Common Scams in Jefferson City and Central MO

Clever thieves take advantage of pandemic environment

Thieves are getting creative with different ways to gain access to your checking account and personal information during the COVID-19 pandemic. Here are some of the reported schemes:

Mandatory online COVID-19 Test

Individuals posing as workers from the U.S. Department of Health and Human Services or other federal departments use text messages to instruct you to click on a link to complete a mandatory online COVID-19 test. However, there is currently no way of conducting a COVID-19 test online.

You’ve been in contact with COVID-19

This scam sends an e-mail to warn you that you came into contact with a colleague/friend/family member who has COVID-19. The e-mail instructs you to download and print an Excel spreadsheet and bring it to the nearest COVID-19 testing site. After opening the spreadsheet, you are told they need to enable the content in order to view the spreadsheet’s details. Malicious macros are then activated when you click on the Enable Content button, infecting your computer.

SBA loan applications

Fraudulent e-mails were sent out as correspondence from the U.S. Small Business Administration telling you that you could apply for a small business disaster assistance grant. You are instructed to sign an attached document and upload it to the SBA’s website. When the attachment is downloaded, a remote access trojan was installed on your computer or other electronic device.

COVID-19 malware

Online fraud and schemes wouldn’t be complete without coronavirus-themed malware. There are multiple variants of a master boot record (MBR) locker, including one called coronavirus.bat. The malware replaces the MBR of a computer, preventing the operating system from starting and instead displays a ransom note or other message.

Fake pop-up testing sites

Hands down the most brazen attempt to steal personal information are pop-up COVID-19 testing sites. The thieves tell passersby that they can be tested for COVID-19 for a $240 fee. They then pocket the cash and use the personal information gathered from individuals to make fraudulent Medicare and Medicaid claims.

At any given time, millions of items are being bought and sold via Internet auction sites. Furniture, clothing, sailboats, golf clubs, even a night on the town with your favorite sports star - all are available to the highest bidder. The companies that facilitate these trades are rich indeed. At last count, eBay had a market value of over $38 billion and craigslist generates well over $100 million in annual revenues.

Of course, most buyers who use online auction sites just want a good deal, and most sellers aren't trying to rip off anyone. But it pays to be vigilant. Protect yourself from online auction fraud by following these four guidelines:

Read the description carefully. Sometimes sellers misrepresent goods by overstating their value, authenticity, or condition. If the "solid oak nightstand" has "real polished oak veneer," you might want to look elsewhere. If an authentic Selmer Mark VI tenor saxophone (in pristine condition and played by John Coltrane himself) is being offered for a few hundred dollars, something's amiss.

Check the quotes. Fraudsters sometimes use a valid source, but misrepresent its applicability to the item being sold. They might say that the quoted price on a silver goblet is $1,000, but don't mention that their source is a guide published at the height of the silver market. To determine the market value of an item, review recent closing prices of similar items sold on the same auction site or in your local brick-and-mortar store.

Pay with a credit card. If a seller requests cash, be suspicious. Using a credit card to buy goods over the Internet provides protection from fraud. Such transactions are traceable and contestable. Other secure options include using an escrow agent for large dollar items or paying cash-on-delivery (COD).

Plan your meeting with a seller. If using a local selling function, pick up the item with a friend and tell others where you are going. If it is a valuable item, ask for a receipt or bill of sale.

Above all, know how the auction site works - its rules, policies, protections, and disclaimers - before placing your bid.

Con artists have honed their skills in an effort to turn your cruise ship vacation into a nightmare. Before you even step foot on a ship, a smooth talking scammer may entice you into accepting a "limited time offer" for a "free" cruise. If you respond to the solicitation, you may find that the "free" cruise includes payment of expensive port fees, registration charges and other bogus costs.

Even if you book a trip with a well-known cruise line, remember that you're entering a mini-metropolis with all the pleasures and hazards inherent in such a location. Thefts and other fraudulent activities may occur during the cruise itself, and shore excursions provide a golden opportunity for pickpockets and thieves.

