Tag Archives: Scams

Scam Alert: Microsoft Awards 2009

Here’s one that seems to mostly circulate around Europe, but I’m sure some folks here stateside have ended up with this message in their inbox, too:

Microsoft Lottery Promotion
Unit 7, Metro Trading Centre,
Second Way, Wembley, Middlesex,
HA9 0YU – United Kingdom

DATE: 14th of March 2009

Microsoft Lottery! E-mail is pleased to announce you as one of the 10
lucky winners in the ongoing Microsoft E-mail Promotions.

Microsoft Lottery! is a free service that does not require you to register
or be a Microsoft registered user before winning.

This award program is conducted anually to promote the use of the
Internet.You have been awarded ONE MILLION GREAT BRITAIN POUNDS.

To file for your claim, do contact our accredited corresponding claims
agent as below for category “A” winners immediately with your Name and
Phone Number for the speedy release of your fund;

AGENT: Gabriel Phillip
EMAIL: g.phil.@live.com
Tel: +44 703 5963368

Warning!!! Winners that do not respond to this notice within seven days of
receiving this E-mail will authomatically be disqalified.

FOR VERIFICATION, PLEASE REPLY TO THIS MESSAGE WITHOUT MODIFYING THE SUBJECT.

There is no need to include any additional information in your reply.

Regards

Notification Department
Microsoft On-line Email Draws

Let me make this perfectly clear: This is a scam. Éste es fraude. C’est une escroquerie. Dieses ist ein Betrug. Ciò è un raggiro. This is a scam, innit, guv’ner?

(By the way, I used Babelfish for those translations. English is the only language I speak reliably well. If I’ve said something bizarre in your native tongue, please correct me.)

More specifically, this just is a variation on the old advance fee fraud. If you respond, you’ll be instructed to wire money or send a cashier’s check to someone. Then you’ll never hear from them again. Just like with a lottery scam.

As it turns out, Microsoft does give away awards every year. However, they give them to people like Peer Bork from the European Molecular Biology Laboratory, not randomly to people like you and me (to be somewhat blunt about it). Unless you happen to be a research scientist of some renown, in which case you might be in the running for 2010.

But even then, they’re not going to notify you by email and say “Winners that do not respond to this notice within seven days of receiving this E-mail will authomatically be disqalified.” For one thing, Microsoft knows how to spell “automatically” and “disqualified.”

For another, they give their awards to people who are doing notable work and advancing knowledge. It’s not a random giveaway.

Fraud Alert: The Internet Crime Complaint Center (IC3) warns of new fraudulent email

United States Attorney General Eric Holder’s name is being used in a new fraudulent email currently making the rounds. Below is an excerpt from the IC3 Intelligence Note:

The current spam alleges that the Department of Homeland Security and the Federal Bureau of Investigation were informed the e-mail recipient is allegedly involved in money laundering and terrorist-related activities. To avoid legal prosecution, the recipient must obtain a certificate from the Economic Financial Crimes Commission (EFCC) Chairman at a cost of $370. The spam provides the name of the EFCC Chairman and an e-mail address from which the recipient can obtain the required certificate.

The full text of the Note further explains that the government does not use email to contact people in this way. I would also add that the FBI and the DHS are not going to let people suspected of terrorism or money laundering buy their way out of trouble for $370.

Is “Winning in the Cash Flow Business” a scam?

I saw a classic infomercial the other day. They seem to run it mostly during daytime television and late at night. Advertising costs less at those times, and I think they assume that anyone watching TV during the day or night is jobless and desperate.

Oddly, I am neither, but there I was. It was my lunch break.

Anyway, this program was hawking something called “Winning in the Cash Flow Business” by Russ Dalbey.

Man, you should have seen the luxury these paid actors were standing in front of. They had paid actors standing in front of huge mansions, Italian sports cars and swimming pools at luxury resorts, and every single one was reciting memorized lines about how easy it was to earn over $100,000 per month.

At this point, you might be detecting a little sarcasm in the tone of this article. In fact, I don’t believe a single word of this advertisement.

First and foremost, if it was that easy to make over a million dollars a year, don’t you think a lot more people would be doing it?

