Tag Archives: Fraud

How to Report a Dinar Scam to the FBI

If you or someone you know has fallen victim to an Iraqi dinar (or Vietnamese dong, Indonesian rupiah, or any other foreign currency) “revaluation” investment scam, the FBI has set up a website to report the seller of these worthless currencies.

Currency revaluation schemes have been around for a long time, and have never once paid off for anyone except the people charging a commission for the sale. Iraqi dinar scams have been going strong since 2003, and the currency has yet to do anything except lose value.

There’s an article at Forbes.com that goes into further detail on this type of scam.

The IRS Is Using Private Debt Collectors Who Will Make Calls, but This Actually Changes Nothing

Sometimes fraud prevention can be boiled down to nice, simple rules that don’t leave much room for subtlety. Never wire money to a stranger. Just keeping that one rule in mind will keep you out of a lot of trouble, even if you forget the details of the scams that utilize the technique.

The IRS will never call you was another one of those hard rules, but as of 2017, it’s become a little more complicated. However, for the most part, nothing has really changed when it comes to fraud prevention.

Basically, the IRS will be contracting with four collection agencies, who will only be contacting certain taxpayers who have been delinquent for a significant period of time, whom the IRS has been unable to locate, and who meet certain other criteria. Furthermore, the collectors will not be demanding payments. Instead, they will be directing taxpayers toward electronic options for paying the IRS directly.

This means that some people will be getting calls from collection agencies on behalf of the IRS. The rest of the fraud prevention rules still apply: if they threaten you with incarceration or demand immediate payment, it’s a scam. If they’re talking about wiring money or loading up gift cards, it’s a scam.

Since con artists are nothing if not adaptable, I’ll add this point: if they do anything other than tell you about how you can pay the IRS directly on your own, it’s a scam. I’m sure someone is already gearing up to make calls claiming to be a collection agency, then telling victims they can pay over the phone with a credit card, with a wire transfer or with prepaid gift cards, or by visiting a fraudulent website. The collection agencies the IRS is using will not be asking for nor accepting payments from delinquent taxpayers. At all.

The actual website where you can pay your taxes, overdue or otherwise, is IRS.gov/Pay. And that’s pretty much the only thing the collection agencies contracted by the IRS are going to be allowed to tell you. Any mention of a different website to pay your taxes? Scam.

I recommend reading the full article below for more detailed information.

Counterfeit Check Scam Targets College Students (or: Stop Me If You Think You’ve Heard This One Before)

College students have been targeted by an employment scam that’s going to start sounding familiar as soon as I begin to describe it.

Ads are placed on job websites for administrative positions, or emails are sent directly to students “recruiting” them for the jobs. You know…college…recruiters…there companies who need your talents so badly, they’re hiring these people called recruiters to find you before you find them. That’s the dream, right?

Anyway, students who respond to the ads are sent a cashier’s check…can you guess what’s coming yet? The victim is instructed to cash the check, then wire the funds to someone, presumably to pay for equipment or software.

Now let’s see if you can guess what happens next:

  1. The student receives equipment and software and begins a rewarding career that pays well;
  2. The student gets struck by lightning three times in one week;
  3. The student finds out the check was counterfeit, and since he already wired the money to someone else, is now out several thousand dollars.

The answer is C, but B is actually more likely than A.

Scams usually involve tricking a victim into willingly handing something over, be it money or personal information. Scammers try to invoke emotional responses in order to make potential victims bypass their logic. This is why scammers try to create urgency or incite fear, prey on those who are desperate, or (in this case) prey on a group of people, college students, who know they’re in a competitive scene where the supply is greater than the demand.

Scams like this are easy to avoid, simply by applying a single principle: never cash a check and then wire the funds to someone else. It’s one of those rules that works in dozens of scenarios.

