kid is about to buy a bogus extended warranty for his new computer.

>> Is that Fine Print Man?

>> Where?

>> We now return to our unscheduled movie, Alabama Jones and the Temple of Scam.

>> Yes, I think this is what we've been looking for.

According to this document, I can become fabulously wealthy just by working from home.

All I have to do is send a small deposit... >> Dad, it's a scam!

>> Gentlemen, how are we doing?

Didn't catch you at a bad time, did I?

Now for only a small investment of your own money, I can make both of you very, very wealthy.

>> Another scam?

>> Scam.

>> Scram!

>> Your common sense lets you see a scam coming.

>> Never give your personal information to people who call or email you.

>> Keep a close eye on your social network sites.

>> Adjust your privacy settings and change your passwords regularly.

>> And take a long look at deals when they come along.

>> And don't forget to read the fine print.

>> If it looks too good to be true... >> Dude, look at this email.

I got it from Printers Warehouse Lottery.

I'm the grand prize winner!

>> Scam.

>> Yes.

>> Remember the pyramid scheme?

>> Scams.

>> Scam.

>> Scam.

>> Scams.

>> Scams online.

>> Scam!

>> Scams can be found on flyers.

>> Monitor what?

>> Scams.

>> Scammers.

>> Sc-sc-sc-sc-scams.

>> I can't possibly get scammed.

>> But every year it happens to thousands and thousands of people.

>> Scam.

>> If someone's trying to scam you... >> Stand aside.

>> Need some more bites of Biz?

>> Check out our Web site.

>> If you have your own business, we'd love to hear about it.

>> Plus, we have resources that can help you.

>> Just click on bizkids.com.

>> And let's get down to business.

>> Some Biz Kids business.

( metal guitar solo ) >> Production funding and educational outreach for Biz Kids is provided by a coalition of America's credit unions, where people are worth more than money.

A complete list of individual credit union funders is available at wxxi.org.

>> Every day, America's credit unions help members with their financial needs and with programs like Invest in America.

It's only fitting that credit unions support Biz Kids because financial education is what we do.

Learn more at lovemycreditunion.org.

Captioned by Media Access Group at WGBH access.wgbh.org