Scam of the Day
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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Scam of the day – January 14, 2023 – Check Washing Increasing
What is old is new again. Many people continue to pay their household bills by paper checks rather than electronic banking and even when shopping, some people prefer paying by check instead of using a credit card or cash. While there has been much discussion in the news about data breaches involving credit cards, the problems encountered through check washing are still substantial costing consumers and banks more than a billion dollars each year and the problem is getting worse.
Recently, in Long Island, New York there has been an increase in the number of check washing crimes. Among the victims is Amit Aery who mailed his real estate tax check for more than $13,000 to the Huntington Receiver of Taxes only to find that his check had been stolen from the USPS mail box where Aery mailed the envelope containing the check and altered to have the payment made to Erica Gomez. According to Ed Smyth, the Huntington Town Supervisor, there have been dozens of other similar instances of check washing.
Typically, the scam starts when someone pays a bill with a check, mails the envelope containing the check and then somewhere in transit the check is stolen and washed. Check washing is a process by which someone steals a check you have already written and “washes” or removes the name of the payee, often using simple bleach, and also changes the amount as well as the name of the payee. The criminal then cashes your altered check and steals your money.
It is a very simple thing for identity thieves to steal your check from your mailbox if you put it in an envelope to pay a bill and leave it in your mailbox outside your home for your mail carrier to pick up. Identity thieves also break into USPS mail collection boxes and steal mail with checks as well. Finally, rogue clerks at stores may steal your checks. It is then a simple thing to take ordinary bleach, acetone or other similar liquids to wash clean the name of the person to whom the check is made out as well as the amount of the check and insert the identity thief’s name and a new amount.
TIPS
While businesses can protect themselves from check washing quite readily by using higher technology checks such as those containing three dimensional reflective metallic holograms or checks treated with chemicals that will make the world “void” appear if the check is attempted to be altered, these are costly alternatives for individuals. Fortunately however, you are not powerless and the solution, in fact is quite simple. Instead of writing your checks using a common ball point pen, switch to a gel pen which is a commonly available type of pen whose ink will not vanish under chemical washes. Fountain pens also do not use the type of ink that can be readily washed, but the gel pen is simpler and easier to use (and also less messy).
Another important thing to remember is to cross shred your personal documents including checks that you no longer need and are discarding. Identity thieves go through your trash for their treasure including checks that they can use to make counterfeit checks using your account.
Finally, check your banks statements promptly after receiving them for signs of theft. If you do report checking account fraud more than thirty days after receiving your bank statement, the bank does not have to reimburse you for fraudulent, counterfeit checks. Finally, if you already aren’t doing so, you should consider paying your bills electronically which can be done in an extremely safe manner.
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Scam of the day – January 13, 2023 – GoFundMe Scammer Sentenced to Prison
It started out in November of 2017 as a feel-good story about Johnny Bobbitt, a homeless veteran, who, according to the story reported throughout the media, gave his last twenty dollars to Katelyn McClure a stranded motorist who had run out of gas at the side of a road in Philadelphia, The story continued with McClure and her then boyfriend, Mark D’Amico starting a GoFundMe account for Bobbitt that raised $400,000 of donations from more than 14,000 people touched by the story.
But then the story began to unravel. First, Bobbitt sued McClure and D’Amico alleging that they shared little of the money raised with him, but instead used the money to fund a lavish lifestyle. Eventually all three had criminal charges of conspiracy and theft by deception brought against them by prosecutors alleging that the entire story was a sham and that the three concocted the story in order to scam people into making donations. According to prosecutors, the three had met at a casino and came up with the scam. The story about being stranded by the roadside was totally fabricated. It should be noted, however, that the one truth in this entire story is that Johnny Bobbitt was a homeless veteran.
In 2019 Bobbitt pleaded guilty and received a sentence of five years probation. D’Amico also pleaded guilty and was sentenced to 27 months in prison. A week ago McClure who had also pleaded guilty was sentenced to three years in prison.
TIPS
One of the good aspects of GoFundMe is its guarantee that if scams like this are discovered, GoFundMe will refund all donations made to the scammers. Here is a link to GoFundMe’s guarantee. https://support.gofundme.com/hc/en-us/articles/203604704-The-GoFundMe-Guarantee
In addition, GoFundMe also provides tips for people trying to distinguish scams from legitimate requests for donation, which describe things you should consider before making a donation such as whether or not the intended beneficiary of the donations is in control of the withdrawals and if not, if there is a clear path for the funds to reach him or her. For a full list of the things you should consider before making a GoFundMe donation, click on this link. https://support.gofundme.com/hc/en-us/articles/115015913668-How-to-Determine-if-a-GoFundMe-is-Safe-to-Donate-To
GoFundMe does a good job of trying to keep its site free of scams, but of course, they will never be perfect. Fortunately, due to their guarantee policy, no one making a donation should feel there is a danger of losing their money to a discovered scam.
