SCAM UPDATE – FTC Data Show Fraud Trends

 

The Federal Trade Commission (FTC) recently released its latest data about fraud and the effects of fraud on our society.

It reports that Americans lost almost $8.8 billion to fraud in 2022 which amounts to an increase of more than 30% over 2021. Consumers can report scams and fraud to the at www.reportfraud.ftc.gov. The FTC gathers the complaint information into its Consumer Sentinel Network database which it shares with federal, state and local law enforcement agencies.

 

Top 10 Frauds.

Nationwide, the top 10 fraud categories for 2022 include:

1.      Imposter Scams

2.      Online Shopping and Negative Reviews

3.      Prizes, Sweepstakes and Lotteries

4.      Investment Related

5.      Business and Job Opportunities

6.      Internet Services

7.      Telephone and Mobile Services

8.      Health Care

9.      Travel, Vacations and Timeshare Plans

10.  Foreign Money Offers and Fake Check Scams

 

 

 

 

 

Federal Trade Commission:

https://public.tableau.com/app/profile/federal.trade.commission/viz/TheBigViewAllSentinelReports/TopReports

 

 

Fraud in Washington State.

According to FTC 2022 data, reports of fraud in Washington State parallels the national trends for the top 3 reported frauds then diverges:

1.      Imposter Scams

2.      Online Shopping and Negative Reviews

3.      Prizes, Sweepstakes and Lotteries

4.      Internet Services

5.      Health Care

6.      Investment Related

7.      Telephone and Mobile Services

8.      Business and Job Opportunities

9.      Privacy, Data Security, and Cyber Threat

10.  Travel, Vacations and Timeshare Plans

 

The FTC received a total of 48,468 fraud reports from Washington State citizens last year. Total reported losses were $215.5 million with a $750 median dollar loss.

 

 

 

 

 

 

Federal Trade Commission (on the map, click on Washington State then under “Quarter” select “All” at the pull-down menu:

https://public.tableau.com/app/profile/federal.trade.commission/viz/FraudandIDTheftMaps/FraudbyState

 

 

Age and Fraud.

 

Many people think that the elderly are the most vulnerable to fraud and scams. However, FTC statistics show that anyone of any age are susceptible of being victimized to fraud or a scam. People 80 years old and over lose the most when they are victimized with a Median Dollar Loss of $1,674. But the FTC data shows only 70.18 Fraud Loss Reports per 100K Population. However, the age group of 30-39 have a Median Dollar Loss of $590. This age group has the highest Fraud Loss Reports per 100K Population of any of the age groups that the FTC reports with 175.85 Fraud Loss Reports per 100K Population. While the elderly are lucrative targets per individual, they are less susceptible to being victimized than younger age groups.

 

 

Federal Trade Commission:

https://public.tableau.com/app/profile/federal.trade.commission/viz/AgeandFraud/Infographic

 

 

HOLIDAY ONLINE SHOPPING – 5 Tips to Avoid Online Shopping Fraud

With holiday shopping in full swing, scammers will try to take advantage and take your money and personal information while you look for gifts for your loved ones.

Here are some tips to help you avoid a shopping scammer,

·         Research unfamiliar brands or websites. You may find a good deal for an item that you want to purchase on a website that is unfamiliar to you. Do a web search with the company’s name or website’s name and terms like “review,” “scam,” or “complaint.” For example- “Special Good Deals complaint.” Then see what people have to say about the website.

·         Look for misspellings in the URL. Scammers often try to mimic legitimate, known websites not only with the graphics and layout of the site, but also with the URL. For example, “acehardware.com” might be misspelled with “acehardwear.com” by a scammer. Another trick is to use a subdomain. For example, a scammer might use “netflix.com.movies.com” for their fake website, hoping that you won’t notice that “movies.com” is the real domain name. You can check out if a site is safe by using Google’s Safe Browsing Tool, https://transparencyreport.google.com/safe-browsing/search, You can check out when a website was created ICANN Lookup site, https://lookup.icann.org/en. A new website or recent copyright date indicates the website is a scam.

