TRIAD Of Rockland County
Reducing Crimes Against Seniors
To contact us: Email us at
info@rocklandcountytriad.org or call us at (845)
638-5582
Frauds, Scams & Flimflams
WARNING!!!
MEDICARE PART –D- DRUG
PLAN SCAM
Seniors enrolling in the Medicare Part D prescription drug plan are
warned not to give out their Social Security, bank account or
Medicare numbers over the phone or via email. Medicare officials
warn of a new phone and email scam called the “$299 Ring”, which is
the typical amount of money Medicare beneficiaries are talked into
withdrawing from their checking accounts to pay for a nonexistent
prescription
drug plan. The bogus callers will tell the senior victim that they
can cover them with a drug plan at a modest cost. The victim is then
requested to provide their bank account number, so money can be
withdrawn from their account to pay for the plan. The first contact
from these con operators may come to you either by telephone or
email. This scam is currently being investigated by the Centers for
Medicare and Medicaid Services (CMS), a division of the Federal
Department of Health and Human Services. CMS advises that legitimate
Medicare drug plans are not permitted to ask for bank account or
other personal information over the telephone. In addition,
legitimate plans will not ask for payment over the phone or the
Internet. They must bill the beneficiary for the monthly premium. If
you’ve been contacted, we suggest you call 1-800-MEDICARE and report
the incident to their fraud unit.
ALERT – SCAM E-MAIL
A Rockland County senior citizen has contacted TRIAD, reporting that she recently received an email that was purported to be sent to her by the Federal Deposit Insurance Corporation. The email advised the senior that she was in violation of the U.S. Patriot Act and requested that she fill out and return a form that accompanied the email. The form requested personal information – specifically…. the name of her bank, bank account number and Social Security Number. This email warned the senior, that if she failed to provide the requested information, all of her FDIC insurance coverages would be canceled.
TRIAD’s investigation reveals that the FDIC Consumer Call Centers
in Kansas City, Missouri, and Washington, D.C. have received a large
number of complaints by consumers who received an email that has the
appearance of being sent from the FDIC. The email informs the
recipient that Department of Homeland Security reported on the
recipient's bank account, due to suspected violations of the USA
PATRIOT Act. The email further indicates that deposit insurance will
be suspended until personal identity, including bank account
information, can be verified.
This email was not sent by the FDIC and is a fraudulent attempt
to obtain personal information from consumers. Consumers should NOT
access the link provided within
the body of the email and should NOT under any circumstances provide
any personal
information through this media.
The FDIC is attempting to identify the source of the emails and disrupt the transmission. Until this is achieved, consumers are asked to report any similar attempts to obtain this information to the FDIC by sending information alert@fdic.gov.
For your reference, FDIC Special Alerts may be accessed from the FDIC's Web site.
LOSS CONTROL RECOMMENDATIONS:
• Consumers should NOT access the link provided within the body of the email.
• Consumers should NOT under any circumstances provide any personal information through this media.
• If a consumer did respond to the email with personal information, he or she may become an identity theft victim. The member should do the following:
1. Contact the fraud departments of any one of the three major
credit bureaus to place a fraud alert on your credit file. The fraud
alert requests creditors to contact the member before opening any
new accounts or making any changes to his/her existing accounts. As
soon as the credit bureau confirms the consumer’s fraud alert, the
other two credit bureaus will be automatically notified to place
fraud
alerts, and all three credit reports will be sent to the victim free
of charge.
2. Close the accounts that are known or believed have been
tampered with or opened fraudulently.
3. Use an ID Theft Affidavit when disputing new unauthorized
accounts.
4. File a police report. Get a copy of the report to submit to
creditors and others that may require proof of the crime.
5. File a complaint with the Federal Trade Commission. The FTC
maintains a database of identity theft cases used by law enforcement
agencies for investigations. The FTC also maintains a toll-free
number for reporting. Please
call 1-877-438-4338.
HA HABIDO UN CRECIMIENTO DE ESTE JUEGO DE CONFIANZA EN EL CONDADO DE ROCKLAND COUNTY Y NUESTRO CONDADO VECINO DE WESTCHESTER. EN VISTA DE ESTO, QUISIERAMOS PROVEERLE A USTED UNA OPINION CAPSULAR DE COMO SE JUEGA ESTE JUEGO.
VICTIMAS EN ESTOS CASOS SON NORMALMENTE HISPANOS Y LOS SOSPECHOSOS SON HISPANOS MASCULINOS Y FEMENINOS. ESTOS OPERADORES DE CONFIANZA CAMINAN LAS CALLES Y ESTACIONAMIENTOS EN VECINDADES DONDE LA POBLACION ES HISPANA, BUSCANDO VICTIMAS PARA CAZAR. LOS SOSPECHOSOS NORMALMENTE SOLAMENTE HABLAN ESPANOL MIENTRAS QUE JUEGAN ESTA OFENSA. TIPICAMENTE, LOS ARTISTAS DE CONFIANZA TRABAJAN EN PARES MIENTRAS APUNTAN A LAS VICTIMAS.
EL PRIMER SOSPECHOSO, PUEDE RECLAMAR BUSCAR A UN ABOGADO MIENTRAS
SE ACERCA A LAS VICTIMAS EN LA CALLE. EL SOSPECHOSO LE DICE A LA
VICTIMA QUE EL TIENE UN BOLETO DE LA “LOTTO” GANADOR DE MILES DE
DOLARES, PERO TIENE MIEDO CAMBIARLO PORQUE ESTA EN EL PAIS
ILEGALMENTE. EL SEGUNDO SOSPECHOSO, O UN TERCERO POSIBLE SOSPECHOSO
SE ACERCA AL ESCENARIO
Y LA HISTORIA ES CONTADA OTRA VEZ. EL PRIMER
SOSPECHOSO OFRECE PAGAR A LA VICTIMA Y AL OTRO SOSPECHOSO UNA
CANTIDAD SUSTANCIAL DE DINERO PARA PODER CAMBIAR EL BOLETO DE
“LOTTO”, O VENDERLE EL BOLETO GANADOR A UN GRAN DESCUENTO. UNA VEZ
QUE LA VICTIMA ESTA DE ACUERDO AYUDAR, EL SOSPECHOSO DEMANDA DESEAR
PRUEBA QUE SABEN MANEJAR EL DINERO, O NECESITA DINERO PARA COMPRAR O
REDIMIR EL BOLETO E INDUCE A LA VICTIMA QUE RETIRE VARIOS DE MILES
DE DOLARES DE SU CUENTA BANCARIA. UNA VEZ QUE EL DINERO DE LA
VICTIMA ES RETIRADO, ES COJIDO DE LA VICTIMA EN UN INTERCAMBIO, O
MAS FRECUENTEMENTE ENVIANDO LA VICTIMA A UNA FARMACIA A COMPRAR
MEDICINA. EN ESTE ESCENARIO, UNO DE LOS SOSPECHOSOS FINGE UNA
ENFERMEDAD ATRAVES DE LA OFENSA, Y PRETENDE ESTAR ENFERMO CUANDO LA
VICTIMA RETORNA DEL BANCO. LA VICTIMA ES ENVIADA A LA FARMACIA A
BUSCAR MEDICINA Y LOS SOSPECHOSOS DESAPARECEN CON EL DINERO.
