Most locksmiths are honest. A few are not. According to a new warning from the Better Business Bureau, these untrustworthy locksmiths are "ripping off consumers" across the country. The BBB says this "nationwide locksmith swindle" has already resulted in more than a thousand complaints. Click here for the complete article.
** UPDATE ** Locksmith Bust/Sting - November 2009
10 Connects helps bust national locksmith chain
CLEARWATER, Florida - Just days after a 10 Connects investigation into deceptive sales practices by a national locksmith chain based in Tampa Bay, federal agents stormed the headquarters of "Dependable Locks," seizing computers and documents and arresting one of its owners for alleged money laundering.
"This reaches throughout the United States," said Doug Smith with the U.S. Postal Inspection Service, the agency to raid the office. "Clearwater...is where a lot of the employees were working, basically in a call center-type scenario."
Despite hundreds of complaints to dozens of different state agencies, it took a collective effort from the U.S. Postal Inspection Service, the Missouri Attorney General, and Clearwater Police to bring the company down because locksmiths are unregulated in 36 states, including Florida.
Investigators arrested one of the owners of "Dependable Locks," Moshe Aharoni, charging him with federal mail fraud. An affidavit (read it in its entirety here) accuses Aharoni, 28, and fellow owner David Peer, 31, of laundering money from over a hundred locksmiths across the county through Postal Service money orders. A federal warrant is out for Peer's arrest.
The affidavit also accuses the owners of instructing their more than 100 employees - many of whom were Israeli nationals in the U.S. without work visas - how to overcharge and deceive customers. The Better Business Bureau gave the company an "F" rating because of hundreds of complaints received over the past two years.
The bust was months in the making, and more arrests are expected. A St. Louis man - Eliyahu Barhanun, 29 - was arrested in a simultaneous sting in Missouri. "More complaints will come in," Smith continued, "and you've got to remember, these are allegations, so there's more investigating to do."
U.S. Postal Inspectors have established a hotline for those believing they victims of locksmiths' deceptive sales practices. The phone will not be manned, but callers are encouraged to leave their contact information at 314-539-9441. The calls will trigger an investigative response. There is also a toll-free number - 877-876-2455 - but there are more steps to finding the right extension.
To protect yourself in the future, look around for a reputable locksmith now. It will help prevent you from being taken advantage of in case of emergency. The Associated Locksmiths of America provides a list of member locksmiths at www.findalocksmith.com. Or, as one viewer commented on 10 Connects' initial investigation, "I would check with www.angieslist.com the listings include reviews of actual customers not someone willing to pay a membership fee. Also check www.BBB.org."
Beware of Disreputable Locksmiths
You are locked out or you've lost your keys. Your friend can't find the spare. So, you have no choice but to call a locksmith. Think you're calling a local guy? Think again. CBS 2 Chief Correspondent Jay Levine is here with a warning. Click here for the complete article.
Federal Trade Commission Provides Guides to Reputable Locksmith
If you've ever locked yourself out of your car or home, you know what a hassle it can be. Your first thought is to get someone to help you out of your situation. If a family member or friend can't deliver a spare set of keys, your next call might be to a local locksmith. But before you make that call, consider this: According to the Federal Trade Commission (FTC), the nation's consumer protection agency, some locksmiths advertising in your local telephone book may not be local at all. They may not have professional training. What's more, some of them may use intimidating tactics and overcharge you. Click here for the complete article.
Better Business Bureau Warns About Phony Locksmiths
Victim complaints to BBB reveal that several locksmith companies, all using similar methods, are significantly overcharging consumers, charging consumers for unnecessary services, using intimidation tactics, and failing to give refunds or respond to consumer complaints. Click here for the complete article or here to search the Better Business Bureau website for a locksmith in your area.
NBC's Today Show Discusses Phony Locksmiths
Most locksmiths are honest. A few are not. According to a new warning from the Better Business Bureau, these untrustworthy locksmiths are "ripping off consumers" across the country. The BBB says this "nationwide locksmith swindle" has already resulted in more than a thousand complaints. Click here for the complete article.
Dealers Unite in Wisconsin
On 3/19/09, Steve Burroughs of Burrough's Locksmithing in Menomonee Falls, WI organized a media event to help alert consumers in Wisconsin to the growing problem of unscrupulous companies preying on unsuspecting consumers who are in need of locksmithing services. These companies are operating nationwide, and they use deceptive advertising practices and related tactics to prey on consumers in a time of need. Consumers have been overcharged, charged for unnecessary service, intimidated, and more.
This particular media event was held at the IDN H. Hoffman facility in Butler, WI, and was attended by prominent and concerned locksmiths, media personnel, and State Representative Dan Knodl. A news report aired on Fox 6 News in Milwaukee that same evening.
Locksmiths throughout the country are gathering to address this important issue and to get the word out to consumers through the media. The key message is to alert consumers to what is happening so they can take the necessary steps to avoid being scammed; to know how to recognize a scam if/when it occurs; and most importantly, to report a scam to authorities – either the police, the Better Business Bureau, the state's Attorney General, or equivalent. Reporting the problems is one of the best ways to ensure that this problem is dealt with at the appropriate levels.
Related News Reports on Scamming in the Industry
Here is a link to a recent ABC news story video about the phony locksmiths. Click here to view.
More reports are available through the ALOA website www.aloa.org. Click on Legislation, then Take Action Against Phony Locksmiths, or click here. At the bottom of the page you will find a reference to the Press Room to see other reports on scamming or click the document attached.
To find a locksmith or sign up to be listed through ALOA, visit here for more information.
Other notable websites related to this topic are from the Legal Locksmiths website. Click here for more information.
