Fraud Watch: Scammies! Part II

By ELLIOTT GREENBLOTT
Today, we will look at the remaining fraud categories making up the Scammies, the Top 10 scams of 2019 as identified by the Vermont Attorney General’s office.

First, a passing word on COVID-19. Several scams and phishing attempts appeared recently where scammers impersonate officials with federal health services, state health departments, Homeland Security and others. Often, they want Social Security numbers, Medicare numbers, and other personal data. The scam may be an attempt to collect non-existent fees, extort payments or sell fake or ineffective cure-alls. The FTC and FDA have jointly issued warning letters to seven sellers of unapproved and misbranded products, claiming they can treat or prevent the coronavirus. The products include teas, essential oils and colloidal silver. The FTC says the companies have no evidence to back up their claims — as required by law. The FDA says there are no approved vaccines, drugs or investigational products currently available to treat or prevent the virus. The seven companies are: Vital Silver, Aromatherapy Ltd., N-ergetics, GuruNanda, LLC, Vivify Holistic Clinic, Herbal Amy LLC, The Jim Bakker Show. If contacted by anyone regarding the novel coronavirus, ask for their name and organization or agency. Call that entity using trusted contacts that you obtain on your own (not a number or email address provided by the person contacting you) and ask for verification of the information provided by the caller or email. Finally, report any fraud attempts to the Federal Trade Commission or your state consumer protection agency.

Continuing our review of the 2019 Scammies:

8. IRS imposter scam

The familiar IRS imposter scam usually involves a phone call stating that you owe money and failure to respond will result in an arrest. The reality is that the IRS will not call and threaten. Often the scammer states that payment can be made over the phone using gift cards. The IRS, as well as any government agency, will not accept gift cards in payment for funds that are owed. Hang up the phone and report the call to your state consumer protection agency.

7. The grandparent or grandchild scam

The grandparent or grandchild scam involves a call from a “grandchild” in distress that comes with a request for immediate funds and the comment: “Don’t tell my parents!” Protect yourself from being a victim by verifying the identity of the caller and notifying other close family members of the call. Never follow the caller’s instructions and report the call.

6. Fake debt collection threat

Criminals pose as debt collectors or law enforcement officers and demand immediate payment or threaten arrest. Debt collectors are not allowed to threaten arrest over the phone. Request written evidence of the debt. If the caller references a specific source of the debt, verify the debt by contacting the source of the debt using a trusted number.

5. Spoof or reflector calls

Spoofed calls display local phone numbers on caller ID; reflector calls show up as your own number. Usually these scammers impersonate a computer company employee warning about the need to protect your data or the need to plug a security breach on your computer. They request payment by gift card, something that would never be requested by a legitimate company. Your best action is to hang up the phone. Never give personal or financial information.

4. Phony relationship scam

Frequently a romantic interest involving someone met online, it could also be a scammer posing as a relative or friend in distress. These calls frequently turn to an urgent request for money by wire transfer or gift card. Verify the identity of the person and the need with a phone call using a verifiable number.

Our top three Scammies go to “the usual culprits:”

3. Fake sweepstakes

You can’t win if you didn’t enter and you don’t pay up front fees or taxes. Sweepstakes winners are contacted in person and are not sent unsolicited checks.

2. Tech support scams

This scam starts with a notification that your computer has malware and offers to correct the problem for a fee and involves remote access to your computer. Microsoft, Apple, Google and other tech companies don’t randomly contact people regarding problems. Hang up the phone or shut down your computer (then restart it). Never give someone access to your technology unless you can verify their identity.

1. Social Security number phishing

The top reported scam to the Vermont Attorney General’s office in 2019 was Social Security number phishing; attempts to obtain your Social Security number by posing as a government agent or business. Official will not call to ask you for this information. Rather, they use the U.S. Postal Service to communicate.

There are the 2019 Scammies! Questions or comments? Contact me at [email protected].

Elliott Greenblott is a retired educator and the Vermont coordinator of the AARP Fraud Watch Network. He produces a feature CATV program, Mr. Scammer, distributed by GNAT-TV in Sunderland, Vermont.