Scam of the Day
Scam of the day – January 24, 2023 – FBI Recovers 3 Million Dollars of Cryptocurrency from Scammers
Last Friday, the FBI announced that it had recovered almost 3 million dollars worth of Bitcoins that were the proceeds of a scam operated by as of yet unidentified scammers perpetrating an elaborate phone scam on elderly Americans and first generation American citizens. The scammers used the technique of spoofing to make their phone calls which originated outside of the United States to appear on their victims’ Caller ID as being from American law enforcement agencies. In these calls, the scammers would tell their victims that their identities had been stolen and that in order to be protected from further damage, they needed to transfer money to the scammers for “safekeeping.” The victims were further told that when the non-existent identity thieves were captured, their money would be returned to them with interest.
Victims of the scam transferred money to the scammers who then laundered the money through multiple bank accounts and eventually converted the funds to Bitcoin and other cryptocurrencies. Fortunately, the FBI and the U.S. Attorney’s Office were able to trace the funds and ultimately found a digital wallet holding the stolen funds that had been converted into cryptocurrencies. Under the civil asset forfeiture laws of the United States, they were able to get a court order to recover all of the funds in the digital wallet while the investigation continues to identify and locate the scammers behind the scam. Regardless of whether the scammers are ever found, the funds will still be able to be returned to the victims.
TIPS
Whenever you get a phone call, text message or email, you can never be sure as to who is really contacting you. Phone calls can be spoofed to make the call appear as if it is coming from a legitimate source and emails and text messages can similarly be disguised to appear legitimate. No one should ever make a payment or provide personal information in response to any phone call, email or text message unless they have absolutely confirmed that the communication was legitimate. Families of elderly people or otherwise vulnerable people should impress upon their family members the importance of following these rules.
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Scam of the day – January 23, 2023 – Romance Scammer Convicted
Recently in Dallas, Emanuel Stanley Orji, a Nigerian associated with Nigerian organized crime was sentenced to 37 months in federal prison for crimes related to romance scams he operated with others including his brother who had previously been convicted of the same crimes. Orji particularly targeted elderly women who were either widowed or divorced and used dating sites like Match.com to find their victims. His scam followed the usual pattern of quickly proclaiming love for his victims and then coming up with a variety of reasons that he needed the women to send him money.
Romance scams continue to be a major problem. As bad as they were prior to the pandemic, these scams increased dramatically during the Coronavirus pandemic. According to the Federal Trade Commission (FTC) Americans lost more money to romance scams last year than to any other scam and the situation is getting more serious. According to the FBI in 2021 24,299 people in the United States were victims of romance scams losing a billion dollars which was a 59% increase over the money lost in 2020.
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 scammers often pose as Americans working abroad or in the military serving abroad.
TIPS
There are various red flags to help you identify romance scams. I describe many of them in detail in my book “The Truth About Avoiding Scams.” The most important thing to remember is to always be skeptical of anyone who falls in love with you quickly online without ever meeting you and early into the relationship who then asks you to send money to assist them with a wide range of phony emergencies.
Here are a few other things to look for to help identify an online romance scam. Often their profile picture is stolen from a modeling website on the Internet. If the picture looks too professional and the person looks too much like a model, you should be wary. You also can check on the legitimacy of photographs by seeing if they have been used elsewhere by doing a reverse image search using Google or websites such as tineye.com.
Of course you should be particularly concerned if someone falls in love with you almost immediately. Often they will ask you to use a webcam, but will not use one themselves. This is another red flag. One thing you may want to do is ask them to take a picture of themselves holding up a sign with their name on it. In addition, ask for a number of pictures because generally when the scammers are stealing pictures of models from websites, they do not have many photographs. Ask for the picture to be at a particular place that you designate to further test them. If you meet someone through a dating website, be particularly wary if they ask you to leave the dating service and go “offline.”
Recently, the dating sites Match, Tinder, Hinge and Plenty of Fish started a new public awareness program to help people recognize romance scams. One tip they give is to use the verification check on your matches to help confirm they are the person who appears in the profile photo. Also they advise you to set up video chats to confirm the person who they claim to be.
