Overpayment Scam, Your Bank Could Be A Thief's Best Friend
By H. Dennis Beaver, Esq. in Kiplinger Newsletter
If Southern California-based family nurse practitioner Joe Torres had read Fool Me Once by Kelly Richmond Pope (opens in new tab), he and I would never have spoken. He also would not have lost thousands of dollars in an "overpayment" scam that began when his laptop screen froze while he was working with a patient.
I'll come back to Joe's all-too-common story in a moment - that is an utter embarrassment for his bank and many others - but I would like to offer the suggestion of Fool Me Once as a gift for a high school or university graduate, or really anyone who wants to learn how to protect their money. That gift could be one of the most useful books they could ever own.
Fool Me Once provides keys to avoid being scammed by the con artists and thieves who roam the earth. Her book is so valuable, providing insight into how people like Bernie Madoff and corporations like Enron operate or how your trusted office assistant becomes an embezzler. The author shows you what to look for to prevent becoming a victim. Also, with elder financial abuse so prevalent, Fool Me Once highlights for my older readers and their children the signs that Mom or Dad aren't OK.
From 'You Need Antivirus Protection' to No Fraud Protection
Now, back to Joe and his infuriating problem. "I was at work," Joe wrote, "using my laptop, seeing patients, when suddenly my screen froze, and a message stated that it has a virus and to call a number to get it unfrozen. I did, and a man said he was with (my bank), and for $400 he can give me antivirus protection on my computer so I can use it. I sent the $400 using a credit card. Immediately, on my laptop screen, he showed my debit card number and said that I paid too much, and he will send $200 back to my bank account. Since I never use the card, I thought he was legitimately part of (my bank) as he had the card's number.
"Somehow $44,200 was sent to my account! He instructed me to wire him the extra money, and if I do it right away, he would give me $70 and five years of antivirus protection. I was trying to be honest, and I wired $43,930 the same day. The next day, I realized this was a scam. So, I went to (my bank) and changed my debit card number."
Joe's Nightmare: No Safeguards From His Bank
At his bank branch, Joe was told that he owed the bank $44,200! "I never received an alert via text, email or mail about the movement of the money from my home equity line of credit to my bank account. I thought this was not right, especially since I had it for several years, but never used it. If I would have been alerted, I would have immediately canceled or not sent the wire."
These overpayment scams have one thing in common: The victim is under pressure to "refund" money "mistakenly" placed in their account, but in reality, it isn't there.
It is important to understand that merely because an account shows an amount of money in it does not mean that the funds really exist. It could take days for deposits to actually clear and be fully credited. This is another aspect scammers use to convince the victim that an overpayment was made.
Joe filed a claim with the bank's fraud division and was told, "Our investigation could take up to 90 days." This comment, in my experience, is utter nonsense with no justification, as fraud requires immediate action. This was a slap in the face from one of the largest banks in America.
Upon receiving Joe's letter, I contacted a high-ranking executive in the corporate offices of his bank, who, over the years, had always been helpful with consumer issues I brought to her attention. She promised to "escalate" Joe's case.
Despite my leaving several voicemails, that was the last thing I heard from her after I asked, "Doesn't this bank have some safeguard in place to stop suspicious wires - sending money overseas from an account that never had activity - and explore the possibility of a scam with your customer?"
Despite repeatedly asking her that question, I am still waiting for a response.
Joe's letter to me concluded, "They need to fix this problem. I want my money back. I feel I should not have to pay for their mistake."
He gave me permission to use his real name, as "I want people to realize how easily they can be swindled, and you can't trust your bank to prevent this known fraud from taking place."
Bank Executives Silent When Asked, 'Are You Aware of Safeguards?'
Can a financial institution prevent money from being wired? You bet it can. And while it is beyond the scope of this story, banks have an important role to prevent money laundering and must be alert to potential fraudulent transactions.
"When a wire transaction is so far outside of a customer's profile, it should be stopped and the customer asked to come into the bank, if possible. That would appear to be the case here with Joe," said "Banker X," from a business bank in my town who asked that her name and the bank's name not be used. "We have prevented similar scams from succeeding, as our systems are designed to look for and alert us to unusual customer transactions," she said.
Interestingly, I ran these facts by press relations and bank officers at a number of banks across America, asking, "Are you aware of safeguards that would have stopped Joe's wire from going through, giving time to investigate activity on an account that had never been used?"
Not one bank or bank officer would comment, and most didn't return my calls.
Investment Firms Use Algorithms That Raise Red Flags
While bankers refused to comment, I also spoke with representatives of major investment houses. The common response was, "Yes, we have algorithms that are looking for the kind of thing that Joe was doing - suddenly wiring over $40,000 from an account he never used before. Everything comes to a halt, and we talk with our customer to see if all is legit, or if they are a scam victim."
Finally, one fraud investigator told me, "These scams succeed due to a sense of trust, wanting to do the right thing and pressure to act immediately. Had Joe taken a step back and actually gone to his bank before wiring the money, the crooks would lose."
So, what are Joe's remedies? I ran this by several attorneys who sue banks, and all agreed that this is a non-starter. They recommended trying to find a tax deduction of some type.
To protect yourself from bank fraud and other scams, visit the Consumer Financial Protection Bureau (CFPB) for information on what to look for. You can also read more about this topic and find more tips in the article Banking Scams: Beware Fraudsters Impersonating Your Bank.
How To Avoid Tax Preparer Scams This Filing Season
Problem Solvers By: Marisa Oberle - Mar 13, 2023
The Michigan Association of Certified Public Accountants says it's important for people to carefully chose who files their tax return this year.
Tax preparer scams are one of the IRS' "Dirty Dozen" tax scams.
According to the agency, they regularly receive reports of unscrupulous preparers who, rather than help customers, hurt them and use their tax returns to commit fraud, identity theft or other crimes.
