Common Scams and Fraud. Charlottesville/Albemarle County TRIAD Group

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1 Common Scams and Fraud Charlottesville/Albemarle County TRIAD Group

2 What We ll Cover 3 parts of a scam or fraud Common scams What can you do? Common Scams

3 Three Parts of Any Scam or Fraud 1. Victim has something that the con artist wants. 2. Victim is convinced to trust the con artist. 3. Con artist cheats victim out of desired item.

4 Tax Scams Common Scams IRS is now required to use private collection agencies to collect owed tax debt. 736,000 complaints about fraudsters have been filed with Treasury Inspector General since October The IRS will never call about taxes owed without first mailing a bill. AARP Fraud Watch

5 Tax Scams Cont. Common Scams Fraudsters ask for payment by pre-paid debit card or wire transfer. 23 million dollars has been lost through this scam in the last two years. Assume that all calls from a self-described IRS private collector is a fraud until you contact the IRS directly. Private collectors cannot receive direct payments. AARP Fraud Watch

6 Tax Scams Cont. Common Scams Fraudsters will often use recorded messages threatening arrest if they are not contacted by phone. Scams are becoming more dangerous with requests or demands to meet in person to settle the debt.

7 Common Scams Telemarketing and Phone Scams Consumers lose more than $40 billion each year.

8 Telemarketing and Phone Scams Computer Phone Scam Often identifies as Windows company Detection of an impending crash or serious problem with your computer Jury Duty Scam The fraudster calls and says you missed jury duty and need to pay a fine The Court or Sheriff will never call and ask for payment Free Vacation Scam If it is free why do they ask for a deposit? Medical Supplies Caller will ask for Medicare number for reduced rate supplies Grandparent Scam Caller claims to be a grandchild in jail or in trouble overseas

9 Telemarketing and Phone Scams Avoiding Telemarketing Scams 1. Don t be pressured to make an immediate decision. 2. Don t give your credit card, checking account, or social security number to unknown callers. 3. Don t pay for something just to receive a free gift.

10 Common Scams Utility Shut Off Scam ( Weather Dependent Scams ) Caller claims immediate cutoff of power if an outstanding bill is not paid immediately Usually demand payment with a pre-paid debit card Spoofing software is sometimes used to mimic your power companies phone number so it will show up on your caller ID Some power companies accept pre-paid cards, but will never demand the type of payment Never pay anything over the phone until you verify the debt is owed by personally calling the utility provider

11 Weight Loss Fraud Common Scams Weight loss fraud is estimated to be in the billions per year. Remember Despite claims to the contrary, there are no magic bullets or effortless ways to burn off fat. Claims for diet products or programs that promise weight loss without sacrifice or effort are bogus, and sometimes very dangerous.

12 An All Time Low.. Funeral Notification In the subject Field: Celebration of your friends life service Body of the We would like to offer our sincerest condolences on the passing of your dear friend. A memorial service will be conducted at 11:00 a.m., (Day and date). For information, please click on the link below. Malicious Software (Malware) is now Successfully Installed on Your Computer

13 Health Products Common Scams Buzz words to be on the lookout for New Scientific Or Medical Breakthrough Clinically Tested In Europe Proven To Provide Immediate Results

14 Health Products Common Scams Remember Approach ads that tout treatments or cures for serious conditions or diseases with particular caution. Ask yourself this question: If a medical breakthrough has occurred, would you be hearing about it for the first time from someone placing an advertisement?

15 Common Scams Health Care Products Cont Medical Equipment and Medical Supplies Fraudsters in Virginia call and claim your doctor has recommended a back brace for you and Medicare will pay for the cost. They just need your Medicare Number. Often call and offer free or low cost medical supplies that are covered by Medicare. They just need your Medicare Number. Never give your Medicare number to someone over the phone

16 Common Scams Sweepstakes and Lotteries Be very suspicious about offers to: Receive an advance on a sweepstakes you have supposedly won. Pay a fee or tax on the millions you are promised to receive. Pay a small fee to receive your winnings or prize.

17 Common Scams Tips to Remember: You will never have to pay for taxes, insurance or handling costs to collect on sweepstakes prizes. Never be pressured to wire money or send money by overnight delivery. It is the same as sending cash, and when it is gone there is very little chance to recover it. Federal anti-racketeering statutes (US Code Title 18, Part I, Chapter 95, Section 1953; it is a federal crime to enter a foreign lottery

18 Common Scams Phishing Scams ( scams) s appear to have been sent from legitimate retailers or banks. Also called spoofing Carefully examine the senders address

19 Sample Phishing

20 Sample Phishing I didn t know that McDonalds was a non-partisan polling organization

21 Sample Phishing Real #

22 Common Scams Fraudulent Charities and Donations Benevolent organizations: police, fire, veteran organizations. Children s funds International religious outreach Political organizations

23 Common Scams Know where your money goes: Research the charity before you donate. Ask for written information before donating. Never give cash. Never believe that the charities budget is based on your immediate donation. Never donate to an organization that only accepts money by phone. If something doesn t sound right trust your instincts. Good Resource Site

24 What You Can Do If it sounds too good to be true it probably is Report the fraud to the Federal Trade Commission If you have a problem with a business, call the Virginia Attorney General s Office or the Virginia Department of Agriculture and Consumer Services. Call your financial institutions immediately if your checks/credit cards have been lost of stolen. Call the Fraud Unit of all major credit reporting agencies to report a fraud alert.

25 What You Can Do Remove your name from the telemarketer list by signing up at or call Stop direct mail and telemarketers by writing to: Direct Marketing Association PO Box 9008 Farmingdale, NY 11735

26 Important Numbers and Websites Virginia Attorney General or Federal Trade Commission Customer Service Federal Bureau of Investigation Customer service

27 Disclaimer No guarantees of safety from loss No silver bullet to personal or financial protection Material presented makes you better realize the scope of the issue and how to address it should it happen

28 Questions???