Health
Insurance Frauds
Medical Equipment Fraud:
Equipment manufacturers offer "free" products to individuals.
Insurers are then charged for products that were not needed and/or
may not have been delivered.
"Rolling
Lab" Schemes: Unnecessary and
sometimes fake tests are given to individuals at health clubs,
retirement homes, or shopping malls and billed to insurance
companies or Medicare.
Services Not Performed:
Customers or insurance providers bill insurers for services never
rendered by changing bills or submitting fake ones.
Medicare Fraud:
Medicare fraud can take the form of
any of the health insurance
frauds described above. Senior citizens are frequent targets of
Medicare schemes, especially by medical equipment manufacturers who
offer seniors free medical products in exchange for their Medicare
numbers. Because a physician has to sign a form certifying that
equipment or testing is needed before Medicare pays for it,
con-artists fake signatures or bribe corrupt doctors to sign the
forms. Once a signature is in place, the manufacturers bill Medicare
for merchandise or service that was not needed, not ordered, or
never provided.
Some Tips to Avoiding Health Insurance Frauds
1.
Never sign blank
insurance claim forms.
2.
Never give blanket
authorization to a medical provider to bill for services rendered.
3.
Ask your medical
providers what they will charge and what you will be expected to pay
out-of-pocket.
4.
Carefully review your insurer's explanation of the benefits
statement. Call your insurer and provider if you have questions.
5.
Do not do business with
door-to-door or telephone salespeople who tell you that services of
medical equipment are free.
6.
Give your
insurance/Medicare identification only to those who have provided
you with medical services.
7.
Keep accurate records of
all health care appointments.
8.
Know if your physician
ordered equipment for you.
If
you have any suspicions or indications of possible health insurance
fraud, contact your insurer and let your feelings be known.
Most insurers have special units within their company
dedicated to investigating the merits of a questionable claim that
has been submitted to them.
Counterfeit
Prescription Drugs
Some Tips to Avoiding Counterfeit Prescription Drugs
1.
Be mindful
of appearance. Closely examine the packaging and lot numbers of
prescription drugs and be alert of any changes from one prescription
to the next.
2.
Consult
your pharmacist or physician if your prescription drug looks
suspicious.
3.
Alert your
pharmacist and physician immediately if
your medication causes
adverse side effects or if your condition does not improve.
4.
Use
caution when purchasing drugs on the Internet. Do not purchase
medications from unlicensed online distributors or those who sell
medications without a prescription. Reputable online pharmacies will
have a seal of approval called the Verified Internet Pharmacy
Practice Site (VIPPS), provided by the Association of Boards of
Pharmacy in the United States.
5. Product promotions or cost reductions and other "special deals" may be associated with counterfeit product promotion.
Fraudulent
"Anti-Aging" Products
Some Tips to Avoiding Fraudulent
"Anti-Aging" Products
1.
If it sounds too good to
be true, it probably is. Watch out for "Secret Formulas" or
"Breakthroughs."
2.
Don't be afraid to ask questions
about the product. Find out exactly what it should do for you and
what it should not.
4.
Be wary of
products that purport to cure a wide variety of illnesses
(particularly serious ones) that don't appear to be related.
5.
Testimonials and/or celebrity endorsements are often misleading.
6.
Be very careful of products that are
marketed as having no side effects.
7.
Products that are advertised as
making visits to a physician unnecessary should be questioned.
8.
Always consult your doctor before taking any
dietary or nutritional supplement. Diversion burglaries are are committed by transient offenders who
have recently emigrated from Eastern European countries, to North
America. Major groups of these suspects are currently based in New
York City and the Chicago area, but travel throughout the United
States to commit their crimes. Their targets are upper middle class
residential areas that have a large population of elderly residents.
The burglary teams are normally composed of two to four people
and can vary in male/female makeup. In many instances, a male will
drive three females to the targeted area. The females will normally
scout the neighborhood on If an elderly homeowner is observed working outside of the
residence, one suspect will distract the intended victim with any
number of questions, while the unseen associates go through the
house. When the victim is inside the home…..If the door is unlocked,
the subjects simply enter the dwelling. If the door is locked, the
suspects knock or ring the bell. When contact is made with the
homeowner, (either when answering the door or if accosting the
suspect inside the home) one or two suspects distract the homeowner
and direct them toward the kitchen with such ruses as: • Feigning illness and asking for a drink of
water If at the front door, the homeowner is distracted. The suspects
may hold up a sheet, blanket, or small rug to mask the entrance of
other suspects. The unseen suspect(s) go through the house looking
for any items of value – specifically, currency, jewelry and silver.
There are generally no or very little signs of ransacking, as the
suspects very carefully and quickly go through the jewelry, etc.,
taking only the most valuable items and putting everything back into
its place. After the suspects leave, the homeowner may not realize
that anything was taken until days or weeks later. The suspects are again, normally transient criminals, who will
pretend to be legitimate workers, approaching senior citizen
homeowners at their residences with a seemingly legitimate ruse.
Their real purpose is to divert the homeowner while their
accomplices search for currency and jewelry. Some of the more frequently used ploys by these suspects are
posing as: • An employee of your local gas/electric company.
• Water department employee, to inspect the water
pipes and/or to replace the water meter. • Cable TV company employee. • Roofers • Paving company contractor. • City or town inspector. • Tree trimmer, looking for property boundaries.
• Fence installer, looking for property
boundaries. • Government personnel from a social service
agency. Many of these impostor burglars now have bogus photo
identification cards, legitimate looking work uniforms, and vehicles
made to look like government or company vehicles. They communicate
with accomplices by hand-held radios or cell phones. When posing as a utility company employee, the suspects may offer
a partial rebate by giving the victim a $100 bill and request
change. This allows the suspect(s) to observe
If you experience this type of contact at your home and you did
not solicit or expect their service - DO NOT LET THEM IN!!!
Instead, while they remain outside, contact the utility company or
agency this person claims to represent and determine if they have
employees working in your area. If you have any doubts – dial 911
and report it to the police. Although diversion and imposter burglaries are normally
considered non-violent, some suspects have gotten extremely violent
with the victims in the past when the victim either refuses to
cooperate with the distraction or attempts to stop them by calling
the police. HEAR THIS!!! …..STRANGERS ARE NOT
LIKELY TO CONFIDE IN OTHER STRANGERS REGARDING FOUND MONEY OR OFFER
TO SHARE THEIR GOOD FORTUNE WITH YOU.
THE PIGEON DROP OR This crime very often occurs in a mall or shopping
area. Normally, two female confidence operators will play the
victim, who is usually an older female. On rare occasions, one or
both of the con players may be males.
In one scenario. a well-dressed younger woman will
approach the selected mark (intended victim). The younger In a second possible scenario, the targeted victim
will be approached by a younger female who will casually start
talking to the victim, attempting to befriend her by chatting about
children or grandchildren. A third woman will then approach and
claim to be looking for the owner of a bag or envelope she claimed
to have just found, or, asking "Did either of you drop this envelope
full of money?"
When the three look inside the bag for
identification, they find what appears to be a large amount of cash
with some indication or a note indicating the source of the found
money is from an illegal activity, such as illicit gambling or
narcotics sales. There is no label or identification present in the
bag or envelope and the likelihood is that whoever lost the money
probably came by it dishonestly and cannot claim it. So, after all
three converse, returning the money to the owner is ruled out as an
option.