Here’s how the system is supposed to work, according to what I saw on the infomercial and gathered from some Internet research: you (allegedly) make money by brokering “cash flow notes” through Dalbey’s America’s Note Network. Cash flow notes are used for things like lotteries and legal settlements that are paid out in small amounts over the course of several years. What you’re essentially doing is buying someone’s regular payouts for one (smaller) lump sum, and then selling the promissory note to someone else. According to the infomercial, it’s as easy as “Find ‘Em, List ‘Em, Sell ‘Em.”

Now, here’s what actually happens, according to my research: you pay an upfront fee for materials that are supposed to teach you how to get started in this business, which opens you up to nearly instant, aggressive telemarketing calls from the Dalbey Education Institute. When you have trouble getting started due to limitations by state and local laws, or just the difficulty in finding people with cash flow notes in the first place (how do you find out who has these things?), you purchase more materials and coaching sessions and other assorted garbage. By the time you’re a good $800 in the hole (or more), you start to realize that you’ve bought into a scheme that doesn’t really work.

So, is it really a scam, in the usual sense of the word?

On a legal level, I’d have to say no. If you were already a talented salesperson, and if you had a way to get around the obstacles that would keep most of us from finding out who has the cash flow notes in the first place, and if you got really incredibly lucky, there is a tiny, tiny possibility that you might see a profit. They weasel around those million-to-one odds with a variation on the old “results not typical” disclaimer that’s served the weight loss industry so well.

On a practical level, I’d have to say yes. It just feels like a scam, and for a vast majority of people, it ends up functioning the exact same way: you lose money, you get nothing to show for it.

For me, I’m ignoring this infomercial. I strongly suggest you do the same. Even if you are a talented salesperson with a knack for making things happen, you’re better off focusing your strengths elsewhere. This is just too big of a long shot.

Now, I personally believe in abundance, even in a bad economy. There is an awful lot of money out there, and most of us have something that we could leverage into a piece of that pie. I also believe that it’s possible to do what you love while earning an abundant income and not having a traditional job. However, you have to work with the tools you have as an individual, and use them to deliver something of value to others. In other words, you’ve got to create your own system.

You also have to have a passion for whatever it is you’re doing, and more than the average level of courage. You can’t just buy into some prefabricated system and hope to get lucky. You create your own luck when you leverage your talents and passions into income.

In the meantime, steer clear of this mess.

Telephone scam targets grandparents

There’s another antique scam currently experiencing a renaissance: the telephone “Grandparent Scam.”

This one is really simple: thieves will call elderly people, posing as a grandchild and asking for money because of a car accident, arrest or other emergency. Alternately, they may claim to be a police officer or lawyer and tell the victim their grandchild has been hurt, arrested or in need of legal counsel. In either case, the victim is instructed to wire money to the thieves.

It’s a simple scam because it’s so easy to find out the names and ages of family members online. In fact, a single obituary might provide everything a crook needs to victimize family members of the deceased. However, an experienced “social engineer” might be able to pull it off cold, with very little information to start with.

Thieves using this technique are working under a set of assumptions:

  1. Grandparents will be less judgmental if a young person is in trouble with the law, which is why the “grandchild” is calling them instead of a parent
  2. Grandparents will be quick to panic if they think a grandchild is injured
  3. Elderly people can’t hear well, which means the thief doesn’t have to work very hard to disguise his or her voice
  4. Older people are less informed and less tech-savvy
  5. Elderly people may be ill or on medication, which can affect their judgment

Of course, in any individual case, none of these might be true, some of these might be true, or all of these might be true. Crooks use stereotypes as a way to select potential victims, knowing that one group (grandparents) will have a statistically higher rate of return than another (parents or siblings).

If you are a grandparent, be extremely wary of anyone calling who claims to be a grandchild in trouble. Ask questions that only the real grandchild would know. Hang up the phone and call him or her directly, or the parents. If the caller claims to have been arrested in Tijuana, but his parents say he’s in the living room in Des Moines, you’ve pretty much got your answer right there.

Don’t wire money to someone who calls just because they asked you to. Don’t panic. Take a breath or two, and figure out how you can verify beyond reasonable doubt who that caller is. Ask questions (the crook will likely hang up immediately). Call the parents. Call the grandchild. Do whatever it takes to verify the identity of the caller.

In all honesty, if someone is calling and asking you to wire money, I’d put 90% odds on it being a scam right away.

Department of Veterans Affairs warns of scam targeting veterans

Well, this is just gross.

