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  • Geebo 9:01 am on December 10, 2021 Permalink | Reply
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    Will Zelle replace gift cards in online scams? 

    By Greg Collier

    Just yesterday, we were talking about gift cards and how they’ve been the payment avenue of choice for most scammers. Well, if current trends continue, the mobile payment app Zelle may start catching up to gift cards. By now, you’re probably familiar with the bank impersonation scam that uses Zelle. This is when a victim receives phony texts and phone calls that say the victim has fraudulent activity in their bank account. The scammers direct the victim to use Zelle to protect their account when, in reality, the scammers are directing victims to send all their money to the scammers through Zelle.

    Now, it seems that scammers are starting to use Zelle as they used to use gift cards. For example, a woman from Baltimore was trying to buy a puppy online. Unfortunately, she fell for the puppy scam. The puppy didn’t actually exist, and the scammers kept asking for more money for such things as special delivery crates and customs fees. You can read more on how to avoid puppy scams here. Anyway, the point being that the victim made all the payments through Zelle to her scammers. Historically, scammers like this would ask for payment in gift cards by making the victim read the numbers from the back of the gift card. As we’ve mentioned before, Zelle has a reputation for not offering many protections when it comes to getting scammed.

    Previously, it seems that banks only issue refunds to scam victims after the victims get their local media involved. However, there is another way where you can possibly get your money back if you’ve been scammed over Zelle. According to a consumer protection news report out of New York City, you’ll have the best chance of getting a refund from your bank if you file a police report, and report the scam to the bank within 60 days. Now, this is no guarantee you’ll receive a refund since many banks tell their customers that when using Zellee, the customer is responsible for all transactions including scams.

     

  • Geebo 9:00 am on December 9, 2021 Permalink | Reply
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    Is it safe to buy gift cards for the holidays? 

    Is it safe to buy gift cards for the holidays?

    By Greg Collier

    On this blog, we talk about gift cards a lot. That’s because they’re used by a multitude of scammers as an untraceable form of payment. As a matter of fact, the Federal Trade Commission recently released a report that stated at least 40,000 people lost a total of $148 million to scams that involved gift cards. Typically, these are scams that are demanding some kind of payment that supposed to prevent some kind of distress to the victim. Keep in mind that no company or agency accepts gift cards as payment unless it’s the retailer they’re intended for. You can’t pay bail with gift cards. You can’t pay your bills with gift cards. You can’t pay your taxes with gift cards. If someone is demanding that you pay them with gift cards, they are more than likely a scammer. As we are fond of saying, gift cards are the currency of scammers. But what if you wanted to buy gift cards for their intended purpose. Do you still have to worry about scams? Unfortunately, you do.

    For example, if you’re in the store looking at gift cards, make sure that the number on the back of the card isn’t already exposed. That could mean that the gift card was already purchased and out back on the shelf. Scammers will do this and wait for someone to re-purchase the card. When someone does buy the card, the scammers will quickly drain the card of the money that was added to it. Another version of this scam is when the scammers will scratch off the back to reveal the card number, then place a sticker over it waiting for someone to buy the card. In that case, compare the card with other cards on the rack to make sure the card hasn’t been tampered with.

    You may also want to avoid so-called gift card exchanges. This is where scammers will post on social media that they have a gift card for one retailer but want to trade it with someone who has a gift card for another retailer. However, after the trade is made, the victim finds out that the git card they received has little to no funds available on it.

    While gift cards are incredibly convenient for gift giving and receiving, there are many pitfalls you need to look out for, so you don’t have a complicated Christmas.

     

  • Geebo 9:00 am on December 8, 2021 Permalink | Reply
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    BBB warns holiday shoppers about PayPal scam 

    By Greg Collier

    PayPal is a great payment option when doing your holiday shopping online. You can put just the right amount of money into your PayPal account for the item you’re looking to buy and not worry about being overdrawn on your account. However, that’s not the only worry you should have when using PayPal. The Better Business Bureau has recently issued a warning about a scam that may not be new, but has picked up in activity during the holiday season.

    This particular scam happens when you go to a retailer’s website that you may not be familiar with. You may have seen an ad on social media for the perfect Christmas gift. You may have seen an ad for a hard to get item at an unbelievable price. Even better, the retailer accepts PayPal for payment. The retailer sends you your delivery, but when you open the package, it’s not what you ordered. In fact, it’s some cheap trinket that may not even cost a dollar. The problem with this scam is that PayPal allows the scam to continue in many instances. The scammers have figured out that as long as something is delivered, in most cases, PayPal will side with the seller in a dispute, essentially giving the scammer your cash.