The scheme now unfolds where the victim now
believes that the two con women have really found a bag containing
thousands of dollars and they want to share it with her. First they will talk excitedly about how much
money is in the bag and what each could do with the money if it was
hers, skillfully drawing the victim into the benefits of the scheme.
One of the two younger women will probably claim
that she works for a local lawyer or an accountant and he will know
what to do with the lost money. They then try to draw the victim
further into the process.
A phone call is made on the spot by one of the
players and the victim is then told by con artists that she has
consulted with her boss and he stated that if they want to share the
money they will have to show proof that they have sufficient funds
to support themselves during the time the boss supposedly complies
with the law by seeking the true owner. The con artist will claim
that her boss recommends that each person put up a certain amount of
money of their own:
• to provide evidence of “individual financial
responsibility”, as good faith.
• to show that all those involved are acting
above-board.
The victim withdraws a large amount of cash from
her bank and is instructed to place it in the bag with the found
money and other "good faith" money supposedly already deposited in
the bag by the two con women. They then use a variety of tactics to dump the
victim.
The one who claims to work for a lawyer or
accountant offers to take the victim’s money to her boss and then
returns, saying the lawyer wants to talk to the victim. They give
the victim a name and address of the boss, which turns out to be
bogus.
In a second scenario, the victim may be asked to
take the bag containing the money to the bosses’ office while the
con women park the car or go to the bathroom. Out of the victim’s
sight, they have previously switched the bag for a duplicate one
containing strips of paper of similar weight.
The victim - a
pigeon - gets dropped…..holding
a bag of paper scraps – thus the name of the game. The victim not
only loses the hope of a quick profit, but also all of her own
money.
In many instances, this crime proliferates because
victims, who fear being labeled as incompetent, fail to report it to
the police. Even if you are approached by con artists attempting to
entice you into this game and you don’t participate…..report
it to the police. You might save the next person
from becoming a victim and losing their life savings.
HEAR THIS!!! …..STRANGERS
ARE NOT LIKELY TO CONFIDE IN OTHER STRANGERS REGARDING FOUND MONEY
OR OFFER TO SHARE THEIR GOOD FORTUNE WITH YOU.
AVOIDING ANNOYING PHONE CALLS & JUNK
MAIL You just sit down to dinner at home…..your phone rings……you
answer and find it’s someone trying to sell you something you really
don’t want or need. Can it be
Even though you’ve signed up, there are certain factors you
should be aware of: • Your registration doesn’t last forever.
It expires in five years. No expiration notice will be sent to you,
so keep your own records. • Some callers aren’t covered.
Nonprofit groups, charities, political organizations, and survey
companies don’t have to use the national “do not call” list. But
when charities use professional fundraisers to call, they must honor
your request not to call again. • Some companies can still call you.
Even if your number is on the registry, companies can call if: you
purchased something from them or made a payment within the previous
18 months; you asked about a product or service or submitted an
application in the past 3 months; or you have a “personal
relationship” as a friend, relative or acquaintance. But you always
have the right to tell them not to call again. • Be careful what you sign.
Companies can also call with your written permission, so look at
contracts, order forms, contest entry forms, and other things you
sign carefully to make sure you’re not agreeing to be called without
realizing it. You can withdraw consent anytime by saying, “don’t
call me again.” • It may take a while to notice fewer
calls. Telemarketers usually check the national “do not
call” registry every 31 days, so it may take that long before your
number is removed from their calling lists. • If you don’t sign up for the national
“do not call” registry, you still have rights. You can tell
companies not to call you again on a case-by-case basis. Keep a
record of their names and the dates of your requests. Filing a Do-Not-Call Complaint
To file a complaint, your phone number must have been on the
registry for 31 days. In addition to complaints alleging violations
of the national do-not-call list, you may also file a complaint
against a telemarketer who is calling for a commercial purpose
(e.g., not charitable organizations) IF: • The telemarketer calls before 8 AM or after 9 PM; OR
• The telemarketer leaves a message, but fails to leave a phone
number that you can call to sign up for their company specific
do-not-call list; OR • You receive a telemarketing call from a company that you have
previously requested not call you; OR • The telemarketing firm fails to identify itself; OR
• You receive a pre-recorded commercial message from someone with
whom you do not have an established business relationship and to
whom you have not given permission to call you. How to File a Complaint with the Federal
Communications Commission You can file a complaint by e-mail (donotcall@fcc.gov),
telephone 1-888-CALLFCC (1-888-225-5322), or mail. Your complaint
should include: • Your name, address, and telephone number where you can be
reached during the business day; • The telephone number involved with the complaint; and • As much specific information as possible, including the
identity of the telemarketer or company contacting you, the date on
which you placed your number on the national Do-Not-Call registry or
made a company-specific do-not-call request, and the date(s) of any
subsequent telemarketing call(s) from that telemarketer or company.
If you’re mailing a complaint, send it to: Federal Communications Commission - Consumer &
Governmental Affairs Bureau JUNK MAIL & PHONE SOLICITATIONS
Is your mailbox at home jammed everyday with unsolicited sales
flyers and offerings? One way of reducing the paper flow to your
home is by filing a free written request to the Direct Marketing
Association, asking to be added to a list of people that
do not want to receive
junk mail or phone solicitations. This won’t completely stop junk
mail from coming into your home, but you should see a decrease.
Write to the D.M.A. at these addresses: Direct Marketing Association Direct Marketing Association You need to send one letter to each
of the above addresses. A sample format is as follows:
Dear Sirs: I understand that the Mail Preference Service (or Telephone
Preference Service) is designed to assist consumers who would like
to receive less advertising mail at home (or less telephone sales
solicitations at home). Please register the following name(s),
address and phone number/s with the name removal file so they will
be removed from unsolicited mailing lists (or unsolicited phone
solicitation lists). Thank you very much. Name: Is Caller ID a convenient service for the consumers who like to
screen their incoming phone calls, or, has it become an avenue for
the scam artist to rip you off? A new scam is called “Spoofing”. Technology now exists that enables callers to manipulate the
phone number and even the name that shows up on the unsuspecting
recipient's Caller ID display, allowing them to masquerade as
officials of legitimate companies, churches, banks, credit card
companies and courthouses. Spoofing doesn't require any substantial investment, and there
are a number of firms that specialize in selling the service. One
such firm, with its motto "Be who you want to be," SpoofCard.com,
sells calling cards for as little as $10 for 60 minutes of talk
time. This is how it works: SpoofCard has a dedicated toll-free number
where a user enters a PIN, the desired fake caller identity and the
number they'd like to call. SpoofCard users also have the ability to select a male or female
voice. The caller speaks normally, but the person on the other end
hears the altered male or female voice selected by the caller. Companies selling Spoofing services claim its markets include
legitimate users such as private investigators, law enforcement
officials and lawyers. For example, if a law Another example could be a situation where the caller makes a
call from their personal cell phone and doesn't want the recipient
to have the cell phone number; the caller could use spoofing
technology to display their office number instead. But there is a dark side to spoofing that’s emerging at a high
rate of speed. Scam artists are using this service, persuading
consumers to reveal their Social Security numbers or other sensitive
personal information. For example - You receive an incoming call and your Caller ID
display indicates the call is coming from your local courthouse. The
caller tells you that you have failed to show up for jury duty and
requests you pay a fine or provide your SSN or other personal data
so the court may reschedule you for jury duty. If you are contacted by a person claiming to be from a jury
office, with your caller ID showing a courthouse number, requesting
that you pay a fine or provide personal information because you
missed jury duty, do not give that
person any information. Bottom line………DO NOT AUTOMATICALLY ASSUME THE INFORMATION
DISPLAYED IN YOUR CALLER ID ACCURATELY IDENTIFIES THE CALLER.
