Student Loan Scam

 I know everyone has run across scams that are, in a strange way, respectfully creative.  Today I received an email regarding my student loan, 

A‎‎‎‎n‎‎‎‎‎‎e‎‎‎‎s‎‎‎‎t‎‎‎‎a‎‎‎‎‎‎s‎‎‎‎s‎‎‎‎i‎‎‎‎a‎‎‎‎ ‎‎‎‎R‎‎‎‎ea‎‎d‎‎‎‎ w‎‎‎‎‎‎i‎‎‎‎t‎‎‎‎h ‎‎th‎‎e‎‎‎‎‎‎ ‎‎S‎‎‎‎t‎‎ud‎‎‎‎‎‎e‎‎n‎‎‎‎t ‎‎L‎‎‎‎oa‎‎‎‎‎‎n D‎‎‎‎e‎‎b‎‎‎‎t D‎‎e‎‎pa‎‎‎‎‎‎‎‎r‎‎tme‎‎‎‎nt

The email properly addresses me by name, and states my address, but there is a major problem with the email, in that I do not have a student loan.  Yes, the email is a scam.

Be careful of official sounding emails.  They continue to get more creative in finding a way to separate you from your money.

Scam Call re: Spectrum Billing

 Received a call on voicemail today.

"Dear customer, this voicemail is to inform you that Spectrum is removing the 40% discount offer on your monthly bill. To reactivate is this offer right now please call back the number displayed on the caller ID. Thank you."

Really?   I don't have a Spectrum account.  In fact, it is not even available where I live.

The number did not display on my caller ID, as it was overwritten with "Potential Scam".

So, if you receive an unsolicited call, be cautious.

Latest Scam - Smishing

 So, the latest scam craze seems to be smishing.  Sounds like a new teenage dance, doesn't it?  However, it is anything but an innocent dance floor move.  The term is a scam, and its name is derived from "SMS" and "phishing".  Yes, the scam uses text messaging to your cell phone to get information, and will appear to be from a legitimate source.  To read more about this latest trend, see https://www.yahoo.com/lifestyle/thats-immediate-red-flag-being-044602921.html

Latest Scams

 

 Latest Scams

The internet is full of new and very sophisticated scams and scammers. Some can get past even the most savvy of internet users as legitimate requests. The era of Nigerian princes asking for money though numerous grammatical errors is related to the scamming historical archives.

I have always thought the scams were directed towards the elderly population. However, the Better Business Bureau received more fraud reports from people aged 35 to 44 in 2021 than any other demographic. 

Also, in 2021 the BBB reported military families typically lose more money to these hoaxes than civilians. While non-military victims lose a median of $160 per reported case, a victim associated with military service loses a median of $204.

The Federal Trade Commission has an online database updated every quarter to share the latest fraud statistics reported by service members and their families. Unfortunately, the FTC dashboard reports since 2018, active-duty military service members have lost $87.8 million to scammers.

It appears that stresses that are associated with the life of a military family subject them to being targeted by some of the most compelling scams. Everyone, especially military families, should be aware of two emerging scams, employment scams and ryptocurrency scams 

Employment scams 

Military spouses and veterans, watch out for this scam.

Are you unemployed, or looking for additional income. This may be accompanied with limited education or experience within the field of a job offering.

How do you know if a job offer is legitimate.

There are some red flags to look for. These include suddenly finding an unexplained email in your inbox with a job opportunity. What typically happens in this scam is, after being “hired” (you think?) you will receive a check for more than what you expect to receive. The scammer will say they made a mistake, and ask for money back, but not from your bank account. They will ask for a transfer through a cash app or gift cards. I don’t think I have to tell you what happens when you deposit the original check.

In today’s world of instant gratification, and instant transfer of funds using apps, there is a generation of people that have forgotten it can take time for a check to clear.

The FTC has also received complaints about scams centered around useless paid training programs or job placement services that are a hoax. Also, be aware that if there is a fee associated with training for job placement, it is probably a scam. The employers should be paying the recruiting firms, and paying for training; not the new employee.

Cryptocurrency scams 

This is a new hot bed for scammers, with the target demographic being people from 20 to 49 years old. Over the past couple of years, more that 45K people have lost more than $1 billion dollars in crypto scams. Once the money is gone, it is gone.

These scams can be a little unique, in that they are not trying to hide through sending an email to your inbox. In fact, they do just the opposite, they actively advertise on social media. And sometimes they will send a direct message through a messaging platform.

So, who are they targeting. They are targeting people looking for large returns on their cryptocurrency investments. These are sophisticated operations. They trick their victims into investing, showing large returns. The problem is when you try to get your money out, you can’t.

Before investing money in anything, do your research.

The above information is inspired from and based on an article originally appearing in the October 2022 issue of Military Families Magazine.

