The New Scams to Watch Out For

Name: James Orr
Lives in: Fresno, Calif.
Amount lost: $7,000

When James Orr, an engineer living with his wife in Fresno, Calif, saw a brochure for Primo Network Adventures in his mailbox, it caught his attention. The colorful pamphlet included images of people lounging on cruise ships and reclining in first-class airline seats. It seemed to promise a cruise and a weeklong condo rental, plus a chance of winning valuable prizes like a Tesla. An info session was planned at a nearby hotel, and Orr and his wife decided to attend.

When they got there, they learned about Primo’s 10-year travel membership program, which included a condo rental and big discounts on exclusive travel bookings. The cost: nearly $12,000 up front, plus annual fees.

A key selling point was Primo’s Facebook page, filled with gorgeous photos of beaches, resorts, and other attractions. Primo also touted a password-protected booking portal. Orr hadn’t heard of the brand but decided the company looked legit—and the potential savings seemed huge.

Still, Orr wasn’t completely sold. He says he told them $12,000 was too much. They asked how much he would spend. He offered $7,000—the amount he had just received for a consulting job—and they accepted. Orr then signed an eight-page agreement that he says he didn’t read carefully.

It turned out the Primo membership was just a new version of the old timeshare scam. Primo likely microtargeted older, well-off retirees by buying their personal information from data brokers. Orr says he was never able to take advantage of any of the promised deals because none were appealing or fell during a time when he could travel. He and his wife eventually grew distrustful of anything they received from Primo.

In the end, Orr used his Primo membership only once, to book a motel room for a high school reunion. He estimates he saved around $100 on that reservation.

CR tried to reach out to Primo for comment, but its website and phone numbers are no longer working. A travel agent formerly affiliated with Primo said the company has apparently gone out of business.

How to Protect Yourself
Scammers now have sophisticated tools to find the type of people they feel are most likely to fall for the hard sell. They can buy complete “dossiers” derived from publicly available online sources, as well as personal data collected from cyberattacks and leaks. They then tailor their scams to go after especially lucrative targets, such as retirees living in wealthy ZIP codes.

The scams themselves are manipulative. Fraudsters often pressure their targets to act fast so that they don’t miss out on supposedly valuable opportunities. The goal is to keep you from thinking too much about what you’re buying or how much you’re spending. So before you jump on a seemingly great offer, remember these tips:

Take your time. As the saying goes, if it sounds too good to be true, it probably is. In James’ case, the scammers dangled luxe trips and big discounts. By saying he had to make his decision on the spot, they tricked him into rushing his decision without studying the fine print.

Be wary of promotional prizes. Consumers are often lured in by the mere chance of winning a sweepstakes prize. Don’t be. Even if promoters fulfill their obligation to disclose the odds in a clear and conspicuous manner, your chances of winning are probably very, very slim.

Alert your credit card company. If you think you might have been the victim of this type of scam, and you paid using a credit card, report it to your credit card company ASAP. Disputing a credit card charge forces the financial institution to investigate whether the buyers got what they paid for. In many cases, if a scam is discovered, the charges can be reversed.

Immediately contact your state’s attorney general. Many AGs have web portals and hotlines for consumers to file complaints. Also file a report with your local police department, the Federal Trade Commission, and the Consumer Financial Protection Bureau. In some cases, these entities can identify scammers as part of larger investigations and, eventually, help you get some of your money back.