In June, 2006, the U.S. House of
Representatives passed a bipartisan measure that would make it a
crime to transmit misleading caller ID information with the intent
to defraud or harm. The perpetrators of this type of offense specifically target
senior citizens. The game is designed to take several thousand
dollars in one or multiple transactions. The seniors are selected in
many ways. These may may included criss-cross telephone books;
random telephone surveys; previous obituary notices, or observation
at banks and
shopping centers. The following is a general description of the
basic elements of the crime. Different suspects may use many
variations to convince the senior they are dealing with legitimate
law enforcement or bank personnel. The senior receives a telephone call or a visit at their home
from a person posing as a law enforcement officer, bank
The player elicits the assistance of the senior and requests they
withdraw money from their bank and not talk to anyone about the
withdrawal. Throughout the offense, the
suspect reassures the senior that their account will be replenished
and they will not loose any money. He or she may tell the senior not
to take a check, and if questioned,
tell the bank teller/manager that the money is being used for a
relative or other cash transaction. The caller tells the senior they will be met by an officer after
the withdrawal is made, either at a pre-determined location, or at
their home. The victim is instructed to give the currency they
withdrew to the officer who will take the currency for evidence. In
multiple transactions, which may continue for several days or weeks,
the senior may
receive further calls informing them of the progress of the
"investigation" and convince the senior to make further withdrawals
to reinforce the case against the dishonest
employee. Normally the same pattern is followed by the suspect when
taking the seniors money. Each year, when the weather turns nice, itinerant crews of
roofers, pavers, driveway sealers and painters travel from city to
city, driving through neighborhoods looking for Warning Signs: The repairperson drives an unmarked truck or van with an
out-of-state license plate. Many of us, especially seniors, care
deeply about others and want to do something good for those who are
less fortunate. Sadly, criminals will use these altruistic feelings
to line their own pockets. The con operator will make you think you
are giving to a good cause, but the result is that the money goes
directly to them.
The Opening Pitch: The mail and phone calls are often
used as a source of contact in many scams seeking donations for
everything from helping disabled veterans, to aiding injured
animals, to feeding orphans in Africa, to lobbying Congress about
Social Security, etc.. A common ploy is to take a current news
event, such as a natural disaster, and claim to be collecting for
that cause. The Presentation: The presentation is quite simple:
the mailer or caller describes the charity or cause in vivid detail,
making it seem worthy. The pitch may play on your feelings of guilt
over the crisis or your desire to help others. The Result: It is often difficult to determine after the fact if
the donation you made was to a bonafide charity and if the money
actually got to the cause that was presented. Some charitable
fundraisers keep over 80 percent of the money they raise. How to Avoid It: The best thing you can do
before you give to any charity is to find out how much of the money
you give goes to the charitable purpose and how much goes to the
cost of fundraising. You can do this by contacting the charity or
the Secretary of State’s office
and asking for the registration
number and financial reports for the charity in question. This
should be done before you give. Some charity minded people develop
their own annual charity-giving plan. They select charities after
investigating them thoroughly. As part of the plan, they decide how
much and to whom they will give each year and then say no thank you
when other charities call or write during the balance of the year.
This strategy allows the givers to know where their money is going
and to avoid being drawn in by a phony emotional appeal. This scam has gained momentum in recent years and is rated as one
of the most profitable current crimes affecting senior victims.
Unfortunately, it may be one of the least reported to law
enforcement. Transient male and female players, in the 30 to 50 year old age
range, normally commit these crimes. Generally, the victims are
elderly males and females – either unmarried, widowed or divorced
and living alone. These victims are usually in their late 60 to 90
years of age. At these ages, some victims can be extremely
vulnerable, manipulated, intimidated, and forgetful. The
unsuspecting victim might have the ability for easier access to
cash, possibly through savings or retirement accounts and credit
availability. The perpetrator knows that the elderly, living alone, are
sometimes lonely. Usually, the victims have been widowed and may
have lived alone for many years. The victim’s children are generally
grown and middle aged. This could mean that their children might
spend very little time with the victim, or at the very least,
communication with children might be limited. The whole scenario will start with a “chance meeting” between the
player and the intended victim. This will probably take place in a
supermarket; bank; shopping mall store, an Atlantic City or
Connecticut casino, or any public place known to be generally
frequented by our elder population. The player will lead the victim
into a casual conversation, possibly flirting with him or her, or
flattering them. During this initial contact, the player will
attempt to find out the victim's name, living arrangements, and
marital status. This is of course is done by clever conversation and
in a way that is non-invasive. The player may offer to help the
elderly victim in the future by taking them to the store or cleaning
and repairing their house. He or she will try to exchange telephone
numbers with the victim. Usually the elderly victim might be so
starved for attention and conversation that they will easily provide
their phone number. The player or one of their family members will
then follow the victim to see where he or she lives. The player will then start calling the victim and/or show up
unexpectedly at the victim’s house. They will deliberately work on
the victim's forgetfulness. At some point in the early stages, the
player will then try to reel in the victim through a sympathetic
story referencing the player’s lack of
At some stage of the sympathy routine, the player will claim to
express love for the victim. They may make overtures of a possible
future marriage to the victim. Vary rarely, if ever, will the player
allow the victim to have a sexual relationship. The player will tell
the elderly victim it's against his or her religion to allow such a
thing unless they are married. He or she will ultimately induce the victim into signing a Power
of Attorney form, providing the player with the opportunity to drain
all of the victim’s financial accounts or even sell the victim’s
house right out from under them. In many of these cases, the player
will also take out a very large life insurance policy on the victim,
naming himself or herself or an associate as the beneficiary. The sweetheart scam will continue until either the victim dies
and/or the perpetrator fears that the police might become involved.
Very rarely will the victim call the police. Usually it's the
victim's family that eventually discovers the scam and reports it
against the victim’s wishes. If family members discover the scam,
it's usually been operating for many months. When confronted by
police, the victim may or may not remember every incident in which
they have been scammed for money during this relationship. However,
the victim will generally remember that the perpetrator promised to
pay him back. The victim will also be reluctant to cooperate because
they’re in love, scared, or embarrassed. The victim's memory may
also be poor, making them a poor witness in a future prosecution.
If the transient criminal believes they are going to get caught,
they will flee the jurisdiction, changing their identities in
different states. However, if the player is caught, he or she will
offer the victim "most" of the property or money back. The players
will then tell law enforcement it wasn't their intent to steal from
the victim and they promised to pay everything back. They will
justify any items they wrongfully obtained as being “gifts”. If you’re living alone and lonely, don’t get caught up in this
situation. No good will ever come from this type of relationship!!!! Lottery and sweepstakes scams seem
to be increasing at an alarming rate throughout the world and
specifically, in the United States. Although many may have their
origins in Canada, still many others are based in various parts of
the world. These scam lotteries have been around for a long time and
they remain a huge source of revenue for con operators.
