Scam of the Day

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Scam of the day – July 4, 2023 – Student Loan Debt Relief Scammers Shifting into High Gear

I have written often about phony student loan debt relief companies and with good reason.  More than forty-two million Americans have student loans with an outstanding balance of more than 1.4 trillion dollars so it is no surprise that scammers are focusing their attention on these students and former students through scams that falsely promise to provide debt relief.   Last week the Supreme Court ruled that President Biden’s program for student loan forgiveness was unconstitutional which means that loan repayments will be starting up again in October.

As you can imagine many people with large student loans are susceptible to scammers promising to reduce or eliminate student loan debt.  Scammers promoting phony loan forgiveness services are targeting people through robocalls, emails and text messages. The old adage still is true.  If it sounds too good to be true, it probably isn’t true.  Many of these student loan debt relief scammers promise quick loan forgiveness, which is unrealistic.  In addition, you should never pay any upfront fees for student loan debt relief assistance.  Those fees are illegal and are a sure indication that you are being scammed.

TIPS

For information you can trust about federal student loan repayment option, go to https://studentaid.gov/repay .  There you can learn about loan deferments, forbearance, repayment and loan forgiveness programs and there is never an application fee.  If you owe private student loans, contact your loan servicer directly.  You can also look into student loan refinancing rather than consolidating the loans.  Refinancing student loans can result in a lower interest rate.

Also, remember my motto, “trust me, you can’t trust anyone.”  Don’t trust scammers merely because they use names that sound like they are affiliated with the government.  You also should never share your FSA ID with anyone.

Here also is a link to an FTC video that explains student loan scams and what you can do to protect yourself.  https://www.youtube.com/watch?v=7TjSI4Q6ztQ

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Scam of the day – July 3, 2023 – Summer Brings Utility Shut Off Scams

Scams involving utility bills for electric, water or gas services have long been popular with scammers.  Pacific Gas & Electric in California is reporting scams targeting utility customers are at an all-time high  and this scam is being perpetrated all around the country as well. With summer comes increased use of air conditioning which, in turn, brings the utility scammers.

These scams come in different variations. The most common example is where the scammer posing as your utility company calls and threatens to turn off your power if you fail to make an immediate payment by credit card or gift card.  In another utility scam, potential victims receive telephone calls purportedly from their utility company informing them of a special company promotion for which they are eligible.  They just need to provide some personal information.

TIPS

You can never be sure when you get an email or a telephone call if it is really from a legitimate source.  Email addresses can be hacked to appear legitimate and even if you have Caller ID, a scammer can use a technique called “spoofing” to make it appear that the call is from a legitimate caller.  Trust me, you can’t trust anyone.  Never provide personal or financial information to anyone in response to a telephone call, text message or email until you have independently confirmed that the communication was legitimate.  In the case of a utility bill, merely call the number on the back of your bill and you will be able to confirm whether or not the communication was legitimate.  Also, never click on links unless you have confirmed that they are legitimate.  The risk is too great.  It is also important to remember that no legitimate utility company will require you to immediately pay your bill over the phone with a gift card.

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Scam of the day – July 2, 2023 – Watch Out for Fourth of July Scams

Every season is scam season and every day provides unique opportunity for scam artists, the only criminals that we call artists, to try to scam us out of our hard earned money.  Here are a few scams that you should be aware of that are related to the upcoming Fourth of July holiday

Many scammers send out emails or text messages purportedly from the IRS or any of a number of state and federal agencies in which they require you to provide personal information under the guise of some emergency.  They do this because if they can frighten you enough to act during the holiday in some instances you will be unable to confirm with the real entity as to whether the communication is legitimate because all of these entities will be closed on the Fourth of July.  If you provide the requested information, it will be used against you to make you a victim of identity theft.

You also should be wary of Fourth of July e cards that you may receive.  These can be loaded with keystroke logging malware that will steal all of the information from your computer or portable device if you download the malware by clicking on the link.

