Greg's Corner

Updates from March, 2023 Toggle Comment Threads | Keyboard Shortcuts

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  Geebo 8:00 am on March 17, 2023 Permalink | Reply
  Tags: EBT Cards ( 3 ), food stamps ( 5 ), pennsylvania ( 9 ), Scams ( 1,383 ), text scam ( 23 ), Virginia ( 9 ), wisconsin ( 3 )   

  Text message scam targets food stamp recipients in multiple states 

  

  By Greg Collier

  If you or someone you know receives any kind of benefit assistance from your state, you may want to be on the lookout for suspicious text messages regarding your benefits. Just this week, we’ve come across three states where those receiving benefits through EBT cards have been warned about text messages that appear to come from the state.

  In all three states, Wisconsin, Virginia, and Pennsylvania, the scams are the same. Recipients have received text messages stating that their benefits would be cut off if they didn’t call the number in the text to confirm their account number and their PIN. Once the scammers have this information, they’re able to drain the recipient’s account.

  For many recipients, if they miss even a month of benefits, that could mean their children go hungry, or they could be evicted from their homes. With this kind of risk hanging over their heads, you can see why some may respond to these text messages out of fear. This fear is precisely what the scammers are counting on.

  The scammers don’t know who specifically is receiving benefits, so they’re sending out text messages en masse in hopes of finding a few victims. You may receive a text message even if you’re not receiving any state benefits.

  Most states do send out texts to benefit recipients, such as reminders when it’s time for renewal. However, these states will never send text messages asking for personal information like your PIN, Social Security number, or date of birth, just to name a few.

  Since this scam has already happened in multiple states, there’s a good chance it could be happening in yours. If you receive a text message like this, do not respond and delete the message. If you fall victim to this scam, contact your state immediately, as it could take another month before the benefits can be replaced.

   

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  Geebo 8:00 am on March 16, 2023 Permalink | Reply
  Tags: AI voice ( 10 ), extortion ( 15 ), Scams ( 1,383 ), virtual kidnapping ( 45 ), voice cloning ( 24 )   

  AI voice used in kidnapping scam 

  

  By Greg Collier

  Just over a week ago, we posted about scammers using AI technology to clone a victim’s loved one’s voice for a grandparent scam. It seems that this technique of scammers cloning voices isn’t going away anytime soon. Just recently, AI voice cloning was used in a virtual kidnapping scam in Oklahoma, where the victim lost $3000 to a scammer.

  Virtual kidnapping is a type of scam where a person receives a call or message claiming that their loved one has been kidnapped and demanding a ransom payment for their release. However, in most cases, the supposed victim is actually safe and not in any danger.

  Previously, in most virtual kidnapping scams, the scammers would do almost all of the talking, but they would have someone else in the background crying and screaming, who they claimed was the kidnap victim.

  In this most recent scam, the scam victim thought she was talking to her son and even said that the person on the phone sounded just like her son.

  It started like most virtual kidnapping scams do. The victim received a phone call from an unknown caller who told the woman they had kidnapped her adult son. The caller insinuated that the woman’s son interrupted a drug deal that cost the caller a lot of money. So, if the woman didn’t pay the money that was supposedly lost, they were going to harm her son. Typically, when the victim asks to speak to their loved one, the scammers will make excuses. However, this time, the victim spoke with someone who sounded just like her son.

  Panicked, the woman went to Walmart to wire $3000 to someone in Mexico. The scammer kept her on the phone the entire time. After making the payment, the impostor got back on the phone to say that the kidnappers were letting him go. The scammer’s told her they would drop her son off at that Walmart, but he never appeared. Finally, she was able to get a hold of her son on the phone, who had been at work the entire time.

  The virtual kidnapping scam has been using fear to get victims to pay a phony ransom for years. But now, with the voice cloning technology, the scammers have stepped up the fear to another level. The scammers only need about a minute of your loved one’s voice to be able to clone it. They usually take the voice from recordings that can be found on social media.

  But even if it sounds like a loved one on the phone, the same old precautions should be used. If you receive a call like this, try to have someone contact the person who’s supposedly been kidnapped. When they put your loved one on the phone, ask them a question that only they would know the answer to. Or have a family code word set up in advance that’s only to be used if the loved one is in danger.