"Those are really intentional and that's why it's important to make sure that that you really review your tax return when it's prepared," said Chris Picciurro, Teaching Tax Flow and Integrated CPA Group. "It really ties down to having someone that you trust, having someone that's accountable."
According to Picciurro, in most cases, preparers claim dependents, typically children, when they should not, and take some of the credits offered. For example, in 2021, a federal court in the Western District in Michigan permanently enjoined a Holt married couple from preparing returns for others after an IRS investigation found they often inflated their client's dependency exemptions and earned income tax credits or lowered a head of household status to get a higher refund.
According to a civil complaint filed, the couple pocketed refunds in some cases. Since then, a federal court in the Eastern District of Michigan has twice shut down Detroit-area preparers.
Picciurro notes errors or false information on a return leaves taxpayers open to liability for unpaid taxes, penalties, and interest. He stressed the need for people to properly vet preparers.
"Be organized and have a nice list of questions," said Picciurro. "Think about major changes that you had in your life - Did you have a did you have a child? Did you change your marital status? Did you refinance your home? Did you change residences or something like that, that could really affect your tax situation? So, being prepared is really the key to getting one the best result possible."
According to the IRS, taxpayers should consider the following:
- Look for a preparer who's available year-round. If questions come up about a tax return, taxpayers may need to contact the preparer after the filing season is over.
- Review the preparer's history. Check the Better Business Bureau website for information about the preparer. Look for disciplinary actions and the license status for credentialed preparers. For CPAs, check the State Board of Accountancy's website, and for attorneys check with the State Bar Association. For enrolled agents go to Verify the Status of an Enrolled Agent or check the IRS Directory of Federal Tax Return Preparers.
- Ask about service fees. Taxpayers should avoid tax return preparers who base their fees on a percentage of the refund or who offer to deposit all or part of the refund into their own financial accounts. Be wary of tax return preparers who claim they can get larger refunds than their competitors.
- Ensure their preparer offers IRS e-file. The IRS issues most refunds in fewer than 21 days for taxpayers who file electronically and choose direct deposit.
- Provide records and receipts. Good preparers ask to see these documents. They'll also ask questions to determine the client's total income, deductions, tax credits and other items. Do not hire a preparer who e-files a tax return using a pay stub instead of a Form W-2. This is against IRS e-file rules.
- Understand the preparer's credentials and qualifications. Attorneys, CPAs and enrolled agents can represent any client before the IRS in any situation. Annual Filing Season Program participants may represent taxpayers in limited situations if they prepared and signed the tax return.
- Never sign a blank or incomplete return. Taxpayers are responsible for filing a complete and correct tax return.
- Review the tax return before signing it. Be sure to ask questions if something is not clear or appears inaccurate. Any refund should go directly to the taxpayer - not into the preparer's bank account. Review the routing and bank account number on the completed return and make sure it's accurate.
Caledonia Man Loses Hundreds; Paid Fake Cash For Playstation 5
By: Marisa Oberle, FOX17 News, Feb 06, 2023
CALEDONIA, Mich. - A Kent County man says he lost out on hundreds of dollars after he recently sold a PlayStation 5 to someone who paid with fake cash.
"I went to go count it and something felt slightly off about the money," said Josh Quist. "It felt a little too thick."
It happened a few weeks ago at the Shell gas station off of Kalamazoo Avenue in Gaines Township. According to Quist, that's where he met the son of the buyer, who he found through Facebook Marketplace. They agreed to a $540 price tag.
"He pulled up in a black Toyota Supra and he drove up next to me and rolled down his window," said Quist. "He had a bunch of 20s in his hand and he counted the money."
It went well until the moment after their exchange. Quist explains the cash given to him felt weird, so he studied it and soon realized its lack of value.
"I actually take a closer look at the bills and on the corners, underneath the 20, it says 'PROP' in tiny little letters, and red flags everywhere in my head," said Quist.
The buyer had left by that point though, so Quist couldn't confront him about it. He tried to message their account, but the person behind it had already deleted it.
"Things can go wrong in very weird ways," said Katie Grevious, spokesperson for the Better Business Bureau of Western Michigan.
Grevious says scammers often use social media to target people. She suggests where someone plans to buy or sell an item, they take the following steps:
*   Research the person you're making a deal with.
*    conduct business on that platform.
*    Do not share any personal information like your phone number or address.
*     Meet in a public place with security cameras and witnesses.
*      Try to use a mobile cash app, but read their privacy policies ahead of time. Link a credit card to it too rather than a debit card.
*       Ask questions about the item.
If someone takes your money, she says people should report it to the police and the platform where the deal was made.
"You're allowed to ask questions before you buy things and if someone doesn't want to tell you those things, or they're just really pushy for you to make, make the sale or make the purchase, that's a sign that maybe they're hiding something,' said Grevious.
Quist intends to do that next time. He says its been difficult to go without the money.
"I have bills to pay," said Quist. "I have a car and I'm under 25, so car insurance is expensive. I do give my parents rent, and I help pay for things around here. I pay for mostly my own food and things like that and so that $540 is like a lot of money."
A police report has been filed with the Kent County Sheriff's Office.
Quist ask anyone with information to call detectives at 616.632.6125 or call Silent Observer at 616.774.2345 to report it anonymously.
How Do You Spot A Scam? Listen To How They Tell You To Pay
By Cristina Miranda, FTC; April 11, 2022
Now is a great time to dust off your knowledge for spotting and avoiding scams. The best way to make a clean getaway from a scam? Listen to how they tell you to pay.
If someone tells you:
$ - "Pay us by putting money on a gift card and then give us the number on the back." - - That's a scam!
$$ - "We'll send you a check, deposit the check, and then send us the money."- - That's a scam! That check will later turn out to be fake and you will be on the hook for the money!!
$$$ - "You have to pay us by sending money through a money transfer company like MoneyGram or Western Union." - - That's a scam!
$$$$ - "Go to a store with a cryptocurrency ATM, put your money in to buy cryptocurrency, and use this QR code to send it to this address." - - That's a scam!