Coronavirus and Fraud

Criminals are taking advantage of the opportunity presented by the Coronavirus and the resulting vulnerable population.  Some of the most common sources of fraud fall into the following categories:

1.  Government Impersonators 
2.  Fraudulent Cures or Medical Equipment
3.  Work-from-Home Fraud 
4.  Investment Fraud

Hopefully each of the above categories is self explanatory as these are not new forms of fraud, however some perpetrators have become very good at scamming, and seek opportunities to prey on vulnerable people.

Scams include the following:

• Individuals and businesses selling fake cures for COVID-19 online and engaging in other forms of fraud.
• Phishing emails from entities posing as the World Health Organization or the Centers for Disease Control and Prevention.
• Malicious websites and apps that appear to share virus-related information to gain and lock access to your devices until payment is received.
• Seeking donations fraudulently for illegitimate or non-existent charitable organizations.

Be especially vigilant regarding any emails you receive, and any calls you receive from anyone asking for any financial information, and protect yourself from becoming a victim of fraud.

Capital One Compromise (Hack): Now What?

In the aftermath of Capital One’s announcement on Monday of the compromise of approximately 100 million credit card applications, exposing roughly 77,000 bank account numbers and 140,000 Social Security numbers, many clients may have questions and concerns.

What can you do? Here are some tips disseminated by hubwallet:

1. Sign up for 24/7 credit monitoring – This way, you’ll find out immediately if someone tries to open an account in your name.
2. Enable Two-Factor Authentication – Use another layer of protection when logging into your email account and financial websites.
3. A Freeze Is Better Than an Alert – It probably isn’t necessary in this case, but if you really want to protect yourself from fraudulent borrowing, you can freeze your accounts with Equifax, Experian and TransUnion. This will help prevent anyone but you from accessing them, thus making it problematic to obtain a loan. A fraud alert, in contrast, doesn’t actually do much. 
4. Suppress Fraudulent Info – Get rid of negative info resulting from identity theft. 
5. Never Respond to Unsolicited Requests for Information – While this is obvious, it still happens. Never answer if you didn’t ask to be contacted.
   

This Capital One case is still fresh, and no one yet knows what the fallout will be from this breach. Should you have any questions or concerns regarding the breach, you can place them in the comments below, but please DO NOT include any personal information!!

Of course, as always, the preferred way to get questions answered is to contact a competent consumer advocacy attorney of you choice. Many bankruptcy and foreclosure defense attorneys fall into this category.

Public Service Announcement from FBI: Foreign Cyber Actors Target Home and Office Routers and Networked Devices Worldwid

Summary

The FBI recommends any owner of small office and home office routers power cycle (reboot) the devices. Foreign cyber actors have compromised hundreds of thousands of home and office routers and other networked devices worldwide. The actors used VPNFilter malware to target small office and home office routers. The malware is able to perform multiple functions, including possible information collection, device exploitation, and blocking network traffic.

Please see https://www.ic3.gov/media/2018/180525.aspx for the complete bulletin.

Are Debt Relief Agencies SCAMS?

I am often asked if debt relief companies are legit.  I just tell them to be careful, as while some are legitimate, other may not be.  All you have to do is check the FTC web site which is full of scam companies.

A recent post listed the following companies as defendants in a FTC investigation:

The corporate defendants are Financial Freedom National Inc., formerly known as (f/k/a) Institute for Financial Freedom Inc. and Marine Career Institute Sea Frontiers Inc., also doing business as (d/b/a) 321 Loans, Instahelp America Inc., Helping America Group, United Financial Support, Breeze Financial Solutions, 321Financial Education, Credit Health Plan, Credit Specialists of America, American Advocacy Alliance and Associated Administrative Services; 321Loans Inc., f/k/a 321 Loans Inc., also d/b/a 321Financial Inc.; Instahelp America Inc, f/k/a Helping America Team Inc., also d/b/a Helping America Group; Helping America Group LLC, f/k/a Helping America Group Inc.; Breeze Financial Solutions Inc., also d/b/a Credit Health Plan and Credit Maximizing Program; US Legal Club LLC; Active Debt Solutions LLC, f/k/a Active Debt Solutions Inc., also d/b/a Guardian Legal Center; Guardian LG LLC, also d/b/a Guardian Legal Group; American Credit Security LLC, f/k/a American Credit Shield LLC; Paralegal Support Group LLC, f/k/a Paralegal Staff Support LLC; and Associated Administrative Services LLC, also d/b/a Jobfax.