   
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  Geebo 8:00 am on March 15, 2023 Permalink | Reply
  Tags: bank scam ( 72 ), Chase ( 14 ), customer service ( 50 ), impostor scam ( 16 ), Scams ( 1,383 ), wire fraud ( 21 )   

  Bank tells scam victims they gave ‘consent’ to scammers 

  

  By Greg Collier

  Bank customers are being scammed on an almost daily basis. At least the ones who report the scam anyway, It’s more likely that the majority of recent bank scams aren’t reported to the police or media out of embarrassment. It seems that reports of banks not helping their customers who have been scammed has emboldened the bank scammers to fins more victims since they know the bank won’t do anything about it.

  For example, CBS 2 out of Chicago has done a follow-up story on five local bank customers who lost a total of $100,000 to bank impersonation scams.

  Scammers often follow a typical approach where they contact their targets through calls or messages, asking about their recent transactions. They then use coercive tactics to convince victims that transferring their funds to a different account is the only way to protect their bank accounts. Unfortunately, the account to which the money is transferred is usually controlled by the scammer. These accounts are usually regular checking accounts available through major banks and not offshore accounts.

  Out of the five Chicago victims who CBS 2 spoke with, all five were customers of Chase Bank, and only one of them has been reimbursed. The rest of the victims were told by the bank that since they gave personal information to the scammers, the bank considers that the consent of the customer.

  It also doesn’t help that the legislation designed to protect bank customers doesn’t protect victims from wire fraud. If someone uses the victim’s credit or debit card to commit fraud, customers can be reimbursed for that, but victims of wire fraud are out of luck due to a gap in the regulations. We might also add that these regulations were written in the 1970s. Electronic banking has changed a lot in the past 50 years, but the regulators haven’t kept up with the times. We knew that lawmakers are slow when it comes to updating the law to reflect current technology, but we didn’t realizer they were this slow.

  Some consumer advocates recommend that the banks should require some kind of digital ID before a wire transfer could be made. Others suggest the banks should institute a 24-48 hour delay for wire transfers. While these may sound like good ideas, practical application of them could be a headache for customers.

  What these banks really need to do is to prevent scammers from opening the accounts where the victims’ funds are being wired to. They could even institute a delay when an account tries to close out suddenly.

  At least for now, it’s up to the consumer to protect themselves from these scams.

  In case you receive a text message that appears to be from your bank inquiring about fraudulent activity, avoid using the callback feature provided in the message. Similarly, if someone calls you claiming to be from your bank and asks about fraudulent transactions, it’s best to end the call and directly contact your bank through the phone number provided on the back of your debit card.

  If you’ve been the victim of this scam, don’t hesitate to file a police report. While it’s not a guarantee of getting your money back, it does go a long way in helping.

   
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  Geebo 8:00 am on March 14, 2023 Permalink | Reply
  Tags: check scam ( 79 ), fake check ( 48 ), job scam ( 81 ), mystery shopper ( 5 ), Scams ( 1,383 ), secret shopper ( 15 )   

  Scammers send fake check to police department 

  

  By Greg Collier

  When we came across this story, not only did we find it amusing, but it also shows a key part of most scams.

  A police captain in Appleton, Wisconsin, received a strange piece of mail at his office. It was a priority envelope that contained a letter and a check. The letter offered its recipient a position as a mystery shopper. The mystery shopper or secret shopper scam is one that’s been around a long time. It even predates the internet but has adapted well to the online world.

  For those who may not know, many of the bigger chain stores employ mystery shoppers. These are store employees who go around to each store posing as a customer. Their job is to rate the store’s performance through things like appearance, customer service, and selection. However, the job isn’t as commonplace as the scammers would have you believe.

  In the mystery shopper scam, scammers send their victims a fake or stolen check. The victim is told to deposit the check in their bank account and use the funds to purchase store gift cards. Big box stores like Walmart and Target often have their names used in this scam. Once the victim buys the gift cards, they’re supposed to give the gift card numbers to the scammer, who tells the victim to keep some of the money from the check as payment.

  By the time the victim’s bank realizes the check is fake, the scammer has already made off with the gift cards, leaving the victim responsible for the amount of the fake check to their bank.

