Category: Financial Abuse

This is part three of three in the series, “Fraud, Scams, and Tips to Help Protect Yourself,” written by William Palmer III.

5) Inheritance Scam.

Few people would turn down the unexpected financial windfall of a surprise inheritance. But what if this gift from a long-lost relative turns out to be a scam?

You may receive a phone call, a letter or an email purportedly from an overseas attorney searching for a beneficiary for his deceased client. The scammer may even have borrowed the name of a real attorney in his country, making your research difficult.

Red Flags:

• You receive notification about an inheritance from an unknown relative.
• You receive notification of an inheritance from a foreign country where you have no previous family connection.
• You are asked to pay certain fees in order to receive an inheritance. These fees can be for anything, including taxes, attorney fees, security processing, etc.

Tips to protect yourself:

• Do not respond to unsolicited offers from individuals or companies you do not know.
• Never pay money in order to get money.
• Do not reply or respond to emails from unfamiliar parties. Simply disregard or delete them.
• Discuss the issue with a family member or close friend to gain an outside perspective.

Reporting the fraud:

If you believe you have become the victim of an inheritance scam, immediately report it to the financial institution from where you sent the money as well as to the Federal Trade Commission at ReportFraud.ftc.gov. Contact your financial advisor if you need additional assistance.

6) Computer intrusion Scam

Someone claiming to be with a software company or Internet provider may call you to say he or she has detected errors coming from your computer. The caller might suggest your computer has some sort of virus or spyware.

He or she will offer to fix the issue for you remotely if you follow a few simple steps. The caller will walk you through a few clicks on your keyboard and obtain your Internet Protocol (IP) address. With this information, the caller can take control of your computer.

Once the scammer has gained access to your computer, any information stored there is at risk. The thief could also install spyware or other malicious software, which could allow him or her to steal your user IDs and passwords, and access your accounts. Some scammers have even coerced people into paying up to $500 (via a credit card) for the alleged computer repair.

Red Flags:

• You receive a call from someone saying he or she has detected something wrong with your computer.
• You get notification from your financial institutions that your account information has been changed.
• Your account statement reflects activity you did not authorize.

Tips to protect yourself:

• Never provide your IP address or give control of your computer to someone you don’t know.
• Remember that companies will never call the general public. They have absolutely no way of telling from a remote area whether a computer has software issues.
• Never click on a link in an email you receive unless you are positive you know the sender.
• Be sure you’re running current virus detection software on your computer.
• Always use two-factor authentication on your financial accounts. This is a great fraud deterrent.

Reporting the fraud:

If you feel you have been victimized, contact your financial institutions immediately to make sure your information has not been compromised and your accounts accessed.

If you paid the scammer with a credit card, follow your card issuer’s procedures to dispute any unauthorized charges.

Disconnect your computer from the Internet, and contact a reputable company to have your computer serviced and your hard drive professionally cleaned. Then change all of your passwords. If you change your passwords before having your computer cleaned, you may be unintentionally giving the scammer your new passwords.

If you have questions or need further assistance, please contact your Financial advisor.

Other information:

In addition to knowing red flags and common scenarios, there are a few things you can do to protect your identify.

• Never provide personal information or verify it over the phone, through the mail or email, or over the internet unless you know the request is legitimate.
• Shred financial and other personal documents before disposing of them. Many businesses offer electronic delivery, which can also reduce your paper trail.
• Do not carry your Social Security card or write your Social Security number on a check. Provide it only if absolutely necessary, or ask to use another identifier. Typically, you are required to provide your Social Security number only when dealing with a law enforcement or government agency; when opening an account with a bank, brokerage or other financial services firm, or an insurance company; when a background investigation or credit check is required while seeking employment; and when obtaining health care.
• Maintain Confidential documents in a secure location in your home.

Be cautious online.

• Keep your computer security and anti-virus software up to date. Do not click on pop-up ads or links in unsolicited emails.
• Do no use an obvious password, such as your birthdate, your mothers maiden name or the last four digits of your Social Security number.

Protect your credit information.

• Periodically inspect your credit report. The law requires the major nationwide consumer reporting companies -Equifax, Experian and Transunion – to give you a free copy of your credit report each year if you request it.
• You can place what is called a “Fraud Alert” on your credit reports. This entitles you to a free copy of your credit report and tells the creditors to follow certain procedures when opening accounts in your name or making changes to your existing accounts.

Don’t forget friends and family in a time of concern or confusion. If you have trusted friends or family members you can rely on, those individuals can often provide perspective and unemotional input.

Though the Internet isn’t always reliable for verifying information, often it can be used as a resource to uncover more widespread fraudulent activity. A simple search of an individual’s name or a company’s name (especially combined with the word “scam”) can sometimes yield helpful results. While this is not to be used as a sole source of research, using independent, reliable sources of information can be helpful in identifying a scam artist.

Resources:

• Your state Attorney General’s office
• The Federal Trade Commission (FTC)
• The Consumer Financial Protection Bureau
• The Better Business Bureau
• The Internet Crime Complaint Center
• Your local law enforcement agency
• Guidestar.org (which you can use to research non-profit organizations)
• Your financial institution(s)

If you would like further information on these or other common scams, please contact your local financial institution.

