Scammers barking up wrong tree

By Sally Greenberg, NCL Executive Director

In the past two weeks I’ve been the recipient of four emails to my work email address promoting different sorts of scams. The problem with the scams is that they are very effective. If I didn’t work at the National Consumers League and if we didn’t have a Fraud Center, I could see how people might fall for some of these – or at least commit the cardinal sin of opening up emails that give the scammer the chance to get their precious personal information.

I’m struck by how these scammers cast such a wide net. Reaching someone at the National Consumers League means reaching an organization with a lot of expertise on scams and how to recognize them. However, given the thousands (if not millions) of email sent out in these scams, if only 1/100 of 1 percent of those they reach actually respond with a Social Security Number or bank account number, then the scammers have succeeded.

The first appeal asked me to “confirm your flight 782-2128 to San Diego.”  I am not planning a trip to San Diego, so right away the light bulb went off – SCAM! Phishing! They want me to open up the email and provide personal information. Instead of following their instructions, I forwarded the email to our fraud expert, James Perry, and he confirmed they were indeed trying to get sensitive information from me.

The second email came with the subject line “Wire Transfer Confirmation,” suggesting that I had transferred funds through Western Union and that additional information was needed. Again, they were looking for me to provide information they could use down the road to scam me.

The third email actually came from the email address of a work acquaintance named Maria. According to the email, Maria said she had been robbed in Spain and was requesting that we send her money via wire transfer (graciously noting that she would “refund immediately upon my return”). Two days later, the real Maria sent an email saying her email account had been hacked and she hadn’t been on vacation in Spain after all! Big surprise. I hardly knew her and she wasn’t a close friend so I knew she would not have written to me for a loan, but I bet some of her close friends were concerned. One or more of them may have even sent money.

The fourth email included attached “invoices.” I received the first one and a “reminder” two days later claiming that monies that were supposedly owed. Our trusty fraud expert, James Perry, says these are very common and that many companies will pay so-called invoices that come in without checking whether the money is owed. One common such invoice scam is for Yellow Pages. James advised me not to open the email since that would just give the scammers more information. It’s too bad, since I was interested in finding out what they were allegedly “invoicing” us for.

NCL works very closely with law enforcement to try and prevent these scams but we also do a great deal of outreach through our Fraud Center to warn consumers not to fall for these swindles. This past few weeks confirmed for me that these scams are extremely difficult to prevent. If they can contact the head of the NCL so shamelessly, they will go after anyone. Please, consumers, be aware and don’t be fooled. Below are some “red flags” that helped me recognize these four emails as scams and advice on how to handle them:

1. If you’re contacted about an invoice, plane ticket or lottery or other event you didn’t seek out – don’t open the email. Delete it immediately.
2. If a friend contacts you and says they’ve been robbed and need money – call the friend on your own at a phone number you have on file (NOT the number listed in the email) to verify the story and remain skeptical of any claims of robbery or jail and a request for money to be wired.
3. If you open emails such as these, don’t click on any links or attachments since they may contain malware. At the very least, by opening the emails, you’ll let the scammers know that they have a “live one.” It’s better to simply delete these emails immediately.
4. If you do get scammed by one of these crooks, don’t be ashamed. It happens to all sorts of people from every walk of life. Report the fraud to NCL’s Fraud Center, the Federal Trade Commission, or your state attorney general’s office.

Lessons from National Consumer Protection Week

By John Breyault, Vice President of Public Policy, Telecommunications and Fraud

On Saturday, March 7, the annual observance of National Consumer Protection Week (NCPW) will come to a close.  News articles have been written about it and a presidential proclamation has been issued.  The National Consumers League has been proud to again be a member of the national steering committee for NCPW.

But NCPW does not HAVE to end at midnight Saturday night.  In the current economic environment, the opportunities for scammers to bilk desperate consumers out of their depleted wealth have rarely been greater.  Now, more than ever, it is important that consumers take the lessons of NCPW to heart to help avoid becoming another number in the billion-dollar fraud statistics.

The theme of this year’s NCPW is “Nuts & Bolts: Tools for Today’s Economy.”  Given the immense resources available to help consumers protect themselves and become more informed, this theme is especially apt.  The Federal Trade Commission’s NCPW website provides a wealth of governmental resources that consumers can use to get educated about a variety of consumer topics.  In addition, there is a great outreach toolkit so consumers can talk to their local media, government officials, bloggers, and friends to spread the work about NCPW.

