Scam of the Day

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Scam of the day – March 5, 2023 – Ohio Couple Victim of Puppy Scam

Scams involving sales of non-existent puppies had already increased dramatically in the last few years, but really took off  during the Coronavirus pandemic when many people were looking for the emotional support of a loving dog. However, even with the Coronavirus pandemic waning, people are still falling victims to scams involving the sale online of non-existent puppies.  Recently an Ohio couple paid $4,000 to scammers to purchase two puppies that never were delivered.  People buy dogs or other pets online and, although they think they are taking proper precautions, they often end up getting nothing in return for the money that they wire to the scammer who may have a website or some other way of marketing their non-existent pets with photographs and false information.

Often the scammers hook their victims for more and more money, such as when even after the victims has paid for the non-existent dog, the victim is asked for additional payments for a special crate to transport the dog along with additional transportation company fees.  This is what happened to the Ohio couple as they paid additional money for what they thought were transportation costs.

TIPS

It is simple for a scammer to construct a website that appears to be legitimate and scammers can readily steal the name of a legitimate animal breeder. Always check into the reputation of the breeder with the Better Business Bureau, your state’s attorney general and even Google the name of the breeder with the word “scam” to see if a legitimate breeder’s name that is being used has been stolen for scams previously.

Be wary of anyone who asks you to wire money because that is a telltale sign that a scam is going on because once the money is wired, it is impossible to get it back. If you are told that a courier company is being used to transport the animal, check out the company to make sure it is legitimate and actually shipping the dog.

There also are a number of ways such as using the website http://www.tineye.com to search the photos sent to you of the dog to see if they appear elsewhere other than the website attempting to sell you a puppy. If so, this is a good indication that you are being scammed.   Also, always get a veterinarian report on any animal before you consider buying it. Finally, you are always going to be better off buying a pet that you can see in person prior to buying the pet.

Some phony breeders claim they are certified by the American Kennel Club (AKC) however, the AKC doesn’t certify breeders.  Legitimate breeders will however, register their litters with the AKC and you can find out by calling the AKC’s customer service line 919-233-9767 if a particular litter has been registered.

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Scam of the day – March 4, 2023 – Police Warn About Virtual Kidnapping Scam

The New London, Connecticut Police Department recently issued a warning about a virtual kidnapping scam after an increase in incidents of this crime, however, it should be noted that this is not a crime limited to Connecticut, but is increasing nationwide according to the FBI.

I have been warning you about phony kidnapping scams, also known as virtual kidnapping, for ten years and according to the FBI, the scam is increasing in frequency.   Generally, the scam starts with a telephone call informing the person answering the phone that a child or other relative has been kidnapped and if the person receiving the call does not respond by wiring money right away, the relative will be killed.  As with so many scams, we are often our own worst enemy and this scam is no exception.  In many instances, the scammers gather personal information about the intended scam victims from information that the intended victims or members of their families post on social media.   Armed with  personal information gathered from social media, a scammer can describe the supposed kidnapped victim or provide personal information that would make it appear that indeed they actually do have the person in their custody.

Sometimes the phony kidnappers manipulate your Caller ID through  a technique called “spoofing” to make it appear that the call is coming from the supposedly kidnapped family member’s cell phone.

In a more recent development in the scam, as reported by the FBI, scammers search social media posts looking for people travelling internationally and then contact that person’s family claiming he or she has been kidnapped and demand a promptly wired ransom payment.  In many instances the scammers will pose as members of a drug cartel or a corrupt law enforcement officer.  Sometimes they will even include realistic screams in the background of the calls although these screams, according to the FBI, are generally recordings.

TIPS

Always be skeptical if you receive such a call.  Never wire money to anyone for anything unless you are totally convinced that what you are doing is legitimate because unlike paying for something with a credit card, once your wired funds have been sent, they are impossible to get back.  Talk to the alleged kidnapper as long as possible, thereby giving someone else with you the time to call  or text the alleged kidnap victim on his or her phone.   If the purported kidnapping victim is a young child, call the school to confirm that he or she is safe.   You also could ask the kidnapper to describe your relative as well as provide information, such as his or her birth date, which could be found on a driver’s license, however, it is important to remember that much of this kind of information may be available through social media or elsewhere on the Internet. It also can be helpful for the family to have a code word to use to immediately recognize that this is a scam. If the kidnapper can’t provide the code word, it is clear that it is a scam.

As I often advise you, be careful about what you post on social media and don’t post your travel plans on social media.  Wait until you return to post any photos..

Finally, even paranoids have enemies. A good protective measure to take to protect yourself from virtual kidnappings is to have a secret password to use in the event of an emergency that can be used to determine if a family member truly is in trouble.

