Preventing Senior Fraud NEBRASKA ATTORNEY GENERAL’S OFFICE Nebraska Attorney General’s Office Consumer Protection Division 2115 State Capitol Building Lincoln, NE 68509 (402) 471-2682 ProtectTheGoodLife.Nebraska.gov 2 Dear Fellow Nebraskans, We enjoy a wonderful state with strong roots and hard-working citizens who are surrounded by plentiful resources. One of our greatest gifts is the neighbor we know next door. We wish that everyone were truly “Nebraska Nice” and treated their neighbors with the respect they deserve; however, sadly, scam artists from across the country and around the world attempt to defraud Nebraskans every day. Thisis especially true within our state’s senior population. This fact is well-documented by fraud reports. We know seniors are exploited. Seniors tell us their stories of annoyance, frustration, and pressure exerted by scammers. These expe iences take their toll. Elder fraud and abuse are more than a frustration and nuisance; they are a real threat and one that is impacting not only quality of life but the length of life as well. For the sake of our families, we must push back. Education is the best weapon we have in preparing people to protect themselves. This guide includes information on how to spot, stop, and avoid potential loss if you or someone you know is a target of fraud. Should you experience uncertainty, have feelings of fear or concern, or just wish to pose a question, please call our Consumer Specialists and let us be of service. We are here to protect and help you. In the meantime, trust your instincts. If something seems too good to be true, it probably is. Sincerely, Douglas J. Peterson Nebraska Attorney General 3 4 Table of Contents Imposter Scams..................................................................6 Identity The t.....................................................................10 Foreign Lottery..................................................................13 Charity Fraud....................................................................15 Home Repair Scams..........................................................18 Investment Fraud...............................................................21 Bogus Business & Job Opportunities.................................23 Reduce Junk Mail & Unwanted Telemarketing Calls........26 Top Consumer Tips...........................................................31 Important Phone Numbers................................................33 Important Websites & Email Addresses............................34 5 Imposter Scams 6 Scammers may create fake personas to get you to believe that their story is legitimate. Some pose as friends or relatives stranded in foreign countries If you suspect a without money; others claim to scam, hang up. be working for or affiliated with government agency. Look for the warning signs that may indicate a scam: • You receive a call or email alleging you’ve won a prize or that something is terribly wrong - taxes are unpaid, your government benefits wi l be lost, a family member is in trouble, or your computer has been compromised. • The aller asks you to send them money immediately - preferably by wire transfer or gift card. Credit cards or checks are discouraged. • The aller may ask for access to your computer or other confidential in ormation such as your Social Security number, date of birth, bank account, or credit card numbers. • The aller is insistent and offers to call you back or stays on the line while you do what they are asking you to do. 7 Types of Imposter Scams: Government Imposter Scams: You get a call or an officia Romance Scam: This ype of looking scam often entails an entire letter. The online persona carefully crafted, imposter frequently using pictures stolen claims to from social media sites to be the be from, or ideal person. These elationships affiliate can go on for quite some time with, a before the signs start appearing, government but they invariably lead to requests agency for money. such as the IRS, the Social Security Grandparent/Family Emergency Administration, or Medicare. Scam: A grandparent receives Th y threaten to arrest you, take a phone call (or sometimes an away your benefits or take you e-mail) from a “grandchild.” to court if you don’t pay the debt Usually, the person claims to be you supposedly owe. Th y may traveling, in trouble, and needs also trick you into providing money wired. confidential in ormation. Fake Debt Collector: These Computer Technical Support: scammers pretend to be a debt You receive a call from someone collection agency collecting on claiming to be a computer tech a loan you took out years ago. associated with a well-known Sometimes they create a ficti nal company like Microsoft. Th y say loan; sometimes, they use a real they’ve detected viruses or other loan that was either paid off or malware on your computer and discharged. Either way, they will trick you into giving them remote be aggressive and persistent. access or paying for software or a “fix” you don’t need. 8 What you should do if you for which you