Scam of the Day
Scam of the day – April 29, 2024 – Mystery Shopper Scams
I have written many times over the last twelve years about the mystery shopper scam because it continues to ensnare unwary victims. Unfortunately, these scams continue to be effective and are increasing in number so it is important to remind you about them again. Mystery shoppers are people hired to shop at a particular store and report on the shopping experience for purposes of quality control. Unlike many scams, there actually are legitimate mystery shopper companies, but they never advertise or recruit through emails, text messages or social media.
The manner in which the scam generally works is that when you answer an advertisement, or respond to a letter, email, social media post or a text message to become a mystery shopper, you are sent a bank check. You deposit the check into your own account and spend some of the money on the goods that you purchase which you are allowed to keep and also are directed to keep some of the balance of the check as payment for your services. You are instructed to return the remaining funds by a wire transfer.
In a recent Walmart themed mystery shopper scam, the targeted victim was sent a legitimate appearing, but counterfeit check for $2,940 and told to keep $540 as payment and then go to the nearest Walmart and use the remainder of the check to buy six $400 Kroger gift cards and provide the numbers to the scammer. The scam victim was then told to keep the gift cards for their next assignment although there never is another assignment and the scammers use the numbers on the Kroger gift cards to make purchases, making the actual cards worthless. The victim of the scam loses the $2,400 used to purchase the gift cards from the victim’s own bank account when the check bounces.
TIPS
One reason why this scam fools so many people is that there really are mystery shopping jobs although the actual number is quite few and the companies that do mystery shopping do not go looking for you. A firm indication that you are involved with a scam is when you receive a check for more than what is owed you and you are asked to wire the difference back to the sender. This is the basis of many scams. Whenever you receive a check, wait for your bank to tell you that the check has fully cleared before you consider the funds as actually being in your account. Don’t rely on provisional credit which is given after a few days, but which will be rescinded once a check bounces and never accept a check for more than what is owed with the intention to send back the rest. That is always a scam. Also be wary whenever you are asked to wire funds or send gift cards because this is a common theme in many scams because it is difficult to trace and impossible to stop. Legitimate companies do not use gift cards as payments.
It is important to note that no legitimate mystery shopping company ever asks anyone to purchase gift cards. Only scammers posing as mystery shopping companies do.
For more information about legitimate mystery shoppers, you can go to the website of the Mystery Shopping Professional Association https://www.mspa-americas.org/scam-alerts/
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#mysteryshopper #mysteryshopperscam #giftcard scam
Scam of the day – April 28, 2024 – Amazon Product Testing Scam
For many people, working from home at a simple job that pays well is pretty attractive, which may explain why people are vulnerable to a scam offering to pay you to be a product tester for Amazon. Ads for Amazon product tester are found on social media such as Facebook and TikTok offering to pay you to test products that will be sent to you for free and then write a review. Some of these ads promise payments of $1,500 per month. The only problem is that these paid Amazon product testing jobs are a scam. What makes the scam a bit more believable is that Amazon does have a product testing program, Amazon Vine, which invites specifically selected reviewers to have products sent to them for free to review, but the program is invitation only and it does not pay anything. Here is a link with more information about Amazon Vine. https://www.amazon.com/vine/about
The scammers use social media and fake websites with easily counterfeited Amazon logos to trick people into applying for these phony jobs. The scammers also will post their phony job offerings on legitimate job sites such as LinkedIn and Monster. Anyone interested in the job fills out an application that provides sensitive personal information including their Social Security number which is then used by the scammers for purposes of identity theft.
TIPS
This is an easy scam to avoid by merely understanding that Amazon does not pay anyone to test their products and their non-paid testing and review products program Amazon Vine is by invitation only. Anyone else promoting an Amazon testing and review program is a scammer.