Scammers have lots of stories about why you need to pay; like pretending they're calling from the government, a business, utility, tech company, or even a charity. Or they'll call about a family emergency. Or maybe they call with an alert about a virus on your computer that needs fixing. No matter what they say, they"ll pressure you to act immediately, and of course, pay them money. When they do, hang up and report them to the FTC at ReportFraud.ftc.gov.
Let's Talk About Recognizing Scams!
Webmaster - This actually happened in the Grand Rapids Metro area late in 2022. I got it off the 'nextdoor' platform and have reposted it with permission from the author. He has done a terrific job of dissecting the anatomy of a scam email so we can spot one quickly and not get burned.
I was just the target of an overpayment scam through the Facebook market place. Now it took me about 15 minutes to realize it was a scam because they were trying to do it through cashapp and it took me 15 minutes to set up my cashapp again because I only ever used it once and never used it to receive money before. But once it came time to put things into play, it became obvious fast. So I am not here to just say "watch out for scams" and be done with it. I am here to talk about what makes a scam obvious.
First, how does this overpayment scam work? They were supposed to be buying an item from me that I had listed for $140. They said they needed my Cashapp tag and my email address. I then got an email saying that they sent me an extra $200 because Cashapp needed that to upgrade my account to business level.
So what was my first clue this was a scam? The email. The first thing I noticed was a huge blurry low-quality banner that looks like it was saved, uploaded, saved, uploaded, saved, over and over. Losing quality each time.
The second clue was that everything was aligned left and word wrapped all the way around my screen. Any business with more than 10 employees that write customer-facing emails that word-wrap may not be trustworthy and are certainly out of touch with the modern world. Check any of your emails that are coming from a company that's aimed at a large customer group. ASPCA newsletters, your cable bill, twitter feeds, news, advertisements, reddit updates. They are all compressed to a column to fit nicely on a phone or small monitor such as 480p or 720p. This is to make sure the format is as nice as possible for as many as possible. When you are sending the same email out to several million people and their dogs too, you want to make sure the experience is as universal as possible.
The third clue it was fake, is the fact it was coming from a Gmail address. Again, if you are dealing with a company that has more than 10 employees, they should have their own domain address. They should not be using a Gmail address. Having their own domain adds trustworthiness, validity and reliability to the message. Getting a domain name, a custom website, and using this for your own email address has a cost starting at $30 a month. Unless your company is less than 60 days old there is no excuse not to have your own email addresses. And even then, I am gonna stick to my 10 employee rule. Though in reality that should be 3. If you are writing $200+ paychecks to someone that doesn't live in the same house as you, you can afford an email domain.
At this point I told the person I know it's a scam. I then reported them to Facebook, Gmail, yahoo, and cashapp. But I kept digging because I wanted to write this post.
The fourth clue it was fake, and maybe should have been second if I knew Cashapp better. The email addressed me by my cashapp tag, not my name. Yes, game companies will often refer to you by your user name. But a financial or retail company that's controlling your money should never do so. Amazon, PayPal, your bank, your place of employment. These places should not, ever, refer to you by a user name or "Dear Amazon Customer" or anything vague like that if the email is actionable. That is to say, an email you are expected to do something with, such as confirm a purchased or in this case telling me I need to send the scammer $200. Amazon may send an email referring to you as Customer if the email is being sent to all 999 million of their customers and isn't personal to you. Such as a newsletter saying that starting December 1st the sale of pink cowbells will now be banned. But not any email that is addressed to you specifically.
The fifth clue that the email was fake, was the indentations indicating it wasn't an original email. Yahoo and Gmail (only email providers I use) indent emails and put a very think vertical line to the left of the indented section to show you the email is a forward or a reply. The original section is intended and any new part is not. So, if you send me an email telling me all about your favorite socks, and I respond saying pizza does not belong on feet, your original email is still there and indented, but mine is above it and not. Unless I delete your part, then nothing is indented. This entire email was indented which suggests to me that it was written somewhere else, then sent to this scammer's fake address, then forwarded to me. In the second email attempt other parts of it were indented to different degrees and levels that just don't make sense. There was no way I could imagine that happening naturally. Which suggested to me that this email was being Frankensteined together from multiple other
emails.
The sixth clue is the font. Different lines in the email have different fonts, different sizes. Different colors. Bolded in different spots. Os in place of 0s in some places. Even having $200.00 written out but with the last two 0s being two sizes larger than the first two.
The seventh clue is that none of the places that links should have been, were clickable. The places at the bottom of any professional email such as contact email, support email, parent companies, ect, ect, ect. None were actual links. They color changed to blue.
The eighth and final clue that should have stood out to me sooner. The subject being in all caps. Shouting the topic. No self-respecting individual screams their initial intent. Scammers and predatory bill collectors.
That's it. I am sure if I shared the actual email here others could point out stuff. But really, these are the things to look at to see if an unknown email is legit. Regardless of who they are claiming to be. Your totally legit local towing company may break some of these rules, sure. But really. Anyone that has a monthly revenue of more than $30,000 a month absolutely should have someone with at least a 2-year college degree related to computers working part time for them, and be able to handle a professional email.
Top 5 Ways To Avoid Delivery Scams Ahead Of The Holidays
By: Alicia Smith Nov 17, 2022
(WXYZ) - When it comes to holiday shopping logistics, consumers have it pretty easy these days. People can order practically anything they want online and have it shipped to their door. But, as you await all of those packages, watch out for scammers, especially when it comes to deliveries or shipping notifications.
So-called 'porch pirates' are always a concern. "People have seen people taking packages from other people's porches, unfortunately," Kim Harper of Southfield said. She has received neighborhood alerts about package thefts recently.
Harper also said she's concerned about delivery scams via phishing texts. "A lot of times you'll get texts that say, 'Your order has been delayed' or whatever. 'Click here to check on it.' I never click on those. I go directly to the site I ordered from," she said.
