8/13/2018
How to Identify Scams and Get the Word Out
Mike Edmiston, RSC & Dee Amundson, PSC
1 8/13/2018
Objectives
O Definition and examples of common scams O How to recognize a scam O What to do if you or someone you know is a victim of a scam O How to protect our residents
2 8/13/2018
U.S. Statistics
O 1 in 5 individuals in the U.S. is aged 60+ O 1 in 20 older persons indicate recent financial mistreatment O Only 1 in 44 elder financial abuse cases is ever reported to law enforcement O 9% of financial abuse victims must turn to Medicaid after their own funds are stolen
3 8/13/2018
In 2017 out of 2.7 million people…
O 23% reported debt collection scams O 14% reported identity theft O 13% reported imposter scams O 1.1 million reported fraud O 21% lost a total of over $905 million O This is up $63 million more from 2016 O Average of $429 per person O 63,000 reported tax fraud O $74 million dollars lost on credit cards
4 8/13/2018
In 2017 out of 2.7 million people…
O Scams were mostly done using phones O Money mostly paid via wire transfer O Average loss of $1,710 per person through travel, vacation, and timeshare scams O Military consumers had an average loss of $619 per person O More young people reported losing money to fraud than older people O Individuals 70+ had a higher average loss per person than other groups
5 8/13/2018
In 2017 out of 2.7 million people…
O Top states for 2017: O Fraud reports O Florida O Georgia O Nevada O Identity theft O Michigan O Florida O California
6 8/13/2018
Around the World Australia - 2018 O Lost: $64,597,734 O Number of reports: 75,384 O 11.2% with financial losses O Investment scams responsible for almost $30 million in loss, followed by dating and romance scams with almost $15 million in loss O Phishing was the top reported with over 10,000 reports. Next closest is identity theft with just over 5,000 reports
7 8/13/2018
Around the World Canada O From January 2014 – December 2016 O Nearly $290 million lost to fraud O $28 million lost to Canadians age 60-79 O 2016 O 90,000 complaints with online scams accounting for 20,000 and more than $40 million lost O Estimated only 5% of victims report to authorities
8 8/13/2018
Around the World United Kingdom 2017 O £41 million ($54,132,546) to romance scams in 2017 O 3.6 million cases of fraud O 2 million computer misuse offenses O Overall increase of 8% in scams/frauds O 1 man lost £230,000 ($30,3642.32) from his company bank account via cybercrime and only recovered £100,000 O UK banks managed to stop £6 in every £10 targeted the first half of 2016
9 8/13/2018
Common Scams
O Advance fee schemes O Romance O The prize will cost you O Vehicle O Online auctions (eBay) O Grandparent O Fraud jobs Medicare O Moneymaking schemes O (Pyramid Scams, Ponzi O Pet/Animal Scams) O Rental O Bogus charities O Inheritance O Scam schools O IRS O Vacation
10 8/13/2018
Scams and Seniors
O Slower response time O More trusting O Fears O Frailties of Aging O Dependence on Others O Isolation
11 8/13/2018
Top 10 Scams Targeting Seniors (FBI) 1. Health Care / Medicare / Health Insurance Fraud 2. Counterfeit Prescription Drugs 3. Funeral & Cemetery Scams 4. Fraudulent Anti-Aging Products 5. Telemarketing 6. Internet Fraud 7. Investment Schemes 8. Homeowner / Reverse Mortgage Scams 9. Sweepstakes & Lottery Scams 10. The Grandparent Scam
12 8/13/2018
13 8/13/2018
Bad Typing Skills Can Get You Scammed
O Typo-squatting scam
O More than 12 million web users fell victim in the first 3 months of 2018
14 8/13/2018
Bad Typing Skills Can Get You Scammed O Perpetrators set up fake web addresses that closely resemble legitimate addresses but the address contains common typos such as .cm versus .com. O If you land on one of those typo sites, you may just get nailed with viruses and malware. O The site may look so much like the real one that you'll be fooled into providing personal data, or look so much like the real site, that instead of buying the product you intended, you'll be purchasing knock-off or imitation products.