have to pay an suspect a scam: administration, registration, or shipping fee to get a prize or • Resist all pressure to make a gift. decision immediately. • Hang up. The l nger a scam artist is allowed to talk, the more likely it is you will be persuaded. • Unless you initiate the phone call or have a prior relationship with the caller, NEVER give personal information Don’t respond to over the phone, even • Don’t send cash by messenger, calls requesting if the caller overnight mail, wire transfer, your personal asks you to gift card, or prepaid card. information. “confi m” If you use cash or a money this transfer — rather than a credit information. card — you may lose your right It’s a trick. to dispute fraudulent charges. The m ney will be gone. • Get all information in writing before you agree to buy. • Don’t pay for something just because you’ll get a “free gift.” Don’t agree to any offer 9 Identity Theft Cases involving government Identity theft often documents and benefits — tops the list of including Medicare, Medicaid, unemployment insurance, and consumer complaints fraudulent tax returns — are reported nationally. rising fastest, followed by new account origination (bank accounts and credit cards), and utility bills, including those for cable TV and cell phones. 10 Look for the warning signs of • Mail The t. Identity thieves are identity theft: prone to stealing mail, looking specifi ally for pre-approved • You are denied credit. credit card and insurance offers. • You get a notice from the IRS • Family, Friend, or In-home about a tax debt that you do not Employee. More than half believe is yours. the time, the thief is a family member, friend, neighbor, in- • You find harges on your credit home employee, or someone at card or withdrawals from a business you frequent. your account that you don’t remember making. • Skimming Devices. Skimming is when the information on a • Personal information, credit credit card is copied then loaded cards, ATM cards, checks, or onto a fake card to be used IDs have been stolen from you. fraudulently. It most frequently occurs in restaurants and at the • You suspect someone has gas pump. fraudulently changed your mailing address. How they hook you: Never give • Phishing. Phishing is a form personal of misrepresentation designed information to trick you into revealing your over the phone. confidential information. It comes in a variety of forms, often appearing as messages from businesses you trust. 11 What you should do to prevent spyware, and fi ewall software identity theft: to guard against hackers that steal personal information. • Don’t carry your Social Security or Medicare card in your wallet. • Check your credit regularly. Request a free credit report at • Be wary of requests by phone www.annualcreditreport.com for your personal information. on a regular basis. You can Don’t respond to incoming request one free credit report phone calls from strangers per year from each of the three requesting your personal major credit reporting agencies, information. Be especially thereby allowing you to check wary of calls from alleged your credit three times per year government agencies. for free. • Secure your information. Keep • Consider placing a freeze on all of your sensitive personal your credit reports. This free documents, including financial tool lets you restrict access to documents, in a safe, secure, your credit report which makes locked place. it more difficult or identity thieves to open new accounts in • Shred it. Shred personal and your name. financial ecords with a micro- cut shredder before throwing them away. • Protect your computer. Consult with a computer professional to make sure your computer system is secure. Install antivirus software, anti- 12 Foreign Lottery Lottery scammers may pressure Be careful! Most you to send money immediately promotions for via wire transfer or prepaid card. Th y may even use your foreign lotteries are bank account numbers to make likely to be phony. unauthorized withdrawals or credit card numbers to run up additional charges. 13 Look for the warning signs that may indicate a scam: • Phantom Riches: News of an offer sounding too good to be true, but one with strings attached. • Urgency: You are pressured to make an immediate decision, Security number, date of birth, take immediate action. bank account information, etc. • Payment via Money Transfer: What you can do to protect yourself: Upfront payment by money transfer, gift card, prepaid • Ignore all mail and phone card, or other payment solicitations for foreign lottery method is required prior to promotions. You cannot win a receiving your “free prize.” contest you did not enter. • Screen your calls using Caller If you respond to ID and through your a foreign lottery answering machine or letter or call, you voicemail. may be placed on a “sucker list.” • Don’t give out your credit card and bank account numbers and never wire money to someone • Probes for Personal you haven’t met. Identifying Information: You are asked to reveal personal • Just hang up the phone.