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  Geebo 8:00 am on October 18, 2022 Permalink | Reply
  Tags: phone scam ( 46 ), Scams ( 1,354 ), sim swapping ( 8 ), social engineering ( 2 ), two factor authentication ( 17 ), Zelle   

  This phone scam could steal your life 

  

  By Greg Collier

  How much of a panic would you be in if you lost your phone? Can your personal or business email accounts be accessed through your phone? Is your phone locked with a PIN or password? Or is it secured using a fingerprint or facial ID? Do you have banking apps that require a PIN or fingerprint to access? Could any random stranger just pick up your phone and start accessing your money and information? Even if your phone is completely locked down and secure from physical access by outsiders, there’s still a way you can lose all access to your phone without actually losing your phone.

  There is a scam out there that most mobile phones are vulnerable to, and it’s known as SIM-swapping. The name SIM-swapping is a misnomer, since physical access to your phone’s SIM card is not necessary. SIM-swapping works when scammers or identity thieves contact your mobile phone carrier and pose as you. The scammer will use information they’ve found out about you to convince the phone carrier they are you. This is known as social engineering.

  Once the scammer convinces the phone carrier that they’re you, they’ll have the phone company switch your service from your phone to theirs. As soon as that happens, the scammers have direct access to your phone number and text messages. Since most of us who use two-factor authentication have the authorization codes sent to our text messages, the scammers can then access any number of your personal accounts, including your financial accounts.

  This recently happened to a victim from Tennessee. She had received a text message from her carrier indicating a change on her account before her phone service went completely dead. She called her carrier, and another name had been added to the account. By the time she had her service restored, scammers had transferred thousands out of her bank account through the Zelle app.

  There are ways to protect yourself from SIM-swapping. One way is to use an authenticator app instead of using text messages for your two-factor authentication. Authenticator apps are tied to the device instead of being tied to a phone number. Also, when filling out your security questions for online accounts, don’t give the correct answers. Information like your high school mascot or your pet’s name can be discovered on your social media. Lastly, you can contact your carrier and tell them not to allow any device switching on your account. However, to get your account unfrozen, you may have to visit your carrier’s store with your ID.

   

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  Geebo 8:00 am on September 23, 2022 Permalink | Reply
  Tags: authorization code ( 7 ), bank fraud ( 23 ), bank scam ( 70 ), Scams ( 1,354 ), security code, Zelle   

  Man loses $7500 in new Zelle scam 

  

  By Greg Collier

  Next month, it will be a year since we started posting about Zelle scams. In that time, it doesn’t seem like much has been done on Zelle’s side to protect its users from scams. However, the scammers seem to have adapted the Zelle scam to continue stealing from their victims.

  For those who may be new readers, Zelle is a personal payment app that’s co-owned by some of the country’s biggest banks. It’s a competitor to apps like Venmo and Cash App. Zelle us only supposed to be used between family and friends and is not intended to be used for business purposes.

  In the previous version of the scam, scammers would send victims a text message posing as their bank’s fraud department. The text asks the victim if they recently made a large purchase and text back either yes or no. Once the victim texts back, that lets the scammers know that there is someone at that phone number.

  That text message is then followed up with a phone call to the victim. Still posing as the bank’s fraud department, the scammers tell the victim that their bank account has been compromised. The victim is then told that in order to protect the money in their account, the money needs to be ‘moved’. Instructions are given to the victim on how to move the money, but what’s really happening is the scammers are walking the victim through a procedure where their money is given to the scammers through Zelle.

  In the new Zelle scam, instead of walking the victim through instructions on transferring the money through Zelle, the scammers are now hijacking the victim’s Zelle account. The scammers do this by asking the victim for a security code that the scammers say they need for security purposes. What the scammers are actually doing is triggering a password rest on the victim’s Zelle account. The security code is needed to complete the password change. Giving the security code to scammers is essentially handing over your Zelle account to them.

  This recently happened to a man in Arizona who received an email about a fraudulent charge. When he called the number on the email to dispute the charge, he was told to pay himself the charge amount through Zelle to reverse the fraudulent charge. However, the ‘bank’ needed the security code to complete the transaction. This is being referred to as the ‘pay yourself scam’. After the scammers hijacked the man’s account, they took $7500 from him.

  Zelle has released a video on how to prevent yourself from becoming a victim of this scam, as you can see below. But are they really doing enough to educate bank customers on how Zelle can be used to scam them. Part of the problem is that many of the banks that use Zelle make Zelle part of their own app. Many customers aren’t even aware that they have Zelle or how to use it. In some cases, Zelle can be used to access a bank account, whether that customer wants it to happen or not. Zelle needs to better educate and protect their customers before their name becomes synonymous with scams, if it hasn’t already.