Source: https://www.ic3.gov/media/2017/170118.aspx

An uncommonly convoluted con

They say brevity is the soul of wit, but it’s apparently not the soul of spam. I received this in my inbox not too long ago:

From: IMF ADMIN <admin@imfpaymentcenter.com>
Subject: May Good Decision

INTERNATIONAL MONETARY FUND (IMF)
DEPT: WORLD DEBT RECONCILIATION AGENCIES.
ADVISE: YOUR OUTSTANDING PAYMENT NOTIFICATION

Attention Wing Chan

A power of attorney was forwarded to our office this morning by two gentle men, one of them is an American national and he is MR DAVID DEANE by name while the other person is MR… JACK MORGAN by name a CANADIAN national.

This gentlemen claimed to be your representative, and this power of attorney stated that you are dead, they brought an account to replace your information in other to claim your fund of $12.5 Million Usd which is now lying DORMANT and UNCLAIMED, below is the new account they have submitted:

BANK.-HSBC CANADA
Vancouver, CANADA
ACCOUNT NO. 2984-0008-66

Be further informed that this power of attorney also stated that you suffered and died of throat cancer. You are therefore given 24hrs to confirm the truth in this information, If you are still alive, You are to contact us back immediately, Because we work 24 hrs just to ensure that we monitor all the activities going on in regards to the transfer of beneficiaries inheritance and contract payment.

You are to call this office +44(0)7778022499 immediately for clarifications on this matter as we shall be available 24 hrs to speak with you and give you the necessary guidelines on how to ensure that your payment is wired to you immediately.

I have attached a copy of the last part payment of $500,000.00 which was paid into your provided account last week, please check is this is the same account submitted by this two men who claimed to be your representative. Reply this email to [redacted]

Kindly reply

Rev. David Churchman
International Monetary Funds Agents

I get what they’re trying to do here. The victim is supposed to think they got a message intended for someone else (“Wing Chan”) who has a whole lot of money tied up in some account, but they think Wing Chan is dead and would he please confirm that? I assume that the victim is supposed to decide to commit a little fraud himself and reply, “No, I’m Wing Chan and I’m totally alive so give me all that money now please,” followed by the usual, “But wait…you have to wire us a bunch of money first.”

But what a twisty, turny, tricksy route they take to get there. It’s a real adventure, what with the two “gentle men,” the throat cancer and the involvement of the International Monetary Fund.

Here’s the thing about the IMF: I’m fairly certain they don’t handle individual estate accounts for anyone living or dead or allegedly dead. They don’t mention it on their own website.  They deal with financial situations in and between nations. $12.5 million is a lot of money to most individual people. To the IMF, it’s like a nickel dropped down a storm drain. They’re not going to get involved.

So yes, this is an obvious example of spam. I wanted to show it to you, though, because it’s kind of weird. As always, “do this to claim your free money” is forever a scam and always has been.

Tell Your Parents: seniors lose $36 billion every year to financial fraud

image-criminal-fraud-01Jerry Seinfeld used to do a great bit about aging. The not-very-funny paraphrased version for our purposes today is that, when people get older, everything gets smaller—the meals, the houses, their bodies. Everything except the car, which just get bigger.

But there’s another thing that gets bigger as we get older, too: the target painted on our backs. The elderly lose an estimated $36.4 billion every year to fraud. That’s the size of entire sectors of the U.S. economy.

CNBC ran a story on the subject recently, and it’s worth a read. The important thing is to stay involved in your parents’ lives and talk to them about the realities of financial fraud and the fact that they will be seen as marks simply because of their age.

Greasy telemarketers, lottery scams, the old “grandchild in danger” telephone scam, get-rich-quick schemes (Iraqi dinar and Vietnamese dong currency peddlers, I’m looking at you), phony investments and affinity fraud (where the scammer uses affiliation with a church or other organization to appear trustworthy)—all of these target the elderly. It’s important to talk to your older family members and friends about the dangers, and take action where needed.

Additional resources are listed below:

Nigerian 419 email scams live on

I saw this one just today. It’s a doozy:

From: The Desk Of Mr. James Dike
Reference: GTBank Plc.
Address: 402, Lagos-Abeokuta Expressway, Abule-Egba, Lagos State, Nigeria.