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Scam of the day – January 12, 2023 – What to do if Your Email Account is Hacked
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Scam of the day – January 11, 2023 – Income Tax Identity Theft Remains a Big Threat
Income tax identity theft, by which identity thieves file phony income tax returns with counterfeit W-2s using the Social Security number and name of their victim is still a major problem for the IRS and taxpayers costing us all billions of dollars each year. However, when someone has stolen your Social Security number and filed an income tax return using your name, the problem becomes particularly personal. When you are a victim of income tax identity theft it can take many months to straighten out the matter with the IRS and receive your income tax refund. The IRS is expected to announce that it will start accepting electronically filed income tax returns on January 23rd. Taxpayers should be thinking of filing their income tax returns as soon as possible because the best way to prevent becoming a victim of income tax identity theft is to file your income tax return before an identity thief does so using your name.
Last year the IRS announced an expansion of its Identity Protection PIN Op-In Program that provides individual taxpayers with a six-digit code that is required to be included on the individual’s income tax return. This will protect someone whose Social Security number had been compromised from becoming a victim of identity theft because the identity thief will not know the six-digit code. Here is a link to the section of the IRS’ website where you can apply for a PIN. https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin The PIN is only valid for a single year and must be applied for anew each year. The process will require you to verify your identity. Victims of income tax identity theft who have filed an identity theft affidavit with the IRS automatically receive an IP PIN by regular mail from the IRS.
TIPS
In addition to protecting the privacy of your Social Security number, the best thing you can do to protect yourself from becoming a victim of income tax identity theft is to file your income tax return as early as possible. A criminal can successfully make you a victim of income tax identity theft only if he or she files an income tax return using your Social Security number before you file your legitimate income tax return. Therefore the earlier you file your income tax return, the more likely you are to avoid becoming a victim of this crime.
The IRS started the Identity Theft Protection PIN program almost ten years ago, but it was only available to people who were already victims of identity theft and to people living in a few specific states chosen by the IRS to test the program. Now anyone can and should obtain an Identity Theft Protection PIN.
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Scam of the day – January 10, 2023 – FCC Proposing Biggest Fine Ever Against Automobile Warranty Scam Robocaller
The Federal Communications Commission (FCC) is seeking a fine of almost 300 million dollars against Roy Cox Jr. and Michael Aaron Jones who, the FCC says, have been operating a huge automobile warranty scam through illegal robocalls through their Sumco Panama company. In 2021, the FCC says they made more than 5 billion illegal robocalls to more than a half a billion phone numbers during just a three month period.
The Federal Trade Commission (FTC) has also issued warnings about extended car warranty scams being perpetrated through robocalls. Many of these robocalls appear to come from “Susie” of the “Vehicle Service Department.” Often the caller even knows the make, model and year of your car. They will tell you that your car’s warranty is about to expire, but that you can purchase an extended warranty that will provide tremendous benefits. Unfortunately, the only one getting tremendous benefits is the scammer that sells you a worthless contract.
Extended warranty scams have been with us for years. Actually, they are not “extended” warranties at all because if you read the fine print in postcards used to perpetrate this scam you will notice that although the notice that although the postcard looks official, it is not from either the car manufacturer who issued your original warranty or the car dealer who sold you the car. The warranties themselves vary from scammer to scammer with some of the “extended” warranties being relatively worthless, but with all of them based on misrepresentations.
If you are registered for the Do Not Call list and you do receive a call from a telemarketer attempting to sell you an extended warranty, you can be confident that the call is a scam because no legitimate telemarketer would call you if you are enrolled in the Do Not Call list. It is also important to note that while telemarketing is not, in and of itself, illegal, commercial telemarketing, such as the sale of these “extended warranties” through robocalls is always illegal.
TIPS
In regard to car warranties, it is always a good idea to check with your local auto dealer as to what warranties cover your car. Never trust anything that comes to you by way of an illegal robocall or telemarketing call if you have enrolled in the federal Do Not Call List. Never feel pressured to act immediately when someone calls you on the phone with an unsolicited offer and never give any personal information including your credit card over the phone to someone who calls you because you can never be sure who is actually calling.
Registering for the Do Not Call List is easy and free. Merely go to http://www.donotcall.gov to register your phone number.
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Scam of the day – January 9, 2023 – Jury Duty Scams Increasing
I have been warning you about the jury duty scam for ten years, but it continues to snare many unwary victims. Recently, Judge Timothy Corrigan of the Federal District Court for the Middle District of Florida issued a warning to Florida residents about an increase in this scam, however, the increase in instances of this scam are not limited to Florida. They are being perpetrated around the country. This scam has been used effectively for years by scammers to con people out of their money or make them a victim of identity theft.