If you're considering a cruise, follow a few simple guidelines to avoid scams:

Ask questions before you buy. Get details about fees, fares, cancellation charges and itineraries. If you're offered a discount, get it in writing. Never succumb to high-pressure sales tactics and never provide confidential information to anyone you don't fully trust.

Research the destination. Check online for current conditions at the ports you'll be visiting, including the experiences of other travelers. Other cruise passengers may be able to provide insight into wonderful places to visit and areas to avoid.

Lock up your valuables. While onboard, keep your valuables (including currency, passports, driver's licenses, and expensive jewelry) in the cabin safe. Make copies of documents. Leave one set at home and keep the other set with you, separate from the originals.

Stay in groups. While on shore, you're less likely to become a victim if you stick with others and keep to the busy paths.

Although the administrators and staff of most assisted living facilities work hard to carry out their duties with integrity, some steal from the residents. If one of your family members or friends lives in a nursing home or other assisted living facility, watch for these warning signs of theft:

Questionable financial management. It's often a good idea for a a trusted and unbiased family member or loved one to become an older adult's power-of-attorney. However, if the nursing home handles the resident's finances, there are a few indicators that something may be amiss:

Unpaid bills despite adequate financial resources

Unauthorized ATM withdrawals

Sudden changes in account balances

In some facilities, bookkeepers, office managers and other nursing home staff have been caught diverting Social Security checks, forging signatures, and using written-to-cash checks to cover personal expenses.

Gifts for caretakers. If your family member living at the facility wants to show appreciation by purchasing a necklace, gift card, or some other item for facility staff, don't panic. But if such gifts seem to be given with increasing frequency and/or monetary value, you may want to learn more about the situation. Unfortunately, unscrupulous caretakers have been known to manipulate residents into giving them expensive gifts, often without the knowledge of family members.

Missing valuables. Does your loved one have jewelry, artwork, electronics or other valuable assets with them at the facility? If yes, take photographs and keep a written log of the items. If they go missing, you'll have evidence of loss for an insurance claim. In some cases, you may want to demand an investigation.

What to ask to help protect from theft

If you're considering a particular nursing home or assisted living facility for a loved one, ask these questions:

Does the facility conduct criminal background checks on all employees (not just doctors and other health care professionals)?

If an employee has been caught stealing in the past, how did the facility handle it?

Does the facility have written fraud policies and procedures?

Are those policies rigorously enforced?

Once you've signed the paperwork and your loved one has moved into a facility, make frequent unplanned visits. Keep your eyes and ears open. Besides providing companionship to your loved one, you might also discover early warning signs of theft or fraud.

When a pet disappears, owners can become distraught, calling animal shelters, advertising in local papers, posting photos on every telephone pole and fence post all in the hope of hearing news of their lost animal. At such times, pet owners are also more vulnerable to fraud. Consider the following scenarios:

The truck passerby: You get a call from a truck driver who says they're calling from another state. Seeing your flyers, they recognized the cat (or dog) as yours. A few days ago, when delivering goods in your area, the animal somehow stowed away on the truck.

Before becoming aware of the animal, the truck driver says they'd driven through two states. Unfortunately, the pet also had some (unspecified) health problems, so they paid a visit to a veterinarian. If you want your pet returned, you're told, several hundred dollars must be transferred to the truck driver's account to cover the vet costs.

Only one problem is that the truck driver doesn't have your pet, and never did. They found the description of your animal, and are using that information to exploit you.

The tag team: Again, someone responds to your lost pet ad. The caller sympathizes with you, then pumps you for descriptive details about your lost pet. In this scenario, the caller reluctantly informs you that they don't have the pet you're describing. After hanging up, the caller shares unadvertised details about the pet (details that you provided) with their partner. The partner then contacts you and provides such a convincing description that you're persuaded. By the way, they say, please transfer the reward money to my account.

