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| CPB Recent Scams | |
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Internet scams and other types of consumer fraud are measured in millions and
billions: millions of victims and billions of dollars lost each year. To avoid
these cons, consumers need to spot the warning signs of a scam.
One of the best ways to prevent falling prey to a scam artist is to learn more about specific schemes that are occurring today. On this page, the Consumer Protection Board will present news regarding ongoing scams. For advice and other information regarding consumer scams, please see the links provided in each entry. | |
| 2008 | |
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“809” Phone Scam: | |
| Consumers are receiving e-mails, voicemails, or pages telling them to call a phone number with an "809", "284", "876" (or some other three-digit) area code to collect a prize, find out about a sick relative, etc. Consumers assume you are making a domestic long distance call - as "809", "284", "876" (and other three-digit area codes involved in this scam) appear to be typical three-digit U.S. area codes. Only later do they find out that they are unwittingly connected to a phone number outside the United States (it has been linked to the Dominical Republic, Canada, and various other countries) and are charged international rates for the call, learning of the exorbitant fee for the call upon receipt of a phone bill. Minimize your risk of falling prey to this scam and incurring a charge by:
Note: This information has been obtained from the Federal Communications Commission | |
| Cell Phones, the Do Not Call Registry and Privacy: | |
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An e-mail is circulating claiming that telemarketers will soon be calling your cell phone because of a new database. This is NOT TRUE. According to the Federal Trade Commission (FTC), telemarketing to cell phone numbers is illegal in most cases and will continue to be so. The FTC provides the following information regarding the National Do Not Call Registry program:
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Economic Stimulus Rebates Spur Scammers | |
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Some scam artists are trying to trick consumers into revealing personal financial information that can be used to access their
financial accounts. These scam artists make promises relating to the federal economic stimulus payment. To obtain the payment, eligible
individuals in most cases will not have to do anything more than file a 2007 federal tax return. But some criminals, posing as IRS
representatives, are falsely leading taxpayers into revealing their bank account number by telling them they must provide that type of
information to receive their payment. If the target is unwilling, the victim is then told that he/she cannot receive the rebate.
Individuals should remember that the only way to get a stimulus payment is to file a 2007 tax return. The CPB and the Internal Revenue
Service (IRS) urges taxpayers to be extra-vigilant. Additionally, the IRS will not contact taxpayers by phone or e-mail about their
stimulus payment. | |
| "Phishing" scam uses the lure of a tax refund | |
| Spam messages promising an unexpected tax refund are being sent to computers across the country. A similar scam
occurred last year as perpetrators tried to fool people into giving up important information about themselves, their credit cards and
bank accounts. The tactic used by Internet-based thieves, called “phising,” misleads unsuspecting victims into revealing
personal information they can then use to access the victims’ financial accounts. These scammers use the information obtained to empty the victims’ bank accounts, run up credit card charges and apply for loans or credit in the victims’ names. Phishing scams often take the form of an e-mail appearing to come from a legitimate source. Some scam e-mails falsely claim to come from the Internal Revenue Service (IRS). The spam message, which is "signed" by the IRS, states: | |
| "After the last annual calculations of your fiscal activity we have determined that you are eligible to receive a tax refund of $109.30. Please submit the tax refund request and allow us 6-9 days in order to process it. A refund can be delayed for a variety of reasons. For example submitting invalid records or applying after the deadline. To access the form for your tax refund, please click here." | |
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To date, taxpayers have forwarded more than 33,000 of these scam e-mails, reflecting more than 1,500 different schemes, to the IRS. The IRS never uses e-mail to contact taxpayers about their tax issues. Taxpayers who receive unsolicited e-mail claiming to be from the IRS can forward the message to a special electronic mailbox, phishing@irs.gov, using instructions contained in an article titled “How to Protect Yourself from Suspicious E-Mails or Phishing Schemes.” Remember: the only official IRS Web site is located at www.irs.gov. |
| Phony Mortgage Overpayment Notices Reaching Consumer Mailboxes |
