Avoiding Scams Can Be Difficult

Avoiding scams can, at times, be difficult. It’s not based on intelligence or diligence. Smart people are taken in by sophisticated criminals; just ask Steven Spielberg, Sandy Koufax, and Larry King; three of the 37,000 victims in the Bernie Madoff ponzi scheme. While Fraud Fighters like to believe that our efforts save people from scams, sometimes avoiding fraud comes down to luck. That may be what saved a husband and wife from significant losses in a computer scam.

Bill’s (not his real name) computer froze and a pop-up message from “Microsoft” told him that his computer was hacked and provided a phone number to call. He was instructed to download a “virtual viewer” and run a “registry check” generating a report showing a recent visit to a pornography website and some activity involving China. He was transferred to a “Social Security” agent. Clearly, the situation sent Bill into panic mode. His computer had been hacked and frozen; there was evidence of foreign involvement. Bill was in a condition con artists call “The Ether;” a heightened state of anxiety when emotion takes over while logic and reason are set aside.

The “Social Security” agent told Bill that he needed to protect himself from losses by withdrawing all the money from his bank account except for $100 and deposit the money in a secure bit coin account using a special ATM. He began the transfer but the ATM limited his transaction to $900. It was then that Bill and his wife began to talk about the situation and realized that they had been scammed. Bill reached out for advice.

It’s very easy to criticize Bill, a reader of this column, for not seeing the red flags of a scam but once the wheels start turning, the Ether takes over. Bill and his wife are victims of a very sophisticated crime and need to be seen in the same way we view victims of other crimes. They lost $900 to criminal theft and while they wrote it off and are moving on, there are a number of steps that need to be taken, beginning with recognition of the Red Flags: 1) Computer freezes are not unusual but a freeze and the appearance of an alert from “Microsoft” or “Apple” is a sign of a scam. The first step here is to unplug or power down the device, wait 30 seconds, and restart. This usually solves the problem. 2) Technology companies do not monitor individual computers unless you are paying them to do so (Norton, McAfee, LifeLock). You need to notify them of issues. 3) Downloading software provided by someone whose identity you cannot independently verify is risky and can compromise personal information, account IDs, and passwords. 4) Government agencies such as the IRS or Social Security do not partner with or interact with private sector companies when dealing with citizen issues. 5) Finally, government agencies and major corporations do not conduct business using crypto currency such as BitCoins.

There are numerous recommendations for anyone who believes he or she is a victim. Take time to list as many details about the situation as you can, develop a narrative of the crime, and file a police report with either a state, county or local jurisdiction (remember, you are reporting a crime).

Contact a reputable computer service technician and explain the situation asking them to run a security check for malware and suspicious software.

Assume the worst-case scenario; your data is compromised. In a systematic process, notify ALL financial, medical, and personal contacts of the possible breach and change IDs and passwords including those for your computer, WiFi router, and email accounts. Where possible, activate Multi-Factor Authentication.

This is also a good time to run a credit report check. Go to https://consumer.ftc.gov/articles/free-credit-reports for free copies of your credit reports and review them for errors and to verify information as correct. Report the crime state and Federal authorities: New Hampshire – (888) 468-4454 or www.doj.NH.gov/consumer; Vermont – (800) 649-2424 www.uvm.edu/consumer; Federal Trade Commission — www.consumerfinance.gov/complaint; FBI – www.IC3.gov. Questions, comments concerns? Contact [email protected]

Elliott Greenblott is a retired educator and coordinator of the AARP Vermont Fraud Watch Network. He hosts a CATV program, Mr. Scammer, distributed by GNAT-TV in Sunderland, VT – www.gnat-tv.org