Category Archives: Important Alerts & Scams

Avoiding Money Wiring Scams

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financial crookImposters. Impersonators. Fakes. Frauds. Phonies. You might call them by different names, but these scam artists have one thing in common: they pretend to be someone they aren’t and tell you a bogus story to con you into wiring them money.

The crooks will give you a pretty convincing reason to wire money. They might say you owe the IRS taxes and you’ll be arrested if you don’t pay up. Or that you won a federal grant and have to pay a processing fee to get your money. Some even tell you a loved one’s in trouble and needs your help.

They might tell you to use a money wiring service to add funds to a 16-digit account number they give you — they say it’s your case number or account number, but it’s not. Once the transfer goes through, the money’s gone and you can’t get it back.

Government agencies will never ask you to pay by wiring money. Neither will legitimate businesses. If someone insists you pay by wiring money, it’s a scam. Don’t do it. Instead, report it to the Federal Trade Commission at reportfraud.ftc.gov or 1-877-FTC-HELP.

 

Want to help the people you care about avoid a money wiring scam? Watch the short video: Money Wiring Scams

 

Beware of Counterfeit Clothes and Scam Websites

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It’s important to know that there are scam artists out there who will try to take advantage of you. Be on your guard from a new influx of counterfeit clothes and scam websites. The internet has been a great asset to US clothing shoppers looking for good buys on the best brands. Unfortunately, it has also been a great asset to criminals dealing in counterfeit clothes they try to pass off as the real thing. While the illegal market in fake top brand clothing predates the World Wide Web, the Internet has opened up new avenues of opportunity for those dealing in counterfeit clothes.

The United States has seen a large rise in scam websites that typically promise that popular and expensive items of clothing manufactured by the best known brands can be had at bargain prices. They often have fake web addresses that falsely give the impression that they are operating in the US, when in fact the website owners may be scammers operating out of other countries.

The quality of the clothes is often far below the standards set by the real manufacturers, with some websites operating with no actual inventory. Consumers order, their money is accepted, but they never receive anything at all.

The dealing in counterfeit clothes is not some small scale operation. The sums of money involved are huge, with some estimates putting the total take of larger scam websites at millions of dollars per year. The counterfeit clothes racket also ties into other criminal activities, such as banking fraud and identity theft. Once you give a criminal organization your credit card number, there are a wide array of illegal ways it can be used to rob you again.

Because the clothing scam websites are located overseas, it can be all but impossible to complain about poor quality, orders never received or seek relief in the United States legal system. Even reporting the scammers to the law enforcement agencies of the countries from which they operate will seldom bring any results. Sometimes action can be taken to de-register the scam sites so that others won’t get duped, but even this can be ineffective.

The market for counterfeit clothes is not confined to the United States. In Great Britain last year, hundreds of scam shopping websites were closed for selling fake designer clothing and jewelry. In Ireland, poorly made counterfeit clothing became so widespread that the European Consumer Centre made a special plea to consumers to be cautious when buying clothes online.

The center strongly advises “consumers to do comprehensive research on a trader when shopping on the Internet” a spokeswoman said. She continued to suggest that customer look for contact details, as any missing information is a red flag.

It’s also important to know what too look for with counterfeit products. Examine the product as closely as you can online, counterfeit designer goods often have logos that are fuzzy, misspelled, or otherwise off from the brand, something a high quality designer would never allow to ship. The stitching on counterfeit merchandise is often sloppy. If you can see the stitching without much effort, it is nearly guaranteed to be a fake.

Caution should always be used online, but becoming familiar with the genuine product and examining potential deals is one of the best ways to stay safe.

As counterfeit production becomes more elaborate, the proper tags do not necessarily mean a genuine product. As a result, many manufacturers of high quality clothing have taken extra steps to ensure their product stands out. Holographic logos and serial numbers are just a few methods that can ensure a legitimate purchase. Know the designer’s key marks and beware of products that lack them.

Be cautious of high fashion clothing being advertised at greatly reduced prices and only pay using a secure, refundable, method such as a credit card or a secure service such as PayPal.

Make sure you use online retailers that do provide genuine merchandise at a discount. In the end, you’re your own best advocate to prevent getting scammed. Use your common sense and know what you’re buying, and remember the old saying that “if it seems too good to be true, then it probably is.”

IRS Warning About Phone Scams

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scamThe Internal Revenue Service and the Treasury Inspector General for Tax Administration (TIGTA) often hear from taxpayers who have received unsolicited calls from individuals demanding payment while fraudulently claiming to be from the IRS.