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Consumers are being deceived by misleading advertising disguised as overpayment letters. Dressed in official looking “Final Notice” envelopes with the words “Notice of Overpayment” below, security tinted pages and a note citing the five-year maximum prison sentence for mail tampering law, these letters warn consumers that they may be making larger than necessary payments on their home. The notice then provides contact information for a local assigned specialist who will work with the homeowner to avoid possible overpayments. The phone number provided is listed to an organization known as, “Domain Mortgage.” Calling the number connects to a representative who informs the consumer that the letter is a sales pitch for refinancing options meant to grab attention and receive a response. |
| Spoof E-mails Being Used to Defraud ATM Users |
| Fraudulent messages are being sent under the name of a financial institution looking to collect personal information. Spoof
e-mails sent under the name Tennessee Valley Federal Credit Union (TVFCU) are falsely alerting consumers that their TVFCU ATM card has
been deactivated due to “irregular activity.” These e-mails are primarily being sent to individuals who have never opened a
bank account in Tennessee. Also raising eyebrows, the credit union phone number provided in the e-mail is disconnected. A check of the
TVFCU’s website informs visitors that they were nearly the victim of a “vishing” scam. A “Vising” scam involves Voice-over Internet Protocol (VoIP) phones to steal personal information. Identity thieves use a “war dial” attack over a VoIP system to blanket an area. A recorded message tells the victim, for example, that his/her credit card has been breached, and directs him/her to call a telephone number to clear the problem. The number dialed connects to a VoIP phone which can recognize telephone keystrokes. The victim is then instructed to enter his/her account number, but if s/he complies, his/her identity could be stolen. It is recommended that cardholders call the firm’s activation center to confirm their standing. |
| Craigslist Scam targets those desperate for affordable NYC Apartments |
| New York City’s lower residential vacancy rate and increased rental costs have led residents on a desperate search for
affordable housing, including the newest arena for apartment rental fraud: the Internet. Using popular network sites, like Craiglist,
consumers are entering into advance-fee scams that provide neither affordable living nor housing. A listing on Craigslist recently
advertised a fully furnished two-bedroom with a balcony in Bay Ridge, Brooklyn for $950 a month, as compared to the average monthly
market rate of $2,200. The reduced price was attributed to the current tenant’s “sudden job transfer to North
Carolina.” Under the arrangement proposed, the would-be tenant would have to take the apartment without seeing it and send a
security deposit. With appealing photos, a quick response to inquiries from the scam artist using the alias “JoAnn Rinaggio,”
the apartment ad peaks the interest of any renter in the market. The scammer states this arrangement is based on trust between each
party, further creating a friendly situation. In the ad, the prospective tenant requested to wire a $550 security deposit with a promise
of a return envelope containing apartment keys. Several victims fell for this ruse by sending money and never heard back
from “Rinaggio”. It was also learned that a false address was given for the apartment. Networking sites, like Craigslist, are platforms for selling locally. Red flags should be raised whenever an out-of-state seller is involved. In order to avoid this type of scam, it is recommended to never wire money anywhere, try to do business face-to-face and never provide personal information or respond to offers requiring escrow money. If it sounds too good to be true, it probably is. |
| Schemes to avoid paying owed taxes on the rise |
| Promoters of frivolous schemes encourage people to make unreasonable and unfounded claims to avoid paying the taxes they owe. Most recently, the IRS expanded its list of frivolous schemes from which taxpayers should stay away. Taxpayers who file a tax return or make a submission based on one of these positions on the list are subject to a $5,000 penalty. The most recent schemes include: misinterpretation of the 9th Amendment to the U.S. Constitution regarding objections to military spending, erroneous legal claims that taxes are owed only by persons with a fiduciary relationship to the United States, a nonexistent “Mariner’s Tax Deduction” related to invalid deductions for meals and the misuse of the fuel tax credit (see below). The complete list of frivolous arguments is on the IRS Web site at IRS.gov. |
| 2007 |
| Fraudulent e-mails claiming to be from the Department of Justice, FBI or other agency could infect your computer |
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The Department of Justice (DOJ) has recently become aware of fraudulent spam
e-mail messages claiming to be from the agency. Based upon complaints from the
public, it is believed that the fraudulent messages are addressed “Dear
Citizen.”