Finally, be on the lookout for messages that appear on your social media such as your Facebook page with links to Fourth of July themed videos that arouse your curiosity.  Again, the links contained within these messages may be loaded with keystroke logging malware.

TIPS

The IRS and many other state and federal agencies will not initiate communications with you through email so you can disregard that email from the IRS or other similar entities.  It is important to be skeptical of any email or text message that you receive that requests personal information.  Never provide such information or click on links in such emails unless you are absolutely sure that the request is legitimate and you can’t be sure unless you have confirmed with the person or entity that purportedly sent it that it is indeed legitimate.  If you can’t confirm on the Fourth of July, let it wait until you can.

As for e cards, never click on a link to an e card unless the message specifically indicates from whom it is being sent and only then after you have confirmed with that person that they indeed did send you an e card.

Also remember that messages that you get on Facebook may appear to come from friends, but may actually be coming from scammers who have hacked your real friend’s Facebook account or cloned an account using the name of your friend.  In addition, unfortunately, sometimes you actually will get videos sent to you by your real friends who are unwittingly passing on malware infected material.  Trust me, you can’t trust anyone.

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Scam of the day – July 1, 2023 – Securing Your Smart Home

I have been warning you about dangers in the rapidly expanding Internet of things for more than ten years.  The Internet of Things is made up of a broad range of devices connected to the Internet including home thermostats, security systems, medical devices, refrigerators, televisions, cars and toys.  Our homes have become filled with these devices including Alexa and Siri. The FBI has longed warned  consumers about the dangers of posed by hacking of various devices that makeup the Internet of Things.   Here is a link to the FBI warning. https://www.ic3.gov/media/2018/180802.aspx

Cybercriminals hack into your devices that are a part of the Internet of Things to enable them to enlist your devices as a part of a botnet by which they can distribute malware while maintaining their anonymity. They also can hack into your Internet of Thing devices to access your home computers to steal information for purposes of identity theft or to implant malware on your home computers.  The risks are extreme, but there are some basic steps you can take to protect yourself.

TIPS

Most of the devices that make up the Internet of Things come with preset passwords that can easily be discovered by hackers.  Change your password as soon as you set up the product.  Also, set up a guest network on your router exclusively for your Internet of Things devices.  This is important so that you can keep the sensitive personal information you have on your computer or laptop from being accessible through a hacking of any of your Internet of Things devices.

Configure network firewalls to block traffic from unauthorized IP addresses and disable port forwarding.  Make sure that you install the latest security patches as soon as they become available.  Use encryption software for the transmission of data and find out where data is stored and what steps are taken to secure the information.

Also, limit the amount of information you provide when setting up the accounts for smart toys.  The less information out there, the less the risk of identity theft. Most devices allow you to select options that increase your security and privacy.

Make sure your router is secure and use its whitelisting capabilities which will prevent your device from connecting to malicious networks.  Routers are a critical part of your smart home security.  Make sure it will automatically download and install the latest security updates from its manufacturer.  If your router is an older router that does not have this capability, you can check the manufacturer’s website regularly for the latest updates, but frankly, you are probably better served by getting a newer, more secure router.  Make sure you have a unique password for each of your Internet of Things devices and use dual factor authentication whenever you can for all of these devices.

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Scam of the day – June 30, 2023 – Your Airline Boarding Pass Can Lead to Identity Theft

Identity theft dangers are everywhere, but particularly at busy airports. People are quick to dispose of their boarding passes after they have landed by merely tossing them into a trash receptacle, but your boarding pass barcode can be easily decoded by an identity thief who retrieves your discarded boarding pass from which he can gain much information including information about your frequent flier account which can be used to make you a victim of identity theft.  All an identity thief needs is a barcode scanner which can easily be obtained online to access a wide range of information that the airline has about you on your boarding pass including, for some airlines, your email address, phone number and more.  In addition, a clever identity thief can leverage this information by posing as the airline in calling you, providing your account number and then tricking you into providing more personal information that can be used against you.