    If you’re using a new retailer for the first time, look for reviews online. Also, do a web search using the retailer’s name and the words ‘scam’ or ‘complaint’. This should be a good indicator to see if the retailer is legitimate or not. You can also do what’s called a ‘whois’ search on the retailer’s web address. This kind of search often gives you an indicator of where the retailer is located. While it’s not a guarantee you’ll avoid a scam, it will let you know if a retailer is from overseas, which is best to avoid.

    If you do end up being scammed through PayPal by an illegitimate retailer and PayPal sides with the seller, you can always file a complaint with the Better Business Bureau themselves. Again, while not a guarantee of getting your money back, PayPal has responded favorably to BBB complaints in the past.

     

  • Geebo 9:00 am on December 7, 2021 Permalink | Reply
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    Can you be tricked into being a money mule? 

    By Greg Collier

    The Federal Government has recently issued multiple warnings about the dangers of becoming a money mule. The phrase is reminiscent of someone who is a drug mule. However, it’s much easier to be a money mule since money mules don’t have to leave the country or there on home for that matter since money can be moved around in several virtual ways. The main problem with money mules is that many of them don’t even know they’re being used to move dirty money around the globe.

    Both the FBI and the Federal Trade Commission have issued warnings about unwittingly becoming a money mule. Most of the ways people become unwitting money mules is through many of the scams that we should already be familiar with. The major ones are the fake check scam and the romance scam. The fake check scam is when the scammer sends you a fake check for any number of reasons. They then ask you to deposit the check into your bank account, keep a little bit of the money for yourself before sending the remainder to a third party. By the time the victim’s bank finds out the check is fake, the scammers have made off with the money, while the victim is responsible for the amount of the check to their bank.

    Meanwhile, the FBI is warning citizens about romance scams and how even victims of a romance scam can find themselves on the wrong side of the law. They’ve released a video about an 81-year-old woman who fell for a romance scam and allegedly helped her ‘boyfriend’ defraud other people.

    The reshipping scam is another avenue where scammers use unwitting participants as money mules. This is when people think they have a legitimate job as a package inspector. The victims receive packages, inspect them, then send them to a third part. The items they inspect are usually bought with stolen credit card information. By the time the credit card company catches on, the merchandise is in another country. If a reshipper does anything to skirt US Custom laws, even if instructed by the scammer, they could face arrest.

    This also includes any scam that involves gift cards or money transfers.

     

  • Geebo 9:00 am on December 6, 2021 Permalink | Reply
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    Scam Round Up: Don’t put that disc in your computer 

    Scam Round Up: Don't put that disc in your computer

    By Greg Collier

    Once again, it’s time top bring our readers another trio of scams that deserve their attention.

    ***

    Our first scam is kind of a bizarre one. Residents of a town in Maine have reported receiving something strange in the mail. They’ve been receiving handwritten envelopes, addressed only to ‘A friend’. The envelope contains a DVD that has “Please watch, copy, and share with friends” written on it, with no indication of what may actually be on the DVD. More than likely, the DVD contains malware or ransomware. What’s strange about this story is most modern computers don’t even have optical drives installed in them anymore. This scam may have been targeting elderly residents who may have older computers that still have their optical drives. A more modern take on this scam is when scammers will leave USB drives lying around out in public, just hoping that someone will actually plug the drive into their computer.

    ***

    Our next scam is one that you’re probably more familiar with. Residents of New York have reported that they’ve received letters in the mail telling them that they’ve won an $880,000 sweepstakes. The letter even includes a check for $8000. However, you have to pay a $7000 fee to ‘release’ your winnings. This is illegal and known as the advance fee scam. Some victims may think they’ll just deposit the check and use the money to claim their supposed winnings. As you’ve probably surmised, the checks are fake, which would leave the victim paying back the amount of the check to their bank while the scammers make off with $7000. Not that we like to compliment scammers, but this is a pretty clever way of combining two known scams into one to further lure their victims into their trap.

    ***

    Lastly, this is just a warning to people who use mobile banking apps that Zelle scams are still finding victims and draining their bank accounts of thousands of dollars. A woman in Portland recently fell for the scam and lost $23,000. If you receive a text message that is supposedly from your bank asking if you’ve made a large purchase or transaction, do not reply. If you do, you’ll get a call from a scammer posing as your bank and will use the Zelle app to drain your account under the guise of protecting your money. Zelle should only be used when giving or paying money to someone you know personally. If you get a text like the one mentioned, call your bank directly instead, or stop by your local branch.