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#amazontestingprogram
Scam of the day – April 27, 2024 – FTC Sending Refunds to Victims of House Flipping Scam
Following the settlement of a lawsuit, the Federal Trade Commission (FTC) is sending 10 million dollars in refunds to victims of a phony real estate investment scam perpetrated by Response Marketing Group LLC along with Scott Yancey and Dean R. Graziosi who promoted the scheme. Response Marketing Group used social media and infomercials to promote three day workshops at a cost of $1,000 that purported to teach people how to make large amounts of money flipping houses. At these workshops Response Marketing Group also would pressure attendees to pay an additional $30,000 for a real estate investment coaching program. The scam was also promoted by Scott Yancey who formerly was featured on an A&E television show “Flipping Vegas” and Dean R. Graziosi who writes self-help books and has a YouTube channel with 170,000 subscribers. The entire program was based on false and misleading claims with attendees losing money rather than making the promised large profits.
TIPS
TIPS
Before hiring the services of a business coach, you may want to find out what helpful advice you can get for free through government agencies such as the Small Business Administration. http://www.sba.gov/starting-managing-business
As for flipping houses, here is a link to a Bankrate.com story about the pros and cons of house flipping.https://www.bankrate.com/real-estate/flipping-houses/
If you do decide to hire a business coach, you should find out if there are any complaints filed against him or her. An easy way to do this is to just do a search engine search in which you look up the person’s name with the words “scam” or “complaint” and see what comes up. Also, be wary of buying any program merely because a celebrity endorses it.
If you were a victim of this scam and have not been notified by the FTC in regard to applying for a refund, go to the ‘FTC Scam Refunds” section on the first page of Scamicide.com for more information. It is important to note that any applications for refunds must be filed before June 19th.
If you are not a subscriber to Scamicide.com and would like to receive daily emails with the Scam of the day, all you need to do is sign up for free using this link. https://scamicide.com/scam-of-the-day/
#houseflipping #FTCrefunds
Scam of the day – April 26, 2024 – The Danger of Pop-Up Ads
Pop-up advertisements that appear on your phone, computer or other device are considered by many people to be merely a nuisance, but they can also, in some circumstances, present a serious threat to your well being. While often the pop-up ads may be legitimate advertisements, in other cases they are created by scammers who lure you into clicking on links and being directed to websites that either convince you to provide personal information that can be used to make you a victim of identity theft or, in a worst case scenario, merely by either clicking on the link or being redirected to another website, you may unwittingly download malware such as ransomware or keystroke logging malware that can steal from your phone or computer sensitive personal information that can be used to access your bank account or make you a victim of identity theft in other ways.
Part of the problem is that many of these pop-up ads appear on websites that you trust, which is because the advertising on legitimate websites often originates with third party advertising companies that may not properly screen the advertising that they accept. A few years ago the Equifax website was infected with a phony Adobe Flash update pop-up that when clicked on downloaded malware.
TIPS
The major browsers such as Google Chrome, Bing, Internet Explorer and Firefox all permit you to adjust your settings to eliminate pop-up ads from appearing and I can personally attest to the fact that adjusting your browser settings to avoid pop-up ads can be very effective. Unfortunately, the software used by these browsers as well as specific ad blocker apps are never going to be fully effective at blocking all pop-up ads. Malicious pop-ups that take advantage of newly discovered vulnerabilities will always be a problem, however if you adjust your browser settings to avoid pop-ups and keep your phone and computer security software updated with the latest security patches, you will go a long way toward keeping yourself safe.
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Scam of the day – April 25, 2024 – IRS Online Account Scams
Getting information from the IRS can sometimes be a frustrating experience. Fortunately, the IRS has a program by which you can set up an Online Account with the IRS through which you can access information about your income taxes including your latest payment history and get copies of your past income returns. As could be expected, identity thieves view IRS Online Accounts as just another opportunity to scam people and steal their identity. The IRS recently issued a warning about scammers contacting people offering to assist them in setting up an IRS Online Account. Sometimes adding insult to injury they will actually charge their scam victims for their “help” when all they are really doing is helping themselves to the information they need to make you a victim of identity theft.