Intended victims receive a mailed, e-mailed, or telephone
notification, advising they have won thousands of dollars in a
lottery. If in letterform, the letter comes with official looking
seals and appears very authentic. The catch is that the "winner" has
to pay a processing fee, taxes or some other amount before receiving
the expected windfall. Are you feeling lucky?
Every month bogus international or Canadian Lottery scams
drain millions of dollars from a rather large number of Americans. A
majority of the victims targeted by these con artists are senior
citizens, on a fixed income, who are least likely to financially
sustain or recover from the loss. In the Canadian
lottery-based scam, U.S. residents receive a letter, email or a
phone call, stating they are on a winners list and are immediately
eligible to participate and collect the entire share of the
proceeds. In order to collect the money, arrangements need to
be made very quickly in advance. “Winners” are told they must
pay a variety of up front fees - (taxes, insurance fees, handling
costs, etc.). This amount can range anywhere from hundreds of
dollars to many thousands. The winner is told he or she must
send the fees right away to remain eligible. This gives the
victim no time to think about the lottery or consult with a friend
or family member for their thoughts. Once the fees are sent to
the scammer - reality sets in.
There are no lottery winnings. Some of these lottery
scams may take place over the phone, so there is rarely a paper
trail. What’s important for you to know about lottery scams?
The best advice we can give you is -
JUST SAY NO.
Think about it – if you didn’t play this lottery, how could you be a
winner? Legitimate
lotteries will not require any prepayment of taxes,
insurance,
handling costs, or other fees. These payments are taken
directly from the winnings. If you haven't gone to the foreign
country to enter a sweepstakes -
you cannot win. Here’s a scenario.
A targeted victim is contacted by phone or letter, stating
they have been selected and won a huge amount of money in a
sweepstakes. The call or letter is followed by a check -
possibly in the amount of $5,000 or more, payable to the victim.
Included with the check is an authentic looking certificate
proclaiming that you won.
The certificate or letter will promise that remaining
winnings will be distributed over the next few months. The
check will look very legitimate. It may even be stamped
“certified” and is drawn on a legitimate bank. Look closely at
the check and you will see there is probably no address or phone
number for the account holder. The victim then cashes the
check and is immediately contacted again by the scammer who tells
the victim that he/she must pay taxes, insurance, handling costs and
other fees to start receiving their winnings. The victim is
then directed to wire money to a destination either inside or
outside the United States. Remember that lottery check for
$5,000 or more that you cashed? The check is eventually
returned as bogus and the bank information on the check is no good.
Now the bank where you cashed that check is looking for you
to repay that money back to them.
Here
are some of the common phrases that appear on a bogus lottery
winner’s notification: FROM: THE DESK OF MANAGING
DIRECTOR "Due to the mix up of some
numbers and names, we ask that you keep this award strictly from
public notice until your claim has been processed and your money
remitted to your account. This is part of our security protocol to
avoid double claiming or unscrupulous acts by participants of this
program." “Any breach of confidentiality
on the part of the winners will result to disqualification." "You are seriously advised to
keep all winning lottery information and numbers from the public in
line with "All participants were selected
randomly from World Wide Web site through computer draw system and The most important fraud indicator
is a request for money.
Lottery scam letters are part of what is called an Advance Fee
Fraud. If you have won a legitimate lottery, you do not pay
any upfront fees to anyone…. at any time…. for any reason.
You pay income taxes to your government only by filing your
government's income tax forms and sending your money directly to
your government yourself.
In a legitimate lottery from another country, any taxes or
other fees are removed directly from the winnings - before
the payout. No legitimate lottery web site
exists without their lottery rules posted. Legitimate rules can be
verified by going to the web site of government-sponsored lotteries. A statement that the funds will be
sent to you by a courier or security service and that you have to
pay the courier service for the delivery and/or storage. You are told that you have to
travel to the foreign country where the lottery was held in order to
claim your winnings. This is just a trick to get you to say that you
will not travel to any country to pick up your winnings. Their reply
is to give you all kinds of phony reasons for paying these false
fees in order to get the winnings to you. The check they sent you is written
on the account of a person or company you do not know, or, you are
sent a cashier's check (bank check). Either way, you are told that
you must deposit or cash the check and send or wire some or all of
the money, either back to them, or on to another person.
THE CHECK IS COUNTERFEIT
and you will be held responsible for the full value
of the check if it’s cashed. The Federal Trade Commission
offers this word of caution. If you purchase one foreign
lottery ticket, you can expect many more bogus offers for lottery or
investment opportunities. Your name will be placed on a
"sucker list" that fraudulent telemarketers buy and sell. Con artists take advantage of consumers who are low on cash
during the holidays by offering personal loans or credit cards for a
fee upfront. Instead of alleviating financial woes, these scammers
will make things worse by stealing This scheme usually involves the sale of expensive items. The
legitimate seller finds a (crooked) buyer who sends a cashier’s
check for several thousand dollars more than the
purchase price of the item up for sale. The con artist then asks the
seller to simply refund the difference by wire transfer. The
original “cashiers” check is a counterfeit
and so the seller loses the item and the “refund” since the bogus
check often escapes detection (even by the seller’s bank) until
after the refund is made. According to the Better Business Bureau of Upstate New York,
scammers, posing as private companies, are using telemarketing and
email to try to steal money and financial information from Medicare
patients. Legitimate Medicare
providers are not allowed to market the drug plans via unsolicited
emails or door-to-door. In order to contact consumers over the
telephone, they must observe federal and state “Do Not Call” laws.
Consumers who encounter
anyone claiming to be a private company offering a Medicare drug
plan should ask them to send information about their plan via
regular mail. Do not give out
any personal or financial information over the telephone. You can
also verify the legitimacy of any provider that contacts you by
calling the Medicare toll-free phone number, 1-800-MEDICARE
(633-4227), which is open 24 hours a day. Skimmers: Credit card
readers are found just about anywhere that money changes hands: at
stores, restaurants, A.T.M.'s, or gas pumps. A simple swipe of your
credit card can pass along your account number, name, address and
phone number. On financial cards, the stripe on the back of the card
has three tracks of data that contain information like account
number, account holder's name, card expiration date and PIN code.
There is also a field for discretionary data, which might include
further security information or link the card to another account. If
you haven't already heard, there's a more aggressive means of
identity theft & credit card number snatching going on... thieves
are now using battery-powered devices called “Skimmers” (also known
as “Wedges”). These are basically the magnetic reader component of a
credit card scanner device, married to memory, and made highly
portable. (They range in size and shape, but are basically small
enough to fit in your hand or your pocket). Using a “skimmer”,
thieves scan one or more cards & download the full track data from
that card into a PC/laptop.
The Jury Duty Scam: This
is a rather new scam that has hit the region. An angry caller
contacts people by phone, informing them they failed to appear for
jury duty as instructed. The caller might threaten the victim with
arrest. The victim insists they never received a jury duty notice or
summons. The caller then says the matter can be resolved if the
victim provides personal information such as social security number,
bank account information, or credit card information to verify their
identity so that a new notice or summons can be sent or so that no
penalty is imposed. Be aware that no local, state, or federal court
ever contacts potential jurors by phone, asking for confidential
information.