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Scam of the day – January 22, 2023 – T-Mobile Suffers Another Data Breach
In the summer of 2021 I reported to you about a data breach at T-Mobile in which personal information of 54.6 million customers, former customers and prospective customers was stolen. The compromised information included names, phone numbers, Social Security numbers and addresses. This type of information poses a tremendous threat to victims of the data breach, which was the sixth for T-Mobile in the last four years. Social Security numbers in particular can be used by identity thieves to apply for credit cards and loans in your name.
Last July T-Mobile settled a class action brought against it by victims of the data breach. According to the terms of the settlement, the company will pay $350 million dollars to settle the claims of the victims and spend an additional $150 million dollars to improve its cybersecurity. If you were a victim of this data breach, the deadline for filing a claim to receive payment through the class action settlement is tomorrow, January 23rd so if you haven’t filed yet, you should do so immediately. Here is the link to submit a claim online. https://www.t-mobilesettlement.com/DynamicForms2/1552/Form/e59afd33-d4b3-4445-bb07-1020158f3a44
Now, however, T- Mobile revealed in federal filings that it had suffered yet another massive data breach affecting 37 million of its customers. This time while no Social Security numbers were compromised, the stolen information did include the names, billing addresses, email addresses, phone numbers, birth dates, T-Mobile account numbers and information about the specific plans of the affected customers. All of this information can be used to tailor spear phishing emails and text messages that threaten the security of the victims of the data breach.
TIPS
But regardless of the settlement, what should you do if you are a T-Mobile customer who may be affected by this latest data breach. Perhaps the first thing you should do is something you should have already done, but as the Chinese proverb says, “the best time to plant a tree is twenty years ago, the second best time is now.” Freeze your credit at each of the three major credit reporting bureaus.
https://www.transunion.com/credit-freeze/place-credit-freeze
https://www.experian.com/freeze/center.html
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Scam of the day – January 21, 2023 – Victims of AT&T Data Throttling Eligible for Refunds
While most often here at Scamicide we inform you about scams perpetrated by a wide variety of dedicated scammers and identity thieves, the truth is that legitimate companies from time to time will engage in conduct that I believe qualifies as a scam. Today’s Scam of the day is about AT&T who misled its customers about its unlimited data plans. While AT&T charged customers for what they referred to as unlimited data, the truth is that once the customer reached a specific amount of data use in a billing cycle, AT&T would reduce their data speeds. This reduction of data speed is called throttling and it resulted in some AT&T customers experiencing such slow speeds that they could not effectively use common apps such as web browsing or video streaming.
In response to AT&T’s throttling its customers, the FTC sued AT&T and a settlement was reached with one of the terms of the settlement being AT&T refunding millions of dollars back to its affected customers. AT&T has said that it was not able to reach all of the customers owed refunds and now the FTC is assisting in the refunding of 7 million dollars remaining of the settlement funds to affected customers.
TIPS
In order to qualify for a refund, you must have been a former AT&T customer who had an unlimited data plan between October 1, 2011 and June 30, 2015. In addition, you must have experienced data throttling and not have already received a refund either through a bill credit or direct payment from AT&T.
If you meet the above conditions, you can submit a claim online at https://secure.attdatathrottling.com/ or by phone at 1-877-654-1982.
Affected consumers have until May 18, 2023 to file a claim.
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Scam of the day – January 20, 2023 – Critical Microsoft and Apple Security Updates
It is always important to update all of the software you use with the latest security updates and patches as soon as they are available. Numerous hacks and data breaches could have been avoided if individuals as well as companies installed security updates as soon as they became available. Hackers take advantage of the fact that many of us procrastinate installing security software to our great detriment. The major data breach at Equifax in 2018 that affected 148 million people involved a security flaw in Apache software for which a patch had already been issued months earlier, but Equifax had not yet installed at the time of the data breach.
Recently both Apple and Microsoft issued multiple security updates which you should download as soon as possible.