15 8/13/2018
Bad Typing Skills Can Get You Scammed O Limit your risk by: O Double-check the web address O Bookmark favorite websites O Use a search engine O Do not click on links found in social media posts or your feed O If you choose to ignore this, look for red flags: O A .com ending for a government website O Extra text following a .com like, www.example.com-(text) O A misspelling of the company's name O Typos in the domain (.com, .gov, .org, etc.) -- such as the web address ending with .cm instead of .com O Check and recheck the URL
16 8/13/2018
Secret Shopper Scams
O The scam starts with a letter congratulating the recipient on becoming a secret shopper for Walmart and provides instructions for the assignment. O The letter comes with a legit-looking Postal Money Order with an amount, in this case, $990. O As the recipient, you are instructed to deposit the $990 money to your own bank account, then utilize $10 of the (fake) check to test Walmart's money transfer services. O Then, with the remaining $980, you 'keep' $160 and the remaining $820 should be sent to Texas for charity work through Walmart.
17 8/13/2018
Secret Shopper Scams
O First and foremost, Walmart does not have a secret shopper program. O Depositing a check and seeing it as available in your bank account can be misleading. O The most important thing to know is that a check can bounce after you deposit it - even if your bank allows you to withdraw cash from that deposit. There are legitimate secret shopper businesses, but you don't have to pay to get into the mystery shopper business.
18 8/13/2018
Secret Shopper Scams O Do your research. The web will reveal if this is a scam. O If you get a solicitation via email, be advised that this is likely not a legitimate website. O To check if the website is legitimate, hover over the URL to make sure that the web address is correct for the company that the email is coming from. O Look for poor grammar and/or typos in the company's letter or email. O In the case shown in the photo, there were typos and grammar mistakes throughout the solicitation letter. The following is just one example: "In case you were asked if you know the receiver, Simply tell them Yes. Ignore any further questions asked for you to get accurate result."
19 8/13/2018
Secret Shopper Scams
O Never wire money to someone you don't know. Wiring money is the same as sending cash. Once you wire it, you may never get it back. O Never agree to deposit a check from someone you don't know. If the check turns out to be fake, it will eventually bounce. Since you are responsible for any deposited checks to your account, you will owe the bank the money you withdrew. O Never give out your personal or financial information without knowing exactly what company will be receiving the information. Guard your personal information and treat it as if it were cash. Refrain from entering your Social Security, bank account, or credit card numbers online or by phone to someone who gets in touch with you.
20 8/13/2018
Oh Hail No!
O The Better Business Bureau recently reported that a hail repair business took advantage of a woman who was getting her car repaired. O The business returned her car not only without having completed the upfront paid-for repairs, but with hundreds of miles added to the odometer. O That same business told customers they would pay for their rental cars, but later failed to do so.
21 8/13/2018
Oh Hail No!
O Check references O Get at least 3 bids O Look for signs of insurance fraud O Payment/Contracts O Licensing O Roof Building Permits O Warning Signs O Utilizing Contractors
22 8/13/2018
Rental Scams are Growing
O Bogus ads on Craigslist, Facebook and other forums O Offer rentals that really aren’t for rent O Listings tend to rise with the temperatures outside O Show appealing pictures pulled from other online postings O Offer an alluring lease rate
23 8/13/2018
Rental Scams are Growing
O Almost always, the poster had to move away because of an unforeseen situation that solicits sympathy O “I’m a missionary in training who had to move to Carson, NV and soon I’ll be going overseas to do God’s work.” O There is always an excuse as to why the property can’t be shown O “You know I made mentioned in my previous email that My new contract came as an emergency. So as it stands now I will not be able to arrange a showing to you.” – email response from scammer posing as a nurse out of state O The posters insist they are completely trustworthy O “We both are honest people with good intentions, so we need trustworthy people. Out daughter, Sarah is a fun loving girl that loves to play.” – scammer posing as an accountant’s wife
24 8/13/2018
Rental Scams are Growing
O Someone pretending to be the owner of an actual active listing, even using the owner’s name, said he would pull the listing and rent the home direct, advising the interested party to not talk to the agent on the listing. O “Just to let you know before we move any further. my initial plan was to sell the house but the agent was not honest with me, he cheat on the tenant by getting higher rent from them and never deliver the money to me. The sale sign board will be removed from the house as soon as I get a tenant, so that people will stop contacting the number on the sign board,” the scammer said in an email.