Bogus Credit Card offers:
A bogus telemarketer may tell you that you qualify for a credit card
as long as you have an existing bank account. Once they have that
account number, however, your money is stolen right from your
account. You can identify these scams easily because it is against
the law to charge upfront money for a credit card.
Scamming: Through third-party marketing agreements,
many trusted retailers may provide their customers’ credit card
information to unscrupulous business partners. As a result,
consumers may find themselves charged for products or services
without knowingly agreeing to any purchase. It often happens when
consumers accept a “free” coupon or “free trial” offer without being
told their acceptance will result in a significant charge on their
credit card. Carefully review your credit card statements each month
to insure no mysterious purchases appear. The elderly are particularly susceptible to scams and cons and
new ones seem to pop up every day. The “Grandparent Scam” is
specifically aimed at victimizing a
A living trust is a legal agreement where a person, called a
grantor, gives property to a trustee to hold for the benefit of a
beneficiary. A living
trust goes into effect while the individual is still living. A
designated beneficiary receives the assets upon the person's death.
Living trusts can have an advantage over traditional wills.
Specifically, it might allow heirs to avoid probate court,
which may be time-consuming and/or expensive.
As an alternative, you might wish to consider joint tenancy
with right to survivorship and multiple party accounts with
financial institutions.
These are common and inexpensive methods of avoiding probate. The vast majority of financial services people are professionals
and do a great job, but some may be out to rip you off.
Living trusts can be a useful estate-planning tool, but can also be
used as a vehicle by unscrupulous salespeople to induce seniors into
purchasing bogus trusts If you're age 50 or older, you should be very careful when buying
a living trust. This age group is often a focus area of salespersons
whose only aim is to sell you something without carefully analyzing
your needs. A senior doesn’t want to leave a
messy estate for his or her children.
Unfortunately, scam artists exploit these good intentions.
They pressure people into buying things they don't need.
Sadly, some untrustworthy salespeople or insurance agents,
generally functioning through what’s called a “trust mill”
operation, will tell seniors horror stories about the probate
process and exaggerate the benefits of a living trust as they seek
to exploit a senior’s fears that probate costs will eat up their
estates. Living trust sales are a growing area of
consumer fraud. Con artists make millions of dollars every year
selling unnecessary or bogus trusts. Each year, thousands of senior
consumers lose large sums of money through the purchase of living
trusts. Often, families
can face potentially greater costs after the consumer's death,
resulting from problems associated with a trust.
3.
Research a
product thoroughly before buying it. Call the Better Business Bureau
to find out if other people have complained about the product.
foot and the driver will park away from the area or cruise. These
females will walk through the area, singularly or in pairs,
searching for targets of opportunity. In heavily populated areas,
the suspects may focus on elderly victims out shopping and follow
them home or befriend them and accompany them home.
• Pretending to have a package to deliver to a neighbor
• Asking for paper to leave a note for a neighbor
• Asking if the house is for sale, flowers for sale etc.
• Looking for a lost dog or cat
and
determine where the victim keeps their money in the home. The victim
is distracted, either inside the house by turning a light switch on
and off, knocking on water pipes, turning faucets off and on, etc.;
or showing the victim damage outside of the home, determining
property lines, etc. Once the victim is distracted, the unseen
associate/s enters the home and removes the money and jewelry. In
some cases, the suspects have also removed small safes from the
home.
"FOUND MONEY" SCAM
woman will claim she has just found a bag, briefcase or envelope and
ask the intended victim about the ownership.
TELEMARKETING PHONE CALLS
annoying?…You
bet!!! You might not be able to eliminate the problem entirely, but
you can reduce it somewhat. Try signing up with the “Do Not
Call” registry. This is a free service. Just call 1- (888)
382-1222. If you have a personal computer, with access to the
Internet and an email address, you can also register online at
www.donotcall.gov. If you
register online, the Do Not Call system will send a response to your
email address with a link that must be clicked on within 72 hours in
order to complete your registration.
Consumer Inquiries and Complaints Division
445 12th Street, SW
Washington, DC 20554
Telephone Preference Service
P.O. Box 9014
Farmingdale, NY 11735-9014
Mail Preference Service
P.O. Box 9008
Farmingdale, NY 11735-9008
Address:
Phone:
enforcement officer is attempting to find a suspect and has reason
to believe that person is at a particular residence, the
investigator probably wouldn't want to place a call with telltale
police department information showing up on the caller ID.
THE BANK
EXAMINER CON
security,
or other official. They are told that there is a
"problem" at their bank. The criminal may claim that other accounts
are also involved and others have agreed to assist in the
investigation. The victim is often informed that a person at their
bank is dishonest and is stealing from the accounts.
HOME
IMPROVEMENT SCHEMES
victims. Sometimes they offer to pave or seal your driveway, repair
your roof, or paint your house with supplies “left over” from
another job. This is just a scam. The repair work is completed very
quickly, the quality is poor and the “repairs” usually cost more
than the original verbal estimate you were first given.
The worker has no business identification, local address, or
telephone number.
You are offered a “special price” if you sign today.
The worker wants upfront cost or fees, or accepts only cash.
No written estimates or contracts are provided. The worker does not
have any references.
The offer sounds “too good to be true.”
Generally, work that “adds to or
subtracts from real estate” requires a licensed or registered
contractor. If you are planning to hire a contractor, make sure the
contractor is registered/licensed, insured and bonded. Check the
contractor’s references. Solicit several written bids.
CHARITY SCAMS
finances.
This might be done with idle comments about not being able to get a
job and their inability to feed their children. There may come a
point where the player will ask to borrow some money. The elderly
victim usually gives the player grocery money, either out of
sympathy or feeling pressured. The player continues the sympathetic
routine, continually escalating the finances needed. The player may
claim he or she cannot afford to buy furniture and will take the
elderly victim to a furniture store. Next, they will have the victim
charge thousands of dollars in furniture. All charges are usually in
the victim's name. This is sometimes followed by claims that the
player’s trying to get a job, but needs a car to secure employment.
The player will then take the elderly victim to a car dealer. In
many instances, the victim walks away after purchasing an
extravagant vehicle in the price range of $30,000.00 to $60,000.00
dollars.
INTERNATIONAL
LOTTERY SCAMS
FROM: THE DESK OF THE DIRECTOR OF PROMOTION
FROM: INTERNATIONAL PROMOTION/PRIZE AWARD DEPT.
FROM THE DESK OF THE PROMOTIONS MANAGER,
INTERNATIONAL PROMOTIONS AWARD DEPARTMENT
INTERNATIONAL PROGRAM INTERNATIONAL
INTERNATIONAL PROGRAMS
INTERNATIONAL PROMOTION/PRIZE AWARD DEPT
INTERNATIONAL PROMOTION/PRIZE AWARD DEPT.
INTERNATIONAL PROMOTIONS / PRIZE AWARD DEPARTMENT,
INTERNATIONAL PROMOTIONS/PRIZE AWARD DEPARTMENT
INTERNATIONAL PROMOTIONS/PRIZE AWARD DEPARTMENT,
INTERNATIONAL PROMOTIONS/PRIZE AWARD DEPARTMENT.
INTERNATIONAL PROMOTIONS/PRIZE AWARD DEPT
“All participants were
selected through a computer ballot system drawn from 30,000 names
from Australia, New Zealand, America, Asia, Europe, Africa, USA and
North America as part of our International Promotions Program, which
will subsequently be conducted annually”.
