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  • Geebo 9:00 am on February 5, 2024 Permalink | Reply
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    Scammer made $50M in $30 scam 

    Scammer made $50M in $30 scam

    By Greg Collier

    The recent sentencing of a scammer from New Jersey by federal authorities serves as yet another case offering us a glimpse into the inner workings of various scams. His scam might even be deemed ingenious if it weren’t for the unfortunate reality that he targeted one of the most vulnerable segments of the population, stealing their hard-earned money.

    For more than a decade, the scammer diligently dispatched 750,000 letters per month to potential victims, with the majority being elderly individuals. These letters all bore promises of a cash prize, contingent on the recipient paying a $30 processing fee. This might ring a bell as the classic advance payment scam or sweepstakes scam. Essentially, victims are lured into paying a small amount with the promise of a larger prize. The scammer typically escalates the requested amounts, conjuring up various excuses for the delay in prize disbursement. In reality, there is no prize, and the scammers are simply leading their victims on for additional payments.

    Among the multitude of letters dispatched, approximately 2% of recipients reportedly took the bait. This translated to a staggering monthly income of $450,000 for the scammer. Allegedly, he had tapped into a pool of victims who had fallen prey to scams before, having purchased a list from other fraudsters. Upon a victim’s response, the scammer would send out additional letters with a similar pitch but appearing to originate from different entities. In numerous cases, the victims, often elderly and on fixed incomes, found themselves in poor health, hoping that the promised prize money would enable them to seek much-needed treatment.

    Despite facing arrest for orchestrating these scams, the scammer brazenly persisted in sending out deceptive prize letters to victims while awaiting sentencing. Just last week, the perpetrator received a federal prison sentence of five years.

    This scheme reveals that scammers are willing to cast a wide net in hopes of snaring just a few victims. Take, for instance, the mystery of how scammers pinpoint the banks their targets are affiliated within their deceptive text alerts. The truth is, they don’t. They inundate people with a barrage of messages pretending to be a prominent regional bank, knowing only a small number will take the bait. By successfully tricking a handful of respondents, scammers manage to pilfer enough to sustain their lucrative operation.

    Keeping our elderly relatives informed is crucial in safeguarding them from such heartless scams. Remind them that it’s illegal for anyone to request money for a supposed sweepstakes prize. No one’s parents or grandparents should have to endure the financial torment that these scams bring. Empowering them with knowledge is a powerful tool in the fight against these schemes.

     

  • Geebo 9:00 am on February 2, 2024 Permalink | Reply
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    State sues bank for refusing to help scam victims 

    State sues bank for refusing to help scam victims

    By Greg Collier

    Over the past few years, there has been a tremendous surge in banking scams that target consumers. While these scams take many firms, they all have one thing in common. Scammers will pose as the victim’s bank while directing the victim to move their money. Even when they’ve been promptly notified by their customers, many banks have refused to assist scam victims. The banks have argued that since the customers allowed access to their accounts, even under deceptive circumstances, they are still responsible for the fraudulent transactions. However, a state office has taken exception to this stance and is actively seeking to address the issue on behalf of scam victims.

    The New York Attorney General’s Office has initiated legal action in the US District Court against Citibank, one of the country’s major financial institutions. The lawsuit alleges that Citibank engaged in illicit and deceptive practices by rejecting the claims of scam victims in New York. Additionally, the bank is accused of maintaining inadequate security measures to safeguard customer accounts, disregarding warning signals, and responding inadequately to fraud alerts.

    The New York Attorney General’s office highlighted two specific instances in its legal filing where it alleges Citibank failed to uphold its responsibilities. In the first case, Citibank attempted to verify a $35,000 wire transfer, but when the customer was unavailable to answer her phone, the bank approved not only the initial fraudulent transfer but also a second one of the same amount. Furthermore, in another incident, when a customer fell victim to a fraudulent link in a text message and reported it to their local Citibank branch, they were reassured and told not to be concerned. Subsequently, scammers managed to siphon over $100,000 from the customer’s account. In both situations, Citibank allegedly denied the fraud claims made by the affected customers.