   
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  Geebo 8:00 am on September 15, 2022 Permalink | Reply
  Tags: Atlanta ( 4 ), real estate ( 127 ), Scams ( 1,354 ), Zelle, zillow ( 15 )   

  Million dollar home lists for $22K 

  

  By Greg Collier

  The online real estate market has been rife with scams and fraud almost since the beginning. It almost seems like you can’t post an online real estate listing without someone copying it. This is what usually leads to the numerous rental scams out there. However, it’s not just rental scams you have to worry about, but there are scams when trying to buy a home too. Except, the scam we’re about to discuss today had so many red flags it could have been part of the Soviet Navy.

  A local realtor in Atlanta found a peculiar listing on Zillow. The home was in an affluent Atlanta neighborhood and was estimated to be worth at least a million dollars. However, the Zillow listing claimed the house was for sale at the low, low price of $22,000. The supposed owner of the house claimed the price was so cheap because they owned a number of properties and this would be a tax write-off for them.

  If those weren’t enough warnings, this listing could be a scam, it also came with plenty of strings attached. The listing specified that this was for first time buyers only, who didn’t have any representation. The listing also stated that the price was non-negotiable and approved applicants would pay a $2,000 payment through Zelle.

  No matter how bad the real estate market may be, no one is going to sell a million dollar home for .02% of its value. The scammer was obviously looking for homebuyers with no experience in the market, so they easily could be taken advantage of. If a listing specifies that you should have no representation, you should assume it’s a scam.

  Lastly, the fact that the listing is asking for payment through Zelle should be a dead giveaway that it’s a scam. As we’ve said previously, Zelle should only be used to pay people you know personally and not to random strangers on the internet.

   
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  Geebo 8:00 am on August 24, 2022 Permalink | Reply
  Tags: bank fraud ( 23 ), bank scam ( 70 ), customer support ( 23 ), Scams ( 1,354 ), US Bank ( 3 ), Zelle   

  Zelle says they’re just the messenger when it comes to scams 

  

  By Greg Collier

  As you may know, Zelle is the personal payment app that’s consistently been used in various scams for the past year. Zelle’s parent company is also co-owned by the nation’s leading banks, who consistently look for reasons to deny assistance to scam victims. Although it’s entirely within their right to do so, it’s also bad PR. At what point will the platform itself need to step in since its customers are constantly being taken advantage of?

  For example, a man from the Kansas City area recently fell victim to the classic Zelle scam. It’s a shame we can call it the classic Zelle scam, but here’s how it works. A victim will receive a text message that appears to come from their bank. The text asks if a large purchase or transaction has been made lately and asks the recipient to respond yes or no. Once the recipient of the text responds no, the scam really begins.

  The victim will then receive a phone call that spoofs their bank’s phone number. The scammer, posing as the bank’s fraud department, will tell the victim their bank account has been compromised. Under the guise of protecting the victim’s account, they’ll be walked through a Zelle transaction that’s actually sending the money to the scammer’s bank account.

  The Kansas City man lost $2500 to the scammers. He attempted to contact his bank, in this case U.S. Bank, to try to get his money back. So far, the bank has refused. Even after going to his local media, the bank has still refused a refund. When the local media contacted Zelle about it, they were told that Zelle is essentially a messaging service when it comes to these transactions and scam victims will have to work through their banks. U.S. Bank is one of the banks that co-owns Zelle’s parent company.

  Reactions like this should get bank customers to uninstall the Zelle app, but too many banks have Zelle baked in to their own app. This, in turn, makes a large number of bank customers vulnerable to scams just so the banks can push Zelle on them, since the banks are tired of losing business to other payment apps like Venmo and Cash App. Essentially, if you want to use your bank’s regular app, you’re forced to deal withe vulnerabilities of Zelle. It’s almost like the banks are holding their customers hostage.

  To better protect your bank account, keep in mind that Zelle is only supposed to be used between friends and family. Your bank will never ask you to use Zelle if your account has been compromised. If you receive one of these phone calls, hang up and contact your bank directly at the phone number on the back of your debit card.

