Posts Tagged With: scams

Most Frequently Impersonated Companies

Posted on September 28, 2024 by Melissa Hart

New data from the Federal Trade Commission shows that Best Buy/Geek Squad, Amazon, and PayPal are the companies people report scammers impersonate most often.

A newly released data spotlight shows that consumers in 2023 submitted 52,000 reports about scammers impersonating Best Buy or its Geek Squad tech support brand, followed by about 34,000 reports about scammers impersonating Amazon. PayPal was the third-most impersonated company with about 10,000 reports from consumers.

When it comes to the amount lost, though, consumers reported losing far more money to scammers impersonating Microsoft and Publishers Clearing House than any other companies. Consumers reported losing a total of $60 million to Microsoft impersonation scams and $49 million to Publishers Clearing House impersonation scams.

The FTC recently finalized its new rule on government and business impersonation, which gives the agency stronger tools to combat and deter scammers who impersonate government agencies and businesses, enabling the FTC to file federal court cases seeking to get money back to injured consumers and civil penalties against rule violators.

The spotlight also outlines the most common forms of payment people reported scammers used to steal money in 2023. Scammers requested a variety of payment methods, including cryptocurrency and bank transfers, which were the top methods used by investment scammers, according to the data spotlight. Other frequently reported payment methods included payment apps or services and gift cards. The top payment apps and services people reported paying with were PayPal, CashApp and Zelle, while the most reported gift cards were Apple and Target.

For More Information, click here.

New FTC Data Shed Light on Companies Most Frequently Impersonated by Federal mmission

Teaching Suggestions

  • Ask students if they or their friends have had any experience with scammers impersonating well-known companies. If so, what actions were taken to ward off the scammers?
  • Ask students to prepare a list of actions they might take if a scammer approaches them.

Discussion Questions

  1. Why are Best Buy or its Geek Squad, Amazon, and Pay Pal the most impersonated companies?
  2. What can local, state, and federal regulatory agencies do to protect consumers from these impersonators?
  3. What should you do if you are targeted by an impersonator/scammer?
Categories: Chapter 6, Frauds and Scams | Tags: , | Leave a comment

Government Impersonation Scammers

Posted on September 14, 2024 by Melissa Hart

New Federal Trade Commission data reveals that government impersonation scammers are targeting consumers for payments in cash, with the amount of cash reported lost to these scams nearly doubling from 2022 to 2023.

The FTC data shows that consumers reported losing $76 million when paying cash to government impersonation scammers in 2023, up from $40 million in 2022, an increase of 90 percent. In just the first quarter of 2024, consumers have reported losing $20 million to government impersonation scams when paying with cash.

The median loss for consumers who reported paying cash to government impersonation scammers in the first three months of 2024 was $14,740 – far higher than for any other method of payment. Consumers have reported mailing cash as well as handing cash to drivers sent to collect the money.

Scammers frequently impersonate government agencies, from local police to federal agencies, and while details of the pitch may vary, a common element is that the consumer they are targeting needs to send or transfer money to address an urgent issue or serious problem. This news is usually accompanied with a combination of dire warnings or threats designed to put their target in a state of mind where the urgency of the moment bypasses any doubts they have.

The key fact is this: government agencies will never call, email, text, or message you on social media to ask for money or personal information, and they will never demand a payment. Only a scammer will do that.

The FTC recently put into effect a new rule that gives the agency stronger tools to combat and deter scammers who impersonate government agencies and businesses, enabling the FTC to file federal court cases seeking to get money back to injured consumers and civil penalties against rule violators.

Consumers who are targeted by a government impersonation scam should report it to the FTC at ReportFraud.ftc.gov. More data about government impersonation scams is available on the FTC’s data dashboards.

For more information, click here.

Teaching Suggestions

·         Ask students if someone they know has been scammed by government impersonation scammers. If so, what was their experience?

·         Ask students to prepare a list of actions they might take if a government impersonation scammer approaches them.