·         Search the website for an address or phone number. First, if there is no address or phone number, that might be an indication that the website is fake. Second, if you find an address and/or a phone number, you can check to ensure that the address is legitimate through a search of it with a mapping app such as Google Maps, and you can do a search of the phone number to ensure that it is genuine.

·         Pay with a credit card. Don’t pay with a debit card or via gift card, wire transfer, or cryptocurrency such as Bitcoin. Debit card payments take money directly out of your checking account, so you are not protected from fraud. Payments by gift cards, wire transfers, and cryptocurrencies have become indicators of scams.

·         Look for delivery, exchange, refund, and return policies. If the sight does not have these policies, or if they are vague, go somewhere else to make your purchase. Also, legitimate online shopping websites should have detailed complaint or dispute handling policies in case something goes wrong with your order.

 

If something goes wrong with an online order, for example you paid for a purchase but don’t receive anything and you suspect the website is fraudulent, report the occurrence to,

·         Better Business Bureau- https://www.bbb.org/file-a-complaint

·         Federal Trade Commission- https://reportfraud.ftc.gov/#/ or call 877-FTC-Help

·         FBI- https://www.ic3.gov/Home/ComplaintChoice/default.aspx

 

Many online shopping transactions are conducted through social media, including Facebook.

·         Facebook- If you encounter an advertisement that violates Facebook’s policies go to this link for instructions on how to file a complaint, https://www.facebook.com/business/help/162606073801742

·         Instagram- To report abuse and spam on Instagram go to, https://help.instagram.com/165828726894770

 

 

 

Verify:

https://www.verifythis.com/article/news/verify/scams-verify/5-tips-avoid-onling-shopping-scams/536-20db68f1-7d96-42d5-b4e6-83b0c5bfa5a6

 

Federal Trade Commission:

https://consumer.ftc.gov/articles/online-shopping

 

AARP:

https://www.aarp.org/money/scams-fraud/info-2019/online-shopping.html

 

Better Business Bureau:

https://www.bbb.org/article/news-releases/23394-bbb-scam-alert-beware-of-virtual-holiday-market-scams

 

UNEMPLOYMENT FRAUD – U.S. Department of Labor Launches New Website

Unemployment fraud has become a major problem for the Washington State Employment Security Department and workers in Washington State as well as state labor departments and workers in states throughout the U.S. In response to this problem, the U.S. Department of Labor recently launched a new web site to help victims to report and recover from unemployment fraud and the associated potential of identity theft.

The website, www.dol.gov/fraud, gives guidance on how to detect that you have become a victim of unemployment fraud and links to state unemployment offices to report the fraud.

Fraudsters make unemployment claims using the personal information of other people that unemployment offices will have on file, then direct payments to accounts in the control of the fraudsters.

Victims frequently find out that their personal information has been used in the fraud if they receive mail from a state unemployment agency about a claim or payment in their name, they receive a 1099-G tax form listing unemployment benefits in their name, or while they are employed, they received a notice from their employer. The fraud usually goes hand in hand with identity theft. The Department of Labor points out that you should report unemployment identity theft to the state where it occurred. Last year, the Washington State Employment Security Department received publicity about fraudulent unemployment claims. It is conceivable, however, that an individual in Washington State could have a fraudulent unemployment claim made in another state.

The following links have resources from the Department of Labor and the Washington State Employment Security Department,

 

U.S. Department of Labor:

https://www.dol.gov/newsroom/releases/eta/eta20210322-0

Report Unemployment Identity Theft- https://www.dol.gov/agencies/eta/UIIDtheft

Report Unemployment Insurance Fraud- https://www.dol.gov/agencies/eta/unemployment-insurance-payment-accuracy/UIFraudReporting

 

Washington State Employment Security Department:

Unemployment benefits fraud- https://esd.wa.gov/unemployment/unemployment-benefits-fraud

Tax info for fraud victims- https://esd.wa.gov/unemployment/fraud-victims-taxes

 

South Snohomish County Crime Watch:

Here is a checklist of things to do if you are an unemployment fraud or unemployment identity theft victim- https://ssnoccrimewatch.blogspot.com/2020/05/covid-19-identity-theft-what-to-do-if.html

 

 

FRAUD- Imposter Scams Top FTC List

The Federal Trade Commission (FTC) has issued its annual report on fraud. For 2018, it notes that imposter scams were number one in the number of complaints with debt collection scams number 2 and identity theft number 3.