“There are clear warning signs about these scams, which continue at high levels throughout the nation,” said the IRS Commissioner. “Taxpayers should remember their first contact with the IRS will not be a call from out of the blue, but through official correspondence sent through the mail. A big red flag for these scams are angry, threatening calls from people who say they are from the IRS and urging immediate payment. This is not how we operate. People should hang up immediately and contact TIGTA or the IRS.”

Additionally, it is important for taxpayers to know that the IRS:

  • Never asks for credit card, debit card, or prepaid card information over the telephone.
  • Never insists that taxpayers use a specific payment method to pay tax obligations
  • Never requests immediate payment over the telephone and will not take enforcement action immediately following a phone conversation. Taxpayers usually receive prior notification of IRS enforcement action involving IRS tax liens or levies.

Potential phone scam victims may be told that they owe money that must be paid immediately to the IRS or they are entitled to big refunds. When unsuccessful the first time, sometimes phone scammers call back trying a new strategy.

Other characteristics of these scams include:

  • Scammers use fake names and IRS badge numbers. They generally use common names and surnames to identify themselves.
  • Scammers may be able to recite the last four digits of a victim’s Social Security number.
  • Scammers spoof the IRS toll-free number on caller ID to make it appear that it’s the IRS calling.
  • Scammers sometimes send bogus IRS emails to some victims to support their bogus calls.
  • Victims hear background noise of other calls being conducted to mimic a call site.
  • After threatening victims with jail time or driver’s license revocation, scammers hang up and others soon call back pretending to be from the local police or DMV, and the caller ID supports their claim.

If you get a phone call from someone claiming to be from the IRS, here’s what you should do:

  • If you know you owe taxes or you think you might owe taxes, call the IRS at 1.800.829.1040. The IRS employees at that line can help you with a payment issue, if there really is such an issue.
  • If you know you don’t owe taxes or have no reason to think that you owe any taxes (for example, you’ve never received a bill or the caller made some bogus threats as described above), then call and report the incident to TIGTA at 1.800.366.4484.
  • You can file a complaint using the FTC Complaint Assistant; choose “Other” and then “Imposter Scams.” If the complaint involves someone impersonating the IRS, include the words “IRS Telephone Scam” in the notes.

Taxpayers should be aware that there are other unrelated scams (such as a lottery sweepstakes) and solicitations (such as debt relief), that also fraudulently claim to be from the IRS.

The IRS encourages taxpayers to be vigilant against phone and email scams that use the IRS as a lure. The IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels. The IRS also does not ask for PINs, passwords or similar confidential access information for credit card, bank or other financial accounts. Recipients should not open any attachments or click on any links contained in the message. Instead, forward the email to phishing@irs.gov.

For more information or to report a scam, go to www.irs.gov and type “scam” in the search box. More information on how to report phishing scams involving the IRS is available on the genuine IRS website, IRS.gov.

Summer Vacation Scams: Possible Hazards of Hoteling

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Customers paying at the hotelBooking a hotel stay for a summer vacation? Before you check in, check out how scammers can try to take advantage of travelers.  Always be aware and on the lookout for possible scams!

The late night call from the front desk.

You think you’re getting a late night call from the front desk telling you there’s a problem with your credit card and they need to verify the number, so you read it to them over the phone. But it’s really a scammer on the line. If a hotel really had an issue with your card, they would ask you to come to the front desk.

The pizza delivery deal.

In another scam, you find a pizza delivery flyer slipped under your hotel door. You call to order, and they take your credit card number over the phone. But the flyer is a fake, and a scammer now has your info. Before you order, make sure you check out the business (ensure it’s a franchise or reputable), or get food recommendations from the front desk.

The fake Wi-Fi network.

You search for Wi-Fi networks and find one with the hotel’s name. But it turns out it’s only a sound-alike and has nothing to do with the hotel. By using it, you could give a scammer access to your information. Check with the hotel to make sure you’re using the authorized network before you connect. Read more tips on using public Wi-Fi networks.

Other things to be cautious of when staying at or booking a hotel stay:

  • Always lock your car, and don’t leave anything valuable in your vehicle and/or visible.
  • Try to park your car as close to the front office of the hotel as possible.
  • Don’t leave anything valuable in your room unless there is a secure way to do it (like an in-room safe).
  • Check your credit card statement after your stay to make sure it’s accurate.
  • Be weary of hotel booking websites – there have been instances of advertisements claiming that for booking a hotel room you can receive a complimentary gift card from a known retailer. When clicked on, the scammers will oftentimes ask for a credit card number and more personal info.

Haven’t booked your trip yet? If you’re thinking of getting a vacation rental, take a moment to read up about rental listing scams. And check out these other travel tips, including tell-tale signs that a travel offer or prize might be a scam.

