Tag Archives: scam

Blood and Cocaine Discovered in Your Rental Car (in Texas)?

There are endless variations on the “scare someone over the phone so they give up personal information” scam motif, and most of them are pretty familiar at this point, but every now and then a new angle emerges. This is one.

The scam involves someone posing as a law enforcement agent (usually FBI), calling to inform the victim that they rented a car in Texas, and that the car was found with blood and cocaine inside. The victim is then pressed to give details such as his or her Social Security number, financial account numbers, and so on.

There appears to be another version in which the caller claims to be a Social Security Administration representative, and in addition to the car filled with evidence, they have also found an offshore account in the victim’s name holding a large amount of cash, and that his or her Social Security benefits are going to be suspended. The caller then proceeds to attempt to wheedle the same personal information from the victim.

Regardless of who the caller claims to be, these features appear to be repeated in every case:

  • The car was allegedly rented in Texas
  • Police found blood and cocaine in it
  • We need your Social Security number

These are the details currently used in the scam, but don’t be fooled if they eventually change Texas to Florida or cocaine to heroin (I have a feeling the “blood” part is going to stay…”you’re a murder suspect” is almost guaranteed to get a strong emotional reaction).

Remember these points:

  • If a stranger is trying to make you afraid, then asking for money or personal information to make the fear go away, something isn’t right.
  • The Social Security Administration already has your number. They’re the ones who gave it to you in the first place. Law enforcement agencies easy access to it, too.
  • If the FBI really finds blood and cocaine in a car associated with you, they’re probably not going to call you on the telephone.
  • While the SSA does make phone calls, it’s not generally the first point of contact, and it’s almost always going to be regarding an issue already known to the person receiving the call.
  • This scam hinges on fears about identity theft—most people’s first reaction is “I didn’t rent a car in Texas!” and then make the connection to identity theft themselves. Recognize the tactic for what it is.

Money-Flipping Scams

The “money-flipping scam” started appearing on Instagram and Facebook, among other places, a couple years ago, but given most social networks’ track record when it comes to deleting fraudulent accounts, I’m sure it is still around.

It works like this: someone will claim to have access to a “flaw” in some monetary transferring system, usually Western Union or one of the prepaid debit card providers. All they need is for you to give them $100, wait few minutes, then they will send you back $1,000 (sometimes $300, but usually they go for the larger amount in the pitch).

That’s the whole thing. And you can guess what actually happens: you wire money away (or load up a prepaid card and reveal the digits to the scammer), then you don’t get anything back, ever.

There are a few things to know. First, there is no “flaw” in any of these systems that allows someone to just create money out of nothing. More than any other error, these payment systems are designed specifically to not allow that. Even money that’s been turned into ones and zeroes in a computer has to come from somewhere, and their entire business depends on outgo not suddenly being ten times the input.

Second, if there was a way to make this happen, you would be attempting to commit a crime by exploiting it. There is a persistent myth that any error by a financial provider (like the old “large deposit went into the wrong account” tale) entitles you to keep the money, and it simply is not true. Even if you did find yourself in some magical realm where a software bug allowed this scheme to work, you’d better be able to pay back that $900 when the error was discovered. They’ve probably got Loss-Prevention Wizards working for them over there.

The Do Not Call Registry Doesn’t Stop Scam Calls (But Sign Up Anyway)

I’ve heard it dozens of times: so-and-so signed up for the Do Not Call Registry a year ago, but they keep getting scam calls, so obviously it doesn’t work. What’s the point?

And I’ve always replied: put your phone numbers on the list anyway.

Why?

Because it’s a filter.

When you put your phone number on the Do Not Call Registry, after a few weeks, you will stop getting calls…from legitimate businesses that use cold calls as their primary sales technique (telemarketers, in other words). Companies that do not want to be shut down for breaking federal laws.

You won’t stop getting calls from scammers. They’re not referring to the registry in the first place because they don’t care. At the same time, you will already know not to even bother picking up the phone, because you know that anyone calling once your phone number is in the Registry is willfully breaking the law. You already know they’re dishonest, without hearing a word they say. All you have to do it let it ring until it stops.

What is a ‘Money Mule’ scam?

Cybercriminals rake in a lot of cash from their activities (such as mystery shopper scams, lottery and romance scams, and identity theft), which creates a problem: for the most part, they can’t simply start using the funds for personal gain because financial institutions generally ask questions when dealing with amounts in the hundreds of thousands or millions. They need to launder the money to give the appearance of legitimate origins.

Enter the “money mule.”

Criminal organizations set up fraudulent businesses and recruit people with online work-at-home advertisements. These victims are hired under titles like “Transfer Agent” to act as intermediaries between non-existent business entities, supposedly to legally circumvent bureaucratic requirements, fees or taxes.