The FTC says that it received nearly 3 million fraud complaints from consumers in 2018 who lost almost $1.48 billion. That is a 38% increase in the amount lost to fraud, nationwide, from 2017.

Popular methods of payment required by scammers included wire transfers and credit cards in first and second place respectively. A growing number of scammers are requiring to be paid by gift and reload cards.

For Washington State, the top three scams reported to the FTC were imposter scams (1), identity theft (2), and debt collection (3).

The FTC reminds everyone that if you receive a scam call you should hang up and report it to the FTC.



Federal Trade Commission:

https://www.ftc.gov/news-events/press-releases/2019/02/imposter-scams-top-complaints-made-ftc-2018



FTC Complaint Assistant:

https://www.ftccomplaintassistant.gov/#crnt&panel1-1

FTC- Closed Due to Government Shutdown Update

With the Federal Trade Commission (FTC) closed due to the government shutdown, the Identity Theft Resource Center (ITRC) reminds everyone that it has resources to help you in case you become a victim of identity theft or to help you to avoid identity theft during the shutdown.

ITRC is a national non-profit organization that aids victims of identity theft and education to the public concerning identity theft, data breaches, cyber security, scams/fraud and privacy issues. It maintains a toll-free helpline (888) 400-5530 and a website, https://www.idtheftcenter.org/.

For more information, you can go to,

Identity Theft Resource Center:

https://www.idtheftcenter.org/itrc-is-here-to-help-during-the-government-shutdown/

South Snohomish County Crime Watch:

https://ssnoccrimewatch.blogspot.com/2019/01/ftc-closed-due-to-government-shutdown.html

FTC- Closed Due to Government Shutdown

The Federal Trade Commission (FTC) has an announcement on its web site that it is closed due to the federal government shut down.

The FTC is an important government player in educating the public about current scams and fraud and in how we can avoid becoming scam and fraud victims. It also files lawsuits against scammers and fraudsters in court to force them to stop their illegal practices. While much of this litigation occurs in civil court, it does help stop scammers from victimizing innocent citizens. The FTC also maintains databases on scams and frauds that are reported to it by the public. The FTC shares the databases with federal, state and local law enforcement agencies as a tool to help them investigate and apprehend scammers and fraudsters.

Web services that will not be available while the government shutdown continues include:

·         National Do Not Call Registry.

·         Consumer Sentinel Network, a database available to law enforcement agencies that provides access to millions of complaints to the FTC on identity theft, telemarking scams, advance-fee loans and credit scams, sweepstakes, lotteries and prize scams and much more.

·         Complaint Assistant, for filing consumer complaints.

·         Identitytheft.gov for consumers to report ID theft.

·         Econsumer.gov for consumers to report international complaints.

You can still access information on the web site about scams and fraud and how to avoid becoming a victim to them. However, as long as the shutdown continues, this information will not be updated.

The FTC and other law enforcement agencies frequently encourage the public to report scams and fraud to the FTC through its Complaint Assistant or Identitytheft.gov. However, while the FTC is closed, those features will not be available to the public.

If you have a situation that you feel needs to be reported, you can wait make your report until the FTC is back open for business. You can also report scams and fraud to the Washington State Attorney General’s Office at http://www.atg.wa.gov/consumer-issues.

Federal Trade Commission:

https://www.ftc.gov/ftc-is-closed

BECU- Fraud Alert Update

The Boeing Employee’s Credit Union (BECU) reports that it continues to receive reports of customers receiving fraudulent text messages and phone calls claiming that their credit cards have been blocked.

BECU reiterates that it is not calling customers for personal information. The fraudsters, claiming to be from BECU, contact members and non-members, asking for personal information to unblock their cards. BECU says that if you receive a call or a text message, do not respond to it.