Attention: $10.5M ATM Fund Beneficiary,

I am Mr. James Dike, the new appointed ATM Head of Operation Department Guaranty Trust Bank Nigeria PLC, I resumed to this office on the 1st of this month and For your information i have been empowered and instructed by the new elected President Federal Republic of Nigeria Gen. Muhammadu Buhari to pay all outstanding debt payment to the rightful beneficiaries and summit my payment report to his office with immediate effect and any payment that is not paid before the end of this month will be cancelled and the fund will be returned to the Federal Reserve Oil Account.

So, during my official research last week I discovered an abandoned ATM Master card valued sum of $10.5Million with card number 5321452123409380 belonging to you as the rightfully intimate beneficiary. I tried to know why this card have not been released to you but I was told that the formal ATM head of operation who left this office two months ago withhold your card for his own personal use without knowing that I will not approve or support him to take your card.

Now that your ATM Master card is still available for you to pick it up here in our bank. I want to know how you wish to receive your ATM card along with your four digits pin code number. You can come down here in our bank to pick up your card direct from my office or alternatively it can be send to your address through any registered reliable courier service company that you will take care of the courier charge. I don’t know the cost of shipping the card to you but if you permit me I can make an inquiry from the courier shipment company to find out the cost, but in that case you will be required to forward to me your shipment address to enable me find out the shipment cost to your location.

Your direct telephone number and address will be needed and more details of your ATM Master card payment will be made known to you as soon as I receive your swift positive response, to enable you know the amount programmed for your ATM Master Card daily withdrawal.I will send your ATM master card information including your Card Pin Code as soon as you declare your choice of receiving your ATM card so as to enable you receive your card and start making use of it to withdraw at any ATM card machine all over the world as programmed.

Do not hesitate to call me on +234 802-850-0459 as soon as you read this mail.

Thanks for your co-operation.

Yours Faithfully,
Mr. James Dike
ATM Head of Operation Department
Guaranty Trust Bank Nigeria Plc.
Tel: +234 802-850-0459.

A lot of us have become jaded when it comes to the old Nigerian 419 scam. Even though this one takes a different angle and doesn’t mention an exiled prince, for many of us, it’s easy to see through. We probably wouldn’t even read it…”$10.5M” in the subject line would be enough to trigger our “delete” reflex.

But somebody still falls for it. If they didn’t, these emails wouldn’t happen anymore. So while you may have become almost flippant about the Nigerian 419 scam, remember that there are still people who haven’t heard about it yet. If someone you know starts talking about an impending payout from a mysterious source, or mentions their plans to wire money overseas, it might be time to educate him or her.

Free Disney Vacation Scam Alert

If you haven’t already, at some point very soon you are going to see this image on Facebook:

2015-07-17-disney-scam

The hook is this: like the photo, share it, then visit a website to enter a contest for a free Disney World vacation.

Here’s the problem: the Facebook page this image resides on is NOT the official Disney World page. It is an impostor designed to trick users into liking the page. Once enough people have done so, the page content will be changed to push other scams into the news feeds of the people who liked the Disney page.

Now, why am I such a downer? Why am I trying so hard to make people sad? How do I know it’s a fake Disney page?

Well, look at this screenshot for a moment (click to see it full-size):

2015-07-17-disney-scam-02

Do you see what it says next to the profile picture? I’ll zoom in a little so you can read it better (click for full size):

2015-07-17-disney-scam-02a

It says “Walt Disney-World.”.

Notice the dash.

Notice the period.

Notice the category: “Transport/Freight.”

Notice the lack of the blue “Verified Page” checkmark next to the name.

Do you think for one moment that a company the size of Disney would have ITS OWN NAME written incorrectly on its own Facebook page? Look at any official Disney website or product. Do you see “Walt Disney-World.” anywhere?

Do you see Walt Disney World train cars and semi trailers all over America’s railroad tracks and roadways, delivering jars of pickle relish and car parts and textiles? No? That’s because Disney World is a theme park, not a transportation and freight business.