    In a statement to Ars Technica, Citibank defended their practices when it comes to scam victims with the following statement…

     “Banks are not required to make clients whole when those clients follow criminals’ instructions and banks can see no indication the clients are being deceived,” the company said.

    The recent incidents involving Citibank underscore the pressing need for a reevaluation of the role and responsibility banks bear in safeguarding their customers from scams. The New York Attorney General’s lawsuit sheds light on instances where the bank’s actions may have fallen short, leaving customers vulnerable to substantial financial losses. As technology advances and scams become more sophisticated, the question arises: should banks not only enhance their security measures, but also be held more accountable for the repercussions of fraudulent activities? Striking a balance between customer autonomy and robust protection mechanisms is crucial, prompting a broader discussion on how financial institutions can better shield their clientele in an evolving landscape of cyber threats.

     

  • Geebo 9:00 am on February 1, 2024 Permalink | Reply
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    The hidden mental toll inflicted on scam victims 

    The hidden mental toll inflicted on scam victims

    By Greg Collier

    When discussing scam victims, it’s crucial to avoid questioning, “How could anyone fall for this?” Such judgmental language hinders victims from openly sharing their experiences. The reluctance of scam victims to come forward contributes to a growing pool of potential targets for scams. Often burdened by a sense of shame and embarrassment, these individuals already grapple with the aftermath of losing their money to scammers. Ridicule only exacerbates the mental toll on victims, pushing them to a point of extreme distress with no easy return.

    For instance, a recent incident involved an elderly woman from Arizona who suffered a loss of $204,000 to scammers employing the pop-up window tactic. The fraudulent message claimed her computer had been compromised and provided a customer service number to address the issue. Upon calling the number, the scammers fabricated a story about someone attempting to withdraw $14,500 from her bank account. They instructed her to withdraw the money and deposit it into a Bitcoin ATM for enhanced security. She followed this procedure for 13 consecutive days, despite her bank’s attempts to caution her against the scam. The scammers manipulated her by forewarning that such warnings would come from her bank and insisted she keep the situation confidential due to an alleged hacking of ‘everything’.

    Upon realizing she had fallen victim to the scam, the emotional toll on the victim was profound, leading her to a dark and challenging place. Struggling in silence for months with the weight of her secret, she reached a point where she contemplated taking her own life. It was only after reaching out to a crisis hotline that she found a lifeline. Eventually, she summoned the courage to confide in her son and a few trusted friends about the distressing ordeal.

    Scam victims should take several crucial steps when faced with such a distressing situation. It’s essential to connect with friends, family, or a support network. Sharing the experience can provide emotional relief and valuable perspectives. Report the scam to the local authorities or the relevant law enforcement agency. Providing details can contribute to ongoing investigations and help prevent further scams. Share your experience to raise awareness and prevent others from falling victim to similar scams. Awareness is crucial in combating fraud.

    Supporting scam victims is crucial, and there are several ways others can provide assistance. Be empathetic and understanding. Scam victims often experience feelings of shame and embarrassment, so providing a non-judgmental and supportive environment is essential. Encourage the victim to report the scam to law enforcement, relevant authorities, and consumer protection agencies. Reporting helps in tracking and preventing future scams. Share the victim’s experience (with their consent) to raise awareness about common scams. This can help educate others and prevent them from falling victim to similar schemes. Help the victim find support groups or online communities where they can share experiences with others who have faced similar situations. This can provide a sense of camaraderie and understanding. If the victim is experiencing severe emotional distress, encourage them to seek professional help from mental health professionals or crisis hotlines.

    By offering practical assistance, emotional support, and raising awareness, individuals can play a vital role in helping scam victims recover and preventing others from falling victim to similar schemes.

    Be part of the solution and not part of the problem.

     

  • Geebo 9:00 am on January 31, 2024 Permalink | Reply
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    Contractors tricked by scammers into redoing homeowner’s driveway 

    Contractors tricked by scammers into tearing up homeowner's driveway

    By Greg Collier

    If you heard that a homeowner had their driveway worked on by contractors when they didn’t order any such work, you might assume the homeowner was the victim of a scam. Well, they were definitely a victim of a scam, but they were not the intended target.