TIPS
Here is a link to the Adobe updates: https://www.cisa.gov/uscert/ncas/current-activity/2023/01/10/adobe-releases-security-updates-multiple-products
Here is a link to the Microsoft updates: https://www.cisa.gov/uscert/ncas/current-activity/2023/01/10/microsoft-releases-january-2023-security-updates
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Scam of the day – January 19, 2023 – Synthetic Identity Theft is a Serious Problem
Although I have been writing about synthetic identity theft for many years, many people are not familiar with the term “synthetic Identity theft.” Synthetic identity theft poses a significant threat to many people particularly children. Synthetic identity theft occurs when a criminal takes information from a variety of sources to create a new identity to take out loans, purchase goods and services, or fraudulently obtain credit cards. Synthetic identity thieves combine real and fake information to form a new fictional person. They may use your Social Security number and combine it with the name, address and phone number of someone else. The Federal Trade Commission (FTC) has said that synthetic identity theft is the fastest growing type of identity theft. Children are the most common victims of synthetic identity theft and it is often many years before the problem is discovered.
The problem of synthetic identity theft has gotten worse in recent years with as much as 85% of identity theft last year being synthetic identity theft which has increased 233% over the last five years.
Commonly with synthetic identity theft, criminals who set up a synthetic identity build the credit score of the synthetic identity by having people using credit cards obtained in the name of the synthetic identity and make regular payments until the credit score of the new synthetic identity is high enough for the ultimate payoff, which is referred to as the “bust out.” In the bust out phase, the identity thief uses the new synthetic identity to either make large purchases or take out big loans that are never paid back. Some synthetic identity thieves will take years to build the synthetic identity theft credit score by making payments on cell phone accounts, car loans and more.
TIPS
Some telltale signs of synthetic identity theft include being contacted about an account that you never opened or a debt that you didn’t incur. Also, look for aliases listed on your credit report that you do not use. A dramatic lowering of your credit score coupled with a lack of negative information on your primary credit reports are further indications of synthetic identity theft. The reason that your primary credit report will not show negative information due to synthetic identity theft is because when a criminal uses your Social Security number, but doesn’t use your name, the negative information caused by their actions does not appear on your regular credit report. Instead, the information is added to a sub-file of your credit report which will, however, cause your credit score to drop tremendously.
If you do find out that you have become a victim of synthetic identity theft, notify each of the three credit reporting agencies, Equifax, Experian and TransUnion of the crime and ask them to investigate and remove the false information from your sub-files.
Children are prime targets and particularly vulnerable to synthetic identity theft. Last year 915,000 children in the USA were victims of identity theft, much of it synthetic identity theft. Parents also should, as much as possible, try to limit the places that have their child’s Social Security number and become familiar with the Family Educational Rights Privacy Act which helps you protect the privacy of your child’s school records and enables you to opt out of information sharing by the school with third parties.
You also should freeze the credit reports of your children. Until 2018 there was no national law that allowed the credit reports of children to be frozen, but in the wake of the major Equifax data breach, Congress passed laws that now permit children’s credit reports to be frozen and unfrozen for free.
Here are the links to information about how to freeze your child’s credit reports at each of the three major credit reporting agencies.
https://www.transunion.com/credit-freeze
https://www.equifax.com/personal/education/identity-theft/freezing-your-childs-credit-report-faq/
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Scam of the day – January 18, 2023 – FTC Sending Additional Refunds to Victims of Tech Support Scam
Tech support scams in which consumers are tricked by scammers into believing there is a problem with their computers that require the expensive services of the scammers is a major problem. Tech support scams are increasingly common and victimize consumers 60 years or older about five times more than people between the ages of 20 and 59 according to the Federal Trade Commission (FTC). In February of 2019 I reported to you that the FTC obtained a temporary restraining order against Elite IT Partners, Inc and its principal James Martinos, shutting down the company, which the FTC alleged used deceptive tactics to gain access to consumers’ computers and then sell them expensive repair and other services that were totally unnecessary. Most of the victims of this scam were older consumers.