You can find additional information on financial planning by downloading the Washoe Caregivers Guidebook at http://washoecaregivers.org/documents/washoe-caregivers-guidebook/

By,

William H. Palmer III

Financial Advisor

This is part two of three in the series, “Fraud, Scams, and Tips to Help Protect Yourself,” written by William Palmer III.

2) Lottery and Sweepstakes Scams.

Have you ever received a letter, a phone call or even an email stating that you won a lottery or sweepstakes? You may not remember entering any lotteries or sweepstakes, but the idea of winning millions can be exciting. If it sounds too good to be true, though, it probably is.

There are legitimate foreign and domestic lotteries. However, it is a violation of federal law for any U.S. citizen to participate in a foreign lottery. Legitimate lotteries and sweepstakes never ask for money in order for you to receive your prize. However, in most lottery scams, you are asked to pay taxes, bank fees and even shipping or storage charges. Some lottery scams may indicate sponsorship by famous people or legitimate companies.

Red Flags:

Be alert if you:

• Are asked to send money to pay for taxes, bank fees and even shipping or storage charges
• Are asked to pay minimal taxes compared to the amount of winnings (e.g., $2,000 in taxes for $150 million in winnings)
• Never entered a lottery or sweepstakes
• Are contacted by a lottery purportedly sponsored by U.S. government officials or corporations

Tips to protect yourself:

• Treat all unsolicited offers with extreme caution.
• Verify any potential financial gains with your financial advisor.
• Conduct due diligence to fully investigate all people, companies, services, investments and situations.
• Follow your instincts: When in doubt, don’t do it.

Reporting the fraud:

For additional information regarding lotteries or sweepstakes, contact the Federal Trade Commission at 877-FTC-HELP (382-4357) or visit www.ftc.gov.

3) Grandparent Scam.

Grandparents often have an emotional bond with their grandchildren. When a grandchild calls with a problem, the grandparent most likely feels compelled to help. But what if the voice on the other end of the line is really a scam artist?  This scam preys on the emotions of older adults who want to help their grandchildren and other family members.

Sadly, scammers often use any personal information they can gather to help “validate” their story and form an emotional bond with the victim. The more personal the information, the more effective they can be.

Red Flags:

• You receive a call from someone who doesn’t readily identify himself or makes you guess who he is.
• A grandchild contacts you instead of his or her parents to ask for money.
• The caller wants you to act immediately because of some urgent, impending deadline and begs you not to tell anyone, especially his or her parents.
• The caller asks you to wire money to a person or place that you don’t recognize, or to a country other than where the caller says he is located. (For

example, the caller might claim to be in a Canadian jail but ask you to wire money to Jamaica.)

Tips to protect yourself:

• Ask the caller a question he should be

able to answer, such as his mother’s or father’s first name.

• Remain calm despite the “emergency” nature of the call. Take the time to do your research so that you make a decision based on facts rather than emotion.
• Be careful with what you say – do not provide information the caller can use.
• Ask family members whether the grandchild actually is traveling outside the country.
• Call the grandchild back at a phone number you already have rather than one supplied by the caller.

Reporting the fraud:

If you believe you have become the victim of a grandparent scam, please contact your local law enforcement agency and immediately notify the financial institution(s) the funds were sent from.

4) Long-distance relationship scam.

Scammers often use email and other social media channels to contact their victims. The scammer will typically say he or she is temporarily overseas and needs help. Reasons given include a lucrative job or government contract, an inheritance issue, or an ill friend or family member. As the email relationship develops over time, so does your trust. At some point, the scammer will request that money be wired for an urgent need that will tug at your emotions. The scammer may say he or she has exhausted all other resources and that “you are my last hope.” The scammer wants to prey on your emotional state and take advantage of your trust, generosity and goodwill. If you send an initial payment, inevitably more money will be needed, either for the same reason (with a new twist) or a completely new fictitious one. The scammer hopes to empty your accounts before you become aware of the scam.

Red Flags:

The following red flags may indicate a long-distance relationship scam. Beware if the friend:

• Asks that money be wired to another country and an unknown friend, saying the friend will help get the funds to him or her
• Asks that money be sent via Western Union or prepaid cards
• Asks that money be wired to a country other than where the friend is located, saying that the money is going to a “holding” or “correspondent” bank for no valid reason
• Gives an account name (either a company or an individual) that does not match his or her name, or is a name that is easily verified
• Cannot provide verifiable information (address, Social Security number, etc.)
• Needs the money as soon as possible
• States that you are the last resource
• Provides outrageous reasons for needing the money
• Indicates a kidnapping ransom
• Says he or she has been involved in some sort of accident
• Cannot receive emergency treatment until a medical facility is paid
• Says he or she is on the verge of receiving a large inheritance
• Needs money to pay taxes upfront or attorney’s fees
• Mentions government payoffs
• Promises to share his or her wealth with you or reimburse you as soon as the friend returns to the U.S. – but only if you can send money immediately

Tips to protect yourself:

