Fraud Awareness

Charity fraud scams seek donations for fraudulent organizations—most often during the holidays and after a natural disaster or another emergency. Along this line, unethical contractors and other scammers may commit insurance fraud by asking people to pay upfront for post-disaster repairs, only never completing the work.

A check overpayment scam begins when a fraudster replies to a classified ad or auction posting and offers to send you a check for more than the amount owed. Then the fraudster instructs you to wire the overpayment portion back because it was just a mistake made and may even suggest you keep a portion of the overpayment to help pay the wire fees. Unfortunately, the check bounces, and not only do you not receive payment, but now you’ve given the fraudster some of your hard-earned money as the “overpayment.”

Phishing and Smishing describe the use of email and text messaging to coerce individuals into providing personal information (phishing refers to emails, and smishing refers to the use of texts). In both scenarios, you receive an email or text from what appears to be a reputable or trusted company. Common tactics include the following statements:

• We’ve noticed some suspicious activity or log-in attempts on your account.
• There’s a problem with your account or your payment information.
• Please confirm the following information.
• Attached is your invoice (when you didn’t buy anything).
• Click here to make a payment.
• Complete this information to claim your tax refund, sweepstakes winnings, prize, etc.

These examples are simply clever attempts to encourage you to respond quickly and provide the required personal financial information requested. DO NOT BE FOOLED! If you need to confirm a payment, account number, or invoice, contact the company directly by visiting in person or initiating a phone call to their main phone number found on your original invoice or their company website. If anything feels suspicious or out of place, always proceed cautiously and slowly.

A person or company contacts you offering to “clean” viruses or malware off of your computer for a nominal fee. In addition to stealing the money for the fee, they install viruses or malware on your computer while they are logged in to supposedly “clean it.” Never allow access to your computer unless you deal with a company or individual you know and trust.

Credit card fraud is the unauthorized use of a credit or debit card, or similar payment tool (ACH, EFT, recurring charge, etc.), to fraudulently obtain money or property. Credit and debit card numbers can be stolen from unsecured websites, and the fraudulent information is typically used to commit identity theft.

Often the elderly fall victim to scam artists who develop a “trusted” relationship with them. Common abusive practices include money or property taken without consent, forgery, misuse or theft of identity, fraudulently obtained “powers of attorney,” and coercion to sign over assets through fraudulent deeds and wills. Your best defense to help protect your loved ones is to communicate with them regularly, ask questions about new friends or acquaintances, and let them know you are looking out for their best interests. Of course, they may become annoyed with your questions, but you may save them money and assets by doing so. Also, be on the lookout for in-home caregivers or repair workers going door-to-door.

Internet auction fraud occurs when a product or service is misrepresented through an Internet auction site or if the buyer never receives the product purchased through the site.

You receive a phone call, text, or email from a supposed IRS Agent stating you owe back taxes that are past due. They may even threaten to send local law enforcement to arrest you for lack of payment. Just know that if you don’t receive direct communications from the IRS via U.S. Mail, it is likely fraudulent.

A company requests (or requires) you to set up an automatic debit from your bank account as part of a free trial or to collect lottery winnings. Once approved, it becomes complicated to stop future withdrawals. NEVER provide your bank account information to someone you don’t know, no matter what they promise to send you.

Non-delivery of merchandise is a scheme that occurs when a seller accepts payment for an item and never delivers it to the buyer. While usually linked to Internet auction sales, it can also happen when web-based international companies advertise high-end electronic items in the U.S. at severely discounted prices and fail to ship the goods to those who buy them.

This type of fraud occurs when scammers post fraudulent online classified advertisements selling vehicles they don’t own nor have in their possession. These fake advertisements usually include photos matching the vehicle’s description and a phone number or email address to contact the supposed seller. Once contact is made, the criminal sends the intended buyer additional photos and an explanation for the discounted price and the urgency of the transaction. Common reasons provided include:

• The seller is moving or being deployed by the military.
• The seller received the vehicle as part of a divorce settlement.
• The vehicle belonged to a relative who died.

Unfortunately, the deal appears to be legitimate because it aligns its advertisement with a reputable company (such as eBay). However, the buyer is told to purchase prepaid gift cards in the sale amount and share the card codes with the seller (scammer). After the transaction is complete, the scammer ignores all follow-up emails or texts, and the buyer never receives delivery of the vehicle.

You accept a position through an ad or job posting where your responsibility is to receive and deposit checks into your bank account, then purchase gift cards and provide the gift card details via phone, text, or email. Legitimate business owners will not pay you to shop or buy gift cards. Remember, if something sounds too good to be true, it probably is.

Ransomware is a type of malicious software, or malware, that prevents you from accessing your computer files, systems, or networks until you pay a ransom for access. Ransomware attacks can cause costly disruptions to operations and the loss of critical information and data for businesses.

Romance scammers lure people with phony online profiles, often lifting photos from the Internet to create attractive and convincing personas— and may even assume the identities of real people. Once these fraudsters have people by the heartstrings, they say they need money, often for a medical emergency (or some other misfortune) or for much-needed travel expenses to see a dying relative or friend. They often claim to be in the military and stationed abroad, which explains why they can’t meet in person. The fraudster typically requests that the money be wired or placed on reloadable gift cards, both of which are nearly impossible to recover.

A scammer sends you a check for no apparent reason hoping you can’t resist it—accept a loan, enroll in something, or authorize the purchase of a gift. Frequently, these checks have contractual language in the fine print binding you to the terms if you accept the funds.