Posts Tagged: ‘Personal Information’

Scam of the day – May 30, 2012 – More veterans scams

May 29, 2012 Posted by Steven Weisman, Esq.

Just a few days after Memorial Day, it is a good time for us to remember our veterans and their service to our country.  Unfortunately, scammers always are thinking of veterans, but when they think of veterans, they think of how they can steal from them and make them victims of scams.  One of the more common recent veterans scams involves a telephone call or an email from someone purporting to be with the Veterans Administration asking for the veteran to update his or her debit card number or financial records.  For all veterans this should be an easy scam to spot because every veteran is assigned a case worker by the Veterans Administration.  If you are contacted by anyone else telling you that they are with the Veterans Administration asking for personal information, ignore the contact.  It is a scam.

TIP

Never give personal information to anyone, even your case worker unless you are sure of the identity of who is contacting you.  Even case workers can have their email hacked.  If you believe that you are being contacted legitimately, call or email back to a phone number or email address that you know is correct.

Skimmers

January 17, 2012 Posted by Steven Weisman, Esq.

Skimmers are small devices that can read a credit or debit card and capture the information on the card for scam artists.  They may be installed on an ATM or a gas pump or any other device into which you directly swipe your credit card or debit card.  They may also be used as a portable device by a criminal clerk or waiter who takes your card and not only runs it for the legitimate charge for whatever you are purchasing, but also runs it through the skimmer to capture the information to steal access to your credit card or debit card.

TIP

As much as possible, when giving your credit or debit card to a clerk or waiter, watch the card to make sure that it is not swiped through a skimmer as well as through the legitimate credit card processing machine.  Many restaurants now bring the card processing apparatus to you at your table to avoid this type of criminal activity.

And while you are at it, you should consider using your debit card less because unlike a credit card, the laws that protect you in the event of fraudulent use of the card are greatly limited.  While your liability for fraudulent use of your credit card is limited by law to no more than fifty dollars, your potential liability for fraudulent use of your credit card that you do not catch in a timely fashion could be the emptying of the checking account to which your debit card is attached.

Social Security Scams

January 17, 2012 Posted by Steven Weisman, Esq.

Social Security like all complex federal programs is ripe for scammers taking advantage of people’s confusion.  Whether it is someone contacting you by telephone purporting to be from the Social Security Administration to confirm your Social Security number and your bank account number for direct deposit of your Social Security check to someone telling you that they can get back all of your contributions to Social Security on your behalf in one check to someone telling you that you need to provide information to them to be eligible for Cost of Living Adjustments, the end result is the same, you get scammed, lose money and become the victim of identity theft.

TIP

Never give your personal information to someone whom you have not called and are not sure who they are.  If you think a call may be legitimate (and it won’t be if they are looking to confirm your direct deposit information), just call Social Security at a number you know is accurate.  As for getting all of your contributions in one lump sum, it is a total scam.  The law does not provide for such a payment.  And you never have to apply or provide any information to anyone to get your Cost of Living Adjustment.  The increase is automatic.

Tax Scams

January 17, 2012 Posted by Steven Weisman, Esq.

Tax scams are rampant although they do spring up more in the Spring as we get ready to pay our income taxes.  Most of the scams prey on two conflicting motivations.  The first is our fear of the IRS and doing something wrong in filling out our taxes and the second is the desire to avoid paying taxes.  Either way, you are a potential victim of the tax scammer.

First and foremost, don’t believe the scammer who tells you that the income tax is illegal and that he or she can show you why you don’t need to pay taxes.  The income tax is legal.  That is all there is to it.  People with contrary opinions have gone to prison for tax evasion.

Some people may receive forms from the IRS on line, often asking personal information such as your Social Security number or even your credit card number.  The IRS does not communicate with taxpayers on line so don’t fall for this scam.

TIP

Consider the source for any tax advice you get.  Don’t rely on people telling you that you don’t have to pay taxes because that is what you want to hear.  Always check out the qualifications of any tax adviser.  And if you are contacted by someone purporting to be the IRS asking for information, if you have any concerns that the contact may be legitimate, contact the IRS at a number that you know is legitimate.

Area Code 809

January 17, 2012 Posted by Steven Weisman, Esq.

Have you ever heard of area code 809?  Don’t feel bad if you haven’t because it probably is not an area code with which you would be familiar unless you make a lot of calls to the Caribbean.   Similar to the 900 scam, you may receive a call in your voice mail telling you that you have won a contest or even that someone you know has gotten into difficulties and needs your help.  In any event, you are prompted to call a number beginning with the area code 809 which at charges of $25 per minute can run up your phone bill to outrageous levels quite quickly.

TIP

Always be skeptical of any call instructing you to call the area code 809 unless you truly do know who is calling and that they are in the Caribbean.

Phony Diplomas

January 17, 2012 Posted by Steven Weisman, Esq.

A College degree can help you land a good job, but a phony diploma from an organization granting worthless college degrees that require you to do little, if any academic work, but gives you large credit for your “life experience” is just a diploma mill that can, in fact, hurt your chances of getting a job.  There also are easy to recognize scams that just lure people into being a part of the scam by selling you counterfeit diplomas of legitimate colleges.  Either way, you should avoid these education scams.  Some states, such as Oregon have even made it a crime to use a diploma from one of these phony colleges.

TIP

“What’s in a name?”  If you studied Shakespeare in college, you would know that quote comes from “Romeo and Juliet.”  Always check the name of phony colleges because the names may be quite similar to legitimate colleges.  Columbia State University is a diploma mill.  Columbia University is an Ivy League college.  Check out the school at the U.S. Department of Education’s website at www.ope.edu.gov/accreditation to see if the particular institution of higher learning is an accredited college.