Anyone who responds to one of these offers will be instructed to open a new account, usually at a specific large bank. The victim receives incoming wire transfers in the $10,000 range, keeps a certain percentage, and then wires the rest (in chunks of around $3,000) to various (fraudulent) companies around the world. Repeat this for a few cycles between a few hundred victims, and the original source of the money becomes obscured.

Unlike the majority of scams, you may notice a difference here: in this case, the mule actually can make a profit. So why not look for a “Transfer Agent” job online and become a “victim,” make a quick couple hundred bucks and then get out?

Because, also unlike other scams, there can be legal consequences for the victim. In an effort to crack down on this type of activity, financial institutions are getting good at noticing suspicious wire transfer activity, and you could end up getting arrested when (not if) you get caught. Not worth it.

The key is to be very suspicious of any job opportunity that seems like it pays too much for the work required, shows up out of the blue (even if you’ve posted a resume on a job website), and steer clear of anything that involves receiving funds via wire, then disbursing those funds to others.

Fraudulent Customer Service Phone Numbers

By now you’ve probably heard about Tech Support Scams, where someone calls you out of the blue and tries to convince you that your computer is infected with a virus, that they have somehow detected it remotely, and that the only way to fix the problem is to hand over money, control of your computer, or both.

It’s one of those scams that can easily be avoided with the question, “Who initiated contact?” If they called you, it’s fraudulent.

But what about when you’re the one initiating contact?

When you need customer service from a large company like Amazon, Facebook or Netflix, it’s important to make sure you’re getting their contact information from a trustworthy source. Internet searches might lead you to a correct number, but the internet is also brimming with hundreds of examples of fraudulent customer service numbers, posted by criminals in hopes that you will call them instead of the legitimate phone number.

What happens if you call a fraudulent number? They may try to get your password information to take over your account and lock you out, they may ask you to reveal credit card or other financial account information, or they may take over your computer (with your help) and install malicious software or commit other crimes.

If you need to contact customer service, make sure you’re getting your information from a reliable source. Don’t trust phone numbers that appear in online forums. If you notice zeros replaced with the letter “O” (1-8OO instead of 1-800, for example), that’s a sure sign of a fraudulent phone number.

With some companies, Facebook being the most prominent example, there simply is no phone number you can call. Any problems have to be resolved using online tools. Every single phone number you see listed on the internet as a Facebook customer service line is false information.

The best way to find customer service contact information is to go directly to the company’s website and look for links like “Help” or “Contact Us.” Sometimes there will be options for help via email or chat and no option for telephone contact, other times the phone number will be front and center. It depends on the company you’re dealing with. In any case, to avoid a massive headache and potential losses to fraud, always make sure you’re getting the number from the official source before you even pick up the phone.

Nothing New Under the Sun: The Walmart Cashback Hoax Lives

There are some hoaxes that just keep. Coming. BACK.

They’re like slasher-movie villains. “Oh, so you strapped him to a small nuclear warhead, which you then detonated inside a warehouse full of knives and lava? Well, here he is again…bigger and stronger than ever! Sequel number six, comin’ atcha!”

The “Bill Gates is giving money away to strangers” hoax recently went full Jason Voorhees, and according to my site traffic another slice of antique Internet alarmist lore has begun to resurface: the idea that Walmart cashiers all over the country are requesting $20 or $40 cash back on card transactions without telling the customer, and pocketing the money.

This so-called “scam warning” dates back to 2004, and made resurgences in 2009 and 2013. A quick online search shows that it’s making the rounds again in 2017. If you think of them as sequels, it makes this year’s version Walmart Cashback Scam Hoax IV: The Final Chapter, I guess.

(Only it’s never really the final chapter, is it? Watch for Walmart Cashback Scam Hoax V: A New Beginning in 2021 or so. By 2030 we’ll be on Bill Gates’ Free Money Vs. Walmart Cashback Hoax. And then a reboot after that…)

Here’s the whole problem with the warning: there is only one person who can request cash back during a transaction at Walmart, and it’s the customer, by pressing the correct button on the card swipe terminal. There is no secret “cash back” button on the register itself.

From Snopes.com:

We investigated a number of different WalMart stores in different areas…[i]n not one single case did we find a store with a checkout system that allowed cashiers to initiate cash back transactions on customers’ cards on their own, without any involvement, knowledge, or approval on the customer’s part. There was simply no way for a cashier working at any of these businesses to surreptitiously place a cash back charge on a customer’s card and furtively pocket the money, all without the customer’s requesting or knowing about it.

So why are so many people convinced they’ve been defrauded by greasy cashiers? Snopes again:

In every case of customers’ complaining about getting cash back from credit/debit card purchases without having requested it that we were able to track down, the cause turned out to be that those customers didn’t pay close enough attention to the prompts on the card processing keypads or simply pressed the wrong keys by mistake.

Nobody likes to admit they made a mistake, do they? “There’s no way I pressed a button I didn’t intend to. I’m perfect. It was that mean ol’ cashier.”