25 8/13/2018
Rental Scams are Growing
O The fair rent estimate on Zillow was $2,200 per month O The ad listed it at $850 with utilities included O Scammer claimed he couldn’t show the house because he had taken a contract out of state O And he was deaf = no phone calls O And he wanted $1,650 in advance between rent and security deposit
26 8/13/2018
Rental Scams are Growing
O In 2016, Damon McCoy led a research team that examined more than 2 million rental ads posted on Craigslist O 29,000 were suspicious O Used automated conversation engines to respond O Common scams asked to click on a link and pay for a credit report to qualify to rent a nonexistent rental property, which generated a referral commission to the scammer O Craigslist had the hardest time detecting and shutting down these ads O 40% remain active for 20+ hours
27 8/13/2018
Rental Scams are Growing
O Common red flags: O A rent that seems too good to be true O A poster who can’t show the property O A backstory designed to engender trust or sympathy O A request to wire money O Western Union actively provides both consumer and agent educational materials to combat this O There are tips on the website and the main hotline for fraud 1-800-448-1492 to file a complaint
28 8/13/2018
Just Keep Swimming Away From Phishing Scams
O Attempt to steal your most private information O Scammers impersonate support accounts of major brands such as Amazon, PayPal, Samsung
29 8/13/2018
Just Keep Swimming Away From Phishing Scams
O 66% of spear phishing attack on social media are opened by their targets O Compared to 30% via email O In 2016, a study found 19% of social media accounts appearing to represent top brands were fake
30 8/13/2018
Just Keep Swimming Away From Phishing Scams O Watch out for slight misspellings or variations in account handles O Ex: @Amazon_Help (fake) vs @AmazonHelp (real) O Blue checkmark badges next to account names on Twitter, Facebook, and Instagram let you know those accounts are verified as being authentic O Best to avoid clicking any links on social media from accounts you are unfamiliar with or otherwise can’t trust O Take advantage of security software features such as real-time anti-phishing to automatically block fake sites if you accidently visit them
31 8/13/2018
Just Keep Swimming Away From Phishing Scams
32 8/13/2018
Just Keep Swimming Away From Phishing Scams O Phony promotions and contests O Will coerce victims into giving up their private information in order to redeem some type of discount or enter a contest O Red flags: O Low follower counts O Poor grammar and spelling O A form asking you to give up personal information or make a purchase
33 8/13/2018
34 8/13/2018
Case 1
O Red Flags: O Sending money to his girlfriend’s family because there were a lot of sick relatives in need O Credit card maxed out in a few short hours O Met online O never met face-to-face O No phone calls
35 8/13/2018
Romance Scam
36 8/13/2018
Romance Scam
O Common red flags to help detect a scam O Let’s leave the site O May-December O Trappings of wealth O Linguistic anomalies O Geographic challenge O Disaster strikes
37 8/13/2018
Romance Scam
O Protect yourself and others O Research the person’s photo and profile using online searches to see if the material has been used elsewhere. O Go slow and ask lots of questions. O Beware if the individual seems too perfect or quickly asks you to leave a dating service or Facebook to go “offline.” O Beware if the individual attempts to isolate you from friends and family or requests inappropriate photos or financial information that could later be used to extort you. O Beware if the individual promises to meet in person but then always comes up with an excuse why he or she can’t. If you haven’t met the person after a few months, for whatever reason, you have good reason to be suspicious. O Never send money to anyone you don’t know personally. “If you don’t know them, don’t send money,” Beining said. “You will see what their true intentions are after that.”
38 8/13/2018
Case 2
O Red Flags: O Offer of $8,000 vs. KBB $16,500 O Out of the area O Only email communication O Refuse to let buyer see it
39 8/13/2018
Vehicle Scams
O Common Car Buying Scams O Title Washing O Curbstoning O Odometer Fraud O Escrow Scams O Fake Certified Used Car O Lowball Price Scams O Open Recall Scams O Warranty Scams O Stolen Deposit O VIN Cloning
40 8/13/2018
Case 3
O The boy sounds like her grandson, but not exactly O Stuck in a foreign country O Wire the money O Don’t tell Mom and Dad
41 8/13/2018
Grandparent Scam
O A call from someone pretending to be a grandchild O The person explains they are in trouble O Caller adds enough detail to make it seem plausible O Often the caller says a third person (doctor, lawyer, police) will “explain everything to you” if you call them
O In 2017, nearly 1 in 5 people fell victim O A loss of $328 million O Those 70+ lost the most
42 8/13/2018
Case 4
O Fee of $35 O Needs bank account number or credit card number O Warning of loss of benefits
43 8/13/2018
Medicare Scam
O A call from Medicare O Medicare WILL NEVER call you O Requests current medical number O A fee associated to get new card O Bank account or credit card information requested O A threat to cancel benefits if refuse
44 8/13/2018
45 8/13/2018
The Usual Suspects
O Strangers
O Family members
O Caregivers (family and other)
46 8/13/2018
How Do Thieves Work?