Discussion Questions

1.      What can governmental agencies do to stop these impersonators?

2.      Once apprehended, should the perpetrators be fined or sent to prison? Any other penalties?

3.      What should you do if you are targeted by a government impersonation scammer?

Categories: Chapter 6, Frauds and Scams | Tags: , | Leave a comment

How to Spot a Government Imposter Scam

Posted on February 4, 2023 by Melissa Hart

Scammers are pretending to be government employees. They may threaten you and may demand immediate payment to avoid arrest or other legal action. These criminals continue to evolve and find new ways to steal your money and personal information. Do not fall for it! We want you to know how you and your loved ones can avoid becoming victims!

 Be Alert

If you owe money to Social Security, you’ll receive a letter by mail with payment options and appeal rights. They only accept payments electronically through Pay.gov, Online Bill Pay, or by check or money order through its offices. The SSA will never:

  • Threaten you with arrest or legal action because you don’t agree to pay money immediately.
  • Suspend your Social Security number.
  • Promise a benefit increase in exchange for money.
  • Ask you to send gift cards, prepaid debit cards, wire transfers, Internet currency, cryptocurrency, or cash through the U.S. mail.

Know What to Look for

  • The caller or sender says there is a problem with your Social Security number or account.
  • Any call, text, or email asking you to pay a fine or debt with retail gift cards, wire transfers, pre-paid debit cards, internet currency, or by mailing cash.
  • Scammers pretend they are from Social Security or another government agency. Caller ID, texts, or documents sent by email may look official, but they are not.
  • Callers threaten you with arrest or other legal action.
  • Internet scammers may use “phishing” schemes to trick a recipient into revealing personal information by clicking on malicious links or attachments.

For more information, click here.

Teaching Suggestions:

  • Ask students if they or their families have received calls from imposters?  If so, what was their response and how did they handle the situation?
  • Ask students to make a list of schemes scammers use to trick people into revealing personal information?

Discussion Questions:

  1. What should you do if you receive a suspicious call, text, or an email from an imposter?
  2. What can local, state, or federal governments do to minimize these scams and protect people?
Categories: Chapter_14, Frauds and Scams | Tags: , | Leave a comment

Gift Card Scams

Posted on March 12, 2022 by Melissa Hart

Someone might ask you to pay for something by putting money on a gift card, like a Google Play or iTunes card, and then giving them the numbers on the back of the card. If anyone asks you to do this, they’re trying to scam you. No legitimate business or government agency will ever insist you pay them with a gift card. Anyone who demands to be paid with a gift card is a scammer.

What Gift Card Scams Look Like

Gift cards are for gifts, not for payments. But these cards are popular with scammers because gift cards are easy for people to find and buy, and cards have fewer protections for buyers compared to some other payment options. Gift cards are more like cash: once you use the card, the money on it is gone. Scammers like this.

If someone calls you and demands that you pay them with gift cards, you can bet that a scammer is behind that call. Once they have the gift card number and the PIN, they have your money. Scammers may tell you many stories to get you to pay them with gift cards, but this is what usually happens:

  1. The caller says it’s urgent. The scammer says you have to pay right away or something terrible will happen.
  2. The caller usually tells you which gift card to buy. They might say to put money on an eBay, Google Play, Target, or iTunes gift card. They might send you to a specific store — often Walmart, Target, CVS, or Walgreens. Sometimes they tell you to buy cards at several stores, so cashiers won’t get suspicious. And, the caller might stay on the phone with you while you go to the store and load money onto the card. These are all signs of a scam.
  3. The caller asks you for the gift card number and PIN. The card number and PIN on the back of the card let the scammer get the money you loaded onto the card. And the scammer gets it right away.

 For more information, click here.

Teaching Suggestions:

  • How do scammers convince you to pay with gift cards?  Make a list of common gift card scams and schemes, and share it with others.
  • Ask if anyone has paid someone with a gift card.  If so, what was their experience?