According to the FTC, Elite used Internet ads targeted at consumers who were looking for email password recovery assistance and lured them into providing their names, email addresses and phone numbers to Elite IT Partners, Inc. Elite’s telemarketers then contacted the consumers posing as well-known companies such as AOL or Yahoo and told the consumers that their computer problems were most likely as a result of their computers being infected with a virus. The telemarketers would then convince the consumers to provide access to their computers to Elite who would then run diagnostic tests. These diagnostic tests were totally bogus and always resulted in the consumer being told that he or she needed computer repair as well as antivirus software and services that Elite would provide at a high cost. The FTC further alleged that Elite also charged for additional monthly services that it did not disclose.
In December of 2019 the FTC, Elite IT Partners Inc. and James Martinos reached a settlement of the charges and in October of 2021 the FTC sent a first round of checks to victims of the scam. The funds for the refund came from money Elite was required to pay as part of the settlement. Now because there is still money available in the fund set up with the settlement payment from Elite, the FTC is sending a second and final round of refund payments to victims of the scam. Payments are being made to the people who received a first payment as part of the settlement.
TIPS
Providing remote access to anyone to your computer can lead to a myriad of problems including identity theft and the downloading of ransomware. Neither AOL, Yahoo, Apple, Microsoft or any of the other tech companies ever ask for remote access to your computer to fix problems. The most common tech support scams start with popups on your computer that provide notices of security problems that contain telephone numbers for you to call to fix the problem, Whenever you get a pop-up, email, or text message that appears to tell you that you have a security problem with your computer, you should never click on any links contained in the message or call the telephone number provided. If your screen freezes, all you need to do is just turn off your computer and restart it. If you are concerned that you may be experiencing a real security problem you can contact tech support at the real tech companies directly by phone or by email using the phone number and email addresses you find on their respective websites.
Remember, whenever you get a phone call, you can never be sure who is really calling you. Scammers can “spoof” a call to you by which they trick your Caller ID to make it appear as if the call is legitimate. Never give personal information or certainly remote access to your computer to someone who calls you unless you have absolutely confirmed that the call is legitimate and there is a need for your response. The better course is to hang up and confirm whether or not the call is legitimate. Most of the time you will find it was not.
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Scam of the day – January 17, 2023 – Danger of Identity Theft in Parking Lots
Recently Joshua Mallory and Gary Grier pleaded guilty in federal court in Syracuse, New York to charges related to the theft of credit cards, debit cards, checkbooks and driver’s licenses stolen from cars parked in parking lots. Mallory and Grier were a part of a national gang called the Felony Lane Gang that used these stolen items for purposes of identity theft. I first told you about the Felony Lane Gang in 2015 when Maine police began investigating a series of automobile break-ins occurring in parking lots in various cities throughout the state that were the work of the Felony Lane Gang.
The Felony Lane Gang originated in Florida, but soon began operating throughout the country. Their pattern was to break into automobiles and steal purses, wallets and other personal property not for the cash contained, but for the credit cards, checkbooks, driver’s licenses and other forms of personal information and identification that they use for purposes of identity theft. They often targeted parking lots at gyms and fitness centers where the car owner would both be out of the car for an extended period of time and may also have left purses, wallets and other property in the car for the very purpose of what they perceived as enhanced security rather than bring these items with them to the gym or fitness center, where locker break-ins are a constant threat.
TIPS
There is nothing you can do that will guarantee that you will not become a victim of identity theft, but there are simple steps you can take to reduce the risk. When parking your car, don’t leave purses, wallets or any personal items in plain view and certainly lock the car. Also either lock your valuables and personal documents in the trunk of your car or take them with you. Identity thieves are looking for low hanging fruit, which in this instance means unlocked cars or cars with visible purses or other items that can be used for purposes of identity theft.
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Scam of the day – January 16, 2023 – FTC Issues New Guidelines for Weight Loss and Other Health Care Products
Weight loss scams are among the most common scams and with good reason. Many people want to lose weight and most of the scam products promise to do that for you easily without diet or exercise. According to the Federal Trade Commission (FTC) in 2021 approximately 30% of all of the health care related scams involved phony weight loss products and programs. Weight loss scams are particularly prevalent at the start of the year as many people make New Year’s Resolutions about losing weight.