  So, did scammers intentionally try to recruit a police captain? Probably not. Scammers like to cast as wide a net as possible. The scammers most likely bought a bunch of mailing lists, and sent fake checks to as many people as possible. Most modern scams can be profitable to scammers if they only get a handful of victims to take the bait out of the thousands they try to fool.

  As far as this particular scam goes, real companies are not just going to send out checks to random people telling them they now have a job with them. And any job that asks you to deposit a check into your personal bank account to use for business purposes is a scammer.

   
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  Geebo 8:00 am on March 13, 2023 Permalink | Reply
  Tags: deed transfer ( 13 ), deeds ( 7 ), real estate ( 128 ), Scams ( 1,383 )   

  Elderly man signed away house for $10, now faces eviction 

  

  By Greg Collier

  As we’re sure you’re aware of, we typically discuss scams on this blog. However, today’s story doesn’t meet the legal requirement of being called a scam, but can still serve as a warning to those who may find themselves in a similar position.

  A 66-year-old man living on the east coast of Florida lost his mother in 2020. He took her passing very hard and got behind on his mortgage payments. With the real estate market being what it is, the bank started to foreclose on the home.

  Not knowing what to do, the man reached out to an acquaintance for help. The acquaintance allegedly told the man that he would take over the mortgage payments while allowing the man to live in his home. The man then signed a deed which transferred ownership to the acquaintance for $10. However, unknown to the man, the deed gave the acquaintance the right to sell the home if he chose to.

  Eventually, the acquaintance did sell the home, stating the home was too much of a headache. The acquaintance sold the house to a real estate investor. The investor flipped the house by selling it to a New York company for $185,000. Meanwhile, the elderly man not only got nothing out of the sale of his home, but was also being evicted from the home he owned for 23 years.

  The man’s neighbors say that the man is mentally challenged and was taken advantage of by all parties involved. Unfortunately, the courts have ruled that everything was legal, and the eviction can move forward. Meanwhile, the man is trying to sell some of his mother’s possessions to make a little money.

  When dealing with any transaction that involves your home, you should have an attorney look over the paperwork before signing anything. If you can’t afford an attorney, some attorneys give free consultations, or you can reach out to a local law school to see if they have a program where students give free legal advice. There are also some non-profits known as legal aid societies that provide legal help to low-income families and individuals.

   
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  Geebo 9:01 am on March 10, 2023 Permalink | Reply
  Tags: data breach ( 32 ), identity theft ( 108 ), payday loans, Scams ( 1,383 )   

  Payday loan scams target the already vulnerable 

  

  By Greg Collier

  Payday loan companies are already a shady type of business. They target low-income neighborhoods and hope to keep their customers on a never-ending cycle of dependence through their predatory practices. The high-interest rates and fees make it difficult for borrowers to repay the loan and can result in a cycle of debt. Several states have banned the practice of payday loans, but some lenders have gotten around these bans by opening storefronts on Native-American reservations. However, payday lenders are not the scammers we’re talking about today. We’re talking about scammers who take advantage of the borrowers, even after they’ve paid the loans back.

  According to lifestyle blog Lifehacker, there are many scams that try to take advantage of borrowers. Most of these scams start when the payday lenders have a security breach. We can’t imagine such upstanding businesses having the best security practices when it comes to their customers. In one scam, the scammers will pose as the lending company and try to get the personal and financial information from the borrower under the promise of depositing the loan into the borrower’s bank accounts.

  Another scam is where the scammers pose as debt collectors, hoping the borrower has maybe lost track of some debts owed to a payday lender. Since they typically have the borrower’s personal information, they can make the scam seem more legitimate. Considering how much information payday lenders collect from their customers, this can be an extensive amount of the borrower’s personal history.

  There are also scams where the scammers will pose as payday lenders online and over the phone who either just want the victim’s information, or will ask for money upfront in exchange for a loan that never comes through.

  The best way to avoid these scams is to avoid payday lenders altogether. However, we also understand that not everyone has that luxury. If you’re contacted by someone claiming to collect a debt on behalf of a payday lender, ask them for a written explanation of the debt. Debt collectors are required by law to provide that to debtors.

  Also, if a lender asks for a fee in advance, they are a scammer. This is one of the variations of the advance fee scam is illegal for lenders to do.

