Frauds

[Brett McMenimon]

The locksmith industry is an industry based on trust. A home owner or business relies on that trust when they move into a new home or change employees. Recently, the sanctity of this trust is being broken. Companies across the country are charging outrageous prices to people who are in situations where they have no choice but to pay. Most often, a locksmith services are needed when the situation is delicate. Someone is locked out or going through a divorce and these fraudulent companies are preying on the emotions that are involved in those situations. To take advantage of this is appalling to say the least. Stories of people paying up to $1,700 to get back into their home are broadcasted on the internet and news, but the problem persists.
So what steps are being made to help rectify the situation? If a customer uses google.com to search for local locksmiths in their area, there are numerous results. Yet, the locations of these locksmiths do not even exist. This means if someone calls for service, has the work done, and needs to speak to someone at an actual location, they will never be able to do so. Also, chances are that the technician that did the work will not answer phone calls or offer any help after payment. Yet web searches continue to list these locations. In my opinion there is one simple solution to this problem. These search engines should be sending some kind of verification form to the locations via standard postal services. If they could just verify the addresses, some of this madness could end. It will never completely solve the problem. There is always going to be people claiming to be locksmiths who are completely unqualified, but it will help. And until there is licensing for this trade, the problem will never completely end, but until then steps need to be made to stop this scam.

I wrote this article because I am a third generation locksmith at The Flying Locksmiths in Randolph, Massachusetts and we spend a lot of time fixing what these so-called “locksmiths” have done. I see this problem on a daily basis, and it’s just not morally right. Something needs to be done and for now all I can do is spread the word.

Visit my website: link removed

[Safecrackin Sammy]

I would report all of the so called "locksmiths" involved to both the better business bureau and the police for potential price monopoly or gouging.

If you have individuals names I would also contact ALOA and have them disbarred for ethics violations.

Its sad that there are people like that in the industry..

[Engineer]

One that while technically is probably not a fraud, but must be annoying customers enormously not just in the lockksmithing trade, but many others too, are the companies that advertise in the Yellow Pages as things like "11111111111AAAAAAAAAAAAAAAA Locksmithing Company" so they can be sure they are the first listing and advertise in all the Yellow Pages as though they are "local".

Often they are not even locksmiths, but a company that will charge the customer twice what the actual locksmith would and after taking the customers' order and credit card number, they just phone a real lockie who is local to the customer and pocket the difference.

[5thcorps]

Like everything else, if there is a nickel to be made someone will steal it.

[globallockytoo]

Brett,
The problem with the "scammers" as they are known affectionately , is that the cost for Yellow Pages and Google and other mediums to provide staff to check and recheck and confirm location verifiability is way too expensive. As such if they were regulated to be required to perform such verifications, the cost of advertising in the directories/online would increase so significantly that no legitimate company could afford to place an ad.

It is a catch 22 situation. The scammers are advertising everywhere, with staff everywhere, using bait and switch tactics (quoting really low over the phone - then switching prices mid-job or at completion) They pay big $$$ to the phone books to be No1 and the phone books need the money, so look the other way, at the expense of their smaller advertisers.

These companies will insert their ads in all phone books across the country and make the phone books substantial monies. Forcing the phone books to not allow them to advertise is illegal and even if they become a licensed company (which is so easy anywhere in the USA today), they can still advertise whatever and wherever they want.

So how do the legitimate locksmiths compete?

Play their game. Get the locksmiths associations to use their monies to sponsor the first ads in phone books, listings with members names or areas etc. It will never happen because most locksmiths are too pig headed to organize any kind of beneficial association between them. They are all too greedy individuals. There are too many opposing opinions and they would never work with their competition to push the scammers out.

[Brett McMenimon]

I agree with you globallockytoo.

Associations like ALOA need to step up and confront this problem. I am working hard to get my company out there so residents and business' will stop calling these scam artists but it's virtually impossible. It's like a war I can't win.

If ALOA could focus on marketing a website that is catered to directing potential customers to a ACTUAL locksmith it might help rectify the problem. You can currently sign up on their website as a ALOA member but honestly, what customer is going to find ALOA's website? The truth is, not many. Customers are not aware of the problem enough to be consciencous about it. The problem will just persist until they have a bad experience or some kind of licensing is issued.