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Scam of the day – March 3, 2023 – Clever New PayPal Invoice Scam

Sometimes it is important to remember that scam artists are the only criminals we refer to as artists and in the case of a PayPal invoice scam presently circulating, their art is impressive – criminal, but impressive nevertheless.  I have warned you numerous times about scams in which you receive a phony invoice that appears to come from a company you do business, but if you look at the email from which it is sent, you will see that the email was sent from someone who has no relation to the company it purports to be.  However, in this new scam, you get a phony invoice that not only appears to come from PayPal, but actually does come from PayPal and a link in the email to “View and Pay Invoice” that actually would take you to PayPal and an active invoice.  The email has a phone number for you to call if you have a question about the invoice and if you do call the phone number, a scammer will promptly answer the phone where you will be advised to download a remote administration tool that gives the scammer access to your computer purportedly to help find the problem, but in actuality what you will have done is give the scammer access to your computer and all of the passwords to all of your accounts.

The truth is that the scammers open PayPal Business accounts which enables them to be able to send invoices from PayPal which makes them appear legitimate when they indeed are sent to you by PayPal.  The customer service number that they provide in the invoice does not, however, take you to PayPal, but rather to the scammer who then asks you to give them remote access to your computer to straighten the matter out.

TIPS

Whenever you get an email or invoice such as this which appears to come from a legitimate source, don’t click on links or call the phone numbers in the invoice.  Rather call the real customer service number which you can get online.  It is also interesting to note that if you call the real customer service number for PayPal, you will have to go through a number of prompts before you get to speak to a real person, however, the scammers customer service number is immediately answered by a person.

This scam and many tech support scams ask you to give remote access to your computer which is something you should not do under almost all circumstances.  Giving someone remote access to your computer gives them access to everything on your computer and can lead to serious identity theft.

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Scam of the day – March 1, 2023 – What Do Recent Ransomware Attacks at U.S. Marshals Service and Dole Food Company Mean to You?

In the last few days, we have learned of successful major ransomware attacks at the U.S. Marshals Service and Dole Food Company.  Ransomware attacks in which the targeted victims data is stolen and encrypted in a manner that the victim cannot access is done primarily for profit.  If the victim pays a ransom, the criminal provides a key to decrypt the data.  The data stolen from the Marshals Service would enable the criminals to identify Marshals Service employees as well as people under investigation while the data stolen from Dole resulted in the stopping of deliveries of Dole products.  These attacks along with data breaches in which sensitive information is stolen from companies, government agencies and other institutions are increasing at an alarming level which creates a problem for all of us because regardless of how careful you are as to protecting your personal information, you are always at risk of having your information compromised by a data breach or ransomware attack at a government agency, company or other institution with lax security.

So what can you do?

TIPS

The question is not if you will become a victim of a data breach or ransomware attack at a company, government agency or other institution that has your information, but when.  One important lesson is to limit the amount of personal information that you provide to companies and websites whenever possible.  For example, your doctor doesn’t need your Social Security number for his or her records.

You should make sure that you have a unique password for each of your online accounts so that if one of your passwords is compromised in a data breach, all of your accounts will not be in danger.  If your information is compromised in a data breach, you should immediately change the password for that account.

If you have not already done so, set up dual factor authentication for each of you accounts where it is available. This will protect you from having those accounts stolen by someone who may have access to your password.  And while you are at it you should get a PIN from your cellular service carrier so that a particularly enterprising cybercriminal cannot thwart your dual factor authentication by doing a SIM swap which would result in a dual factor authentication text being sent to the criminals cell phone.

Freezing your credit is something everyone should do.  It is free and easy to do.  In addition, it protects you from someone using your identity to obtain loans or make large purchases even if they have your Social Security number.  If you have not already done so, put a credit freeze on your credit reports at all of the major credit reporting agencies.  Here are links to each of them with instructions about how to get a credit freeze:

https://www.equifax.com/personal/credit-report-services/credit-freeze/

https://www.transunion.com/credit-freeze/place-credit-freeze
https://www.experian.com/freeze/center.html

Even after freezing your credit reports, you should still regularly monitor them to look for indications of identity theft.

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Scam of the day – February 28, 2023 – Dead People are Becoming Victims of Identity Theft

Not even the dead are immune from identity theft and this particular type of identity theft is now on the rise.  Until new regulations were enacted in 2014 scammers merely checked out the latest obituaries and then went to a free totally available data bank called the Death Master File maintained by the Social Security Administration.  Using the Death Master File, the scammer was readily able to obtain the deceased person’s Social Security number which would then be used along with the information gained from the obituary to establish credit, make purchases or take out loans in the name of the deceased person.  Since 2014 regulations have greatly limited the access to the Death Master File, but identity theft from the dead remains a serious problem because it is still easy for criminals to obtain Social Security numbers of dead people. Income tax identity theft using the Social Security numbers of dead people is a popular scam with income tax identity thieves because the IRS may not be alerted that the victim of the identity theft has died and is not filing an income tax return. Income tax identity theft from the dead can severely complicate the estate settlement process and threaten the deceased’s assets.