The mention of any kind of
“claim agent.”
our company security protocol to avoid double claiming and
unwarranted abuse of this program by unscrupulous individuals."
extracted from over 100,000 companies."OTHER
BOGUS LOTTERY FRAUD FACTORS:
DO NOT BECOME A
VICTIM!!! IF YOU DID NOT
PLAY A LOTTERY – HOW COULD YOU POSSIBLY BE A WINNER?
Bogus promises for credit or loans
any “up front” money you provide.
The Check
Cashing Scam
Medicare prescription drug scams
When making a purchase, try to keep your credit card within
your line of sight. Again, carefully review your credit card
statements each month to insure no mysterious purchases or
transactions appear.
THE GRANDPARENT
SCAM
senior citizen. The scammer, posing as a grandchild, randomly
telephones a senior an unravels a tale of woe, claiming they are in
trouble and need some money sent
right away. Unfortunately, the internet provides many websites a
thief can access to obtain information on anyone, including the
elderly.
The phone rings and you answer. The conversation may go something
like this:
Caller: “Hi Grandpa, do you know who this is?”
The caller is fishing for information because he may or may not know
the name of the supposed grandson.
Grandparent: Answers “Is this Tom?”
Elderly person will respond, thinking it's one of their
grandchildren.
Caller: “Yes Grandpa – it’s Tom and I’m in trouble”.
The scammer then spells out a bogus problem, saying he is away from
home and in a serious fix, needing some money right away,
"and please don't tell my mom or dad." The caller
may claim they are in jail for a minor offense and need bail money
to get out, or, this con
artist convinces the grandparent to drive to a Western Union and
wire him $550 so he could get his car out of the tow yard.
The grandparent obligingly wires a few hundred dollars or a provides
a credit card number, thinking they're helping a grandchild.
Very few people will hang up on a caller posing as a family member.
That is why this scam is effective and costly to the elderly.
What to do if you’re approached in this manner
●If the person asks for money, be sure
to confirm that it’s really a relative – ask a question or two that
only a relative would know the answer to.
● Go with your gut – if you
don’t feel comfortable with the situation, say no and hang up the
telephone.
● The person that’s calling you
is attempting to commit a crime –
REPORT IT TO THE POLICE.
LIVING TRUSTS…..
CAN SOME BE SCAMS?
"809" PHONE SCAM
The Federal Communications Commission
(FCC) has become aware of a long distance phone scam that may lead
consumers to inadvertently incur high charges on their phone bills.
The Scam Works Something Like This
·
You get an
e-mail, voicemail, or page telling you to call a phone number with
an “809”, “284”, “876” (or some other three-digit) area code to
collect a prize, find out about a sick relative, engage in sex talk,
etc.
·
You assume
you are making a domestic long distance call – as “809”, “284”,
“876” (and other three-digit area codes involved in this scam)
appear to be typical three-digit U.S. area codes.
·
When you
dial the “809”, “284”, “876” (or other three-digit) area code plus
the number, however, you’re actually connected to a phone number
outside the United States, often in Canada or the Caribbean, and
charged international call rates. (In this case, “809” goes to the
Dominican Republic, “284” goes to the British Virgin Islands, and
“876” goes to Jamaica.)
·
You don’t
find out about the higher international call rates until you receive
your phone bill.
Minimize the Risk of This Happening
to You
·
Check any
area codes before returning calls.
·
If you do
not otherwise make international calls, ask your local phone company
to block outgoing international calls on your line.
File a Complaint with the FCC
If you are billed for a call you made
as a result of this scam, first try to resolve the matter with your
telephone company. If you are unable to resolve it directly, you can
file a complaint with the FCC. There is no charge for filing a
complaint. You can file your complaint using the on-line complaint
Form 2000B found on the FCC Web site at
www.fcc.gov/cgb/complaints.html.
You can also file your complaint with the FCC’s Consumer Center by
e-mailing
fccinfo@fcc.gov;
calling 1-888-CALL-FCC (1-888-225-5322) voice or 1-888-TELL-FCC
(1-888-835-5322) TTY; faxing 1-866-418-0232; or writing to:
Federal Communications
Commission
Consumer & Governmental Affairs Bureau
Consumer Inquiries and Complaints Division
445 12th Street, SW
Washington, DC 20554.
What to Include in Your Complaint
The best way to provide all the
information the FCC needs to process your complaint is to complete
fully the on-line complaint Form 2000B. If you do not use the
on-line complaint Form 2000B, your complaint, at a minimum, should
indicate:
·
your name,
address, e-mail address, and phone number where you can be reached;
·
the
telephone and account numbers that are the subject of your
complaint;
·
the name
and phone numbers of any companies involved with your complaint;
·
the amount
of any disputed charges, whether you paid them, whether you received
a refund or adjustment to your bill, the amount of any adjustment or
refund you have received, an explanation if the disputed charges are
related to services in addition to residence or business telephone
services; and
·
the details
of your complaint and any additional relevant information.
Filing a Complaint with the Federal
Trade Commission (FTC)
If you feel that you are a victim of an
international phone scam, you can file a complaint with the FTC
online at
https://rn.ftc.gov/pls/dod/wsolcq$.startup?Z_ORG_CODE=PU01.
You can also submit a complaint by calling the FTC toll-free at
1-877-382-4357 (voice) or 1-866-653-4261 (TTY), or writing to:
Federal Trade Commission
CRC-240
600 Pennsylvania Ave., NW
Washington, DC 20580.
For More Information
For information about other
telecommunications issues, visit the FCC’s Consumer & Governmental
Affairs Bureau Web site at
www.fcc.gov/cgb,
or contact the FCC’s Consumer Center using the information provided
for filing a complaint.
“PHISHING”
Phishing or brand
spoofing is a scam technique that uses email messages that appear to
come from legitimate businesses that you may be dealing with, such
as banks, insurance companies, credit card companies, investment
brokers, online retailers, or online organizations such as eBay;
PayPal; MSN; AOL; Yahoo; Earthlink; etc. These messages will look
very authentic and display corporate logos and use formats similar
to the ones used by the real companies. In certain scenarios, the
scam message might ask for verification of certain personal
information, such as account numbers and passwords, allegedly for
auditing or updating their records.
Unfortunately, a high percentage
of people respond to these emails, sustaining financial losses;
making them identity theft victims, or victims of other fraudulent
activity.
TIPS:
-
Watch out for any strange emails. If you have
any doubts about the authenticity of an email, immediately
contact the company the email claims to represent. To check
whether the message is really from the company or agency, call
that company directly or go to its Web site (you can use a
search engine to find it). DO NOT respond to
the email and provide any personal information. DO NOT
click on links within emails that ask for your personal
information.
-
Beware of “pharming.”
This is a recent latest version of online ID theft.
A virus or malicious program is secretly planted in your
computer and hijacks your Web browser. When you type in the
address of a legitimate Web site, you’re taken to a fake copy of
the site without knowing it. Any personal information you
provide to the phony site, such as your password or account
number, can be stolen and fraudulently used.
-
Never enter your personal information in a pop-up screen.
In some occasions, a phisher will direct you to a real
company’s, organization’s, or agency’s Web site, but then an
unauthorized pop-up screen created by the scammer will appear,
with blanks in which to provide your personal information. If
you fill it in, your information will go to the phisher.