Also, ALOA needs to take a closer look at who is using their logos on the websites. We all know who the phony locksmiths are, and some of them have that red and black ALOA symbol right on their website. They lie and cheat about everything else, why not that too?

edited to remove signature

[sevedus]

When fraud becomes a problem in other fields it generates regulations intended to separate the wolves from sheep. (Certified and Licensed trades.) The more self-regulating the affected trade is the less governmental regulation results. (AMA, Bar Associations). The greater the risks involved the more regulations produced. So...
If, as Brett suggests, it ALOA's ball to carry or drop and become the first Yellow Page or web-site that nationally appears when anyone looks for a locksmith, then how much authority and autonomy does ALOA get? It seems like a good idea with a few bumps on it.
In a lot of trades and especially in professions, the most you can hope for from someone's certification is initially demonstrated competence and freedom from (known) ethical blemishes. (At that time.) So a combination of "Gold Standard" competency certification and direct customer feedback (like a BBB or Angie's List) which returns to the authorising body is about as much assurance as the public is likely to get or want.
It seems like an un-filled (regulatory and supervisory) niche, and since we all know that nature abhores a vacuum, the question is whether it is filled from the bottom up by self-authorizing, skilled-trade associations or from the top down by legislation. And which way is really better?

[jimb]

These companies will insert their ads in all phone books across the country and make the phone books substantial monies. Forcing the phone books to not allow them to advertise is illegal and even if they become a licensed company (which is so easy anywhere in the USA today), they can still advertise whatever and wherever they want.

The state of Missouri has filed a lawsuit against 2 scammer companies and has threatened to file suit against the phone companies also.

Here's a quote from the link below:
"In addition, Koster has notified AT&T that it is carrying deceptive advertisements and demanded that the phone company take all appropriate steps to remove the ads, including immediately removing them from electronic sites such as "The Real Yellow Pages" and yellowpages.com."

http://ago.mo.gov/newsreleases/2009/AG_Koster_warns_consumers_of_Dependable_Locks/

[straightpick]

The problem with the "scammers" as they are known affectionately , is that the cost for Yellow Pages and Google and other mediums to provide staff to check and recheck and confirm location verifiability is way too expensive.

I disagree. Databases exist that would make this easy and inexpensive to do. And a little common sense (I know, that's a oxymoron) would go a long way. For example, if, historically, there were, say, 6 locksmith businesses located in the yellow pages of a particular book, and now this year there are 50 or more, it doesn't take a genius to figure out that something doesn't seem right. What these scammers do is definately illegal. They use the name of a real locksmith but insert their phone number and a false address. These addresses are often vacant lots, PO boxes, UPS drops, etc. They even hijack websites and insert their info into them to divert business. Google Earth has even made it possible to find all the existing places for their use, so they would also be able to help weed out the false locations. The problem is that as long as they are raking in the money from advertising and no one holds their "feet to the fire" this will continue. The government knows far more about everyone than you can ever imagine, perhaps they need to get involved. Too hard to track these people down? Sorry, but I just can't accept that.

[jimb]

These addresses are often vacant lots, PO boxes, UPS drops, etc. They even hijack websites and insert their info into them to divert business. Google Earth has even made it possible to find all the existing places for their use, so they would also be able to help weed out the false locations.

Here's a Google map of the locations of locksmiths in the Kansas City area. Each little dot indicates a locksmith location. There are only about 50 legal locksmiths in the area.

http://maps.google.com/maps?ie=UTF-8&hl=en&tab=wl

[jimb]

Well the link won't work. But you can type "kansas city locksmith" into the search box and it will bring several hundred locations.

[globallockytoo]

The problem with the "scammers" as they are known affectionately , is that the cost for Yellow Pages and Google and other mediums to provide staff to check and recheck and confirm location verifiability is way too expensive.

I disagree. Databases exist that would make this easy and inexpensive to do. And a little common sense (I know, that's a oxymoron) would go a long way. For example, if, historically, there were, say, 6 locksmith businesses located in the yellow pages of a particular book, and now this year there are 50 or more, it doesn't take a genius to figure out that something doesn't seem right. What these scammers do is definately illegal. They use the name of a real locksmith but insert their phone number and a false address. These addresses are often vacant lots, PO boxes, UPS drops, etc. They even hijack websites and insert their info into them to divert business. Google Earth has even made it possible to find all the existing places for their use, so they would also be able to help weed out the false locations. The problem is that as long as they are raking in the money from advertising and no one holds their "feet to the fire" this will continue. The government knows far more about everyone than you can ever imagine, perhaps they need to get involved. Too hard to track these people down? Sorry, but I just can't accept that.

You are wrong.

The US constitution prohibits prosecution of mediums from bearing responsibility of advertisers. It is the responsibility of advertisers to comply with the law.

AT&T have recently changed their policy regarding locksmiths due to the scammer issue. The new policy require payment in full in advance for locksmith advertising in phone books.

It is completely ludicrous, IMHO. The only companies who could probably afford to pay in full in advance are the frikken scammers. I dont know any locksmith company that can afford to pay in advance for YP advertising.