Turn the Lights Out on Fake Utility Bill Collectors

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Phone scamThe caller sounds convincing: If you don’t pay your utility bills immediately, your gas, electricity or water will be shut off, and then they ask you to pay using a specific and unusual method.

Be warned: The call probably is a scam.

The Federal Trade Commission, state and local consumer protection agencies, and utility companies have gotten a slew of complaints from consumers about utility bill scams.

Here are a few signs you may be dealing with a scammer:

  • You get a call or an email claiming your services will be cut off unless you call a number or click on a link and give your account information. Most utility companies don’t ask you to send your account information by email.
  • Someone calls demanding you wire the money or use a prepaid or reloadable debit or gift card to pay your bill. Legitimate companies don’t demand you use those methods to pay.
  • The caller tells you to call a phone number and give your credit, debit, or prepaid card number. If you do that, the scammer can access the money from your credit, debit, or prepaid card, and you can’t trace where your money went. Once it’s gone, it’s gone.

If you get a call from someone threatening to shut off your utility service:

  • Make sure you’re dealing with your utility company before you pay any amount. Call the company using a number you’ve looked up. Or go to their website to determine the status of your account. Confirm where and how to pay your bill. Don’t give out your account information on the phone unless you place or expect the call.
  • Never wire money to someone you don’t know, regardless of the situation. Once you wire money, you cannot get it back.
  • Do not click links or call numbers that appear in unexpected emails or texts, especially those asking for your account information. If you click on a link, your computer could become infected with malware, including viruses that can steal your information and ruin your computer.
  • If you are falling behind on your utility bill, contact the utility company and see if they can work with you to come up with a payment plan and a way to keep your service on.

If you think a fake utility bill collector or any other scammer has contacted you, file a report with the FTC and your state consumer protection agency.

4 Ways Scammers Can Steal Your Tax Refund

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48d9f43eab68404d0dc0def19d14ba6dIdentity thieves LOVE tax season.

Any thief who has your personal information can easily file a tax return, collect the fraudulent refund and leave you waiting months to get your own refund back and clear up the issue. Unfortunately, it’s only getting worse – as the IRS launches hundreds of investigations into tax-related identity theft, where criminals use stolen personal information like Social Security Numbers to claim fraudulent refunds.

Here are some of the ways scammers use to steal your identity and how to avoid becoming a victim.

1. Fake calls from the IRS. As part of the scheme, callers impersonating IRS agents told victims that they owed taxes and needed to pay by wire transfer or a prepaid card. Other scams are carried out through email, and ask for personal information like a Social Security Number or birthdate — which can later be used to claim tax refunds.

To protect yourself, be wary of any correspondence from someone claiming to be from the IRS. The agency says it usually reaches out by mail, and it will never ask for personal information via email or phone. If you receive something questionable, reach out to the agency yourself and verify that it’s legitimate.

2. Rogue employees. Be careful about giving out your personal information. Don’t ever give away more personal information than you need to and don’t be hesitate to ask someone why they need any of your personal information.

Some tax preparers could potentially be a scam artist. To avoid being fooled, be wary of any preparers who charge fees based on the size of your refund and never let a preparer ask for the refund to be deposited into an account in their control rather than sent straight to you. To help you detect if you’ve been scammed, be sure to regularly monitor your bank accounts and credit card statements for any suspicious charges.

3. Data breaches. Data breaches occur when hackers break through a company’s privacy walls and access private customer information and scarily enough, it’s becoming increasingly common. Once that information is in a fraudster’s hands, it’s easy for them to file a tax return in your name. If you know or suspect that your information was compromised during a data breach, consider signing up for identity theft protection (see below) or start regularly monitoring your accounts on your own. Be sure to investigate any charges you don’t recognize, no matter how small they are.

Most of the time if someone has a stolen card, the thief will often test it with a small transaction first in order to see if the card is activated, to make a bigger purchase. And because there’s a good chance you will be more susceptible to identity theft after a data breach, make sure to strengthen your passwords utilizing at least 8 characters, including upper- and lower-case letters as well as numbers and special characters (!@#$%).

4. Snail mail. It’s not as common as online identity theft these days, but many fraudsters still use the old-school strategy of stealing mail from mailboxes to piece together the information they need to file a tax return in someone else’s name. Other times, thieves will go as extreme as dumpster diving – it’s a low-tech way to easily retrieve your information, so make sure you ALWAYS shred any personal documents.

Another easy way to protect yourself is to file early. Many scammers are able to get fraudulent refunds because they file before the victim does. If you file first, the IRS will be forced to investigate when a second return from the same person arrives.

LifeSizePennyClick here to view the article source by Blake Ellis of CNN Money.