If you received this call and did provide your personal information, contact BECU immediately so that it can deactivate your card and re-issue you a new card.

 

BECU:

http://news.becu.org/index.php/fraud-alert-phone-calls-asking-for-becu-card-information?eid=April15_PhoneTextFraud&rid=385679#.VSXuo19FAdU

 

BECU- Credit Union Issues Fraud Alert

The Boeing Employees Credit Union (BECU) has issued a fraud alert for its members. It says that it has been receiving reports of members receiving phone calls that claim to be from BECU and stating that their BECU card had been blocked. Then, the recording asks that the member press 1 to unblock their card. When they press 1, they are prompted to enter card information.

BECU advises that it did not make these calls and that if you receive a call like this to hang up and do not give any information.

It also advises that if you have received the call and provided information to call BECU immediately. BECU will deactivate your card, re-issue you a new car and monitor your account for fraud.

To reach BECU:

Lost, stolen or fraudulent charges on Visa card

Business hours: M-F 7am-7pm, Sat 9am-1pm (Pacific Time)

800-233-2328

After hours: M-F 7pm-7am, Sat 1pm and all day Sun (Pacific Time)

800-449-7728

 

Lost, stolen or fraudulent charges on Debit card

Business hours: M-F 7am-7pm, Sat 9am-1pm (Pacific Time)
800-233-2328

After hours: M-F 7pm-7am, Sat 1pm and all day Sun (Pacific Time)

888-241-2510
 (inside US)
909-941-1398
 (collect outside US)
 

 Report suspicious email, text and phone calls

 Email our security team (monitored only during business hours). Personal and confidential information should not be included in your email.

phishing@becu.org

 

BECU:

http://news.becu.org/index.php/fraud-alert-phone-calls-asking-for-becu-card-information/#.VR3lZF9FAdU

 

FBI ALERT- Purchase Order Scam

Scammers look for all kinds of angles to steal from innocent victims. Here is one that builds on two other scams (online romance and work-at-home) to victimize retailers who ship. So, if you ship your inventory to your customers watch out. Also, if you are into finding your soul mate online or working from home online, you might reconsider your relationships.

This scam is sophisticated, therefore, it is a little complicated, but the essence of it goes like this:

• The scammers set up fake websites with domain names that are almost identical to legitimate businesses or universities.
• They contact the target business with an order and request a 30 day credit, which they receive since the business or university they are posing as has good credit. Orders may include computer, medical or pharmaceutical equipment.
• They ask that the ordered items be shipped to a warehouse, self-storage facility or the residence of an online romance or work-from home victim.
• When the vendor bills the real institution for the shipment, and finds out they are the victims of a fraud, the order has been re-shipped overseas, out of reach of American law enforcement

 

The tie to online romance scams and work-at-home scams is important. Here is a way for the scammers to get free labor from other victims. Victims often agree to receive packages and then re-ship them to overseas addresses.

Online romance scams- Criminals, often living overseas, troll social media sites or chat rooms in their search for victims. They will claim to be Americans travelling or working abroad. Their most common targets are women over 40 who are divorced, widowed, and/or disabled. The FBI notes however that every age group and demographic is at risk. The goal is to extract as much money from the victim as they can.

Some tell tale signs that you might be communicating with a romance scammer include:

• Tries to convince you to leave the dating website and to communicate via email or instant messaging.
• Professes instant feelings of love.
• Sends a photo that makes them look like they are a glamorous model or actor.
• Claims to be an American traveling or working overseas.
• Says that he/she is planning to visit you, but then has to cancel due to a tragic event.
• Asks for money for a variety of reasons, usually having to do with some sort of tragedy, bad luck, or financial setback.

For more information about online romance scams, go to:

http://www.fbi.gov/news/stories/2012/february/dating-scams_021412

 

Work-at-home scams- These are found everywhere offering easy money for seemingly easy tasks. A few tips to avoid these scams include:

• Contact the Better Business Bureau to determine the legitimacy of the company.
• Be wary when money is required up front for instructions or products.
• Do not give your personal information when first communicating with your prospective employer.
• Research legitimate work-at-home opportunities with the “Work-at-Home Sourcebook” or other resources at your local library.
• Ask lots of questions of your potential employers; legitimate companies will have answers.