Relief defendants that profited from the scheme are JLMJP Pompano LLC; 1609 Belmont Place LLC; 16 S H Street Lake Worth LLC; 17866 Lake Azure Way Boca LLC; 114 Southwest 2^nd Street DBF LLC; 110 Glouchester St. LLC; 72 SE 6^th Ave. LLC; Fast Pace 69 LLC; Strategic Acquisitions TWO LLC; Halfway International LLC, also d/b/a 16 H.S. Street 12Plex LLC, 311 SE 3^rd St. LLC, 412 Bayfront Drive LLC, 110 Glouchester St. LLC, 72 SE 6^th Ave. LLC, 114 SW 2^nd Street JM LLC, 8209 Desmond Drive LLC, and HLFP LLC; Halfway NV LLC, also d/b/a Halfpay International LLC; and Nantucket Cove of Illinois LLC.

Keep in mind, this is just one posting.  Are there others?  Absolutely.

Scams After Mass Shooting

 

From Better Business Bureau
Arlington, VA – In the wake of the largest mass shooting in U.S. history, the BBB Serving Central Florida and the BBB Wise Giving Alliance, the national charity monitoring arm of the Better Business Bureau, caution donors about potential red flags in fund raising to help Orlando victims and their families, and to be aware of the different circumstances that often emerge in tragedy-related philanthropy.

“Tragedy inspires people to give, and this terrible tragedy is drawing incredible response already from people all around the world” said H. Art Taylor, President & CEO, BBB Wise Giving Alliance “The best way to help the victims, their families, and the people of Orlando is to make sure that donations end up where they belong. We are already hearing about click-bait schemes and questionable solicitations, and we expect there will be numerous scams and frauds. We urge those generous donors to give wisely so their gifts can do the most good.”

Holly Salmons, President & CEO of the Better Business Bureau Serving Central Florida, notes that “The world has rushed to support the City Beautiful and the victims on this heinous crime. We encourage those who want to show their support through donations to do so with caution. Scammers depend on heightened emotion and often follow closely behind tragic events.”

BBB Wise Giving Alliance urges donors to give thoughtfully and avoid those seeking to take advantage of the generosity of others. Here are “Ten Tips for Giving with Confidence” –

1. Thoughtful Giving
Take the time to check out the charity to avoid wasting your generosity by donating to a questionable or poorly managed effort. The first request for a donation may not be the best choice. Be proactive and find trusted charities that are providing assistance.

2. Government Registration
About 40 of the 50 states in the U.S. require charities to register with a state government agency (usually a division of the State Attorney General’s office) before they solicit for charitable gifts (in Canada, charities register with the Canada Revenue Agency.) If the charity is not registered, that may be a significant red flag.

3. Respecting Victims and Their Families
Organizations raising funds should get permission from the families to use either the names of the victims and/or any photographs of them. Some charities raising funds for the Colorado movie theater victims did not do this and were the subject of criticism from victims’ families.

4. How Will Donations Be Used?
Watch out for vague appeals that don’t identify the intended use of funds. For example, how will the donations help victims’ families? Also, unless told otherwise, donors will assume that funds collected quickly in the wake of a tragedy will be spent just as quickly. See if the appeal identifies when the collected funds will be used.

5. What if a Family Sets Up Its Own Assistance Fund?
Some families may decide to set up their own assistance funds. Be mindful that such funds may not be set up as charities. Also, make sure that collected monies are received and administered by a third party such as a bank, CPA or lawyer. This will help provide oversight and ensure the collected funds are used appropriately (e.g., paying for funeral costs, counseling, and other tragedy-related needs.)

6. Advocacy Organizations
Tragedies that involve violent acts with firearms can also generate requests from a variety of advocacy organizations that address gun use. Donors can support these efforts as well but note that some of these advocacy groups are not tax exempt as charities. Also, watch out for newly created advocacy groups that will be difficult to check out.

7. Online Cautions
Never click on links to charities on unfamiliar websites or in texts or emails. These may take you to a lookalike website where you will be asked to provide personal financial information or to click on something that downloads harmful malware into your computer. Don’t assume that charity recommendations on Facebook, blogs or other social media have already been vetted.

8. Financial Transparency
After funds are raised for a tragedy, it is even more important for organizations to provide an accounting of how funds were spent. Transparent organizations will post this information on their websites so that anyone can find out and not have to wait until the audited financial statements are available sometime in the future.

9. Newly Created or Established Organizations
This is a personal giving choice, but an established charity will more likely have the experience to quickly address the circumstances and have a track record that can be evaluated. A newly formed organization may be well-meaning but will be difficult to check out and may not be well managed.

10. Tax Deductibility
Not all organizations collecting funds to assist this tragedy are tax exempt as charities under section 501(c)(3) of the Internal Revenue Code in the U.S. (the equivalent in Canada are charities registered with the Canada Revenue Agency). Donors can support these other entities but keep this in mind if they want to take a deduction for income tax purposes. In addition, contributions that are donor-restricted to help a specific individual/family are not deductible in the U.S. as charitable donations, even if the recipient organization is a charity.

According to CNN MONEY,

Zombie debt collection scams are on the rise

What you need to know can be found at http://goo.gl/cu1bdf