    ***

    Again, these scams may not be in your area right now, but they could be soon. Hopefully, you now have the knowledge to combat them.

    https://youtu.be/Arc6JPR50xk
     

  • Geebo 9:00 am on December 3, 2021 Permalink | Reply
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    Secret shopper scam seeks more targets 

    Secret shopper scam seeks more targets

    By Greg Collier

    In yesterday’s post, we discussed a job scam that seemed to be picking up in activity during the holiday season, that was the reshipping scam. Now, it’s being reported that in some parts of the country that another old job scam is ramping up during the holidays, and that is the secret shopper scam.

    Secret shopper is actually a real position with many major brick and mortar retailers. They’re employed by the retailers to go to the various store locations and rate the performance of the store and its employees. However, it’s not as common a position that the scammers would have you believe. Scammers post ads for secret shopper positions year round, but like most scammers, they’re really looking to target those looking to add to their holiday income.

    The Charlotte, North Carolina area has reported an uptick in secret shopper scams. Residents there have been responding to the ads for secret shoppers, only to realize it’s a scam. Victims are being sent checks for thousands of dollars and are told to deposit the check into their bank accounts. They are then instructed to keep $300 for themselves and $50 for gas. The rest of the money is supposed to be used to buy Walmart gift cards to supposedly rate Walmart’s service. The victim is supposed to give the numbers from the gift card to their supposed employer.

    The problem with this scam is that the checks are fake. By the time the victim’s bank realizes the check is fraudulent, the scammers have already made off with the money that was put on the gift cards. This leaves the victim holding the bag when it comes to reimbursing the bank for the amount of the phony check.

    No legitimate employer will ever ask you to deposit funds that are supposed to be used for business into your account. If they do, that’s a good indication that the check is fraudulent. Another red flag is almost anything to do with gift cards. Unless they’re being used as an actual gift, gift card numbers should never be given to anyone over the phone.

    If you really want to find a legitimate secret shopper position, your best bet is to check with the Mystery Shopping Providers Association at their website.

     

  • Geebo 9:00 am on December 2, 2021 Permalink | Reply
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    Job scam back in time for Christmas 

    Job scam back in time for Christmas

    By Greg Collier

    Every year during the holiday season, many people look to take on a second job to help supplement their income to make the holidays more enjoyable for their families. Unfortunately, scammers are also looking to increase their income but at the expense of others. The scammers do this by offering easy jobs that can be done at home that are either costly, dangerous, or downright illegal.

    One job scam that seems to always pick up steam during the holidays is the reshipping or repackaging scam. In the reshipping scam, victims looking for work are offered a job that usually has a title like ‘shipping coordinator’, ‘warehouse distribution coordinator, or ‘local hub inspector’. The victim is asked to ‘inspect’ packages that are sent to their home before repackaging the items and sending them to a third party. During this time of year, the positions may also be listed as gift wrapper. Recently, in Michigan, a woman was offered a reshipping position where the scammers said they ship items to people in countries where Amazon isn’t available.

    The problem with these items is that they’re often purchased with stolen credit card information and shipped overseas before the cardholder is aware. This scam is essentially a form of money laundering, and the unwitting reshippers are known as money mules.

    There are usually two outcomes for victims of this scam. The first is that they reship all these packages and never get paid. The second is that they could possibly end up in jail. Even victims of the reshipping scam can find themselves in trouble with the law if the victim knowingly falsifies shipping documents under the instruction of the scammers to get around US customs.

    Fake jobs like this often hire people on the spot and only communicate by email. One noteworthy job site has even listed on their site that there are no legitimate jobs that involve receiving packages and shipping them to someone else from your home.

     

  • Geebo 9:00 am on December 1, 2021 Permalink | Reply
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    USPS warns about ongoing change of address scam 

    USPS warns about ongoing change of address scam

    By Greg Collier

    Have you ever walked into a post office, saw the change of address forms, and wondered what’s stopping someone from changing my address and receiving all my mail? As it turns out, there’s not a lot stopping someone from doing just that.

    The United States Postal Service has issued a warning about such a scam that appears to be ramping up just in time for the holidays. Just about anyone can go to the post office or the USPS website and change anyone’s mailing address. This time of year, the scammers could be receiving money and gifts meant for the holidays. For the rest of the year, the scammers could be gaining access to your personal and financial information to use for identity theft. Keep in mind that the USPS forwards mail to a new address for a year. That means, potentially, scammers and identity thieves could receive your mail for an entire year. Unfortunately, the USPS does not have many safeguards in place to prevent this from happening.