According to a warning released by the VA, scam artists have been targeting veterans over the telephone. They claim to be VA workers, telling victims that the VA has new procedures regarding prescriptions, and that they need the veterans’ credit card information.

Of course, the VA will never call veterals asking for credit card numbers or any other personal information.

It just illustrates the Number One Rule of Fraud Prevention:

Never give any personal information to an unsolicited caller, no matter who they claim to be.

If you have friends, family or neighbors who are veterans (especially elderly veterans), make sure they know about this scam, and that they know not to give out personal information.

The source for this post is “Scam targets veterans’ credit card info, VA warns,” published at CNN.com on 9/18/09.

Watch Out For Census Scams

What do economic stimulus packages, Cash For Clunkers, tax refunds, and the U.S. Census all have in common?

Besides the obvious fact that they’re all related to da gubbermint, they’re also things that people have turned (or could turn) into scams.

The 2010 Census is already in its early stages, and workers are already going door-to-door to verify addresses. However, you know as well as I do that there are also going to be some con artists out there, trying to get personal information for fraudulent use.

Ask any Census worker to show you his or her identification and badge before you answer questions. They will not ask for your Social Security number, credit card or bank account information, or donations. Anyone attempting to get this information from you is attempting to commit fraud. Politely refuse to answer their questions, close and lock your door, then contact police immediately. A Census worker will also never ask to enter your home.

Also, Census workers will only contact you by telephone, in person or by U.S. Mail (meaning envelopes-with-paper-in-them). They will not use email in any circumstance. Immediately delete any emails that claim to be from the U.S. Census.

Why don’t they use email, and why will they never do so?

Well, it’s because of people like me. I have six email addresses that I can think of offhand. There are probably another five or six that I don’t even remember. One of them is just so I can use Google Reader, and another is a leftover from an old blog, but my work email and two out of my three home emails are pretty active. Within a single household, there might be twenty email addresses, including young children. Can you imagine the mess that would ensue if they tried to use email to conduct a Census? There would be panic on a heretofore unseen level when the results came out that the population had rocketed up to 2 billion people over the last ten years.

The core information in this post was taken from “Be cautious about giving info to census workers.

Worst. Scam. Attempt. Ever.

Here’s an attempt at an email scam that nobody should ever fall for. Seriously, it’s like they weren’t even trying:

From: “Mr. R. Jan” <[removed]@gmail.com>
Sent 9/6/2009 3:21:48 PM
To: [removed]
Subject: ATTENTION NEEDED

My name is Mr. Jan and I am contacting you from Liberia for
a mutual business relationship and investment.
I have some funds realized through contract brokerage and I
need your cooperation to invest the funds.
The first stage requires transferring the funds to your
account for subsequent investment.
I therefore want you to work with me as a partner.  On
receipt of your response, I will send you full details of
the transaction and more information about myself.  I
am waiting for your prompt response.
Jan

I’m not even going to bother picking this thing apart. Yes, it’s a total scam. Yes, you should just delete it. No, it’s not a real investment opportunity.

Online Scams Vol. 3: Work at home scams are everywhere

Crooks these days. They’re nothing if not adaptable.

Have you seen the number of work-at-home “jobs” being offered on the Internet these days? They know what’s up. A lot of people are losing their jobs and are looking for something new. And it’s a great American tradition—recession (or depression) takes your job, start your own business!

However, the fact is that most people don’t have the right kind of entrepreneurial “spark” needed to start a successful business venture. It takes a certain kind of grit, a deep belief in yourself and your “product,” the ability to hold your head high when faced with failure (and to learn from that failure and move on, instead of taking it personally and wallowing in it), and the kind of positive attitude that, frankly, tends to get obliterated when you’re worrying about how you’re going to pay the mortgage next week.

Let’s face it: starting your own business is way, way tougher than working for someone else. How many times have you seen someone start their own little store because they were “tired of working 40 hours a week,” and you check out their new digs and they’ve got no clear vision for their business, they’re trying to be everything to everyone, and they’re only open five or six hours per day because they’re trying to make owning a business easier than working for someone else? How long did they last?

And I think most of us, deep down, know that. “I’d love to work for myself, but yeesh! 18 hour days, seven days a week?” It’s okay to admit that you’re not a natural born entrepreneur (can you become one? Of course. You can become anything you intend). But most of us know—it is a path of great resistance.

Send in the Work-at-Home-Scam Clowns.