TIPS

As for your boarding pass, the best protection is to shred the boarding pass once you no longer need it rather than merely toss it into a waste basket. Even better is to not even use a paper boarding pass, but rather get your boarding pass digitally sent to you on your phone.

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Scam of the day – June 29, 2023 – 48 States Sue Robocall Company

Over the years I have written numerous times about the problems presented by robocalls and with good reason.  Automated robocalls which, for commercial purposes, are illegal, are the number one consumer complaint reported by the public to the Federal Trade Commission (FTC) at a cost to consumers of billions of dollars each year. Robocalls are used by scammers to perpetrate a wide variety of scams.   Recently the Attorneys General for all of the states except Alaska and South Dakota filed a lawsuit against Avid Telecom, a company accused of making 7.5 million robocalls to people who have registered their names on the Federal Do Not Call List since 2019 in violation of the law.  The lawsuit also accuses Avid Telecom of using robocalls to perpetrate Social Security scams, Medicare scams, auto warranty scams, Amazon scams, DirecTV scams and credit card interest rate scams as well as illegally using spoofing to make their calls appear as if they were coming from legitimate governmental agencies such as the FBI.

TIPS

We, as consumers have a number of options for preventing robocalls including a number of apps that for free or a small fee will  reduce and, in some instances prevent, robocalls.

Samsung’s SmartCall informs you if the call you are receiving is from a known robocaller. This feature is available with newer Samsung Galaxy phones. Here is a link to information about SmartCall and instructions as to how to activate this app.  https://www.samsung.com/global/galaxy/apps/smart-call/#:~:text=The%20Smart%20Call%20function%20lets,Suspected%20to%20be%20spam

Google also has a spam blocker that will warn you when you are receiving a robocall and your screen will turn red. Here is a link to information about the app and how to install it.
https://play.google.com/store/apps/details?id=com.google.android.dialer&hl=en

AT&T also offers free apps to block robocalls on iPhones and Android phones. Here is a link to information about these apps.
https://www.att.com/features/security-apps.html?partner=LinkShare&siteId=TnL5HPStwNw-yrUS1uDw9WGvN._xt67yew&source=ECay0000000CEL00O

Verizon’s CallerName ID is a free service for iPhones and Android phones that will alert you to suspected robocallers. Here is a link to Verizon’s app.
https://www.verizonwireless.com/solutions-and-services/caller-name-id/

T-Mobile offers a free scam blocker of known robocallers for Android phones which you can activate by merely dialing #662#

Sprint offers a paid service to protect your iPhone or Android phone from robocalls. For more information, use this link
https://www.sprint.com/en/landings/scamprotection.html

Finally, you can just choose to ignore any calls that come from numbers you do not recognize.   This is a good option.  If they are legitimate calls, they will leave a message and you can call them back.

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Scam of the day – June 28, 2023 – “Look Who Died” Facebook Scam

A variation on an old Facebook scam has recently resurfaced.  In the new scam you receive a Facebook Message that merely says “Look Who Died?” and is followed by a link that leads you to a website where you are prompted to provide personal information that will be used to make you a victim of identity theft.  Alternatively, merely clicking on the link, in some instances, has downloaded destructive malware to your phone, computer or tablet.

This new scam is a variation of one about which I have written about previously in which you receive a Facebook Message that contains a video and the words “Is it you in the video” as a prompt to get you to click on the video which either takes you to a website where you are prompted to provide personal information that will be used to make you a victim of identity theft or, again, merely by clicking on the link, you will download malware.

TIPS

Remember my motto, BS – Be skeptical.  Whenever you get a Facebook message, email, or text message you can never be sure who is really contacting you.  The “friend” you think is communicating with you may well be a criminal who has managed to hack your friend’s Facebook account, email account or phone and use these accounts to send out phishing messages that lure you into clicking on infected links.  Never click on a link unless you have absolutely confirmed that it is legitimate.