Lotteries and Contest Scams

January 17, 2012 Posted by Steven Weisman, Esq.

Year in and year out, lottery and contest scams are some of the most lucrative scams for conmen.  You may be told that you have won a large lottery or contest.  To further gain your confidence, you may even be told that the contest or lottery has been approved by the FBI or that the contest is sponsored by a big company with which you may be familiar, such as Clorox, a legitimate company whose name was used by scammers to steal money from unsuspecting victims.  Most of these lottery scams involve you having to pay various processing fees or even income taxes to the lottery sponsor.

TIP

It is hard enough to win a contest you enter, so you should be particularly wary when told that you have won a contest that you never even entered.  Legitimate contests and lotteries do not have processing fees that you have to pay and they do not collect income taxes from you.  The sponsor either would pay the taxes on your behalf or provide you with an IRS Form 1099 informing you of how much money was paid on your behalf to the IRS or you would be responsible to pay the IRS directly.  You would not pay the income taxes on the prize to the contest sponsor.

And beware of your winnings coming to you in the form of a certified bank check.  Unsuspecting victims have deposited these checks and waited for the check to clear before sending processing fees only to find that the check was a forgery and their own bank had only given them provisional credit for the check so that once it bounced, the victim not only lost the “winnings” but also the processing fees.

Loan Scams

January 17, 2012 Posted by Steven Weisman, Esq.

In desperate times people often let their guard down, which provides a lethal combination for scammers offering loans to people even if they have poor credit.  You may get a solicitation for the loan through an email or you may even see it in legitimate media, but you should always beware.  Just because an advertisement for a loan appears in a legitimate newspaper or other media does not mean that the loan offering has been investigated for legitimacy by the media carrying the advertisement.  In fact, in difficult financial times when advertising dollars are hard to come by, the standards of media for taking advertisement seem to drop.

You may be surprised at how fast your sham loan is approved.  All you have to do is to send in an advance processing fee and you are on your way to financial stability.  Unfortunately, the loan is a scam and you end up more in debt when you pay for a worthless loan.

TIP

Legitimate lenders rarely ask for advance fees.  They usually deduct fees from the loan amount.  Check with your state’s attorney general or the FTC if you have questions about an unfamiliar lender.  And if the loan requires an advance fee, don’t do it.  Chances are it is a scam.  Also, even if you don’t have to pay an advance fee, always be sure the lender is legitimate before you provide any information such as your Social Security number which could be going to an identity thief who is merely using the promise of a loan as a ruse to obtain personal information from you.

Unclaimed Property Scam

January 16, 2012 Posted by Steven Weisman, Esq.

You may receive an email or letter informing you that there are billions of dollars of unclaimed or abandoned money being held by the states and federal government and that some of that money is yours.  For a fee, the person or company contacting you will assist you in locating that property claiming it for you.

The truth is that indeed various state and federal agencies are holding more than 24 billion dollars of unclaimed money that is waiting to be retrieved by the rightful owners.  State laws require financial institutions, such as banks, to turn over money from inactive accounts.   Among the assets held by these agencies are savings and checking accounts, stocks, uncashed dividend checks, certificates of deposit and utility security deposits.

Where the scam comes in is when you are asked to call a company’s 809 telephone number for more information.  Unfortunately, this call will run up a steep charge on your telephone bill and the only information you will get is general useless information as to how you can claim the money yourself or pay them a steep fee for doing it for you.

Some “legitimate” companies may also contact you to assist you in getting back your missing money, but it is important to remember that they cannot have any specific information as to what you are owed because of privacy regulations that prohibit them from obtaining that information.

TIP

The best place to find a helping hand to assist you in locating and getting back your abandoned property is at the end of your own arm.  Go to the website of the National Association of Unclaimed Property Administrators at www.unclaimed.org where you can link on to the website for your own state’s agency that deals with abandoned property and take the steps necessary to claim your abandoned property at no cost to you.  Other useful websites for locating money that you may be owed include www.irs.gov, the website for the IRS where you can find tax refund money you may be owed and www.pbgc.gov, the website of the Pension Benefits Guaranty Corporation, a federal agency that holds unclaimed pension funds.

Natural Disaster Scams

January 16, 2012 Posted by Steven Weisman, Esq.

Natural disasters, be they hurricanes, tsunamis, tornadoes, wildfires or floods are fodder for the most vile of scammers who take advantage of both the victims of these disasters and people who wish to make charitable donations to the victims of charities.  The scammers take advantage of those people already victimized by posing as government agency employees or insurance adjusters.  In the process of their interviewing the victims, they request personal identifying information, such as Social Security numbers and then use this information to make the victims of the natural disaster victims of the unnatural disaster of identity theft.  The scammers take advantage of people wishing to donate to the victims of natural disasters through phony charities.

TIP

If you are a victim, you must confirm the identity of anyone who contacts you purporting to be from a governmental agency or insurance company.  Do not give out any information until you have checked them out by contacting the actual agency or insurance company that they claim to represent.

As for charitable donations, go to www.charitynavigator.org and check out the charity to see if it is legitimate and while you are there, you may wish to check on the amount of the money gathered by the particular charity that actually goes toward their charitable purposes and how much goes to administrative costs and salaries.  A reputable charity should not pay more than between 25 and 35% to salaries and administrative expenses.  Additionally, if you are contacted by someone soliciting on behalf of a legitimate charity, you should be aware that as much as 80% of what is collected by professional charity solicitors goes to the actual charity for which they may be soliciting.  If you are inclined to donate to the charity, you may wish to consider donating directly to be confident that more of your donation actually is going to benefit the charity to which you wish to donate.