   
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  Geebo 8:00 am on August 22, 2022 Permalink | Reply
  Tags: Bank of America ( 11 ), Facebook Marketplace ( 62 ), Scams ( 1,354 ), Zelle   

  Teen saving for fishing boat falls for Zelle scam 

  

  By Greg Collier

  Once again, scammers show they don’t care who their victims are. While we often hear about elderly victims who fall prey to scams, they happen to younger people as well. Some experts have even said that younger generations fall victim to scams just as much as the older ones. Whether it’s a lack of experience, or an unwillingness to come forward, younger adults are losing just as much as their older counterparts. However, when the discussion turns to teenagers, that’s a demographic that scammers are always willing to capitalize on.

  A 14-year-old boy from New Jersey and some of his friends were trying to save money so they could buy a fishing boat together. The teen decided to sell a computer he had on Facebook Marketplace. He listed the computer for $500 and found someone who said they were willing to buy it. The buyer offered to pay the teen through Zelle.

  For those who may be unfamiliar with Zelle, it’s a personal payment app that’s co-owned by a number of the larger banks in the U.S. Zelle is only supposed to be used to send payments to friends and family, but scammers have been using it to cheat their victims out of money.

  In this case, the scammer sent the teen an email that looked like it came from Zelle saying the $500 payment couldn’t be received because of a limit on the teen’s bank account. He was then instructed to send $500 to the buyer that was supposedly going to be returned to the teen. Then the teenager got two more emails that appeared to come from Zelle that requested two more fee payments of $200 and $400. The teen made the payments before realizing he was being scammed.

  The teen’s father called the bank’s fraud department, who were able to prevent the $200 and $400 payments from going through, but the $500 payment was already gone. The bank said that could not get it back. Undaunted, the teen wrote a letter to the CEO of Bank of America, one of Zelle’s co-owners, for assistance. It wasn’t until the teen talked to local media before he was able to get his money back.

  Unfortunately, the teen’s story is more the exception than the rule. In most cases, Zelle scam victims never get their money back. The Zelle service offers little in the way of protection to scam victims, In most cases, the banks say since the victim authorized the payment, even if it was by deception, they couldn’t refund the money.

  Zelle isn’t the only app that scammers use. Venmo and Cash App have also been pretty popular with scammers, but Zelle seems to rule the roost lately when it comes to payment scams. With many of the banks that use Zelle unwilling to help most scam victims, it’s become a favored tool in the scammer’s arsenal. The best way to protect yourself from the Zelle scam is to not pay anyone through Zelle that you don’t know personally. No legitimate company or government agency will ask you to pay through Zelle. If you’re selling items online, it’s in your best interest not to accept Zelle payments. There’s a greater chance you’ll be scammed than actually getting paid.

   
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  Geebo 8:00 am on August 19, 2022 Permalink | Reply
  Tags: Cash App ( 42 ), charity scam ( 34 ), medical expenses ( 5 ), Scams ( 1,354 ), sick children, Zelle   

  Are charity drives for sick children a scam? 

  

  By Greg Collier

  With how expensive medical treatment in our country can be, it’s common to see people or families asking online for financial assistance regarding their medical expenses. According to the crowdsourcing platform GoFundMe, the main reason people open a GoFundMe page is to solicit donations for medical expenses. Unfortunately, scammers will pose as someone in need of financial assistance for medical expenses online. With more and more people becoming aware of these online scams, are scammers going back to asking for money on the street? That very well could be.

  According to a report from the Kansas City area, residents there are saying that people are taking to the streets and holding up signs asking for donations for children with severe illnesses. However, these signs have a modern twist. Instead of just taking cash, the signs also have indicators that you can donate money to various personal payment apps such as Zelle and Cash App.

  The reason authorities around Kansas City may think this may be a scam is because a group of scammers in South Carolina used the exact same picture of a sick child that the sign holders in Kansas City are using.

  Everybody wants to help a sick child if we can, and the scammers know this. Scammers are masters of emotional manipulation and will use every dirty trick in the book to separate a victim from their money. They want your heart to override your head when it comes to giving money. They want that immediate emotional reaction to result in an immediate donation. While an immediate donation might make us feel better, it might not be actually helping a sick child.

  As always, people should research before making any kind of chartable donation, so they’ll know the money is being put to good use. If you feel guilty about not making a donation to a sign holder, or if you just want to help, consider donating to an organization that has a good reputation for assisting those in need.

   
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  Geebo 8:00 am on August 12, 2022 Permalink | Reply
  Tags: activation scam, Amazon ( 108 ), Prime Video, Scams ( 1,354 ), Zelle   

  Amazon and Zelle used to scam veteran 

  

  By Greg Collier

  An Army veteran from Florida recently fell victim to a scam while trying to set up his smart TV. The man was trying to activate Amazon’s Prime Video app on his TV when he received an error message. Typically, this error message states that there is a connectivity issue and refers you to an official Amazon help page for assistance. However, if someone were to take the URL of the Amazon page and use it in a Google search instead of going directly to the Amazon page, you could find a scam site listed at the top of the search results.

