FRAUD AND SCAMS

Have you ever seen an ad that promises you a new credit identity? Many of these ads guarantee they can get rid of negative credit information in your credit report or they can increase your credit score a specific number of points, but be careful. No one can guarantee this. Also, after receiving payment from your account, some of these companies may report all credit accounts, loans and inquiries in your name to the credit bureaus as fraudulent, even legitimate ones. That means you’d have to work with the credit bureaus and your financial institution to sort things out. Be wary if a company: Asks for your account number so they can “view your account”. Insists you pay them before they do any work for you. Tells you not to contact the credit reporting companies directly. Tells you to dispute information in your credit report—even if you know it’s accurate. Tells you to give false information on your applications for credit or a loan. Doesn’t explain your legal rights when they tell you what they can do for you.

In these types of scams, you’re contacted or see an advertisement on social media with an offer to earn money for “guaranteed income.” Once you respond or reach out, you’re asked to give personal information and pay a fee or buy a starter kit. You may be told, “We’ll need your bank account number so we can deposit your checks.” Through gradual back and forth communication, the scammer slowly tries to get you to trust them. Be suspicious of: Guarantees you’ll earn lots of money for a simple task (e.g., envelope stuffing) Vague descriptions of the job or what is required Requirements to pay money for information or materials, especially via money order, wire transfer or preloaded gift card Requests for personal information, especially bank account and identification details (e.g., Social Security Number, driver’s license, passport) Keep reminding yourself—if it’s “too good to be true,” it probably is.

Romance scams occur when a criminal adopts a fake online identity to gain a victim’s affection and trust. The scammer then uses the illusion of a romantic or close relationship to manipulate and/or steal from the victim. The criminals who carry out romance scams are experts at what they do and will seem genuine, caring, and believable. Con artists are present on most dating and social media sites. The scammer’s intention is to establish a relationship as quickly as possible, endear himself to the victim, and gain trust. Scammers may propose marriage and make plans to meet in person, but that will never happen. Eventually, they will ask for money. If someone you meet online needs your bank account information to deposit money, they are most likely using your account to carry out other theft and fraud schemes.

Grandparents often have a hard time saying no to their grandchildren, which is something scam artists know all too well. Scammers who gain access to consumers’ personal information by mining social media or purchasing data from cyber thieves, are creating storylines to prey on the fears of grandparents. The scammers call and impersonate a grandchild in a crisis situation, asking for immediate financial assistance. The callers may “spoof” the caller ID that appears on the recipient’s phone to make an incoming call look like it’s coming from a trusted source.mThe best advice for avoiding this type of scam, or any suspicious phone call, is to hang up immediately and contact trusted family members to verify. If you have caller ID and you don’t recognize an incoming phone number, just let it go to voicemail. If you do wind up in a conversation, use caution if you are being pressured for information or to send money quickly. Scammers often try to bully victims into transferring money through a mobile payment app, by wiring money, or by purchasing gift cards or money orders. If you receive a call like this, report it immediately to local law enforcement.

Victims are told they’ve won money, but they need to pay a fee, usually by wire transfer, to receive their winnings. If you find yourself facing something that sounds like one of these scams, don’t pay money to claim a prize and search the official website and call the lottery agency directly to see if you really won.

Powerful, touching images of people in need and victims of disasters abound on social media. They make us want to do something. Unfortunately, there are criminals who take advantage of people’s natural desire to help. Many put up fake websites after a natural disaster or impersonate celebrities with charities. However, what looks legitimate may not be.