Melanie Duquesnel, the President and CEO of the Better Business Bureau Serving Eastern Michigan, encourages people to avoid falling victim to those scams. I asked her what is the shipping scam that's causing the most concern right now in metro Detroit.
"Package tracking," she replied. She said scammers will send an email or text posing as a company like UPS or FedEx prompting you to click a link. "The malware is what they're going for. They want to either disable your computer or figure out your personal information," Duquesnel said.
Another scam is the fake "missed delivery" tag left on your door. Scammers say they have a challenge getting your package to your door. So, they want to reschedule the delivery. They want you to call the number on the tag. But it's really a ruse to get your personal information.
Here are the BBB's top five ways to avoid delivery scams:
1. Don't click on any links or call unknown numbers. Go to your delivery carrier's website directly or call them directly if you have questions.
2. Get tracking numbers for your purchases and check the shipping progress periodically.
3. Request a signature. It costs extra, but packages will not be dropped off when you're not there.
4. Have your package delivered to your workplace or a trusted neighbor.
5. Open your delivery upon receipt to check for damage or signs of tampering. Contact the seller immediately if something is wrong.
Duquesnel recommends you print out or keep a digital folder of all your invoices so you know exactly what you're waiting to receive. Remember, major shipping services will never ask you for credit card information to get your package delivered.
If you think you've been a victim of a crime, call the police to report it. Also, report it to the BBB's Scam Tracker website.
Check Your Bank Statements For Bogus Google Charges
By: Kara Kenney WRTV Staff, Martinsville, Sep 16, 2022
A scam involving unauthorized Google charges is hitting bank accounts across the country. The charges are totally bogus but appear to be coming from Google and Google Play, and typically there's more than one on your credit or debit card.
Anita Caincross went out to dinner with a friend, and when she went to pay with her debit card, it would not go through. "I checked my account, and it was literally at zero," said Caincross. She found four separate charges totaling $4,065 that appeared to be from Google, with names next to each charge that Caincross did not recognize like "Duncan Oti" and "Maleto Ke."
"I was angry," Caincross said. "What the heck happened here?"
Caincross said the bogus Google purchases emptied her account which made it difficult to pay the bills. "I had a car payment and a house payment, and I'm never late on payments like that," Caincross said.
Caincross contacted Google, but she says the company refused to refund her money.
So, she contacted her bank, Fifth Third who reversed the charges.
"I canceled the card and filed the dispute," Caincross said.
Customers from other banks across the country also have been hit with bogus Google charges.
A Reddit blog shows dozens of people who experienced fraudulent Google charges.
The amounts often start small, because the scammers hope you won't notice.
"You may not think twice if you see Google, so that's why you've really got to drill down and see what those charges are," said Jennifer Adamany, a spokesperson for the Better Business Bureau Serving Central Indiana. "Access your Google account and see what you're subscribed to and see if something doesn't look right. You have a better chance of stopping it early on."
The best thing you can do is to regularly check your banking statements and look for unauthorized charges, even if they're small. "Keep an eye on it early on so you can put a stop before it gets to larger amounts," Adamany said.
Anita Caincross is sharing what happened to spread awareness about phony Google charges.
"It's important to be careful when using your debit cards online or anywhere because your information is extremely vulnerable," Caincross said. "They can wipe you out in the matter of a seconds. You have to be hyper-vigilant."
Google has not responded to requests for comment.
Fifth Third provided the following statement:
We have not seen any specific uptick related to this scam, however, Fifth Third takes fraud very seriously and continues to monitor trends and mitigate risks for our customers. Customers should always report any fraud as soon as possible to Fifth Third. They should also continue to be alert to scams via text and email.
There always seems to be new (and old) ways to try to scam people. People commonly get these types of fake messages purporting to be from different banks, so people need to be careful regardless of where they bank. Below are some tips we provide related to scams:
!   Be suspicious if you get a call or text asking for personal information such as account numbers or your Social Security Number.
!!   Be cautious if the person calling or texting has an urgent tone or if you are directed to an automated voice response asking you to validate information.
!!!   Be cautious about clicking links within text messages.
!!!!   Never provide personal information over the phone or via text unless you initiated the call to a verified Fifth Third Bank phone number.
If customers have a question/are suspicious about an email, phone call, or text, contact Fifth Third directly to help.
$   Call us via a verified Fifth Third Bank phone number and ask to be transferred to the person or department mentioned in the communication.
$$   Forward suspected phishing emails that appear to be from Fifth Third Bank to 53investigation@security.53.com. Suspicious emails appearing to come from other entities should be forwarded to reportphishing@antiphishing.org
Webmaster - I recommend that everyone should check their account balances at least once a day online. If there is a problem, call or text your financial institution IMMEADIATLY! Better safe than sorry.
BBB West Michigan Warns Of Riskiest Back-To-School Scams
By: Lauren Kummer; Aug 11, 2022
GRAND RAPIDS, Mich. - The rush to buy school supplies is underway as the first day of school quickly approaches. With that, the Better Business Bureau serving West Michigan is warning consumers of what to look out for.
The Better Business Bureau (BBB) said online purchase scams are the top spot for riskiest to consumers, making up just 37% of all reported scams. According to their scam tracker, almost 3/4 of people affected reported monetary loss.
How can you make sure you don't fall victim when back-to-school shopping?
The BBB said to beware of 'too good to be true' deals. If you see free or very low prices on hard to find items, it's probably a scam.
They said scammers look to take advantage of consumers who are desperate for certain supplies. "This year, we really encourage people to shop early, and that is because we're seeing those shipping delays, and those product shortages," said Better Business Bureau Communications Specialist Katie Grevious. "When you find something that you like, and maybe that pricing is really great, compare it with other prices or other well known stores to make sure that you truly are getting a deal, and that it's not a deal that's too good to be true," she said.