Discussion Questions:

1.  What are signs of a gift card scam and how can one spot a gift card scammer?

2.  What steps should you take if you paid a scammer with gift cards?

Categories: Chapter 5, Frauds and Scams, Identity Theft | Tags: , | Leave a comment

Tips To Avoid Internet Scams

Posted on January 1, 2022 by Melissa Hart

Each day, more and more scams surface through computers, tablets, cellphones, and other smart devices. To protect your personal information and to avoid being a victim of fraud, the following actions are recommended:

  • Keep operating systems, browsers, programs, apps, and security components up to date.
  • Be aware of the latest scam techniques being used by fraudsters. Search online to learn about current scams.
  • Enable firewalls for your computer and router.
  • Install an antivirus program for your computer, tablet, and smartphone that updates automatically.
  • Create a guest network for visitors to your home to use, to avoid them having to access your home network.
  • Don’t click or respond to emails, phone calls, or text messages from strange addresses and those with unusual subject lines.
  • Update passwords often with a random, complex series of letters, numbers, and symbols; don’t use the same password on different sites. Consider use of a password manager. 
  • Use only reputable sites when shopping online. Use a credit card instead of a debit card for greater financial protection. Don’t click on links or pop-ups, which can be a fake, look-alike website; instead, go directly to the shopping website.
  • Adjust privacy settings on your devices, and for websites you visit for your best protection.  
  • Regularly back up your data in case of a malicious attack, so you don’t lose access to your information and files. If you encounter a ransomware attack, file a report with the FBI.
  • Avoid use of public Wi-Fi to prevent potential fraud and identity theft.
  • Be cautious with your social media posts, especially information about children and teens. Don’t post personal information, vacation plans, work and home schedules, address or other contact information. Don’t “check in” at the locations you visit. 
  • Be cautious about online gaming, which can result in identity theft, bullying, harassment and online predators. Children should use an avatar or nickname.

For additional information on avoiding online scams, click here.

Teaching Suggestions

  • Have students search online for examples of recently-created online scams.
  • Have students create a video, poster, or slide presentation with common email scams and actions to avoid those situations.

Discussion Questions 

  1. What are some reasons that a person might become a victim of an online scam?
  2. Describe actions to learn about new online scams. 
Categories: Chapter 4, Chapter 6, Frauds and Scams, Identity Theft | Tags: , , | Leave a comment

How to protect yourself from social media identity theft

Posted on September 11, 2021 by Melissa Hart

If you use social media, you could be a target for identity theft. You can buy identity theft insurance – or it might be included in your homeowners or renters policy. But taking simple steps to protect your social media accounts can help you avoid most scams.

  1. Don’t post ID cards

It might be tempting to post a photo of a new license or ID card, but it may include your birthday and other identifying data.

  • Question quizzes and surveys

Watch out for quizzes that ask for personal information. Scammers ask questions with answers you might use for security login questions, such as the model of your first car, your first pet’s name, or your hometown.

  • Don’t overshare

Most social media sites and apps ask you about yourself, then display that information on your profile. Be careful what you give them. The more a scammer knows about you, the easier it is to create a fake account with your information. If an app allows it, keep your profile private.

  • Limit app sharing

Many apps let you sign in with a more popular app. But when you do, you usually agree to let the new app use data from the old one. If one app is hacked, scammers can get data from every app linked to it.

  • Close old accounts

Scammers look for old, unused accounts with outdated passwords that are easy to hack. If you don’t use an app, delete your account.

  • Protect family members

Teens are the most likely to overshare. They usually have clean credit histories, which makes their identities valuable. Seniors don’t use social media as often but might not know when they’ve been hacked. It’s a good idea to check the accounts of family members in those groups.

For more information, click here.

Teaching Suggestions:

  • Ask students how they protect their social media accounts.  What precautions are particularly useful to protect their identity on the Internet?
  • Why are teens more likely to overshare their personal information on the social media?