Also, the typical Walmart cashier has more cameras pointed at them than a blackjack table at a casino. It would be an impressive feat of close-up magic indeed to be able to pull off this alleged scheme, even by reaching over and pressing the buttons on the swipe terminal for the customer. And if a cashier was doing that over and over, you can bet somebody would notice.

Furthermore, it fails the most basic test of all: the cashiers actually handed the correct cash back amount to the customer. From Snopes (last one, I promise):

[I]n nearly every one of those cases it was verifiable that the complaining customers had in fact been handed the appropriate amount of cash back by their cashiers (even though they insisted they hadn’t requested it).

Now, I’ll admit I haven’t seen everything this world has to offer, but I have yet to come across a scam where the basic mechanic is, “I’m going to let you keep the money that’s already yours, and then I get nothing.” Most real scams have a profit motive.

Further furthermore, many of the stories claim the customer was using a credit card. They specifically mention it because the overage would “count as a cash advance.” The problem is, as far as I know, you can only request cash back with a debit card during a retail purchase. Whatever those self-proclaimed victims thought was happening, it wasn’t that. Which may explain why this thing has gone (and continues to go) so viral: people see the warning, then something unusual happens during a purchase (an item rang up incorrectly, the cashier didn’t know the PLU for parsnips offhand, their debit card gets denied for insufficient funds) and they try to retro-fit their experience onto the thing they read earlier. “Yeah, that happened to me, too!”

Here’s one more clue that you’re looking at a hoax: the warning is often accompanied by the same image of a receipt from 2013, but it always happened “recently” to “someone I know.” All the receipt proves is that someone selected $40 as their cash back amount when prompted by the card terminal one day four years ago. There is nothing about it that proves a crime was committed.

Here’s the original article, of which I have pasted whole chunks into this article: http://www.snopes.com/fraud/atm/cashback.asp

What If I Don’t Have Caller ID?

I’m guilty of assuming everyone has caller ID these days. While the feature may be baked right into mobile phones, caller ID service for landline phones is still a feature you usually have to pay extra for. And some people don’t want to.

So how should these holdouts handle telephone scams?

My advice is: get on the list and be quick on the draw. First, add your number to the National Do-Not-Call Registry. Once it takes effect, it will weed out all the legitimate, non-scam phone calls. Anyone who calls with an offer or sales pitch after that is obviously ignoring federal regulations and can be assumed to be attempting to commit fraud. If you’ve answered the phone, hang up as soon as you realize what’s happening.

Second, the vast majority of scammers use automated robocalls, where they ring multiple phones at once and then connect with whomever answers first. That setup takes a moment to function, and causes recognizable audio artifacts. If you’ve answered the phone and don’t get a response within a second or so, you can assume it is a robocall and hang up. If you answer and the first thing you hear is electronic noises (little clicks, bloops, beeps, etc.) or silence, it’s safe to assume you’re dealing with a robocall and hang up.

If you’ve hung up on a legitimate caller, they’ll call back.

Failing the quick-draw hang-up technique, if you find yourself talking to an unexpected caller, the old rules still apply: if they’re trying to make you afraid, it’s probably a scam; if the offer sounds too good to be true, it’s probably a scam; never wire money to a stranger; the IRS doesn’t call to demand payment over the phone; you didn’t win the lottery; your grandchild isn’t in jail or a hospital overseas; your computer doesn’t have a virus; never press “1” for any reason.

You’re under no obligation to be polite to someone who is trying to trick you out of your money over the phone. You’re allowed to just hang up without explanation.

Online Dating Scams Can Be So Much Worse Than You Thought (OR: Incredibly Bad Romance)

The classic Online Dating Scam involves a con artist meeting a victim online, pretending to initiate a long-distance relationship, and then asking the victim to wire money.

It’s a widespread form of fraud, and despite increased awareness, it continues to thrive because we’re all convinced it only happens to other people. We’re too smart, right?

Right. There’s a reason you never hear anybody say, “Yeah, you know, I’m just really naïve and easy to manipulate.” Here’s a little trade secret known to scammers around the world: literally everyone has some area in which he or she is vulnerable. There is no such thing as a 100% scam-proof human.

But there may be an even more compelling reason to avoid the romance scam: the possibility of criminal prosecution. In this case reported by BBC News, a woman was not only tricked into wiring her own money to her online “partner” over the course of several years, but also convinced to move money between different bank accounts on behalf of the con artist, making her an accessory to money laundering.

For which she was prosecuted and convicted.

Yeah, let that one sink in for a second. The irony is, she was probably helping him launder money he was getting from other romance scam victims.

Now, I’m no legal expert, and this case did occur in the U.K., not the U.S. I’m not sure how different the laws are here, but I’m betting that there is a point at which they also no longer care that you were a victim because it should have dawned on you that you were laundering money.

So if you’re out there on the internet looking for companionship, or if you know someone who is, be aware of the risks. When someone you’ve never met is asking you to send money, or to transfer funds between different financial institutions, do not do it. Under any circumstances, okay?

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