The unfortunate truth is that there is no magic formula for quick and easy weight loss without diet and exercise, but scammers continue to prey on people looking for that quick solution to their weight difficulties. The Internet is filled with legitimate appearing websites and social media posts that tout scientifically unproven weight loss products and programs which often appear to be endorsed by various celebrities, however, many, if not most of these are just scams.
Some diet scams offer a free trial, but if you read the fine print (and rarely is there anything fine in fine print) you will find that you have signed up for a continuing, expensive program.
Recently the FTC issued new guidelines regarding false and misleading advertising claims for dietary supplements, weight loss products and other health care products. Here is a link to those guidelines which can help you evaluate any weight loss product or other health care product that you may be considering. https://www.ftc.gov/system/files/ftc_gov/pdf/Health-Products-Compliance-Guidance.pdf
TIPS
The truth is that there are no quick fixes when it comes to weight loss and you should be wary of any product that promises you can lose tremendous amounts of weight quickly without dieting or exercise. You should also be wary of any weight loss product that is sold exclusively either over the Internet or through mail-order advertisements. The best course of action is to ask your physician about the effectiveness of a particular weight loss product or program before you reduce your wallet in an effort to reduce your waistline.
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Scam of the day – January 15, 2023 – Mega Millions Lottery Scams
We now know that after weeks of no winners, some lucky person in Maine won the massive 1.35 billion dollar jackpot prize. You would think that now that there has been a winner declared, scams relating to this lottery drawing would cease, but that is definitely not the case. Fourteen people who had all five numbers of the drawing, but did not pick the correct Mega Ball number got million dollar prizes and other smaller prizes including $10,000 to people who had four numbers and the Mega Ball were also won. What we are seeing now is scammers posing as the Lottery employees contacting people telling them that they have won these smaller prizes and then tricking them into paying “fees” and “taxes” to claim prizes they will never receive.
Over the years, I have written many times about lottery and sweepstakes scams, which continue to be one of the most popular and profitable scams for scammers. Scammers use lottery and sweepstakes scams to cheat people out of millions of dollars each year by tricking their victims into sending money to the scammers after convincing their victims that they have won a lottery, but are required to pay some fees or taxes in order to collect their prize. It is hard to win any lottery. It is impossible to win one that you have not even entered and yet scam artists, the only criminals we refer to as artists have found that it is extremely lucrative to scam people by convincing them that they have won various lotteries. With so many people having played Mega Millions recently, people may be more susceptible to falling for the pitch of a lottery scammer who tells them they have won one of the lesser prizes.
Most lottery scams involve the victims being told that they need to pay taxes or administrative fees directly to the lottery sponsor; however no legitimate lottery requires you to do so. As with many effective scams, the pitch of the scammer seems legitimate. Income taxes are due on lottery winnings, but with legitimate lotteries they are either deducted from the lottery winnings before you receive your prize or you are responsible for paying the taxes directly to the IRS. No legitimate lottery collects taxes on behalf of the IRS from lottery winners. Other times, the scammer tell the “winners” that in order to collect their prizes, they need to pay administrative fees. Often, the victims are told to send the fees back to the scammer by prepaid gift cards or prepaid cards. Prepaid cards are a favorite of scammers because they are the equivalent of sending cash. They are impossible to stop or trace. Again, no legitimate lottery requires you to pay administrative fees in order to claim your prize.
TIPS
As I have often told you, it is difficult to win a lottery you have entered. It is impossible to win one that you have not even entered. You should always be skeptical about being told that you have won a lottery you never entered. If you did play Mega Millions, you should check with the Mega Millions website to confirm that you indeed did win one of the prizes. Here is a link to the Mega Millions website that both provides the winning numbers for the jackpot as well as the prizes for lower payouts.
No legitimate lottery requires you to pay a processing fee or any other fee in order to claim your prize. While it is true that income taxes are owed on lottery winnings, legitimate lotteries never collect tax money from winners. They either deduct the taxes from the winnings or leave it up to the winners to pay their taxes directly to the IRS.
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