    The homeowner from Denver had just listed their home for sale online. Typically, that can invite a number of scams in itself, such as scammers claiming they’re renting the home while the owner is trying to sell it. However, this time, something wholly unexpected happened.

    While monitoring their security camera at work, the homeowner observed contractors in their driveway. Concerned, they asked a neighbor to investigate. The contractors claimed they were there for a job ordered by someone named Gary, who allegedly bought the house and wanted the driveway redone. Fortunately, the homeowner’s intervention, with the help of the neighbor, prevented any damage as the contractors were convinced the job was not authorized and left.

    It is suspected that the contractors were targeted in the overpayment scam, commonly referred to as the fake check scam. In this scheme, a check exceeding the agreed-upon amount is provided for a purchase, and scammers request the overpayment to be returned before the victim or their bank discovers the check is fraudulent. This leaves the victim responsible for the full amount to their bank. In this instance, scammers are targeting homes that have been listed for sale that aren’t occupied.

    Business owners can take several steps to protect themselves from the overpayment or fake check scam. Before proceeding with any transaction, especially if it involves a check for an amount exceeding the agreed-upon price, verify the legitimacy of the buyer or client. Confirm their identity and the purpose of the transaction.

    Whenever possible, encourage or insist on using secure and traceable payment methods such as electronic funds transfer, credit cards, or certified checks. These methods offer more security than personal or business checks. Independently verify the authenticity of any checks received, especially if they seem unusually large or if there’s pressure to return a portion of the payment. Contact the issuing bank directly to confirm the validity of the check.

    Before releasing goods or providing services, wait for the check to fully clear. Just because a check is deposited doesn’t mean it has cleared, and it can take some time for banks to confirm its legitimacy.

    If something seems too good to be true or if a transaction feels suspicious, trust your instincts. It’s better to conduct additional checks or refuse a transaction than to fall victim to a scam.

    By implementing these precautionary measures and staying vigilant, business owners can reduce the risk of falling prey to scams like the overpayment or fake check scam.

     

  • Geebo 9:00 am on January 30, 2024 Permalink | Reply
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    The worst funeral scam, so far 

    The worst funeral scam, so far

    By Greg Collier

    One of the increasingly troubling trends in fraudulent activities involves schemes specifically targeting grieving families. Instances have arisen where scammers systematically scour obituaries to identify vulnerable individuals. Subsequently, these scams progress from deceiving mourners by collecting fake donations during funeral services, impersonating funeral home representatives to extort additional funds from the deceased’s family, selling non-existent burial plots, to attempting to fraudulently steal the homes of grieving individuals. Recently, we encountered a particularly disrespectful scam, which we deem the most egregious funeral scam yet. The term “yet” is used cautiously, as scammers, devoid of respect or remorse, may introduce even more unsettling schemes in the future.

    A Texas man has been apprehended on charges of operating an unlicensed funeral home. The alleged scam involved the accused approaching grieving families, assuming the role of a sympathetic funeral home director who claimed to be a close friend of the deceased. Exploiting the trust gained, he offered his funeral services, persuading families to provide life insurance policies with payouts directed to himself.

    The extent of the deception didn’t stop there. In addition to misappropriating insurance funds, the scammer also accepted money from families for burial and funeral services. Shockingly, some funerals never transpired, and the scammer retained the bodies of the deceased. Disturbingly, certain families, expecting cremation for their loved ones, are now uncertain if the ashes they possess truly belong to the intended individuals. Authorities are actively addressing these fraudulent activities, seeking justice for the affected families.

    It’s disheartening that in the present times, one must approach offers of assistance during challenging moments with a sense of suspicion. Regrettably, this reflects the reality of the world we live in today. To safeguard yourself from potential scams, there are proactive steps you can implement. When confronted with a seemingly miraculous offer of help, it’s advisable to exercise a healthy level of skepticism. In such situations, it doesn’t hurt to be cautious and thoroughly evaluate the legitimacy of the assistance being offered.

    Before engaging with any funeral home, verify its credentials. Check if it is licensed and accredited by the appropriate state authorities. Seek recommendations from friends, family, or colleagues who have had positive experiences with reputable funeral homes. If you are approached by someone claiming to be a funeral director, independently verify their credentials. Licensed funeral directors should have valid licenses issued by the state.