Some additional tips include:
- Do your homework. Learn more about the seller by looking them up on BBB.org. Do not rely on reviews from the company's website.
- Think before you click. Be especially cautious about email solicitations and online ads on social media sites. Many sketchy retailers advertise great deals or trendy clothing that don't measure up to the promotional hype.
- Finish your shopping early. With supply shortages and high prices, there will be a large number of shoppers all looking for the same products. Start early and finish early so you are not in a hurry, allowing you to avoid higher prices or being enticed by a bad deal.
- Research big ticket items. Before purchasing any major item, research the brand and check the product's warranties. Only shop with businesses you know and trust to ensure you're getting a quality product and good customer service.
- Check the site's security. If the site is secure, its URL should start with "https://" and include a lock icon on the purchase page. Only enter payment information on secure sites.
- Read the fine print. Look for the return policy; although many online orders can be returned for a full refund, others have restocking fees. Some items cannot be returned; know before you buy.
- The BBB adds paying by credit card is important to give an extra layer of protection, offering you the opportunity to dispute any charges if the transaction goes bad.
- "If you do end up falling for a scam, or you do end up giving you know your money to a scammer, they can go ahead, reimburse you and then fight with that scammer in the background, and you don't have to worry about it," said Grevious.
- When you are online shopping, if you find a suspicious website or email, the BBB is asking you to report it through its scam tracker.
- You can also check the scam tracker list for find information on potential fraudulent websites or emails you find suspicious.
New Crypto Payment Scam Alert
By Cristina Miranda, FTC January 10, 2022
There's a new spin on scammers asking people to pay with cryptocurrency. It involves an 'impersonator', a QR code, and a trip to a store (directed by a scammer on the phone) to send your money to them through a cryptocurrency ATM.
It works like this: someone might call pretending to be from the government, law enforcement, or a local utility company. Maybe a romantic interest you met online calls, or someone calls to say you've won the lottery or a prize. They'll wind up asking you for money. If you believe the story they tell and you seem willing to engage, they'll stay on the phone to direct you to withdraw money from your bank, investment, or retirement accounts. Then they'll tell you to go to a store with a cryptocurrency ATM (and they'll stay on the phone the whole time).
Once you're there, they'll direct you to insert your money into the ATM and buy cryptocurrency. Here's where the QR code comes in: they send you a QR code with their address embedded in it. Once you buy the cryptocurrency, they have you scan the code so the money gets transferred to them. But then your money is gone.
Here's the main thing to know: nobody from the government, law enforcement, utility company, or prize promoter will ever tell you to pay them with cryptocurrency. If someone does, it's a scam, every time. Any unexpected tweet, text, email, call, or social media message - particularly from someone you don't know - asking you to pay them in advance for something, including with cryptocurrency, is a scam.
If you spot something like this, tell the FTC right away at ReportFraud.ftc.gov. And to learn more about avoiding cryptocurrency scams, visit ftc.gov/cryptocurrency.
Before You Join That Crowdfunding Campaign, Read This
By Emily Wu FTC, Nov 18, 2021
If it takes a village to raise a child, crowdfunding may be what it takes to make that invention a reality. But scammers could be behind those crowdfunding efforts and take your money without delivering what they promise.
name you want displayed can help raise money to develop a new product or invention. To get investors, the organizer may promise something in exchange for contributions. Investors might get a payout once the invention is profitable, be the first to get the new product, or get the new product at a discount later on.
When you give money to a crowdfunding campaign, it goes directly to the campaign organizer. But a dishonest businessperson might lie about the project, product, and timeline. And they might lie about the rewards you'll get once the product is finished.
So before you pledge funds to any crowdfunding campaign, check on a few things first:
# Who created the campaign? Find the name of the organizer on the crowdfunding page and do your own vetting. If you can't find anything about that person, or the details don't match what they're telling you, that's a sign of a scam. Search for the name of the organizer and project with the words "complaint," "review," "or scam" to see if anyone has already had a negative experience.
# What's the purpose of the campaign? Be clear what the funds are for and what you should expect from your contribution. Not all campaigns promise you'll get anything in return.
# What happens if the project doesn't get off the ground? There's no guarantee that the project will be successful and completed. Find out what happens to your money if the project doesn't get going. Can you expect a refund? How you will get it?
If you come across a crowdfunding scam, report it to ReportFraud.ftc.gov, your state Attorney General, and the crowdfunding platform.
When Scam Calls Target Your Client Or Loved One
By Amy Hebert Consumer Education Specialist, Nov. 15, 2021
Calls from scammers are annoying and can cause a lot of trouble when you realize, too late, that they're scams. What's even worse? When they target a client or loved one you're caring for. So today, as part of National Family Caregivers Month, we're talking about how to spot and block scam calls.
Scammers might pretend to be with the government, a grandchild, tech support, or a potential love interest.
The real Social Security Administration won't threaten people or suspend their Social Security numbers and won't ask for payment this way. It's a scam.
Here are some steps you can take to help your loved one get fewer scam calls:
A. Look into call-blocking. There are technologies and devices that can stop a lot of scam calls and illegal robocalls before they reach you. Cell phones, home phones that make calls over the internet (VoIP), and landlines each have their own call-blocking options. Just know that call-blocking services could block some legitimate calls.
B. Sign up for the National Do Not Call registry to stop calls from real companies. But know that the registry can't stop calls from scammers.
C. If you answer one of these calls, hang up. If possible, tell the person you're caring for to do the same. If the call is a robocall, don't press any numbers or it could lead to more calls.
D. Warn your loved one about scams. If possible, talk to the person you care for about different types of scams that can happen over the phone.
E. Know when to report identity theft. If you find out the person you're caring for gave their personal information to a scammer, go toIdentityTheft.gov to report it and find out what you can do next.
Learn more about unwanted calls at ftc.gov/calls. And learn more about scams targeting older people at ftc.gov/PassItOn.