In the case of this particular Facebook Messenger scam, instead of clicking on the link or providing your user name and password, you should contact your real friend to determine if they sent the message to you.  Additionally, it is always a good idea to use dual factor authentication whenever possible for all of your online accounts so that if somehow you are tricked into providing your user name and password, the criminal still wouldn’t be able to gain access to your account.   Here is a link to information about setting up dual factor authentication on your Facebook account. https://www.facebook.com/help/148233965247823

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Scam of the day – June 27, 2023 – Real Estate Closing Scam

I have been reporting to you about this particular scam preying upon home buyers for seven years, however this scam has gotten worse in recent years.  Scammers have been quick to take advantage of so much of home buying and selling  being done virtually with Zoom meetings replacing in person meetings, online home tours and digital signing of documents with states even allowing notarizations to be done online.

Four years ago, the Consumer Financial Protection Bureau (CFPB) issued a warning about the scam and its dramatic increase.   The scam targets people involved in the purchase and sales of residential real estate. The scam begins with the hacking into the email accounts of any of the various people involved in the sale.  This can be either the buyer, seller, lawyers, title company, real estate agent or  mortgage banker.  Unfortunately, hacking into email accounts is a relatively easy thing for a skilled identity thief to do.  The hackers then monitor the communications regarding the progress of the sale of a particular piece of real estate and when the time is right,  generally posing as one of the lawyers, title company or bank mortgage officer, the scammer will email the buyer, telling him or her that funds necessary to complete the sale need to be wired to the phony lawyer’s, title company’s or banker’s account provided in the email.  Everything appears normal so unsuspecting buyers too often are wiring the money to the cyberthieves who then launder the money by moving the funds from account to account to make it difficult to trace the funds.

Recently in Colorado Phil Tamchina thought he was responding to his real estate agent who requested ten days before the scheduled closing that he wire the $730,000 for the purchase of his new home to the real estate agent.  He did so, but the email didn’t come from his real estate agent, but came from a scammer.  Fortunately, the bank where the funds were sent had put a hold on the account after red flags were raised and the funds were able to be sent back to Mr. Tamchina.  Many other victims of this scam, however, haven’t been as lucky.

TIPS

Even if you are not involved in buying or selling a home, it is always a good idea to protect your email account from being hacked.  This means having a strong password and security question.  You can find information about how to pick strong passwords and security questions here in the Scamicide archives as well as in my book “Identity Theft Alert.”  Maintain good anti-virus and anti-malware software on all of your electronic devices including your computer as well as your cellphone and keep your security software up to date with the latest security patches as soon as they are made available.  Don’t click on links in emails or text messages that may contain malware that can steal your personal information from your electronic devices.

Also, enterprising hackers are able to change passwords of their intended victims by answering a security question and then being able to change the victim’s password and take over the account.  This was what happened years ago to Sarah Palin when a hacker answered the security question for her email account and was able to change the password and take over the account.  Her question was where did she meet her husband and the answer was Wasilla High School which was found by the hacker by going to Sarah Palin’s Wikipedia page.

You may think that you are not famous and that information to answer your security question is not readily available, but you might be surprised by both how much personal information you and others post about you on social media that could be used to provide the answers to you security questions as well as the wide array of information about you that is available online such as your mother’s maiden name which is a common security question.  The solution to this problem is simple.  When you initially set up your security question, use a nonsensical answer.  Thus the answer to your mother’s maiden name question could be “firetruck.”  It is silly enough for you to remember and no hacker will ever be able to guess it.  You should also use dual factor authentication whenever possible to provide a much greater level of protection even if your password is compromised, such as through a data breach.

Don’t use public WiFi for any financial or business purposes.  Use a virtual private network to encrypt your data when using your electronic devices in public.  Never provide personal information in response to an email regardless of how legitimate it may appear until you have independently confirmed that the email is legitimate.

Finally, whenever you are asked through an email or text message to wire funds as a part of a real estate or other business transaction, don’t do so until you have confirmed that the request and the account to which you are being asked to wire the funds are legitimate.  Appearances can be deceiving so always confirm.  It may seem a bit paranoid, but remember, even paranoids have enemies.

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