Con-artists have found out that the Internet is an enormously powerful tool for reaching victims.  However, the power is not just in the scammers’ hands.  Thanks to tools like the ones detailed on the NCPW site, NCL’s own Fraud.org, and in literally hundreds of others a quick Google search away, consumers can turn the table on the scammers and use the power of the Internet to get informed and stay one step ahead of the fraudsters.

Keep Out e-Ghouls and Goblins

In obervance of National Cyber Security Month, the National Consumers League is cautioning consumers about how best to guard their computers – and personal information – from the e-goblins and ghouls that may be trying to steal it. Follow this advice year-round to protect yourself from phishing scams and other hazards:

• Don’t click on links within emails that ask for your personal information.
• Never enter your personal information in a pop-up screen.
• Protect your computer with spam filters, anti-virus and anti-spyware software, and a firewall, and keep them up-to-date.
• Only use secured browsers when entering personal information. Look for a lock symbol to appear at the bottom of the Web page, and for the URL in the browser window to change from “http” to “https” to ensure that the page you’re on is secure.
• Don’t shop online or do online banking while using an unencrypted or open wireless network, like those provided for free at coffee shops or some airport hotspots. Secure your own wireless network at home by encrypting it with a password. This will keep out your neighbors, but more importantly, it will keep out hackers and thieves who look for open/unencrypted wireless network to capture others’ financial information.
• Visit www.fraud.org to learn more ways to avoid email and Web-based scams.

Fraudulent Text Messages? Just Delete ‘em!

By John Breyault

When faced with spam text messages — also known as SMiShing – just delete the messages. That was the advice we gave to Nashville’s CBS Newschannel 5 in a story that ran on the issue earlier this week.  Click here to watch the full video.

While the estimated 1.5 billion spam text messages that will be sent in 2008 represent only a small fraction of the total amount of spam consumers receive, the problem is growing. Since 2006, the number of spam text messages sent has nearly doubled, likely driven by dramatic growth in text messaging use by American consumers. Even though most mobile phone consumers will receive very much, if any, text messaging spam, the cost of getting even a few is not insignificant. Given that U.S. consumers pay for text messages sent and received, combined with rising pay-as-you-go text messaging fees (currently at 20¢ per message on most carriers), the real costs of such spam can quickly add up.

The easiest way to avoid becoming a victim of SMiShing scams is to simply delete the messages. Do not call the number listed in the text message or surf to the Web address provided. You will likely be asked to provide sensitive financial information (bank or credit card account numbers) which the scammers will then use to defraud you. In particular, SMiShing scams seem to be targeting credit union, so be especially wary if you are one of their customers and receive these text messages. Other ways to cut down on SMiShing is to avoid listing cell phone numbers online (such as in online social networking site profiles), since scammers frequently use sophisticated harvesting software to comb the Internet for such numbers. If the problem is especially severe, cell phone carriers can block all SMS text messages to a consumer’s handset, though this will also block legitimate messages.

Consumers who suspect they’ve been a victim of SMiShing fraud should contact their financial institution and cell phone provider immediately. Also consider reporting the fraud to NCL’s Fraud Center, so that we can alert the FTC and federal and state law enforcement authorities.

Feds, Orgs, Biz Collaborating against Phishing Scams

by Sally Greenberg

Recently, the Federal Trade Commission brought together experts from government, nonprofit, and industry in Washington to talk about “Phishing.” The National Consumers League, which has long worked to help and protect consumers from fraud, came equipped with our latest intelligence on Phishing scams brought to our attention by our Fraud Center.

That Warm Fuzzy Feeling: Fraud Center Helps Friend Avoid Credit Repair Scam

Turns out there are a few perks of working at a nonprofit consumer advocacy organization!

Just this week, a staffer at our Fraud Center was able to identify a scam that a friend of his was about to fall for and stop her from losing a bunch of money.

We track complaints on a number of scams: investment seminars, Fake Check Scams, and Phishing are just a few. Here’s what happened: “Rachel” saw an ad in a magazine from a company that claimed it would lower your credit score for only $500. She’s trying to remove some debt from her credit report, in order to buy a car, so this offer was especially appealing. “Rachel” called her friend, our colleague at the Fraud Center, to tell him about the offer. Good thing she did, because “Rachel” was able to save $500, and avoid further financial heartache.

