Sunday, August 19, 2018

Frauds and Scams Part 3

Scams are repeated because they work. The ones that work are often driven by financial life moments such as taxes, holiday shopping, and utility scams. Identity thieves and scammers often try new twists on old scams that worked in the past. So far this year, a number of different and new scams have made the news, listed here in alphabetical order, not by ranking.

Porting Scams
The scam called “porting” involves criminals stealing your phone number and your phone service in order to get access to your bank account through confirmation text messages. Scammers start by collecting your name, phone number and then gather any other information they can find about you such as your address, Social Security number, and date of birth.

Then they contact your mobile carrier and state that your phone has been stolen and ask that the number be “ported” to another provider and device. Once your number has been ported to a new device, scammers can then start accessing your accounts that require additional authorization such as code texted to your phone.

Romance Scams
Though Valentine’s Day is over, romance scams will continue to pop up throughout the year. A romance scam typically involves a criminal setting up an account on a dating site with fake information and photos for a profile that is too good to be true.  Once a target has been established, the scam usually escalates to the thief’s unveiling of a money problem. Typical scenarios include the request for funds so he or she can travel to meet you in person or to help a sick relative.

Unfortunately, seniors are the primary targets for romance scams, since they often spend more time alone as they age. Romance scams cost Americans more than $230 million as nearly 15,000 people were conned in 2016, according to the Federal Bureau of Investigation.

Secretary of State Scam
This scam starts when you receive an email claiming to be from Secretary of State Rex Tillerson, who says you’re owed a payment he knows about because of an investigation by the FBI and CIA.  The scam reportedly states that you will receive an ATM card with more than $1 million dollars on it, but first you have to send $320 along with personal information to receive it. The Federal Trade Commission (FTC) says this is false—warning Americans to not fall for this—or anytime you’re told you have won a prize, owe money, or may go to jail.

Shimmer Scams
A shimmer scam is an update on skimming except that thieves are using “shimmers” to target chip-based credit and debit cards. A shimmer is a very thin piece of paper that can read your card number and access your credit or debit card’s EMV chip—the chip designed to help make your card more secure.

A thief will put a shimmer into an ATM and let it collect information from each card that is used, allowing them to then create a non-chip version or magnetic strip credit card. Shimmers have been showing up more recently despite first being reported on in 2015. In 2017, the number of debit cards compromised at ATMs and merchant card readers—typically via skimming devices that capture card data—rose 10%, according to FICO.

Tax Arrest Scam
The Internal Revenue Service (IRS) recently warned the public about “sophisticated phone scams” targeting taxpayers by claiming to be IRS employees. The scammers demand that the victims owe money to the IRS and to pay them promptly or be arrested, deported or have their driver’s license suspended.

Sometimes, the caller becomes aggressive, warning people that a Sheriff or local law enforcement will show up at their door if they don’t pay immediately. The IRS warning also reminded consumers that the IRS will never call to demand immediate payment over the phone, threaten to bring in local police, ask for credit or debit card numbers over the phone, or require you to use a specific payment method for your taxes.

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