Frauds and Scams Part 4

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.

Tax Prep Scam

Not only are U.S. taxpayers the targets of scammers this tax season, so are the tax professionals that prepare tax returns. Tax fraud is big business for fraudsters that can steal the tax preparers information and turn around and sell it on the dark web for money.  This year scammers are sending a lot more phishing emails in an attempt to gain access to the accountant’s computer. By doing so, the scammer can get access to that tax professional’s client list and computer IP address to file fake tax returns on their behalf. Once submitted, the scammer will have the refund check sent to an address that they can pick up the check.

Tech Support Fraud

In 2017 there were 11,000 complaints related to tech support fraud that resulted in claimed losses of nearly $15 million – an 86% increase in losses from 2016. These tech support scams have prompted the Internet Crime Complaint Center (IC3) to warn consumers about criminals claiming to provide a customer, security, or technical support as a cover in an effort to defraud individuals.  The scam can take place through a phishing email, phone calls, pop-up ad or even a locked screen on your device with a phone number to call to fix. The IC3 offers several tips and guidance on how to handle situations like this and reminds people that legitimate customer, security, or tech support companies will not initiate unsolicited contact with individuals.

Veterans Scams

Fake charity scams are nothing new, and the Veterans Affairs Department and U.S. Postal Inspection Service warn that veterans of the armed forces are particularly vulnerable. The scammers reportedly offer pension buyouts to veterans or ask veterans to donate to a charity that sounds and looks real but isn’t. The scammers use the donations or cash the pension checks.

The scammers will also take the donor’s personal information to create a new fake identity or commit more crimes under that person’s name. According to an AARP survey, 16% of veterans have lost money to fraudsters, compared to 8% of non-veterans.