Discussion Questions:

  1. What can regulatory agencies, such as, the Federal Trade Commission and Consumer Financial Protection Bureau, do to protect your social media accounts?
  2. Should Facebook, Instagram, Whats App, etc. provide clear guidance on what to post (or not to post) on social media sites?  How it might be done to protect consumers?
Categories: Chapter 6, Frauds and Scams, Identity Theft | Tags: , , | Leave a comment

New IRS imposter scam targets college students and staff

Posted on August 14, 2021 by Melissa Hart

If you’re a college student, faculty, or staff member, pay attention to this scam. IRS imposters are sending phishing emails to people with “.edu” email addresses, saying they have information about your “tax refund payment.” What do they really want? Your personal information.

Scammers are sending emails with subject lines like, “Tax Refund Payment” or “Recalculation of your tax refund payment.” The email asks you to click a link and submit a form to claim your “refund.”

What happens if you click the link? The website asks for personal information, including your name, Social Security number (SSN), date of birth, prior year’s annual gross income (AGI), driver’s license number, address, and electronic filing PIN. Scammers can use or sell this information for identity theft.

The emails can look really real and include the IRS logo. But no matter what the email looks like or says, one thing stays true: the IRS will not first contact you by email. They will always start by sending you a letter. And, to confirm that it’s really the IRS, you can call them directly at 800-829-1040.

If you clicked a link in one of these emails and shared personal information, file a report at IdentityTheft.gov to get a customized recovery plan based on what information you shared.

If you spotted this scam, the IRS is asking you to forward the email as an attachment to phishing@irs.gov and at ReportFraud.ftc.gov.

For more information, click here.

Teaching Suggestions:

  • Ask students if they, their relatives or friends have received such scam emails.  If so, how did they respond to the scam?
  • Why have imposter scams increased so rapidly in the last few years?  What, if anything, can consumers do to avoid such scams?

Discussion Questions:

  1. Why is it important not to click on the links, even if they seem to be legitimate?
  2. If you clicked on such a link, what steps should you take to protect yourself and others from being scammed?
Categories: Chapter 3, Chapter 6, Frauds and Scams | Tags: , | Leave a comment

IRS Dirty Dozen Tax Schemes

Posted on December 19, 2020 by Melissa Hart

Each year, the IRS warns taxpayers about the “Dirty Dozen” tax scams.  Some of these cons show up on the list each year, while others are new. Tax scams are most common during tax season or times of crisis. The COVID pandemic created opportunities to try steal money and information from taxpayers.

Taxpayers are reminded to beware of these ongoing swindles that include:

  • Phishing involves fake emails or websites to obtain personal information. The IRS never initiates contact by email. Do not click on links claiming to be from the IRS. Also be wary of keywords, such as “coronavirus,” “COVID-19,” and “Stimulus.”
  • Fake charities are a reoccurring concern. Criminals often take advantage of natural disasters and other situations, such as the COVID-19 pandemic, to set up a phony charity, and may even claim to be working with the IRS to help victims.
  • Threatening impersonator phone calls claim to be collecting money for the IRS. The scammer uses fear and urgency to demand immediate payment. Senior citizens and their caregivers should be especially alert for this type of fraud.
  • Unscrupulous return preparers, called “ghost” preparers, expose their clients to serious filing mistakes and tax fraud. Ghost preparers do not sign the tax returns they prepare, as required by law. While most tax professionals provide honest service, others should be avoided.
  • Fake payments with repayment demands involve scammers tricking taxpayers into sending them their refund. The criminal steals or obtains personal data to file a bogus tax return. Once the money is in the bank account, the criminal poses as an IRS employee to request that the money be returned immediately, perhaps in the form of gift cards.