Get The Dog Or Cat Instead Of The Scam
By Jennifer LeachNov. 12, 2021
This has been National Adoption Week for pets, and by now, thousands of dogs and cats might have new homes in the hearts of many thousands of people. But as the holidays approach, scammers know that families are hearing about their kids' NEED for a dog or cat. And scammers are ready to take advantage by offering up that perfect pet, for a fee. You'll find ads offering litters of puppies, especially, on websites and listservs online. But once you pay, your supposed pet and the 'breeder will vanish, along with your cash. Here are ways to spot those puppy and pet scammers and stop them in their tracks.
+ Start with a local rescue or animal shelter. A quick online search will point you to them, where you'll be able to adopt for a small fee. There are even rescues for specific breeds, so check them out, too.
 + Check out the rescue, shelter, or breeder. Search online for their name, plus words like 'complaint' or 'scam.' See what others have to say about them.
 + Check out the photos. Are the pics of the available cute puppies and kitties just stock pictures? Or are they copies taken from somewhere else? Do a reverse image search to see. If they're either, move on.
 + Have an in-person or video visit. Legit rescues, shelters, and breeders alike want to make sure you and your new pet are a good match. They'll encourage an in-person or video meeting. If they don't want you to visit, video chat, or even talk by phone, move on to someone else.
 + Watch how you're asked to pay. Nobody legit will ever require you to pay by gift card, wire transfer service like MoneyGram or Western Union, or cryptocurrency. And paying by cash transfer services, like Venmo, makes it hard to get your money back. So stick with a credit card, if you have one, for the most protections if something goes wrong.
If you spot one of these scams, tell the FTC at ReportFraud.ftc.gov. All the cats and dogs of the FTC wish you well in adding a new family member to your home.
How To Spot, Stop, And Report Post-Disaster Scams
By Colleen Tressler, FTC September 3, 2021
Whether you're starting to assess the damage from Hurricane Ida, the recent flooding in Tennessee, the wildfires in the West, or another natural disaster, coping with the aftermath is never easy. But when scammers target people just trying to recover, it can be even worse. Here are ways to help you avoid common post-disaster scams.
Be skeptical of anyone promising immediate clean-up and debris removal. Some may quote outrageous prices, demand payment up-front, or lack the skills needed.
Check them out. Before you pay, ask for IDs, licenses, and proof of insurance. Don't believe any promises that aren't in writing.
Never pay by wire transfer, gift card, cryptocurrency, or in cash. And never make the final payment until the work is done and you're satisfied.
Guard your personal information. Only scammers will say they're a government official and then demand money or your credit card, bank account, or Social Security number.
Know that FEMA doesn't charge application fees. If someone wants money to help you qualify for FEMA funds, that's probably a scam.
Be wise to rental listing scams. Steer clear of people who tell you to wire money or ask for security deposits or rent before you've met or signed a lease.
Spot disaster-related charity scams. Scammers will often try to make a quick profit from the misfortune of others. Check out the FTC's advice on donating wisely and avoiding charity scams.
Credit Card Skimmers Found At Several West Michigan Gas Pumps
By: Karie Herringa, FOX17online.com. Oct 21, 2021
LANSING, Mich. Inspectors from the Michigan Department of Agriculture and Rural Development (MDARD) found several credit card skimmers placed inside gas pumps in West Michigan. MDARD says weights and measures inspectors found the credit card skimmers during a routine blitz.
"These criminals continue to try and use gas pumps to commit theft and steal your personal information for fraudulent use. These inspections are just another way MDARD is protecting Michigan consumers at the pump," said Gary McDowell, MDARD Director. "Kudos to our weights and measures staff for their vigilance in protecting consumers' pocketbooks and personal identification."
The skimmers were found at gas pumps in Wyoming, Portage and Grandville as well as several other locations throughout the state.
MDARD says skimmers were found at the following locations:
* Admiral, 3221 Division S., Wyoming
* Admiral, 5342 Westnedge, Portage
* Sunoco, 40200 Michigan Ave., Canton
* Admiral, 4315 Chicago Drive, Grandville
* Mobil, 1396 Ecorse Road, Ypsilanti
* Sunoco, 5843 S. Martin Luther King, Lansing
* Mobil, 1500 Haslett Rd, East Lansing
* FlexxMart, 496 Main St. Belleville
According to MDARD, credit card skimmers can't be seen outside the pump. They are located inside where they make a copy of the person's card information.
"Criminals who engage in this type of illegal activity exploit and manipulate the very technology that we depend on to conduct secure financial transactions in the retail marketplace," said Timothy Waters, Special Agent in Charge of the FBI in Michigan. "The FBI and its local, state, and federal law enforcement partners are committed to protecting consumers, businesses, and financial institutions from fraud schemes conducted by criminal enterprises likes this one."
MDARD is working with the FBI to try to track down the thieves.
"The station owners had security measures in place to protect their patrons such as security tape." added Craig VanBuren, MDARD's Lab Division Director. "Unfortunately, the thieves cut, broke, or removed the tape. It is important that both the stations and customers remain vigilant at the pump when using a bank or credit card."
If you believe your credit card information may have been compromised, you should contact your banking institution immediately.
Keep Your Vacation And Holiday Travel Plans Safe From Scammers
Adapted from FTC consumer alert emails.
As you think about what your vacation and holiday travel plans hold, here are some things to keep in mind:
# Never pay for "prize" vacations. No legitimate company will ask you to pay for a prize.
# Use a credit card, if possible, for your travel spending. This gives you more protection than paying by cash or debit card;and it may be easier to dispute unauthorized charges.
# Subscribe to Consumer Alerts to keep up to date on the latest scams. Then pass them on.
Scammers are posing as rental car companies, setting up their own websites, and advertising fake customer service phone numbers, all to convince travelers they're legit. Then, they're asking people to pre-pay for the rental with a gift card or prepaid debit card. To avoid rental car scammers driving off with your money:
* Research the rental car company by searching for the name of the company and words like "scam," "complaint," or "review" to check if other people have had a bad experience.