  The former soldier found himself on just such a page, where he was asked to enter an access code to authorize his device. In this case, it doesn’t matter what access code is input. Someone could put in any string of numbers and letters and still be taken to the next part of the scam. After the man entered the code, he was taken to a page that asked him to call a customer service number.

  After he called the number, the scammer was able to gain access to the man’s Amazon account and did help him install the Prime Video app to his TV. Scammers do this to try to add legitimacy to their scam. Then, the man was told that his Amazon account had been compromised, and he needed to transfer money out of his bank account using the Zelle app to protect his accounts. Before it was all over, the man had lost $6000 to the scammers. As is typical with Zelle scams, the man’s bank has refused any kind of refund.

  When dealing with online customer service or tech support, always make sure you’re at the correct website. In this instance, make sure you’re at an Amazon.com address and not some address that appears to have no connection to Amazon. Also, no legitimate business will ask you to make any kind of transaction using the Zelle app. Apps like Zelle, Venmo, and Cash App are only supposed to be used between family and friends. This is why these apps don’t offer the same protections you might receive with a credit or debit card.

  Lastly, this scam shows once again that anybody can fall victim to a scam. The victim in this scam even said as much to local media when he told them, “I’m 68 years old. I’m a vet. I thought I knew everything. I thought I was smart when it came to things like that.”

   
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  Geebo 8:00 am on August 11, 2022 Permalink | Reply
  Tags: California ( 21 ), Orange County, real estate ( 127 ), rental scam ( 87 ), Scams ( 1,354 ), Zelle, zillow ( 15 )   

  Knock on the door saves family from rental scam 

  

  By Greg Collier

  We would say that it seems to be the week for rental scams, but unfortunately, they’re an everyday threat to prospective renters. It’s not just renters, either. Homeowners and current tenants are often left having to tell victims of rental scams that the property is not for rent. Meanwhile, the victims are left desperately scrambling to find a place to live after having lost thousands of dollars to scammers.

  The rental scam can take many forms, but at its simplest, scammers copy real estate listings then post a copy somewhere online that the home is for rent. Except, the scammers list themselves as the landlord and collect security or rental deposits before ghosting their victims.

  A couple from Orange County, California, almost feel victim to a rental scam, but decided to investigate when something didn’t feel right. The home they found was listed for rent on Facebook Marketplace. The supposed landlord only communicated by text. They were also asked to pay a $2000 deposit through personal payment app Zelle and were pressured to pay quickly since others were interested in the rental. The couple was also told not to go to the property because it was currently occupied, although the tenants would be out by the end of the week.

  The home was occupied alright, but not by renters, the family that was living there had bought the home, and it was not for rent. The couple interested in the home decided to go to the home anyway, sensing something was fishy. The couple knocked on the door and spoke with the family living there, who told them the home was not for rent. It turned out the scammers had copied the Zillow listing that the family saw when they bought the home.

  The couple was lucky enough to notice the red flags before losing any money. Unfortunately, not all families are this lucky and end up losing what little money they might have. If a landlord only communicates by text, it could mean they’re not in the area and are just interested in taking your money. If they ask for payment through personal payment apps like Zelle, Venmo, or Cash App, that’s another good indicator of a potential scam as scammers can block victims on these apps once they receive payment. And if a landlord tells you not to approach the property, there’s a good chance they’re trying to hide something from you.

  As always, due diligence should be done before putting money down on a rental property. A quick Google search of the address can reveal duplicate listings. If the listing you’re looking at has a lower rent price, that’s more than likely the scam listing. If a listing says the house is for sale or off the market, but your listing says it’s for rent, your listing is probably the scam listing.

   
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  Geebo 8:00 am on August 3, 2022 Permalink | Reply
  Tags: bank fraud ( 23 ), bank scam ( 70 ), PNC Bank ( 3 ), Scams ( 1,354 ), US Bank ( 3 ), Zelle   

  How Zelle scammers wear down their victims 

  

  By Greg Collier

  As expected, the Zelle scam is still ongoing. For a brief recap, scammers are calling their victims pretending to be a bank fraud department. The scammers tell their victim that there’s been fraudulent activity on their account. The victim is instructed to move their money through the Zelle app to protect it. But what’s really going on is the scammers are directing the victims to transfer their money to the scammers.