Some recent tax scams that have surfaced include

  • Offer-in-compromise mills involves misleading tax debt resolution companies exaggerating their ability to settle tax debts for “pennies on the dollar.” The offer requires that taxpayers meet certain legal requirements. Dishonest businesses enroll unqualified candidates to collect hefty fees from taxpayers already deep in debt.
  • Economic impact payment or refund theft, in which criminals filed false tax returns or bogus information with the IRS to redirect refunds to a wrong address or bank account.
  • Social media scams may use COVID-19 to trick people. The scammer uses information on social media to send emails pretending to be a family member, friend, or co-worker, which can result in tax-related identity theft.
  • Ransomware takes advantage of human and technical weaknesses to infect a computer, network, or server. Invasive software (malware) can track keystrokes and other computer activity. An infected computer can allow access to personal and financial data. Or, a ransom request appears in a pop-up window.

To avoid these scams: (1) be aware of potential cons; (2) check with the IRS or your bank if something is suspicious; (3) keep your computer system and passwords secure, and (4) avoid deals that are “too good to be true.”

For additional information on tax scams, click here.

Teaching Suggestions

  • Have students describe these situations to other people, and ask them what actions they might take to avoid these scams.
  • Have students create a video or visual presentation to warn others of these potential scams.

Discussion Questions 

  1. Why do some people get taken by tax scams and other frauds?
  2. Describe actions that might be taken to avoid various tax scams.
Categories: Chapter 3, Chapter 6, Frauds and Scams, Taxes | Tags: , , | Leave a comment

Protect Your Social Media Accounts

Posted on January 13, 2018 by Melissa Hart

The Internet has made our lives easier in so many ways. However, you need to know how you can protect your privacy and avoid fraud. Remember, not only can people be defrauded when using the Internet for investing; the fraudsters use information online to send bogus materials, solicit or phish.

Here’s what you can do to protect yourself when using social media:

Privacy Settings: Always check the default privacy settings when opening an account on a social media website.

Biographical Information: Consider customizing your privacy settings to minimize the amount of biographical information others can view on the website.

Account Information: Never give account information, Social Security numbers, bank information or other sensitive financial information on a social media website.

Friends/Contacts:  Decide whether it is appropriate to accept a “friend” or other membership request from a financial service provider, such as a financial adviser or broker-dealer.

Site Features: Familiarize yourself with the functionality of the social media website before broadcasting messages on the site. Who will be able to see your messages — only specified recipients, or all users?

For More Information, click here.

Teaching Suggestions

  • Ask students to make a list of their social media accounts. How do they protect their accounts from fraudsters?
  • Why do many social media websites require biographical information to open an account?

Discussion Questions

  1. Why is it important to limit the information made available to other social media users?
  2. Is there an obligation to accept a “friend” request of a service provider or anyone you don’t know or do not know well?
  3. Why be extra careful before clicking on a link sent to you even if by a friend?
Categories: Chapter 4, Chapter 5, Frauds and Scams, Identity Theft | Tags: , , , | Leave a comment

Equifax isn’t calling

Posted on November 18, 2017 by Melissa Hart

Ring, ring. “This is Equifax calling to verify your account information.” Stop. Don’t tell them anything. They’re not from Equifax. It’s a scam. Equifax will not call you out of the blue.

That’s just one scam you might see after Equifax’s recent data breach. Other calls might try to trick you into giving your personal information. Here are some tips for recognizing and preventing phone scams and imposter scams:

  • Don’t give personal information. Don’t provide any personal or financial information unless you’ve initiated the call and it’s to a phone number you know is correct.
  • Don’t trust caller ID. Scammers can spoof their numbers so it looks like they are calling from a particular company, even when they’re not.
  • If you get a robocall, hang up. Don’t press 1 to speak to a live operator or any other key to take your number off the list. If you respond by pressing any number, it will probably just lead to more robocalls.

For more information about the Equifax breach, go to Equifax’s website.

 Teaching Suggestions

  • Ask students if they know someone who has received such a call. If so, how the victim responded to the imposter?
  • What advice can you provide to a victim of a scam?

Discussion Questions

  1. What should you do, if you have already received a call that you think is fake?
  2. What must you do if you gave personal information to an imposter?
  3. What can you do to protect yourself from such scams?
Categories: Chapter 5, Consumer Complaints, Credit Scores, Frauds and Scams | Tags: , , | Leave a comment

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