* Verify deals with the company directly. If you need customer support, look for contact info on the company's official website. Don't use a search engine result. Scammers can pay to place sponsored ads in search results, so they show up at the top or in the sponsored ad section.
* Pay with a credit card if possible, and never pay with a gift card or prepaid debit card. You can dispute credit card charges, but gift cards and prepaid debit cards can disappear like cash. Once you give the number and PIN to a scammer, the money is gone.
Before you rush to book that miraculously available rental car, take a moment and read up about things you should consider when renting a car. If you spot a rental car scam, tell the FTC at ReportFraud.ftc.gov.
If you're considering getting a timeshare this vacation season, read on. Maybe you got a flyer in the mail with pictures of sunny beaches and beautiful resort suites. Sounds great, right? But before you sign a timeshare contract, make sure you understand what you're getting into and how to get out of it.
Not all timeshares work the same way. Some use points to determine where you can stay and for how long. Others get you one week a year at a resort, but it's not always the same week. The cost also varies a lot. Typically, timeshares require you to pay initial fees and yearly maintenance fees that may increase every year.
Promoters might offer you a gift or delicious meal to attend a timeshare presentation. If you decide to go, the sales staff may make a lot of promises and pitches designed to get you to buy right then and there without giving you time to think about it or do any of your own research.
So before you sign that timeshare agreement, ask yourself a few questions:
+ If the timeshare is only for a specific property, is this where I want to vacation every year?
+ Can I afford this timeshare,
even if the maintenance fees go up?
+ Do I have the time to deal with issues that may arise if I can't book the resort I want during the time I want to travel?
+ If I no longer can afford or want the timeshare, how can I sell it?
And read Timeshares, Vacation Clubs, and Related Scams for more tips.
Shopping Online? Know Your Retailer And Your Rights
Colleen Tressler, FTC June 30, 2021
COVID opened the door for scammers to double down on their worst practices, while preying on consumers during an unprecedented global pandemic. That includes some bad actors who have been taking advantage of online shoppers in search of hard-to-find items like face masks and other personal protective equipment (PPE).
When you shop online, sellers are supposed to ship your order within the time stated in their ads, or within 30 days if the ads don't give a time. If a seller can't ship within the promised time, it has to give you a revised shipping date, with the chance to either cancel your order for a full refund or accept the new shipping date.
So before you shop online, especially from an unfamiliar retailer, remember these three things:
1. Check out the company or product. Search online for the name plus terms like "review," "complaint," or "scam." See what other people say about it. Read the seller's description of the product carefully. If the seller has name-brand goods at steeply discounted prices, they might be fakes.
2. Look at the terms of the sale. Make note of the total price, including taxes, shipping, and handling; the expected delivery date; and policies for refunds, including who pays for return shipping and if there is a restocking fee.
3. Pay by credit card. You'll get protections under federal law, so you don't have to pay for things you ordered but didn't get.
Remember, if you see a scam, or want to report a problem about online shopping, tell the FTC at ReportFraud.ftc.gov.
How Long Does It Take To Hack Passwords - - NEW 07-25-21 - -
Adapted from Kiplinger's Personal Finance; Hive Systems, with data from www.howsecureismypassword.net
The number of Characters used to create a password are 8, 9, 10, 11, 12, 13.
Using Numbers only takes - Instantly, Instantly, Instantly, 2 sec., 25 sec, 4 min.
Using lower case letters - 5 sec., 2 min., 58 min., 1 day, 3 weeks, 1 year.
Upper & lower case letters - 22 min., 19 hrs., 1 mth., 5 yrs., 300 yrs., 16K yrs.
Numbers, up & lower case letters - 1 hr., 3 days, 7 mth., 41yrs., 2K yrs., 100K yrs.
Numbers, up & lower case letters, symbols - 8hrs., 3 wks., 5 yrs., 400 yrs., 34K yrs., 2M yrs.
The choice is yours.
More Money Is Coming To Families - And Scammers Are Ready
By Lisa Lake, FTC; June 2, 2021
As part of the American Rescue Plan Act, eligible families will get monthly payments from the government from July 15 through December 2021. The Internal Revenue Service (IRS) will send these monthly payments directly to people through direct deposit, paper checks, or debit cards. Unlike economic impact payments, these payments are an advance on families' child tax credit. People who are eligible will get up to half of their child tax credit in these monthly payments and the other half when they file their 2021 taxes.
If you qualify for payments - which depends, in part, on how much you make - you'll get them on about the 15th of each month, automatically, without having to do anything. The IRS is working to get online systems set up on its webpage and make sure all questions get answered. Go to IRS.gov for the latest info on who qualifies, how much you'll get, and how to address any problems you might run into.
When money from the government is in the news, we know scammers are about to run their standard playbook. They may call, email, text, or DM you. They'll say they can help you get your payments earlier (they can't), get you more money (also no), or tell you other lies (for sure). Here's the real deal:
* Only the IRS will be sending these payments. Anyone trying to "help" you get your child tax credit is really after your money.
* The government will NEVER call, text, email, or DM you out of the blue, asking for money or information. Keep your money - and your Social Security, bank account, debit and credit card numbers - to yourself.
* Nobody legit will ever demand that you pay by gift card, wire transfer through companies like Money Gram or Western Union, or cryptocurrency. That's a scam, every time.
If someone tries to scam you out of these payments or anything else, report it to the FTC at ReportFraud.ftc.gov.
DTE Energy Lays Out What Customers Need To Know So They Don't Fall Prey To Scammers
By: WXYZ Web Team, May 04, 2021
(Webmaster - These rules apply to every utility or service in Michigan!)