For more information about work-at-home scams, go to:

http://www.fbi.gov/news/stories/2009/april/workathome_041709

 

Some indicators of purchase order fraud are:

• Incorrect domain names on websites, emails, and purchase orders.
• The shipping address on a purchase order is not the same as the business location. A delivery address that is a residence or a self-storage facility should raise red flags.
• Poorly written emails or other correspondence that contains grammatical errors that suggests the author is not fluent in English.
• Phone numbers that are not associated with the company or university. If you call the number, a live person does not answer.
• Orders for unusually large quantities of merchandise, with a request to ship priority or overnight.

If you are a victim of a purchase order scam, contact your local law enforcement agency and the FBI. Once the merchandise arrives overseas (often to Nigeria) it is gone. However, the FBI has had success in recovering merchandise if the fraud is discovered before it is shipped.

For more information about purchase order scams, go to:

 http://www.fbi.gov/news/stories/2014/october/cyber-crime-purchase-order-scam-leaves-a-trail-of-victims/cyber-crime-purchase-order-scam-leaves-a-trail-of-victims

 

FRAUD TACTICS- Moving from the Internet to the Phone

FRAUD TACTICS- Moving from the Internet to the Phone

According to an article in the New York Times, “Swindlers Use Telephones, With Internet Tactics”, http://mobile.nytimes.com/2014/01/20/technology/swindlers-use-telephones-with-internets-tactics.html?_r=0&referrer=, internet fraudsters are turning to the telephone to try to gather your personal information.

Over the past few years, local and national law enforcement agencies have been conducting an education campaign to warn citizens about clicking on links in emails that come from internet fraudsters. Many people now are more cautious when looking at emails from people or companies that they don’t know. But many people are not as aware of the pitfalls of giving personal information to strangers who call them on the phone.

A new technique has emerged where an employee of a large business or government agency might receive a call from someone claiming that the employee owes some sort of debt and if they do not pay up, the caller threatens to take down the phone lines at the employee’s workplace. If the employee refuses to cooperate, their workplace then experiences what amount to a denial of service attack with hundreds if not thousands of phone calls being place to the business’ or agencies’ phone lines tying them up.

According to the Federal Trade Commission (FTC) complaints of telephone calls asking or demanding personal information are up also. The FTC has said that complaints about telephone fraud were 34% of all fraud complaints in 2012, up from 20% in 2010.

As often happens with many criminals, fraudsters change their tactics as old techniques become less successful. Be wary of anyone who calls you asking for your personal information. If they do, hang up.

For more details, go to the New York Times article:

http://mobile.nytimes.com/2014/01/20/technology/swindlers-use-telephones-with-internets-tactics.html?_r=0&referrer=

 

SCAMS- All Kinds of Ways to Take Your Money

Scammers and fraudsters try all kinds of methods to find victims. Here are three links that talk about different aspects of scams:
 

• Scams: Boomers Wearing Bullseyes: This NPR "Talk of the Nation" segment highlights how scammers are targeting baby boomers:
• http://www.npr.org/2011/12/14/143718675/money-scams-snare-desperate-investors

• Social Media Investment Scams: This Security and Exchange Commission alert focuses on fraudulent investment schemes and some of the techniques fraudsters use to hook their victims:
• http://sec.gov/investor/alerts/socialmediaandfraud.pdf

• Foreclosed properties used to scam renters: This article from The Seattle Times talks about scams that leave renters high and dry thinking they have a new rental home when in reality they do not:
• http://seattletimes.nwsource.com/html/realestate/2017121307_realrentfraud01.html

SHERIFF’S OFFICE- Crime Prevention Newsletter Focuses on Fraud

Financial fraud can affect any of us. This issue of the Sheriff’s Crime Prevention newsletter talks about how you can tell if a financial proposal is fraudulent.

http://sheriff.snoco.org/Documents/JulAug11.pdf