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BBB Warns Companies About IT Scam

August 6, 2019, 1:41 PM HST
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The Better Business Bureau on Monday, Aug. 5, 2019, issued a warning about a scam targeting companies in the market for IT services.

Companies looking for IT providers should be wary as one international company could be costing consumers big money. Individual businesses have reported to BBB that they’ve lost tens of thousands to an IT company based in China, a BBB release stated.

The current spike in tech support complaints involve a company using the names ITR, ITR Resources, or Scott Freeman. This international scam has been spotted in 37 states and Canada with total losses exceeding $2 million, the release continued. Currently, no victims have been reported yet in Hawai‘i.

How it works:

As companies are looking for IT contractors—software development, call center help, website development and other tech work—they come across an online ad for one of these scam companies with competitive prices, the release said. These companies seem legitimate up until receiving their upfront payment. Our reports claim that consumers received counterfeit products or never heard from the IT contractors after payment.

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Tips:

  • Ask for references.
  • Ask the contractor for a list of recent references you may contact.
  • Ask these references about the services and quality of work.
  • Don’t be tempted by low prices.
  • Overseas firms may advertise low prices but hiring a local company with a strong track record may save you money and a headache in the long run.
  • Arrange a payment schedule.
  • Never pay in full up front.
  • Stagger your payments so that the final payment is not due until the project is complete.
  • Get multiple estimates and a written contract.
  • Always get multiple estimates in writing and never let any work begin without a written contract.
  • Never feel pressured into signing an agreement before you are ready and understand the agreement.

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