    When someone does fill out a change of address form, the USPS sends a confirmation letter to the old address letting residents know that their mailing address is about to change. While you can check your mailbox every day, a lot of us aren’t home during the day, and scammers have been known to stalk their victims’ mailboxes and take what they need from the mailbox. If you haven’t received mail for an in ordinate amount of time, you should report that to the USPS right away.

    A good way to possibly protect yourself from such fraud is to sign up for the USPS’s Informed Delivery service. It’s free, and every day you receive postal mail, you’ll receive an email with pictures of your scanned mail letting you know what to expect in that day’s mail. That way, you can see if a change of address letter has been sent to you before someone can take it from your mailbox.

     

  • Geebo 9:00 am on November 30, 2021 Permalink | Reply
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    Are banks too zealous for Zelle? 

    By Greg Collier

    If you haven’t heard of Zelle by now, it’s a mobile payment app designed to compete with the likes of Venmo and Cash App. The company behind Zelle is owned by a number of the major banks in America including Bank of America, Chase, and Wells Fargo just to name a few. Many, if not all, of these banks include Zelle with their mobile payment apps whether the customer wants Zelle or not. Since many mobile banking customers are even aware of Zelle on their banking accounts, scammers have been able to use Zelle to empty the bank accounts of their victims.

    For the past few months, scammers have been sending text messages to their victims posing as the victim’s bank. The text message asks the victim if they recently made a large purchase and asks the victim to text back yes or no. When the victim texts back, they’re immediately called by a scammer posing as a bank employee. The scammer tells the victim that the victim’s bank account has been compromised and that the victim needs to move money through Zelle in order to ‘protect’ their account. In actuality, the scammers are moving the money from the victim’s account to the scammer’s account. This scenario most recently happened to a new mother and teacher in Atlanta where her Wells Fargo account was drained of $3500. Since Zelle doesn’t offer many customer protections, victim’s have been hit or miss when it comes to getting their money back from their bank.

    A huge problem with the recent Zelle scams is the fact that the banks are attaching Zelle to their mobile payment apps without a lot of customer education on how Zelle works. It also doesn’t help that if a customer wanted to opt out of Zelle, they can’t just check a box that deactivates their Zelle account. Instead, you have to call your bank’s customer service department to deactivate your Zelle account.

    Should banks be doing more to warn their customers about these scams? Is a small warning on the Zelle app about scams enough? What can the banks do to better educate their customers? Please let us know in the comments below.

     

  • Geebo 9:00 am on November 29, 2021 Permalink | Reply
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    Look out for romance scams during the holidays 

    Look out for romance scams during the holidays

    By Greg Collier

    Most people don’t like being alone during the holiday season. When someone finds themselves in just such a situation, they can often let their heart override their mind when it comes to being scammed. Many people who are looking for a little companionship, especially during the holiday season, can frequently ignore red flags which would normally be obvious indications of a scam. This is why we see romance scams affect people from those just getting by to those in the upper echelons of business.

    The online romance scam can target not just those who are on dating apps, but those who may not have even been searching for a new partner. It starts when the victim is messaged by a scammer posing as someone else. Often the scammers will pose as a military member who is stationed overseas, but will sometimes pose as an oil rig worker or an international businessman. This is done to make it so the scammers have an easy out when it comes to why they can’t meet their supposed romantic partner in person or talk on the phone. The scammers will even use stolen pictures of actual service members and others to make the scam seem more convincing.

    What all the romance scams have in common is that the scammer will eventually ask their victims for money. Sometimes it’s for a supposed emergency, while other times it’s to help with a big international business deal. We’ve even seen instances where victims were asked for money to help get jewels and gold bars out of a foreign country. Once a victim gives money to a romance scammer, the scammer will continue to ask for even more money. Recently, a Colorado woman was scammed out of $8000 by someone claiming to have been stationed in Afghanistan. However, we’ve also seen reports where victims ran afoul of the law after embezzling money from their employers just to pay their romantic partners, who are actually scammers.

    If you’re on a dating app or platform and someone wants to message you outside the platform, this could be an indicator that they’re a scammer. The best way to protect yourself from romance scammers is to do a reverse image search of any picture they send you of themselves. If the results some back to someone who isn’t who they say they are, then your best bet is to cut off any communication with them. It goes doubly so if they start asking you for money if you haven’t even met yet.

     

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