Legitimate companies, agencies and organizations don’t ask for
personal information via pop-up screens. Install pop-up blocking
software on your computer to help prevent this type of phishing
attack.
-
Protect your computer with spam filters, anti-virus and
anti-spyware software, and a firewall, and keep them up to
date.
A spam filter can help reduce the number of
phishing emails you get. Anti-virus software, which scans
incoming messages for troublesome files, and anti-spyware
software, which looks for programs that have been installed on
your computer and track your online activities without your
knowledge, can protect you against pharming and other techniques
that phishers use. Firewalls prevent hackers and unauthorized
communications from entering your computer.
This becomes extremely important if you have a broadband
connection because your computer is open to the Internet
whenever it’s turned on. Look for programs that offer automatic
updates and take advantage of free patches that manufacturers
offer to fix newly discovered problems.
-
Only open email attachments if you’re expecting them and know
what they contain.
Even if the messages look like they came from people you know,
they could be from scammers and contain programs that will steal
your personal information.
-
Know that phishing can also happen by phone.
You may get a call from someone pretending to be from a company
or government agency, making the same kinds of false claims and
asking for your personal information.
-
If someone contacts you and says you’ve been a victim of fraud,
verify the person’s identity before you provide any personal
information.
Legitimate credit card issuers and other companies may contact
you if there is an unusual pattern indicating that someone else
might be using one of your accounts. But usually, they only ask
if you made particular transactions; they don’t request your
account number or other personal information. Law enforcement
agencies might also contact you if you’ve been the victim of
fraud. To be on the safe side, ask for the person’s name, the
name of the agency or company, the telephone number, and the
address. Get the main number from the phone book, the Internet,
or directory assistance, then call to find out if the person is
legitimate.
-
Be suspicious if someone contacts you unexpectedly and asks for
your personal information.
It’s hard to tell whether something is legitimate by looking at
an email or a Web site, or talking to someone on the phone. But
if you’re contacted out of the blue and asked for your personal
information, it’s a warning sign that something is “phishy.”
Legitimate companies and agencies don’t operate that way.
Act immediately if
you’ve been hooked by a phisher.
If you provided account numbers, PINS, or
passwords to a phisher, notify the companies with whom you have the
accounts right away. For information about how to put a “fraud
alert” on your files at the credit reporting bureaus and other
advice for ID theft victims, contact the Federal Trade Commission’s
ID Theft Clearinghouse,
www.consumer.gov/idtheft or 877-438-4338.
Report any instances
of phishing, whether you’re a victim or not.
Tell the company or agency that
the phisher was impersonating. You can also report the problem to
law enforcement agencies.
The information you provide helps to stop identity theft.
Please refer to the "Links"
portion of our website at the top of the opening page for the
various websites that offer information on the issue of
Identity Theft.
"PUMP & DUMP SCHEMES"
"Pump and dump"
schemes, also known as "hype and dump manipulation," involve the
touting of a company's stock (typically microcap companies) through
false and misleading statements to the marketplace. After pumping
the stock, fraudsters make huge profits by selling their cheap stock
into the market.
Pump and dump schemes often occur on
the Internet where it is common to see messages posted that urge
readers to buy a stock quickly or to sell before the price goes
down, or a telemarketer will call using the same sort of pitch.
Often the promoters will claim to have "inside" information about an
impending development or to use an "infallible" combination of
economic and stock market data to pick stocks. In reality, they may
be company insiders or paid promoters who stand to gain by selling
their shares after the stock price is "pumped" up by the buying
frenzy they create. Once these fraudsters "dump" their shares and
stop hyping the stock, the price typically falls, and investors lose
their money.
Check out the U.S. Securities and
Exchange Commission website. Click on
http://www.sec.gov/index.htm
“BOILER ROOM”
INVESTMENT SCAMS
Securities regulators estimate that investors may lose billions of
dollars a year to investment fraud promoted over the telephone.
High-tech schemes and self-employment scams are typical investment
deals heavily pushed by "boiler rooms" or high-pressure telephone
sales operations.
Detecting a "Boiler Room" Operation:
High-pressure sales tactics.
A salesperson may make
repeated calls to you. If you express any hesitation about investing
your money, the caller may become abusive and question the
intelligence of someone who would pass up such a "sure thing."
Bogus promises of extraordinarily high profit at little or no risk.
The general rule to
follow is: The higher the return, the higher the risk.
Listen for salespeople who claim it is possible to make extremely
high (30, 40 or 50%) or even "guaranteed" profits, without any risk
of loss. Most legitimate firms will provide written materials
clearly disclosing the potential for loss in an investment, as well
as the short- and long-term tax implications of an investment.
A demand for an immediate decision.
Boiler room
salespeople want fast action before you have a chance to develop
second thoughts or consult with a professional for advice. As a
result, many deals will be "gone tomorrow," "sold out today" or have
"just one or two remaining openings."
A reluctance to provide information about the sales firm or the
investment.
If a boiler room is uncovered, it may be subject to
state or federal action. Therefore, some telephone solicitors may be
evasive when questioned about their sales operation or the
investments they're promoting.
Statements about "inside information" or "secret" technology.
In order to close a sale, the voice on the other end of the phone
may tell you that this is a "sure thing." A common claim is that
celebrities, major corporations or banks will be investing shortly.
Or the salesman may claim that a new geological report is coming out
shortly. In other cases, the claim may be that the company is using
some sort of hush-hush "black box" technology that makes it possible
to process gold at a fraction of the cost paid by other firms.
Delayed delivery of the product and/or profits.
This is a "red flag" of an investment scam. If you don't have
your investment in hand or under your control in some other
location, you have nothing for your money. Beware of promises
involving delays of more than a few weeks for delivery of your
investment.
Unusual arrangements for collecting funds from investors.
Some con artists try to avoid mail fraud charges by using overnight
courier services. Other phone scam operations go even further -
sending a courier or cab to pick up the check. No matter what
unusual collection method is used, the purpose is the same: Don't
give customers enough time to back out of sending money.
What to Do If You're Contacted by a "Boiler Room"
-
When hounded by
high-pressure sales tactics on the telephone, simply
hang up.
-
Don't be misled
into believing that you've been "specially chosen" to receive
the salesperson's offer. Salespeople often call hundreds of
prospects daily with automated phone technology, and they may
use the same sales script to tell everyone that they're getting
a "special deal."
-
Don't be
impressed by a salesperson's title. The "senior vice president"
on the telephone line may really be just a junior employee of
the firm. Titles can be easily handed out to salespeople without
any relationship to their actual work experience.
-
Don't feel
foolish for failing to act on a caller's sales pitch. If the
caller truly had a great investment prospect, would he or she be
phoning strangers? Remember that salespeople make money through
commissions on sales; if they don't sell you anything,
they may not earn anything.
-
Do not make an
immediate decision. Get written information first about the
firm, the salesperson and the investment. Ask the salesperson to
provide any promises or claims in writing. Always feel free to
seek independent advice about potential investments from a
trusted professional (lawyer, accountant or broker).
-
Know your risk
tolerance for a possible loss of your invested monies.
-
Avoid
investments you do not understand. The greater your degree of
ignorance, the greater the chance that you will be swindled. Be
wary of investments in less seasoned companies, businesses that
are long on promise and short on operating history.
- Don't give out your credit card number or other personal financial information over t