I categorically refuse to advertise in phone books, and I'm busy as hell just from Google.

[maxxx]

A few years back there was a local TV consumer watch type segment that focused on scamming "locksmiths". They uncovered a nationwide phone desk that hired workers locally on a commission basis and advertised in all major metro areas. They had a boiler room phone site on the east coast.

There were no licenses or certificates involved. So they filmed this guy who had an AR type commercial door that he said he lost the key for. The "locksmith" did not verify he was the owner. He quoted a price and it was agreed. He started "picking" the lock. It looked like he was attempting to rake it or hacksaw it. It was hilarious. Then he said the lock was too hard to pick so he went to his little red honda and got out a 1/2" cordless hammer drill. The tv journalist walked up and asked if he had a license. The scammer handed him a business card. Then he introduced himself and pointed to the camera and the scammer bolted to his car and drove away.

Then they called a local, licensed locksmith who picked the lock in about a minute. They also had a pre-recorded part about a lady who had had her front and back door rekeyed for $800 by the same scammers.

My opinion is that the customer has to shoulders at least some of the responsibility. I know there are emergencies that precipitate poor choices, but a printed or web ad that has no brick and mortar address should be the first clue. No local phone number, only a toll free is another warning flag. Its not that complicated.

Another thought I want to throw out is that censorship in any form, is a very slippery slope. For many centuries commercial enterprises have tried to damage their competitors ability to do business. Some have been successful at it such as phone companies, cable tv providers, pharmaceutical firms, and pro sports teams. Some might say it is "Restraint of Trade".

To create a system to regulate the way someone does business outside of general laws might not be such a good idea. If the way they conduct business breaks no laws, what do you do? Dont buy from them. Most states have no licensing or testing system for locksmiths. Other than a business license and a tax ID.

This is perhaps why ALOA has not "gone after" the scammers. It opens a huge ball of worms with potential for a lawsuit. A smart business owner will advertise on his van(s) a street address, local number with the phrase "licensed and bonded", and wear professional attire.

My 3 cents, adjusted for inflation.

[FarmerFreak]

My opinion is that the customer has to shoulders at least some of the responsibility. I know there are emergencies that precipitate poor choices, but a printed or web ad that has no brick and mortar address should be the first clue. No local phone number, only a toll free is another warning flag. Its not that complicated.

The customers won't always know until the fake locksmith shows up at the door. It was mentioned earlier, but I will give you a real life example. Do a Google search for "salt lake city locksmith" It will give you choices A. B. C. D. ect... Well choice A. is where I work,...but the number on that page is not our phone number. It is a local number that is redirected to a scammers call center.

Point is the customer calls a business that has a brick and mortar address, that has been around 80+ years with a local number. And worse yet. Google has no intentions of fixing the problem either, I'm guessing they happily get paid to do these sort of things.

The problem leaves a sour taste in my mouth.

[globallockytoo]

Many legitimate locksmith companies offer mobile services primarily. These businesses do not want to advertise their residential addresses for obvious reasons. But they are still legitimate companies.

Many (in fact most) states do not currently have any licensing for locksmiths and the ones that do, have very little enforcement.

Licensing disadvantages many because the high costs mean higher prices for the consumer.

Then there are all the handymen and maintenance people who perform their own locksmith related tasks like rekeying, repairing, installing etc. They dont need licenses because locksmithing is not their entire focus. Then there are the hardware stores who do not employ locksmiths to cut keys or repin locks. Also many hardware stores are now providing transponder key services, further eroding the locksmith trade.

The phony locksmiths capitalised upon the fractured locksmith industry because locksmiths generally refuse to work together to protect the trade. These phony companies employ advertising tactics that have had a profound effect on the locksmith trade. Shutting out these same tactics will drive the cost of advertising up enormously and affect many other industries apart from locksmithing.

If you put your business address on your vehicle or advertising, expect people to call into your business. If you advertise your home address, expect people to turn up at your home, unannounced, at 7pm on Saturday to get 1 key cut.

I believe that licensing of the trade is important, but furthermore, restricting the availability of locksmithing tools and parts to licensed or referenced buyers is vital in protecting the trade.

I agree, that lock picking and the availability of lock picks to hobbiests should continue, because it certainly helps to improve the trade, but pins and tools specific to practising the trade, should be restricted to those qualified and recognized (licensed) to be a locksmith.

To combat the phony's, it is the responsibility of business owners to perform similar advertising and to be seen more to be effective. The only reason the phony's are seen to be so effective is because they are prepared to spend the money on marketing, something most existing legitimate locksmiths appear not to want or able to do.