TIPS

Limit the amount of personal information contained in any obituary in order to not provide information exploitable by an identity thief.  Also, the executor or personal representative of the estate should contact the major credit reporting bureaus, Experian, TransUnion and Equifax and notify them that the person is deceased and not to issue any further credit.   All creditors, such as credit card companies of the deceased should also be notified of the death and the accounts closed as soon as possible.

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Scam of the day – February 25, 2023 – Pig Butchering Getting Worse

I have been warning you about romance scams for many years.  More recently I have been warning you for the last few years about the myriad of scams involving cryptocurrencies such as Bitcoin.  In the last couple of years a new scam combining the romance scam and cryptocurrency scams has surfaced.

Romance scams generally follow a familiar pattern with the scammers  establishing relationships with people, generally women, online through various legitimate dating websites and social media using fake names, locations and images.  The FBI has issued a warning about a new trend in romance scams in which the scammer tells his victim that he or she has inside knowledge about cryptocurrency investing and directs the victim to a phony website that purports to be a legitimate cryptocurrency trading site.  Not long after “investing” in the cryptocurrencies provided, the victim soon finds that there is no investment and that she or he has lost all of the invested money.  This scam originated in China in 2019 and is called sha zhu pan or pig butchering in English.  The name is derived from the practice of luring in victims, “fattening them up” by convincing them to continually “invest” more money and then stealing all of the money.

The scammers initially contact their victims on dating or social media apps and pretend to develop a close relationship.  After a while the scammer informs the targeted victim that he or she is making a lot of money investing in cryptocurrencies and suggests the victim download and use a cryptocurrency app used by the scammer.  Generally, the victims are lured into investing more and more money by what appears to be both dramatic increases in the value of their account and their ability to withdraw some of their profits.  However, once the victim has been persuaded to invest larger and larger sums of money, the scammers steal the money and the victim is left with nothing.

You might be surprised to learn that typically the victims of this scam are highly educated people.  Unfortunately, they also are targeted because they may have also recently gone through a divorce or some other personal difficulty.  While the victims are people of all ages, most victims are anywhere from their mid-30s to their early fifties with the average loss per victim averaging $121.926.

TIPS

It is important to remember that you should never  invest in something that you do not completely understand.  This was a mistake that many of Bernie Madoff’s victims made. Cryptocurrency scams quite often involve complicated language and investment terms that is purposefully unclear in an effort to confuse potential investors from understanding the real facts. You also may want to check out the SEC’s investor education website at www.investor.gov.  Scammers can be very convincing and it may sound like there is a great opportunity for someone to make some money, but you must be careful that the person making money is not the scam artist taking yours.

Also, the apps used in the pig butchering scam may appear to be legitimate, but they are not found on official app platforms such as Google Play or the Apple App Store.  Do your homework before investing in cryptocurrencies and only do business with well established cryptocurrency exchanges.  Never invest merely because of the recommendation of someone you may have met online.

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Scam of the day – February 24, 2023 – New Twist on Lottery Scam

Lottery scams are among the most common scams and although these scams take many different forms, they all have in common that you have won a lottery you never even entered (quite a feat) and that you must now pay money for either taxes or administrative fees in order to claim your prize which never comes.  While it is true that lottery winnings are subject to income tax, no legitimate lottery collects tax money from winners.  They either deduct the taxes from your winnings or turn all of the money over to you and it is your responsibility to pay the taxes.  Also, no legitimate lottery charges administrative fees of any kind for you to claim your prize as well.

Most lottery scammers contact their targeted victims by phone, email or text message posing as a legitimate lottery, such as Powerball to tell people that they have won their phony prize.  Recently, however, some lottery scammers are spoofing the phone number of legitimate law offices and contacting their targeted victims posing as lawyers calling to inform the targeted victim that he or she has just won a phony lottery.  Of course, the next step is the asking by the “lawyers” for the necessary taxes or fees to be paid in order to receive the prize that never comes.

“Spoofing” as I have explained to you many times is the name for the technique by which a scammer can manipulate your Caller ID so that it appears the phone call comes from a legitimate source when the truth is that the call is coming from a scammer.  You can never trust your Caller ID so any time that someone calls you asking for personal information or a payment, you should not trust the call, but independently verify whether or not the call is legitimate before responding in any manner.

TIPS

It is hard to win any lottery or contest.  It is impossible to win one that you have never entered.   It also is important to remember that no legitimate lottery requires that you pay them fees to claim your prize or pay them the taxes due on the winnings.  Legitimate lotteries either deduct the income taxes from your prize or they pay you the entire amount of the prize and you are responsible for paying the taxes on your own to the IRS.

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