The messages state that the recipients of this e-mail are currently the subject of complaints filed with DOJ and the Internal Revenue Service. In addition, such e-mail messages may provide a case number, and state that the complaint was “filled [sic] by Mr. Henry Stewart.” A DOJ logo may appear at the top of the e-mail message or in an attached file making it appear to be authentic. Opening that attachment may result in the installation of malicious software on the recipient's computer. More information |
| Don’t fall for the promise of a free iPhone |
| BBB warns that offers for “free” merchandise can cost you in the end |
| The Better Business Bureau (BBB) is helping people to spot and avoid legal, but deceptive advertising that lures unsuspecting consumers with free product promotions. Offers to consumers range from low-end gift cards, to high-value items such as iPods, video gaming systems, laptop computers, high definition televisions, and even the much-anticipated Apple iPhone – despite the fact that it won’t even be available until late June. Last year, the BBB System logged more than 5,200 complaints against online and direct mail marketers. Many consumers complained that, despite jumping through the considerable hoops – which often included buying pricey merchandise and services or providing friends’ e-mail addresses – they didn’t receive the “free” merchandise they were promised or were billed for other merchandise they didn’t want. More information |
| Be Wary of Puppy Scams |
| People longing for a canine companion are being targeted by con artists |
| The American Kennel ClubŪ (AKCŪ) and the Council of Better Business Bureaus (CBBB) are warning consumers about scams targeting unsuspecting puppy buyers. Both the AKC and the CBBB have recently received a number of reports from consumers throughout the nation who have lost money after responding to online or newspaper classified advertising. Commonly, the scammer — posing as a breeder — will place an ad offering free or inexpensive puppies. Communicating solely through e-mails, the scammer may claim that he/she is affiliated with a religious organization and is being relocated to a foreign country and needs to find a new home for the puppies. More information |
| Phony Checks for Apartments, Other Services |
| After placing ads on the Internet, people are receiving bogus checks or money orders with instructions to send back thousands of dollars |
| Internet ads for apartment rentals are getting the attention of con
artists. Posing as consumers interested in renting an apartment, these schemes
are sending bogus checks or money orders to apartment owners. The value of these bogus checks is always well above the first month's rent or deposit. The con artist asks that a large portion of this check be sent back (usually in the form of a moneygram) allegedly to cover moving expenses or other costs. People have lost thousands of dollars because they sent back money before their bank discovers that the original check or money order is fake. More Information |
| "Mystery Shopper" employment scam |
| CPB warns that bogus checks are going to New Yorkers looking for part-time jobs as 'secret' shoppers |
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The New York State Consumer Protection Board is warning job seekers to ignore
letters claiming to offer a job – and a check – from a "mystery shopper" company
in Canada called Service Intelligence or Service Access. Scam artists are using the name and logo of a legitimate Canadian firm – Service Intelligence, Inc. – to mail phony job offers to be a mystery shopper. The letters contain bogus checks and the victims are instructed to deposit the checks; keep $300 as pay and return the rest to an address in Canada. More information |
| Air Crash in 1999 Continues to Fuel Scams Today |
| Family member joins CPB in warning that scam artists are using crash of EgyptAir Flight 990 in 'Nigerian' advance-payment scams |
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The New York State Consumer Protection Board is alerting consumers that scam
artists continue to use the 1999 crash of EgyptAir Flight 990 to perpetrate
so-called "Nigerian 419" scams against unknowing victims here in New York and
throughout the United States. The controversial air crash, in which 217 people died after a pilot deliberately crashed the jet into the Atlantic Ocean, has fed "419" or advance-fee scams for the past seven years. A new round of letters and e-mails are now being sent to an unknown number of unsuspecting New Yorkers, promising them a share of money allegedly left by one of the passengers. More information |
| “Phishing” Scam Takes New Tact |
| New series of phony e-mails warns consumers right up front: We're phishing for your personal, financial information |
| The Consumer Protection Board (CPB) is advising consumers to be aware of a new
series of "phishing" e-mails that are boldly labeled "Phishing" in the subject
header. CPB investigators have uncovered a new version of an Internet scam – using deceptive e-mails to trick consumers into providing valuable personal information with which to engage in identity theft. More information |
| Consumers Finding Romance Scams with Some Internet Dating Services |
| Use your head while following your heart |
| The New York State Consumer Protection Board (CPB) has released a list of Dating
Service Do's and Don'ts based on the latest consumer complaints and scams now
appearing in many online matchmaking services. "Scam artists are always looking to exploit vulnerable people, which is why dating services can be prime targets for financial ripoffs," said Mindy Bockstein, Acting Chairperson and Executive Director of the Consumer Protection Board. "With hundreds of sites available, online dating is one of the most-popular means of meeting a partner. But if one is not careful, you could end up with a broken heart and a drained bank account." Con artists can gain the trust of people searching for soulmates online and when they meet Mr. or Ms. Right, they can be easy targets for fraud. More information |