TIPS
While it may seem complicated, you shouldn’t need the help of anyone in setting up your IRS Online Account. To start the process use this link https://api.id.me/en/registration/new This link will take you to the site of ID.me which provides access to IRS online services. For your own protection you will need to verify your identity when you set up your IRS Online Account which can be done with a photo ID and selfie or a call with an ID.me video chat agent. The process is not complicated.
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#IRSonineaccount
Scam of the day – April 24, 2024 – Watch Out for Student Loan Relief Scams
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. I have written numerous times in the past about various student loan debt relief scams. Recently President Biden canceled 7.4 billion dollars in student loan debt through the Biden administration’s income-driven repayment plan known as SAVE and the Public Service Loan Forgiveness program. People who will be able to take advantage of these loan forgiveness programs will be getting an email informing them of the loan forgiveness options. However, you can expect scammers posing as government officials will also be contacting people with phony loan forgiveness scams. These scammers will be asking for payments in order to qualify for the loan forgiveness programs. There are no requirements of any payments to qualify for any of these loan forgiveness programs.
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. You also should never share your FSA ID with anyone.
For information about he Public Service Loan Forgiveness program go to https://studentaid.gov/manage-loans/forgiveness-cancellation
For information about the SAVE program go tohttps://studentaid.gov/announcements-events/save-plan
For information about loan forgiveness through the Higher Education Act go to https://studentaid.gov/manage-loans/forgiveness-cancellation/debt-relief-info
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#studentloanforgiveness
Scam of the day – April 23, 2024 – SEC Shuts Down Ponzi Scheme Targeting the Latino Community
Affinity fraud is the name for the type of fraud where people put undeserved trust in someone offering an investment opportunity because that person is “someone like me.” Affinity fraud works because people trust other people who may share a common bond, such as family, religion or some other group affiliation. The list goes on and on. Over the years I have reported on many instances of affinity fraud perpetrated against a wide variety of people. Scammers take advantage of every connection they can make with their victims to gain their trust and then steal their money.
Recently the Securities and Exchange Commission (SEC) sued seventeen people alleged to be involved with a 300 million dollar cryptocurrency and foreign exchange investment Ponzi scheme targeting the Latino community. Mauricio Chavez and Giorgio Benvenuto were the main principals involved in CryptoFX a company that guaranteed its investors risk free investments in cryptocurrencies and other instruments that were guaranteed to provide returns of between 15% and 100%. Unfortunately, the only thing that was guaranteed was that their investors would lose their money as the funds were, according to the SEC, merely a Ponzi scheme where funds from later investors were used to pay off earlier investors to make the scheme appear legitimate while enriching Chavez, Benvenuto and the others involved in the scam. The SEC obtained an emergency court order shutting down CryptoFX while the case proceeds.
TIPS
Before investing with anyone, you should investigate the person offering to sell you the investment with the Securities and Exchange Commission’s Central Registration Depository. This will tell you if the broker is licensed and if there have been disciplinary procedures against him or her. You can also check with your own state’s securities regulation office for similar information. Many investment advisers will not be required to register with the SEC, but are required to register with your individual state’s securities regulators. You can find your state’s agency by going to the website of the North American Securities Administrators Association. Many investment advisers will not be required to register with the SEC, but are required to register with your individual state securities regulators. You can find your state’s agency by going to the website of the North American Securities Administrators Association. You should also check with the Financial Industry Regulatory Authority (FINRA) for information about the particular investment adviser.
As for Cryptocurrency investing, 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 are 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.
Additionally, investing with someone merely because you share the same heritage, nationality, religion or any other affinity is something you should avoid.
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#cryptofx #ponzischeme
Scam of the day – April 22, 2024 – Synthetic Identity Theft and Child Identity Theft – The Perfect Storm
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.