Do you believe Disney World’s official Facebook page would have 20,000 likes (as of today) and ONE lousy post? And no link to the official Disney World website?

These, and a dozen other points, are your free ticket to knowing that this Facebook page and offer are a scam.

Go look at Walt Disney World’s official Facebook page. Notice:

  • 14 million likes
  • The name is correctly punctuated (which is to say there is NO punctuation)
  • The category is listed as “Theme Park,” which is correct
  • The checkmark next to “Walt Disney World.” This means Facebook has verified that the page is official. You can hold your mouse over the checkmark and a little window will pop up that says “Verified Page”
  • Posts going back to 2009
  • Multiple posts, pretty much every day

I’m taking a pretty emphatic tone because I want people to stop falling for fake Facebook pages. I’m tired of seeing people I know get taken in by this stuff because it helps crooks spread spam and fraud to millions of people. If you see this photo and post in your Facebook newsfeed, please do the following:

  • DO NOT SHARE, LIKE OR COMMENT ON the page yourself
  • Tell whoever shared it or posted it that it is a scam and that they need to unlike the page right away; point them to the real Disney World page if they don’t believe you
  • Go to the fake page and Report it as fraudulent to Facebook
  • Share this article, or this one from the Consumerist if you can’t bring yourself to take my word for it

I don’t Facebook much anymore, but I’ve always lived by an “If it’s being shared a lot on Facebook, it’s probably not true” code. It’s a pretty accurate rule, and the stuff that IS true you’ll hear from credible sources eventually anyway.

 

 

Watch out for fake utility workers

It seems like as good a time as any to once again remind everyone to beware of burglars posing as utility company workers.

The usual setup starts with a knock on the door. The person standing on your doorstep claims to work for the electric or gas company, telephone company, or some other utility. They tell you they are in your neighborhood working on some or other problem, or performing routine maintenance, and ask to be shown to your circuit breaker (or whatever piece of hardware makes sense). Often they’ll even look like a real utility company employee, with a clipboard, nametag and possibly even a uniform.

While you’re showing them to the circuit breaker-or-whatever, an accomplice you didn’t see slips into your house looking for valuables or money.

It doesn’t really matter which type of company they claim to represent, the important thing to remember is that if a utility provider is going to need access to the inside of your house (which they almost never will), they will contact you ahead of time. They will not show up unannounced.

If someone is at your door and you were not contacted in advance, ask to see a badge or official identification, which they should gladly provide. Then politely ask them to wait while you close your door, lock it, lock any other doors, and call the utility company to ask if they’ve sent people to your house. Whatever you do, don’t let them in or call them out on being a crook. This type of scam differs from most in that it involves actual, physical proximity to the perpetrators, which can put you in danger of bodily harm.

Utility worker scams often target senior citizens, so make sure your friends, family and neighbors are aware of this type of crime, what to watch for and how to respond.

Beware of unsolicited offers

The phone rings. A caller identifies himself as representing a well-known and trusted local business. He’s calling to offer you a discount on their services.

“Hey, great, I need those services anyway,” you think, and agree to the offer and arrange for the work to take place.

And another scam is set in motion.

It’s been happening here in Northwest Indiana. A heating/cooling contractor from Illinois (with an F rating at the Better Business Bureau, maybe not-quite-incidentally) has  apparently been calling homeowners and claiming to be a well-known local business (with an A+ rating, also maybe not-quite-incidentally), with an offer for discounted duct cleaning. Workers show up, perform a shoddy duct-cleaning, then ask for more than the agreed-upon price.

So my fraud prevention tip today is this: be wary of unsolicited offers from local businesses. If you get a call, make sure to double-check with the actual business before you agree to anything. Use an official, published number from the real company’s website or trusted online source (or the phone book, if you didn’t just carry it directly from your front porch to the recycling bin) instead of the number that shows up on caller ID or the number given by the caller. If there’s a discrepancy, it could be a different (and unscrupulous) business posing as the real one.