Warning issued about Champlain scams

Multiple scams generating out of tiny Champlain, N.Y., are causing big problems for business owners and consumers, according to the Better Business Bureau.

The bureau is warning about activity out of Champlain, which has a population of 1,200 and complaint files totaling more than twice that number. Of the nearly 20,000 complaints filed with the Buffalo bureau each year, more than 3,000 involve companies with Champlain and nearby cross-border addresses.

The scams often begin with a few questions posed by trained telemarketers. In some instances, the caller asks to confirm personal information for inclusion in a directory. Others claim to be credit card companies, discount health care plans, or firms that offer grants or advance-fee loans.

Content Continues Below

"People discover they've been scammed when a bill arrives, or their deposit check clears, and they find out that the company they've spoken to is actually located in Canada," said David Polino, the bureau's. "Small businesses are particular targets, along with consumers who fall prey almost daily."

Other targets include churches and senior citizens. Hundreds of victims from all over the country are affected by companies claiming to be based in Champlain. The bureau reports that $600,000 in is dispute from complaints filed in the last year, but it estimates that millions of dollars are lost through these scams annually. Many victims do not file complaints or don't recognize a scam has occurred and proceed with payment on phony invoices.

Complaint activity for Champlain, located at the northeastern tip of the state, stems from nearly 600 companies sited within bureau files. Most of these businesses operate from a Champlain mailing address and are Canadian-run businesses operating scams. Polino said access to the Canadian border is inviting for scam artists.

"Plattsburgh and Rouses Point are other New York cross-border areas that scammers call home, but the clear complaint winner is Champlain," said Polino.

The Better Business Bureau works with other agencies to address phony business operations in the Champlain region. These include the Federal Trade Commission, the Canadian Competition Bureau, the Federal Bureau of Investigation, the United States Postal Inspection Service and the Royal Canadian Mounted Police in partnership with the Canadian Anti-Fraud Call Centre.

As a result, the annual number of newly created companies in Champlain and Plattsburgh has dropped in recent years. In 2005, 133 new company files were created, compared to 118 in 2006 and only 90 in 2007. For more about how to protect yourself or your company from becoming a scam victim, or for information about how to report a potentially fraudulent company, visitwww.bbb.org.