They sound great, don’t they? Stay at home, do some menial task that takes ten minutes, and let “the power of the Internet” (or something) do the rest. You’ll have so many Porsches by this time next year, you won’t know what to do with them all!

Of course I’m going to tell you they’re all completely full of baloney. Nobody is going to pay you hundreds of thousands of dollars per year for nothing.

“Oh, but they’re not paying you,” you’ll say. “You’re starting your own business!”

Well, at best you’re going to pay them a large amount of money for a “startup kit,” fees, or other such bull. You’re not going to assemble kits at home, you’re not going to enter any data, and you’re not going to get paid to stuff envelopes. You’re going to get ripped off.

Fraud.org (run by the National Consumers League) has a great article called “Tips for Avoiding Work-at-Home Scams.” I would recommend you take a few minutes to read the entire article, but the following is a summary of their tips:

  • Know who you’re dealing with
  • Don’t believe that you can make big profits easily
  • Be cautious about emails offering work-at-home opportunities (real companies do not recruit in this way. Ever)
  • Get all the details before you pay
  • Find out if there is really a market for your work
  • Get references for other people who are doing the work
  • Be aware of legal requirements (medical billing requires a license, for example)
  • Know the refund policy
  • Be wary of offers to send you an “advance” on your “pay”
  • Do your own research about work-at-home opportunities

I would amend that fourth tip slightly: just don’t ever pay someone else to work for them.

About.com also has a nice article on this topic: “Work at Home Scams.” I’d suggest you read this as well.

Finally, never, ever trust the phrase, “Other work at home sites are scams, but I found one that isn’t!” There are tons of fake blogs out there. I even found one by searching for “work at home scams.” It had a whole article, possibly culled from a trusted news source, about avoiding these traps. It claimed to be an article from a newspaper in Cleveland. As you read, you suddenly find you’ve been eased into a sales pitch about how “this one isn’t a scam!”

Do they need to make it any more obvious?

Hit these links

Let’s take a break from the Identity Theft Myths series today, and instead look at some other topics from other places on the web.

“Is Facebook becoming Phishingbook?” explores a social media scam that seems to be growing lately. Summary: if you’re Facebook friend tells you they’ve been mugged in London and need you to wire money, don’t.

Excellent advice from Craigslist. There is a lot of fraud happening through this popular site. Summary: only buy/sell locally, and never wire money. Ever.

“10 Ways to Avoid Sneaky Work-at-home Scams” is exactly what it sounds like. Summary: the economy is weak and these scams are only going to become more common.

“Beware of Cash For Clunkers Scams.” I’ve covered this here before, but the Eastern Michigan BBB has some more information on the topic. Summary: CARS works by taking your heap, junker or jalopy (or “hoopty,” in the parlance of our times) to a dealer and trading it. There is no pre-registration or anything.

We’ll return to the Identity Theft Myths next Monday. Until then, have fun.

Scamming the scammers: a really, really bad idea

One of the cool things about running this site is that I get to see the search terms people have used to find their way here. “WA Surveys” has been a surprisingly common search that has led visitors to the FPU, and “mystery shopper scam” has brought in some traffic. I hope I’ve provided some value to those folks.

However, you also get some weird ones.

The other day, the search term that led someone to the Fraud Prevention Unit was “i want to scam the mystery shopper scam.”

This was a little disturbing to me.

I know what some people are thinking; “Well, they’re crooks, so it’s alright to try to rip them off, right?” And I can understand the impulse—vigilante justice, give them a taste of their own medicine, free money in a down economy, etc.

But it’s a really bad idea to even try. For one thing, the crooks perpetrating the scam aren’t going to feel your wrath at all. They just printed up a bunch of fake checks and sent them out to thousands of people. They’re usually not linked to any real accounts at all, and they’re certainly not linked to accounts owned by the criminals themselves.

But wait, there’s more!

At the point you knowingly present a fraudulent instrument (such as a cashier’s check) to a bank or credit union, you are committing fraud on a financial institution. That is a federal offense, and it carries a prison term if you’re found guilty.

This is serious, serious business.

Besides, a lot of these scams are run by organized crime operations. At some level, there are probably some violent people involved. These are not people you want to go messing around with.

Okay, there’s not a huge chance they’ll find out about your little attempted counter-scheme, but why risk it? You’re already not going to get to keep the money, and you might end up in a federal prison. Do you really need goons coming after you, on top of everything else?