    Insist on a detailed, written contract that outlines all the services, costs, and payment terms. Legitimate funeral homes are transparent about their services and fees. If a funeral director requests life insurance information, contact the insurance company directly to verify the legitimacy of the transaction. Schedule a visit to the funeral home before making any financial commitments. This allows you to inspect the facilities, meet the staff, and ask any questions you may have.

    By taking these precautions, grieving families can reduce the risk of falling victim to scams and ensure that they receive the respectful and legitimate services they deserve during a difficult time.

     

  • Geebo 9:00 am on January 29, 2024 Permalink | Reply
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    Scammer gives money back to avoid arrest 

    Scammer gives money back to avoid arrest

    By Greg Collier

    We often hear about scammers taking money from their victims, but rarely do we hear about scammers giving the money back. That’s what allegedly happened with a grandparent scammer from Florida when they ran up against the wrong grandparent.

    Around Christmas, the victim received a phone call from someone claiming to be an attorney working for Allstate Insurance. The supposed attorney told the victim his grandson was in jail after getting into a car accident with a foreign diplomat. However, the man could get his grandson out of jail if he paid the attorney $600. The victim did the right thing by calling his grandson, but when he couldn’t get a hold of him, he paid the $600.

    The man’s wife went to their bank to get a cashier’s check, but the scammer convinced the man to stay on the call because it was important to keep the line open.

    The scammer then convinced the man his grandson would be charged with a felony, but once again, a payment could resolve the situation. This time, the scammer was asking for $8000, and that a federal courier would come by to pick up the money.

    The courier showed up to the victim’s home wearing a surgical mask, however, the victim said he wasn’t comfortable giving the money to someone he didn’t know and asked him to remove the mask. When the courier removed his mask, the victim took a picture of the courier without the courier’s knowledge. The victim also took a picture of the courier’s license plate as he drove away.

    When the victim finally got a hold of his grandson, he realized he’d been scammed.

    After the victim went to his local police, they were able to identify the scammer. Later, the victim received another phone call from the supposed attorney, who claimed the courier got scared and never delivered the payment. The attorney asked the victim not to press charges against the courier if the victim’s money was returned. And believe it or not, someone who wasn’t the courier, dropped the money off to the victim.

    As it turned out, the attorney and the courier were the same person. When police approached the scammer, he reportedly told police he was doing a favor for his cousin in Canada. The scammer was promptly arrested.

    If you receive a call informing you that a loved one is in jail and the caller requests immediate payment, be cautious, as it may be a scam. Legitimate bail processes involve payment either at the courthouse or through a licensed bail bondsman. Courts, police, or attorneys will not solicit bail money over the phone. If a caller insists on keeping you on the line, claiming legal reasons prevent you from hanging up, it is likely a fraudulent attempt to deceive you. Always verify such situations independently before providing any personal or financial information.

     

  • Geebo 9:00 am on January 26, 2024 Permalink | Reply
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    Is two-factor authentication to blame for SIM-swapping scam? 

    By Greg Collier

    A SIM-swapping scam, also known as SIM hijacking or SIM card swapping, is a type of fraud in which attackers take control of an individual’s mobile phone number by tricking the mobile carrier into transferring the phone number to a new SIM card. The goal of the scam is to gain access to the victim’s sensitive information, such as personal data, financial accounts, and online accounts tied to the phone number. For this scam to take place, a scammer does not need physical possession of your phone or its SIM card.

    With control of the victim’s phone number and possibly access to their email or other accounts, the attacker can reset passwords, access sensitive information, and potentially engage in identity theft or financial fraud. What makes the SIM-swapping scam so appealing to scammers is the fact that little to no interaction with the victim is required.

    Recently, a woman from Maryland lost $17,000 to a SIM-swapping scam. Someone in California walked into a Verizon store and activated a new phone on a new SIM card using the victim’s phone number and information. Once that transaction took place, the victim’s phone was no longer active. From there, the scammers were able to use the victim’s phone account to access her bank account and empty it of $17,000.

    The news report about the victim’s financial loss makes it a point to show the victim had two-factor authentication enabled on most of her online accounts. Unfortunately, the SIM-swapping scam is specifically designed to circumvent two-factor authentication.