Our staffer explained to Rachel that the only way to repair your credit is to get a copy of your report and review it for any errors. There are tons of scenarios in which mistakes can pop up on your credit report:

• A creditor reports inaccurate information to the credit bureau
• A case of mistaken identity leaves you paying for John C. Smith’s debt, when your name is John G. Smith.
• A credit bureau employee accidentally types the wrong Social Security number when inputting data.

You get the picture.

Consumers are entitled to one free copy a year of their report through any major credit bureau. You can request your copy here. The moral is: as tempting as a company’s promise to “fix” your credit report may be, it’s not true!

You can report complaints of credit repair scams to NCL’s Fraud Center. Feel free to drop us a comment about how you avoided being scammed. Or, consider supporting our efforts in educating consumers on avoiding being scammed!

Check This Out: Sample Tax Scam Email

So, we’re doing some education this time of year on tax scams – trying to make consumers aware that these criminals’ ploys are out there and help them avoid falling for them. But, it turns out that the tax scams aren’t just limited to the weeks leading up to April 15, the deadline to file taxes. Depending on the pitch, many of them happen year-round.

We did a little bit of digging and found an email sent to us by a friend a while back. Lucky for her, she was smart enough to recognize it was a scam (“I wish it were true …” her email began), but the email is pretty realistic-looking, and it wouldn’t be easy to immediately identify it as a scam – especially if your judgment is a little blurred because you need the cash. There are some give-aways, though. See for yourself:

 

Tax Time = Scam Time

April 15 is a date that is on many of our minds this time of year, and the clock is ticking.

It’s no news that scammers work year-round. But now, more than ever, NCL’s Fraud Center is finding that con artists are going after consumers through tax refund and rebate scams. So, this year, not only do consumers need to rush to get their taxes filed on time, but they need to watch out for scams as well.

NCL’s Fraud Center has been tracking the scam since April 2005, and we’ve found that most of the set-ups consumers report are variations of phishing scams. It’s happening via both phone and email, and there are several pitches, ranging from claims of “tax relief” services to help speeding up refunds.

2007 Fraud Trends Offer Much to Ponder

by National Consumers League staff

We’ve been working with NCL’s Fraud Center staff lately to crunch some data on fraud complaints from consumers in 2007, and what we’ve found is amazing! This week, the Savvy Consumer blog will bring you a series of highlights of what we tracked last year: the top scams in Internet and telemarketing, victim trends, locations of crooks, etc.

First things first: the Top 10 Internet Scams of 2007

1. Fake Check Scams. Frauds in which consumers receive a realistic-seeming check from a crook as payment for something with instructions to wire a portion back. The scam has many variations, but the common thread is the wiring of money from a check that appears to be good but ultimately isn’t. We were involved in a massive educational effort on these scams last year.
2. General Merchandise. Scams involving items purchased online that either never show up or aren’t as they were described.
3. Auctions. Problems in online auctions, as reported by buyers, including items never being delivered, being a grossly different product, etc. Online auction fraud has been at or near the top of the list for years.
4. Nigerian Money Offers. These “419″ scams originated as letters but now commonly happen via email.
5. Lotteries. Congratulations! You’ve won a foreign lottery and millions of fabulous dollars. All you have to do is pay us up-front for some processing fees.
6. Advance Fee Loans/Credit Arrangers. Con artists target consumers who may have bad credit and are vulnerable to sketchy loan offers.
7. Prizes/Sweepstakes/free gifts. See “lotteries” above.
8. Phishing/Spoofing. We have an entire Web site devoted to this scam, wherein phishers seek personal financial information from consumers in order to perpetrate ID theft.
9. Sweetheart Swindles. We blogged about this one recently. When Cupid strikes consumers in these scams, they end up with a broken heart and empty wallet; criminals pose as lovebirds, cultivate relationships, and make a plea for financial help.
10. Internet Access Services. Scams surrounding email, Web site building, or Internet connection services.

Future blog: Top Telemarketing Scams of 2007

October is National Cyber Security Awareness Month: Avoid ID Theft Online

by Susan Grant, Director of NCL’s Fraud Center

Everybody knows that it’s important to have a fire extinguisher and an insurance policy to protect their home in case of fire. But not everybody is as aware that they should have certain tools to protect their personal information online. To celebrate National Cyber Security Awareness month this October, we’ve added new information to our www.phishinginfo.org Web site about how to avoid becoming a victim of online identity theft.

Consumers have a lot of options for cyber protection, but it can be confusing. The new information on our site explains how verification engines, security toolbars, and other tools can help to keep your personal information safe and how to find them.

Get the tips here.