O Skimming O Dumpster Diving O Computer Spyware O Account Redirection O Phishing O Pharming O Wireless Hacking O Stealing O Shoulder Surfing
47 8/13/2018
48 8/13/2018
Top Strategies to Avoid Scams
O Don’t become a victim O Investigate strangers who have deals too good to be true O Always stay in charge of your money O Don’t be fooled by appearances O Watch out for salespeople who prey on fears O Monitor your investments O Report fraud or abuse O Do your homework O Be wary of door-to-door sales
49 8/13/2018
Top 8 Ways to Protect Yourself
1. Be aware that you’re at risk from strangers and from those closest to you 2. Do not isolate yourself – stay involved! 3. Always tell solicitors: “I never buy from (or give to) anyone who calls or visits me unannounced. Send me something in writing.” 4. Shred all receipts with your credit card number 5. Sign up for the “Do Not Call” list (1-888-382-1222) and take yourself off multiple mailing lists 6. Use direct deposit for benefit checks 7. Never give your credit card, banking, Social Security, Medicare, or other personal information over the phone unless you initiated the call 8. Be skeptical of all unsolicited offers
50 8/13/2018
So you’ve been scammed…
O Don’t be afraid or embarrassed to talk about it – waiting often makes it worse O Immediately: O Call your bank and/or credit card company O Cancel any debit or credit cards linked to the stolen account O Reset your personal identification number(s) O Call police and file a report O Contact legal services and adult protective services
51 8/13/2018
Protecting Our Residents
O Look out for unusual changes in a person’s accounts, including weird withdrawals, a new person added, or sudden use of their ATM or credit card O Person suddenly appears confused, unkempt, or afraid O Utility, rent, mortgage, medical, or other essential bills are unpaid despite adequate income O Caregiver will not allow others access to the senior O Piled up sweepstakes mailings, magazine subscriptions, or “free gifts”
52 8/13/2018
Scammers Can’t Scam If The Word Is Out O Educate yourself, family, staff, and residents O Host classes O Bring in presenters O Hold meetings O Do your research O Post flyers of known scams and new scams O Pictures! O Simple, bold font – make it big and noticeable O Bright colors O Get connected
53 8/13/2018
Scammers Can’t Scam If The Word Is Out
54 8/13/2018
Additional Resources
O Department of Housing and Urban Development (HUD) — Office of Consumer and Regulatory Affairs, Interstate Land Sales/RESPA Division. (202) 708-4560; www.hud.gov/complaints/landsales.cfm.
O Federal Deposit Insurance Corporation (FDIC) — Consumer Affairs Division. (877) ASK-FDIC (925-4618); www.fdic.gov.
O Federal Trade Commission (For federal lending violations involving mortgage and consumer finance companies.) (877) FTC-HELP (382- 4357); TTY (202) 326-2502; www.ftc.gov.
O Federal Reserve Board of Governors of the Federal Reserve System — Division of Consumer Affairs. (202) 452-3693; www.federalreserve.gov/pubs/complaints.
55 8/13/2018
Contact Information
Mike Edmiston Dee Amundson, PSC
Lead Service Coordinator Service Coordinator, Hiring Specialist & Training Argonaut Apartments Specialist 1505 Grant St Drehmoor Apartments Denver, CO 80203 215 E. 19th Ave Denver, CO 80203 P: 303-832-7409 P: 303-832-0821 F: 303-861-1838 F: 303-863-9175
56 8/13/2018
References
O https://www.consumer.ftc.gov/blog/2018/03/top- frauds-2017 O https://www.scamwatch.gov.au/about- scamwatch/scam-statistics O http://www.competitionbureau.gc.ca/eic/site/cb- bc.nsf/eng/04201.html O https://www.bbc.com/news/uk-38675683 O https://www.denverda.org/ O https://www.denverpost.com/2018/06/15/denver- rental-ad-scams/
57 8/13/2018
References
O https://www.webroot.com/blog/2018/01/22/how- to-avoid-phishing-social- media/?utm_source=ipm&utm_medium=ipm&utm_c ampaign=475 O https://www.cbsnews.com/news/6-red-flags-of-a- romance-scam/ O https://www.fbi.gov/news/stories/romance-scams O https://www.dmv.org/buy-sell/used-cars/used-car- buying-scams.php
58 8/13/2018
References
O https://www.ncoa.org/ O financeintheclassroom.org O https://www.aarp.org/money/scams- fraud/info-2018/grandparent-scam- scenarios.html O http://moneytalks4teens.ucdavis.edu/newsl tr_privacy.pdf
59