  Lastly, even payday lenders will not reach out to prospective customers by phone, email, or text. If someone is offering you a loan through this method, the odds are almost certain they’re a scammer.

   
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  Geebo 9:00 am on March 9, 2023 Permalink | Reply
  Tags: power company ( 2 ), Scams ( 1,383 ), shut off scam ( 17 ), utility scam ( 31 )   

  Scammers are hyper-focused on local issues 

  

  By Greg Collier

  Whenever there’s a national crisis or a disaster that garners national headlines, you can bet that the scammers will come out of the woodwork. Some scammers even pop up for international matters too, like the recent earthquakes in Turkey and Syria. If we listed all the scams they usually perpetrate during such times, we’d be here all day. But it’s not just national and international matters that the scammers are tuned into. If there’s an issue in your town that people can take advantage of, they will.

  For example, in the city of Memphis, Tennessee, their local power company is having a bit of a PR nightmare with their customer billing. At least 19,000 customers of Memphis Light Gas and Water have not received a bill in months. MLGW had installed digital meters for their customers, but water from the winter storms got into some of the meters, causing the readings to go haywire. MLGW is trying to get the customers’ bills corrected, but in the confusion, scammers have stepped in.

  This was a perfect storm of opportunity for scammers to employ the shut-off scam. The utility shut-off scam is a type of fraud where scammers impersonate representatives from a utility company, such as an electricity or gas company, and threaten to disconnect the victim’s service if they do not immediately pay a supposed outstanding balance. Since MLGW controls power, gas, and water, the scammers really had their victims over a barrel. One MLGW customer was threatened with shut-off by the scammers and ended up wiring $3,000 to the scammers.

  Utility companies, no matter how big or small, do not threaten immediate termination of service over the phone. If your account is behind, you’ll receive several warnings in the mail before service is terminated. You should even be notified of the day when services will be scheduled to be terminated.

  If you receive one of these phone calls, hang up the phone, and verify the legitimacy of any communication from a utility company by calling the company directly using a number that is listed on their official website or on the back of a bill. Also, please keep in mind that utility companies will typically never demand immediate payment using untraceable methods like wire transfer, cryptocurrency, or payment apps. They will usually offer payment plans or other forms of assistance to help customers who may be behind on their account.

   
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  Geebo 9:00 am on March 8, 2023 Permalink | Reply
  Tags: covid testing ( 4 ), covid-19 ( 48 ), medicare ( 17 ), new medicare card ( 5 ), online dating ( 8 ), police impersonation scam ( 65 ), Scams ( 1,383 )   

  Scam Round Up: Scammers use fallen officer’s name and more 

  

  By Greg Collier

  Our first story in this edition of the Round Up is a reminder to Medicare recipients that Medicare will not reach out to you by phone unsolicited. Scammers often try to obtain a recipient’s Medicare information by posing as Medicare and offering victims a new Medicare card. In the past, scammers have offered new plastic cards to victims. However, Medicare does not use plastic cards. More recently, scammers have said Medicare is sending out new cards to all recipients because of COVID. One of the main tip-offs to this scam is that Medicare doesn’t need your Medicare number, as they already have it. If anyone calls you asking for your Medicare number, there’s a good chance they’re a scammer.

  ***

  Speaking of COVID, even though we’re on the other side of the pandemic, scammers are still using the virus to their advantage. Scammers are still offering at home COVID tests as a way to get either your financial or insurance information. The scammers will offer these supposed tests over the phone while telling their victim they qualify for the free tests under their health insurance. Or, the scammers will ask for payment information for a small shipping fee. In either case, no test is ever sent, and the victim’s information is used for fraud.

  If you need some at home COVID tests, you can still get them for free through the USPS website.

  ***

  Our last story is another example showing there are no depths scammers won’t stoop to. In Tennessee, scammers are using the name of a Sheriff’s Deputy who fell in the line of duty. The scammers are looking for victims on dating apps and threaten them with arrest using the fallen officer’s name. Money is then extorted from the victim.

  While law enforcement does often patrol dating apps looking for potential predators, they will never threaten someone with arrest if they’re not paid.

  If someone calls or contacts you like this, threatening arrest if you don’t pay them, hang up and call your local police. Once you explain to them what happened, they’ll be able to tell you that it’s a scam.