    Two-factor authentication (2FA) is a security process that requires users to provide two different authentication factors to verify their identity before gaining access to an account, system, or application. The purpose of 2FA is to add an extra layer of security beyond just a username and password. Most people who enact 2FA on their accounts use text messaging to receive their one-time 2FA code. If a SIM-swap is enacted on a phone where 2FA codes are bing sent to the phone, the scammers not only have control of your phone account, but can also receive your 2FA authorization codes.

    While any 2FA is better than having none, it’s not recommended to use text messaging to receive your authorization codes. Instead, it’s recommended you use an authenticator app along with a biometric authentication such as a fingerprint scanner. This way, your 2FA information is tied to your device and not your phone number.

    To better protect yourself from a SIM-swapping attack, set a unique personal identification number (PIN) or password with your mobile carrier to add an extra layer of security.

     

  • Geebo 9:06 am on January 25, 2024 Permalink | Reply
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    The romance scammer who posed as a CIA agent 

    By Greg Collier

    We’ve consistently advised our readers that once you’ve been targeted by a scammer, the likelihood of further exploitation increases significantly. Take, for instance, falling victim to a sweepstakes scam – the scammer often concocts additional reasons for the victim to continue paying. Furthermore, scammers trade the information of their victims among themselves, leading to potential multiple scams on the same individual. In some instances, the same scammer may return with an entirely new scheme, using any means necessary to manipulate the victim’s trust, and they are doggedly persistent.

    A few years ago, a Massachusetts woman found herself ensnared in the web of a romance scam. Believing she was in a genuine relationship with a man purportedly working on an overseas oil pipeline, she unwittingly sent a staggering $150,000 over time to the scammer. Although she eventually became aware of the deception, the ordeal did not conclude there.

    After severing communication with the romance scammer, the victim found herself confronted with a new and alarming tactic. Months later, she began receiving emails allegedly originating from the CIA. These messages took an ominous turn, threatening her with arrest and asserting that the individual she had sent money to in the romance scam was now being labeled as a terrorist. The victim was explicitly warned against discussing the matter with anyone, including family, friends, or attorneys, under the ominous threat of immediate arrest.

    When pressed to identify himself, the scammer resorted to sending the victim a picture of a novelty CIA badge and ID, easily obtainable online. The deceptive tactics persisted until the victim asserted her boundaries, insisting that any meeting with the purported agent would only take place at her local police station. It was only at this point that the relentless harassment from the scammer finally ceased.

    Indeed, falling victim to a scam and suffering significant financial losses is distressing on its own. However, the added layer of enduring verbal abuse and facing threats of arrest exacerbates the trauma.

    In addition to the initial romance scam, the scammer tried to ensnare the victim in another layer of deception known as the police impersonation scam. Scammers frequently adopt the guise of law enforcement officers or agents, utilizing intimidation tactics to manipulate victims into complying with their demands. A common element of this scheme involves warning victims that they are prohibited from discussing the matter with anyone, threatening arrest for non-compliance. The underlying objective is to isolate the victim, preventing them from seeking assistance or confiding in others who might recognize the scam. This calculated tactic aims to maintain control and prolong the deception without external interference.

    In safeguarding against the unsettling threat of police impersonation scams, vigilance and skepticism are paramount. Authentic law enforcement agencies do not make unsolicited calls demanding immediate action or payments. Verify the legitimacy of any communication by independently contacting the supposed agency using official contact information. Never share personal or financial information over the phone unless certain of the caller’s authenticity. If faced with coercive demands and threats of arrest, remain calm and seek advice from trusted individuals or law enforcement directly. By staying informed, questioning unexpected communications, and maintaining open lines of communication with trusted contacts, individuals can fortify themselves against the manipulative tactics employed by police impersonators and other scammers.

     

  • Geebo 9:00 am on January 24, 2024 Permalink | Reply
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    Tax season scams have already started 

    Tax season scams have already started

    By Greg Collier

    This coming Monday, January 29th, is the first day you can file your income tax return. Scammers are aware of this, and will spend the next three months trying to steal from you using your tax return as bait. One report even states that scammers have already started sending out emails impersonating the IRS. The unsolicited emails state you can check the status of your return by clicking on a link. The link will more than likely take you to a website where you’ll be asked to enter your personal information in order to steal your identity. But, that isn’t the only tax scam you should be on the lookout for.