(WXYZ) - DTE Energy is laying out what customers can do to prevent falling prey to scammers after they've heard "heart-wrenching" stories from people around the community. According to a press release, DTE says scammers have called or texted customers using technology that falsely indicates it's coming from DTE, demanding immediate payment. They have also heard of scammers showing up at doors, claiming to be from DTE Energy, and stealing from the home when the owners' backs are turned.
DTE says they try to contact customers before making visits, but that it's not always possible. If someone shows up at your door, DTE says you should always request to see a badge. If you are called, ask the person to tell you your account number and current amount due. If it does not match what is on your current bill, call police and DTE to report them. You can always call 800-477-4747.
Here's what DTE wants YOU to know:
* DTE does not ask for unusual forms of payment such as Bitcoin or gift cards.
* DTE does not visit homes to collect a late bill or threaten shutoff.
* DTE does not use aggressive tactics to get into a customer's home.
* DTE does not request personal or financial information, such as a Social Security number, utility account number or payment information.
* DTE does not claim a customer is entitled to a refund or rebate and ask for a bank account or credit card information to make the alleged refund.
* DTE does not ask for your personal information for a government program that claims to reduce energy bills.
The red flags include someone asking for your DTE account number, bullying and demanding a specific form of payment.
They also advise you do not allow someone to enter your home if:
# Claim to offer a DTE Electric or DTE Gas refund. Our employees never deliver cash refunds or rebates to customers' homes.
# Attempt to collect a bill payment. DTE DOES NOT collect or accept utility bill payments at customers' homes or businesses.
DTE says if any customers feel like their identity has been compromised, they should call their local police, take advantage of free credit reporting, watch for new accounts opened in their name, and report the activity to DTE.
Guard Against Fraud Cures And Other Cons
By Linda A. Johnson Associated Press, April 13, 2020
* Don't answer your phone unless you know the caller: "Use your answering machine," If you answer a robocall and are directed to press a number for details on an offer, don't. It's likely a scam.
* Beware "spoof" calls: These falsely ID callers as agencies like the IRS, Social Security Administration or Small Business Administration and tell you to call a number for help getting money. Instead, look up that agency's phone number to check.
* Consider the source. Government agencies contact people by mail, NOT by phone, text, social media or email.
* Don't fall for pitches offering drugs or nutritional supplements to cure or prevent infection by the coronavirus, or at-home virus test kits. They don't exist, and the first time you hear about one won't be from a stranger.
* Question email and text requests that seem to be from friends or relatives, asking you to buy store gift cards from a third party promising to forward the cards to them.
* Don't send money to someone you haven't met, particularly via money orders, prepaid debit cards or gift cards, which aren't secure or traceable. Don't give info to people who contact you, or click unfamiliar email links, which could put malware on your computer to find passwords and financial information.
* Question possibly true things, like emails and online ads offering hard-to-find hand sanitizer, sterile gloves and masks. Many people have reported ordering via credit card, but never received the items and the seller vanished.
Fake Cash App Customer Support Dupe Michiganders Of Thousands Of $$$
By: WXYZ Web Team, Jul 23, 2020
The Better Business Bureau Serving Eastern Michigan & the Upper Peninsula (BBB) has received several reports over the last few months from consumers who lost thousands of dollars after speaking with an alleged Cash App customer support person. Consumers say they searched online to find the customer service department phone number for Cash App. The 'representative' on the other end of the line then requested the consumer's login information to be able to 'further assess the problem,' claiming to be transferring funds to a dummy account and back again to see why consumers were having trouble accessing funds. When, in actuality, the scammers were transferring the consumer's money into their own accounts with no intention of returning the funds, according to the BBB.
Right now, Cash App does not actually offer customer service via telephone, only via email or through the app. If a consumer does call the number provided by the company (1-855-351-2274), they will hear a recording telling consumers to seek service via email or their app. Cash App, a product of the company Square, Inc., based out of San Francisco, California, has been made aware of this issue and responded, in part by saying:
"To ensure we can assist every Cash App Customer as quickly as possible, we primarily support this product via email. We're working hard to increase Cash App support via other channels and make it even easier for customers to get real-time help with urgent issues."
Melanie Duquesnel, President & CEO of BBB serving Eastern Michigan & the Upper Peninsula said: "When looking for customer support for any website, it is best to go directly to the source, so in this case to the app itself. While our first instinct is to do an internet search, it may not always provide the most accurate information. If there is no customer service phone number on the app, chances are they don't provide customer service over the phone."
One Michigan user reported calling a number they found by Google searching "Cash App Customer Service" and was convinced, by the representative, to send $335.00 a random account, they claimed was dummy account.
Another Michigan resident stated that after calling a number they found on Google, the representative convinced them to download an additional app that allowed the representative to access to their phone screen, once the consumer did that, they watched as the scammer changed all of their account details and sent their money to another account.
When looking to use any cash transferring app, here are some tips to consider:
- Use money transfer with friends: Protect yourself from scams by only using money transfer apps for their intended purpose -- sending money to people you personally know.
- Enable additional security settings: Check your account settings to see if you can turn on additional security measures, such as multi-factor authentication, requiring a PIN, or using fingerprint recognition like Touch ID.
- Link your money transfer app to a credit card. As with many other purchases, using a credit card will help protect you if you don't get the goods or services you paid for. Linking to a debit card or directly to your bank account does not give you that added protection.
- Use a password on your phone. If you lose your phone - or it's stolen - be sure criminals can't access your payment apps. Secure your phone by choosing a strong password or using the biometric security devices available on many smartphones.
- Check your account to be sure that the money transferred: If you do use a peer-to-peer payment app to sell something, be aware that it takes a few days for some payments to transfer. Be sure that the money transferred: If you do use a peer-to-peer payment app to sell something, be aware that it takes a few days for some payments to transfer. Be sure that the money transfers before you send the goods. If you have any concerns that a payer didn't really send the money, be sure to check your account directly.
BBB says peer-to-peer payment apps are certainly convenient but without the proper protections, you could sustain significant losses of time, money and in some cases, treasure.