The scam starts with a telephone call that you receive purportedly from a law enforcement officer informing you that you have failed to appear for jury duty and that a warrant has been issued for your arrest. You are told, however, that you can avoid arrest and greater fines by paying a fine through a credit card or or prepaid cash card. Other times they ask for your Social Security number to confirm your identity. Of course, the phone call is a scam. Even if you have missed jury duty, you will never be called by legitimate court officers and shaken down for a payment.
Often the scammers will use a technique called “spoofing” to make the call appear on your Caller ID as if it is coming from a legitimate law enforcement agency or court. In some instances of the scam you are asked to confirm your identity by providing your Social Security number which will then be used to make you a victim of identity theft. Recently the scam has evolved to where people are also being contacted by text messages or emails from scammers posing as a representative of the local court system.
TIPS
Initial contacts from courts regarding jury duty are always in writing through the mail although some systems will permit you to receive future notices through email. Under no circumstances will you receive telephone calls or text messages indicating that you have failed to report for jury duty. No court will demand payment over the phone for failing to appear for jury duty. If you do receive such a call and you think that there is even the possibility that you might have forgotten to report for jury duty, merely call the local clerk of courts in order to get accurate information. Of course anyone calling you and telling you that you can pay your fine to them over the phone using your credit card or a gift card is a scammer.
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Scam of the day – January 8, 2023 – FTC Sending Checks to Victims of Student Loan Debt Relief Scam
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.
In October of 2017 the Federal Trade Commission (FTC), working with the Attorneys General of eleven states, launched what it cleverly calls, Operation Game of Loans to jointly target these scams. Some scammers promise dramatic reductions of debt of 50% or more in return for upfront fees of between $500 and $2,500. Often these scam companies have names that make it appear that they are endorsed by the federal government in order to trick people into trusting them.
In 2020 I told you that three companies SLAC (which also uses the name Aspyre), Navloan, Student Loan Assistance Center and their owner Adam Owens agreed to be permanently banned from the debt relief business in order to settle charges brought against the companies by the FTC. These companies had charged an initial upfront fee of $699 and a monthly fee of $39 in return for false promises that these companies would permanently lower or eliminate student loans. The companies also paid consumers for positive Better Business Bureau reviews.
Now the FTC is sending checks to victims of the scam. For more information about this refund, go to the middle of the first page of the Scamicide.com website and click on the icon where it says “FTC Refunds.”
TIPS
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. 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.
For information you can trust about federal student loan repayment option, go to https://studentaid.ed.gov/sa/repay-loans . 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.
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Scam of the day – January 7, 2023 – Tech Support Scams Getting Worse
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 scammers constitute a major problem. Tech support scams are increasingly common and victimize consumers 60 years or older about five times more often than people between the ages of 20 and 59 according to the Federal Trade Commission (FTC). According to the FBI, the problem is getting worse with almost 24,000 people victimized by this scam in 2021 which was a 137% increase over 2020.
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.
If you call the scammers in response to concerns about your security, they often ask for you to enable them to get remote access to your computer to assess the problem. 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.
Remembering my motto, that “things aren’t as bad as you think, they are far worse,” the names and contact information for people victimized by this type of scam are often shared with other scammers so, if you are a victim of this scam, you should expect to be targeted by many more scammers.
TIPS
Often when your computer is frozen and you receive a pop-up ad purporting to tell you that you have a major security problem and warning you that you should not shut down or restart your computer because, they tell you, it would cause serious damage to your computer, the best thing you can do is shut down your computer and restart it.
If you are truly concerned about a security problem, contact tech support at the real tech companies you use at a phone number or email address that you have confirmed is accurate rather than a number or email address from the pop-up.
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Scam of the day – January 6, 2023 – Social Security Cost of Living Adjustment Scam
The Social Security Administration (SSA) announced in October that there would be an 8.7% cost-of-living adjustment (COLA) for Social Security recipients beginning this month which is the biggest increase in forty years. Scammers are taking advantage of this news and calling unwary seniors posing as representatives of the Social Security Administration. They tell their intended victim that in order to receive the new cost-of-living adjustment (COLA), they must confirm personal information including their name, birth date and Social Security number. The truth is that this information is not required for a person to receive a cost-of-living adjustment which is automatic and if the person does provide this personal information, the scammer will use it to make the person a victim of identity theft.
TIPS
You do not have to confirm information or apply for any cost-of-living adjustment to your Social Security benefits. It is automatically added to a Social Security recipient’s payment. In addition, you should never give out personal information on the phone to someone you have not called unless you are absolutely sure that the call is legitimate and there is a legitimate need for that information. Scammers can manipulate your Caller ID through a technique called spoofing into making it appear that the call is from the Social Security Administration or any other entity they wish.
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