According to the cyber security firm Emsisoft, ransomware attacks and hacking of K-12 school systems have increased dramatically in the last year. Last year the Minneapolis Public School system was a victim of a ransomware attack and when they refused to pay the ransom, the hacker published the data including Social Security numbers online, making it available to scammers and identity thieves
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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#ransomware #syntheticidentitytheft
Scam of the day – April 21, 2024 – Canadian Loses $86,000 to Imposter Scam
A woman from Ontario, Canada identified by CTV News by the first name Anjira recently was scammed out of $86,000 through an imposter scam. Imposter scams are one of the most frequent scams throughout the world. In this case Anjira received a call from a scammer posing as an investigator for the Canada Revenue Agency (CRA), the Canadian version of the IRS. The scammer told her that her bank accounts were involved in a money laundering scheme being investigated by the CRA. He directed her to withdraw money from her bank accounts as well as take money from a line of credit she had at her bank and deposit the funds into a Bitcoin account given to her by the scammer. She was told to use a Bitcoin ATM to transfer the funds, which she was told needed to be done in order to protect her funds. As often is the case in this kind of scam, she was also told not to tell anyone at the bank why she was withdrawing the money. Too late she realized that she had been scammed and the money is most likely lost forever.
TIPS
As I often tell you whenever you get a phone call, email or text message, you cannot be sure who is actually contacting you so you should never click on a link, provide personal information or make any payment in response to any communication unless you have absolutely confirmed that the communication was legitimate.
In this case there were a number of red flags that Anjira missed. Even if there was an investigation as to her bank accounts being used for money laundering, there would be no reason for her to withdraw her money. Also, there would be no reason whatsoever to withdraw money from a line of credit which could not possibly have been involved with money laundering. In addition, no legitimate government agency requests payments be made through a Bitcoin ATM, however, Bitcoin ATMs are a favorite payment method for scammers due to their privacy. Also, in making the withdrawals, she was told to make multiple withdrawals of $5,000 rather than withdraw all of the money at once. The only reason for this was to make the individual withdrawals less suspicious to the bank. Finally, being advised not to say anything to the bank clerks of officials is a strong indication that the entire thing was a scam.
If you are not a subscriber to Scamicide.com and would like to receive daily emails with the Scam of the day, all you need to do is to go to the bottom of the initial page of http://www.scamicide.com and type in your email address on the tab that states “Sign up for this blog.”
#imposterscam
Scam of the day – April 20, 2024 – Roku Data Breach Affects 576,000 Customers
Recently, the streaming service Roku announced that it had suffered a data breach in which personal information of 576,000 of its customers was compromised. This was the second data breach affecting Roku this year. However, the fault is not primarily with Roku as the attack was accomplished through credential stuffing which occurs when hackers use usernames and passwords obtained through other data breaches which are sold on the Dark Web, that part of the Internet where criminals buy and sell goods and services. Using the same username and password for multiple accounts is a recipe for disaster.
Last year, there were more than 1,800 reported data breaches and probably many more that were not reported affecting 422 million people. The question is not if you will become a victim of a data breach. The question is when.
So what can you do to protect yourself from these data breaches that will be occurring?
TIPS
You should also 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. You also should use dual factor authentication whenever offered by any site you use to protect your security even if your password is compromised. Here is a link to how you can set up dual factor authentication on your Roku account.
One way to get strong unique passwords for all of your accounts is to use a password manager. If you are interested in using a password manager, here is a link to an article from PC magazine that compares many of the legitimate password managers available to you. https://www.pcmag.com/picks/the-best-password-managers
If you do decide to use a password manager, you should remember not to use your password manager master password for any of your other accounts. You also should use dual factor authentication so that even if someone were to gain access to your password manager master password, your password manager account could not be accessed.
However, if you would like to use the helping hand you find at the end of your own arm and generate unique, complex passwords for each of your accounts that are easy to remember, here is a strategy that is very effective. You can start with a strong base password constructed from a phrase, such as IDon’tLikePasswords that has capital letters, small letters and a symbol, add a few symbols at the end so it may read IDon’tLikePasswords!!! and then adapt it with a few letters for each particular account you have so that you will have a secure and easy to remember password for each of your online accounts. Thus, your Amazon password could be IDon’tLikePasswords!!!AMA
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#rokudatabreach #dual factor authentication