    The IRS impersonation scam stands out as the most prevalent fraudulent activity. In this scheme, perpetrators pretend to be representatives of the IRS when contacting their targets. Usually, these fraudulent callers inform their victims that they are delinquent in their taxes and insist on an immediate payment. Alternatively, some scammers falsely claim that the target is owed a refund and request bank account information. It’s important to note that the IRS typically does not communicate with individuals over the phone regarding tax matters. Any issues with a tax return would be addressed through the mail.

    During tax season, there’s an influx of transient tax preparers who may not have a reliable and long-term presence. If you plan to enlist the services of a professional to file your taxes, it’s crucial to thoroughly research the individual or company beforehand. Exercise caution if a tax preparer indicates an intention to close operations immediately after the filing deadline. In the event of an audit, having a tax preparer who can provide assistance is essential.

    Additionally, be cautious of tax preparers who link their fees to your tax refund. Fees should be determined based on the complexity of your tax return, not the refund amount. Ensure that the fee structure aligns with the effort required to complete your tax filing accurately.

    The most devastating tax scam involves scammers attempting to file a tax return using your identity. This underscores the importance of filing your return promptly. If a scammer successfully files a return in your name, you will likely receive a letter from the IRS indicating the receipt of duplicate returns. In the unfortunate event that you fall victim to this scam, it’s crucial to contact the IRS immediately.

    Delaying your response can complicate the process of rectifying the situation and recovering your tax return. Swift action is essential to minimize the impact of identity-related tax scams. Stay vigilant, file your return as early as possible, and promptly address any suspicious activity with the IRS if you suspect fraudulent filings in your name.

     

  • Geebo 9:00 am on January 23, 2024 Permalink | Reply
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    Is it even safe to mail checks anymore? 

    By Greg Collier

    When we discuss the check washing scam, or the newer check cooking scam, we recommend mailing your checks from inside your local post office. But what happens when your checks are being stolen from within the postal system? That’s what one county in Maryland discovered happening in their community.

    If you’re not familiar with check washing, it’s a fraudulent scheme where criminals tamper with a check by altering or erasing information to gain unauthorized access to funds. The term ‘check washing’ specifically refers to the process of removing or modifying the ink on a written check, typically using chemicals or solvents. This allows the perpetrator to change details such as the payee’s name, the amount, or other information on the check.

    Once the check is altered, it can be used by the fraudster to withdraw money from the victim’s account or make unauthorized purchases. Criminals involved in check washing often focus on outgoing mail or checks left in vulnerable locations, such as home mailboxes, where they can easily intercept and manipulate the checks.

    In Prince George’s County, Maryland, investigators discovered a multi-million dollar check washing ring. One of the alleged ring members was a USPS mail handler assistant. This position allowed them to steal checks while on the job.

    From there, the checks would be sent to the ring leader, who allegedly would alter the checks. Then the checks were made out to money mules, who would deposit the checks into their own bank accounts until they cleared. Money was withdrawn or transferred from these accounts into other accounts used by the scammers.

    Each member of the ring is facing a potential sentence of 30 years in federal prison.

    While this is most definitely an edge case scenario, the chance of your check being stolen in the manner is not zero. So, what can you do to prevent your check from being stolen? If you’re insistent on writing checks, we recommend using an indelible ink like a gel pen or Sharpie. These inks are said to be difficult to wash off the checks. However, checks written with these inks are still vulnerable to the new check cooking scam, which alters checks digitally.

    For situations like recurring monthly bills, we recommend setting up automatic payments with your providers. Typically, recurring bills such as utilities, rent/mortgage, and insurance premiums are good candidates for automation.

    While paper checks have been a traditional method of payment, the risks associated with scams like check washing highlight the vulnerabilities in this outdated system. With the advent of secure and convenient digital payment options, it’s time to seriously consider abandoning paper checks. Embracing electronic transactions enhances security and streamlines financial processes, making it a practical choice for the modern era.

     

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