  Just today, we found two reports of bank customers falling for the Zelle scam. However, both of these reports give us a good look into how scammers convince their victims to give up their money.

  A woman from New Jersey is a customer of PNC Bank, one of the banks that co-owns the Zelle app. She received a call from scammers posing as PNC Bank’s fraud department. The caller was said to sound professional and told the woman there had been a $1000 Zelle, transfer to a man in Texas she didn’t know. The caller even knew the woman’s name, address and phone number. She was told to use the Zelle app to perform a $1000 reversal.

  The woman started to think the call was suspicious and started asking for additional identifying information from the caller, such as her date of birth or account number. The caller insisted the call was legitimate and time was running out on stopping the phony transaction. The caller refused when she asked to speak with a supervisor. She even said she was going to call PNC directly, but was told she would just be directed back to the fraud department. Then the caller tried to say there was another $5000 charge that just came through. When she started asking more questions, the caller said PNV would call her back tomorrow and hung up.

  A man from Colorado fell victim to a similar scam when he received a call that appeared to come from U.S. Bank’s fraud department. U.S. Bank is also a co-owner of Zelle. That caller had a large amount of the man’s information, including his name, address, and the last four digits of his bank account. Again, that caller sounded professional, and the man heard computer typing in the background like they were really handling a fraudulent activity on his account. He was also instructed to move his money through Zelle, where he lost $1000. These scammers also tried to get more money out of the man, That’s when he hung up and called U.S. Bank directly to find out he’d been scammed.

  In both cases, neither bank would refund the victims their money, with both claiming they can’t do anything since this wasn’t the result of a banking mistake.

  Please keep in mind that scammers aren’t just some guy calling from a run down basement using a burner phone. Often, they’re run exactly like a legitimate business would be run. Don’t fall for phony professionalism.

  And remember, Zelle is only supposed to be used between friends. It’s not for bill paying or ‘protecting your money’. If you get a call like this, hang up and call your bank directly at the phone number on your debit card or from the bank’s website.

   
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  Geebo 8:00 am on July 26, 2022 Permalink | Reply
  Tags: bank fraud ( 23 ), bank scam ( 70 ), impersonation scam ( 144 ), Scams ( 1,354 ), Zelle   

  The Zelle scam is still around, in case you were wondering 

  

  By Greg Collier

  We’ve been posting about this particular Zelle scam since last October. That probably means the scam has been going on for at least a year. In case you need a reminder or haven’t heard of the Zelle scam, we’ll give you a refresher.

  Zelle is what’s known as a peer to peer payment app. Its closest competitor is Venmo and is supposed to be used in a similar way. Payments are only supposed to go to people you know personally. The most used example for apps like Zelle is splitting a check at a restaurant. Instead of everyone getting a separate check or trying to settle up with cash, you can electronically send your friend your portion of the bill. However, scammers have taken advantage of people through Zelle even if the victim doesn’t normally use the app.

  The most egregious of these scams is a bank impersonation scam. It starts when a potential victim of the scam receives a text message that appears to have come from their bank. The text message typically says something to the effect of, did you make a large purchase or did you transfer a large amount of money through Zelle? The victim is then asked to reply yes or no.

  When a victim replies no, they immediately receive a phone call from someone claiming to be from their bank’s fraud department. The phony customer service rep gives instructions to the victim to use Zelle to protect their account from being hacked. What’s really happening is the scammers are directing the victims to use Zelle to move money from the victim’s account to the scammers’ account.

  Recovery of lost money is often rare and difficult. Zelle offers little in the way of consumer protection when it comes to scams. The big banks that own Zelle say they can’t refund the victim their money since the victim ‘willingly’ moved the money, scam or not.

  Zelle has gotten a bad rap because of this scam over the past year, but it still seems like they’ve done very little in the way of trying to protect their users. With all the negative press, the scam still continues.

  Just recently, a woman from Texas lost $3000 to this scam. In her case, the scammers took $1000 a day for three days from her account through Zelle under the guise of helping her protect her account.

  The best way to prevent yourself from falling for this scam is to ignore the text message. Do not reply to it at all, or you will receive a call from the scammers. Scammers don’t actually know where you bank. They cast a wide net of text messages, hoping to get at least one person to respond. If you still have concerns about your bank account, call them directly at the customer service number on your debit card or your bank’s website.

  If you find yourself having fallen victim to this scam, file a police report. We have seen it reported that doing this will aid in recovering your money, but is not a guarantee.