• Be leery of people you meet over the internet, even if it’s through a trusted social media site. Remember that it is easy to impersonate someone online.
• If the friend requests money to be wired, ask for a copy of his or her driver’s license and/or Social Security number. Your financial institution can quickly perform additional research to verify the person’s identity. If the person refuses or cannot produce this information, chances are good that he or she is impersonating someone and is not a U.S. citizen.
• Request other documentation, and ask questions regarding the friend’s background. In this digital age, photos and documents can be easily altered, but these changes are not difficult to spot. If the information provided cannot be verified, take a step back and look at the facts.
• Simply refuse to wire the funds. If this ends the relationship, then you will know the friend just wanted your money. Keep in mind that the scammer may become angry or try to make you feel guilty for refusing to help. This should further confirm that you were being scammed.
• Confide in a family member, a trusted friend or your financial advisor. Someone who is not emotionally involved often can assess the situation more rationally.

Reporting the fraud:

Contact the financial agency or financial advisor immediately.

You can find additional information on financial planning by downloading the Washoe Caregivers Guidebook at http://washoecaregivers.org/documents/washoe-caregivers-guidebook/

By, 

William Palmer III

Financial Advisor

This is part one of three in the series, “Fraud, Scams, and Tips to Help Protect Yourself,” written by William Palmer III.

Fraud is becoming an increasing concern for all of us. You may know friends or even loved ones who have been targeted in fraudulent schemes. Though scammers’ tactics are seemingly becoming more complex and more frequently encountered, we have GOOD NEWS. There are red flags you can identify and basic steps you can take to protect yourself and those you care about. Here I will help illustrate some of the more common forms of scams we see and some resources you can use in case you or a loved one is targeted.

Fraud may be more prevalent than you think. Consider the following:

• The Federal Trade Commission (FTC) estimates that as many as 9 million Americans have their identities stolen each year.
• According to the Department of Justice, fraud and financial abuse schemes targeting the elderly are the growing problems in the United States that cost victims at least $2.9 billion annually.
• According to the National Center on Elder Abuse of the U.S. Department of Health and Human Services, 1 elder in 20 is financially victimized. However, only 1 case in 44 is reported. The reason for this may be embarrassment on the part of the victim or a desire to minimize calling attention to the situation.
• Nearly 90% of abusers are people whom the victim trusts (according to the National Center on Elder Abuse of the U.S. Department of Health & Human Services)

You may recall the story of actor Mickey Rooney, who testified to Congress a few years ago about elder abuse and having been financially exploited by family members. Rooney stated he was afraid to seek help because he was “overwhelmed” with fear, anger and disbelief. Rooney’s conservator pointed out that Rooney was “completely competent,” and made reference to the idea that fighting abuse can be complicated due to the individual’s personal fears (loss of control) and/or family relationships. It’s a not-so-subtle reminder that anyone can become the victim of fraud, regardless of age or health.

[The source for the information on Mickey Rooney is http://bit.ly/2sWmda9.]

This is why it is critical to be prepared and to take steps to protect yourself, your family, and your hard earned money. While this information may seem alarming, my goal is to empower you with information and resources to protect yourself and loved ones. It is important to report fraud because scammers will defraud another individual if the perpetrator isn’t stopped. There’s a good chance you are reading this because you’re concerned for a loved one or a friend who may have been targeted by a scammer. Or, perhaps you may want some tips today to protect yourself and your loved ones from becoming victims of fraud. Hopefully with this information and resources you can help to protect yourself and the ones you love. Hopefully you’ll be prepared to act both quickly and calmly to outsmart the scammer.

Here is a list of a few common scams, tips to protect yourself, who to call if you have been victimized, along with common red flags.

1) Collection Fraud Scam.

The term “collection agency” often spurs consumers into settling their debts and scam artists love a scheme that entices people to pay money quickly. With collection fraud, a thief might coercer a victim into paying a debt that he or she may not even have. An individual calls from a fraudulent company, typically named to sound similar to a law firm. The caller may state that he is with the process and summons division” or a similar area and that there is a problem associated with your Social Security number.

Red Flags:

You receive a phone call or letter from a company you’re not familiar with advising that you owe money for an unfamiliar reason.

• A caller claims there is a warrant for your arrest and advises you to make an immediate payment to avoid legal trouble.
• A caller pressures you to pay money by claiming that someone will visit your home or place of employment.
• A caller claims to be from the IRS.
• You are instructed to send payment to someone other than the party to which you supposedly owe money.

Tips to protect yourself:

Know your rights. The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from the following:

• Using abusive language
• Using deceptive practices
• Contacting you at your place of employment if you tell them not to in writing
• Stating that you’ll be arrested if you fail to pay

Reporting the fraud:

If you believe you have been victimized by collection fraud, report the incident to:

• Your state Attorney General’s office (www.naag.org)
• The Federal Trade Commission (FTC) at 877-382-4357 or www.ftc.gov
• The Consumer Financial Protection Bureau at 855-411-2372 or www.consumerfinance.gov

You can find additional information on financial planning by downloading the Washoe Caregivers Guidebook at http://washoecaregivers.org/documents/washoe-caregivers-guidebook/

By,

William Palmer III

Financial Advisor