   
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  Geebo 9:00 am on March 7, 2023 Permalink | Reply
  Tags: 2FA ( 12 ), bank fraud ( 26 ), phone scam ( 46 ), Scams ( 1,383 ), sim swapping ( 9 ), two factor authentication ( 18 )   

  Thousands lost in SIM-swapping attack 

  

  By Greg Collier

  If you own a smartphone, how lost would you be without it? We’re not talking about losing your phone in the couch cushions. We mean, how much would your personal life be at risk if your phone was stolen. For many, their smartphone is the only device they need to conduct their lives. For even more, their entire lives are contained in their smartphone. Bank accounts, email, family photos, and schedules are just a few of things that could be accessed through a stolen smartphone. Now, what if we told you that you can lose all these things from your phone without physically losing the device?

  SIM-swapping is a type of cybercrime where an attacker takes control of a victim’s mobile phone number by tricking the victim’s mobile carrier into transferring the number to a new SIM card. Once the attacker has control of the phone number, they can use it to access the victim’s online accounts, such as email, social media, and financial accounts, which often rely on text messaging for two-factor authentication. Then the attacker can not only access your accounts, but they can lock you out of them as well.

  Recently, a man from Colorado lost $24,500 out of his savings account after his phone received a SIM-swapping attack. The victim received an email from his bank that a large transfer was being made, but by the time he was able to contact his bank, the transfer had already gone through. You can almost imagine the shock on his face when he tried to call his bank, only to find out his phone had no service.

  There are several effective ways to protect yourself from SIM-swapping. One is to use an authenticator app instead of relying on text messages for two-factor authentication. Authenticator apps are linked to a device instead of a phone number, making them more secure. Additionally, it’s important to avoid using accurate information for security questions on online accounts, such as high school mascots or pet names, as this information can often be found on social media. Lastly, you can contact your carrier and request that they disallow any device switches on your account, but keep in mind that to unfreeze your account, you may need to visit a carrier store and present identification.

   
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  Geebo 9:00 am on March 6, 2023 Permalink | Reply
  Tags: AI ( 17 ), grandparent scam ( 69 ), Scams ( 1,383 ), voice cloning ( 24 )   

  AI voices used in grandparent scam 

  

  By Greg Collier

  If you follow the tech news at all, you’ll no doubt have heard about how artificial intelligence (AI) has become increasingly popular in the past year or so. You may have heard of the art generator known as DALL-E. It can produce images using any prompt you can give it. For example, the above picture was generated with an AI program called Stable Diffusion, using the prompt of ‘AI Voice’. You may have also heard of ChatGPT, a text-based AI that can generate just about anything in text form. Do you want to craft a professional sounding email to your boss? ChatGPT can generate that for you. Do you want ChatGPT to craft the lyrics of a song in the style of The Doors about soup? It can do that too.

  However, the more important question is, is AI advanced enough to be used in scams? Yes, it is.

  This past weekend, The Washington Post published a story about AI being used in one of the more common scams we post about, the grandparent scam. For those who may be unfamiliar, The grandparent scam is a type of phone scam where fraudsters impersonate a grandchild or other family member in distress to trick elderly individuals into sending them money. Typically, scammers will tell their elderly victims that they’ve had some kind of facial injury such as a broken nose as to why their voice sounds different from their actual grandchild.

  According to the Post, scammers are now using AI voice-cloning technology to sound exactly like the person they’re impersonating. Victims from both Canada and the United States have lost thousands of dollars to scammers using this technology.

  While voice cloning technology is nothing new, it has advanced exponentially in the past couple of years. It used to be someone would need vast amounts of recordings to accurately clone someone’s voice. Now, it only takes a 30-second recording to do so. If someone you know has posted a video or recording of themselves on social media where they’re talking, their voice can now be cloned.

  You can still protect yourself from this scam, as long as you disregard what your ears are telling you. If you receive a call from a relative or loved one asking for money because they’re in trouble, you should still follow the same precautions, even if it sounds exactly like them. Hang up on the call and contact the person who’s supposedly in trouble. If you can’t reach them, ask other family members who might know where they are. Tell them the exact situation you encountered, and never keep it a secret. Lastly, never send money under any means.