How can you protect yourself against such scams?

Provide only partial information in advertisements and flyers. Then, when someone responds to an ad, ask open-ended questions such as, "Please describe the cat to me," instead of yes/no questions such as, "Does Fluffy have two gray spots on his back?"

Beware of callers who appear to be fishing for information.

Be suspicious of callers from other states or countries.

If you're offering a reward, don't let money change hands until the lost pet is in your possession.

According to the Associated General Contractors of America, theft losses among its members have reached almost a billion dollars annually.

Try the following to stem losses on your sites:

Install secure fencing around the entire work area. Consider adding a chain link fence in the more sensitive areas. If authorities allow, add barbed wire to the top to discourage people from climbing.

Put employee parking outside the job site. This will reduce the theft of tools and equipment that fit into the trunk of a car.

Make sure the site is well-lit. Bright lighting deters theft and vandalism and allows neighbors and police to observe any unusual activity on the premises.

Install alarm systems. An alarm that detects motion and activates additional lighting may be all that's required.

Mark equipment with ID numbers. Mark equipment in two places, one that's apparent and one that's hidden. Record the numbers on an inventory control list.

Require signatures for all deliveries. One person should be in charge of the log for all arrivals to the job site. Critical or expensive materials should not be stored any longer than necessary.

Inform authorities before starting a project. Give police and fire departments details of your project, including the estimated completion date and work hours. Provide a list of key personnel and their phone numbers for emergencies.

Nonprofits: internal controls

Each year, employees steal about $40 billion from American businesses. Unfortunately, nonprofit organizations are among these businesses. To avoid internal theft, put these basic control and accounting procedures into effect.

1. Financial monitoring system. Prepare a detailed annual budget to establish expense guidelines. Record and allocate expenses to general ledger accounts in the same manner in which they were budgeted.

2. Segregation of duties. Different people should be given responsibility for authorizing and recording transactions and for maintaining custody of assets. This reduces any one person's opportunity to both perpetrate and conceal errors or irregularities.

3. Conflict of interest policies and ethics statements. Many nonprofits have a conflict of interest policy or ethics statement in place. These policies call for employees and officers to disclose any interests they have in companies doing business with the organization. Any contracts entered into with the related parties should be reviewed and approved by board members and officers not involved in the transactions.

4. Controls over cash receipts. Consider using a bank lock box service to process receipts. In addition, assign someone unrelated to the accounting process to open the mail, restrictively endorse all incoming checks, and prepare a list of the checks received. This list should be compared to deposits made.

When a nonprofit receives numerous cash receipts (such as registration fees at an event or Sunday collections at a church), two or more people should handle and count the cash receipts and certify the total together.

5. Bank statement review and reconciliation. Reviewing and reconciling bank statements will reveal any unusual cash disbursements or evidence of check fraud. Unopened bank statements and correspondence should be sent to someone outside the accounting function to allow an extra set of eyes to review these critical documents.

Establishing adequate internal control procedures is the best deterrent to internal fraud and embezzlement. Please contact us if you would like assistance establishing or reviewing your procedures.

As we age, we tend to become more vulnerable to fraud. According to the National Consumers League, nearly a third of all telemarketing fraud victims are age 60 or older. That type of fraud represents billions of dollars per year. One study found that senior citizens, who make up 12% of the U.S. population, comprise 35% of fraud victims. Why are the elderly more susceptible to con artists?

Seniors often enjoy a steady income. Social Security benefits, pensions, 401(k) plans, veteran's benefits, annuities - all are sources of income that scammers hope to divert to their personal bank accounts. When a senior gives out personal information over the phone, a con artist is one step closer to his or her goal.

Retirees may have sizable investments. That big nest egg places a target on the back of many elderly folks. Unfortunately, a lifetime of careful money management may be wiped out by the ploy of a fraudulent investment "advisor." If an older person's home is paid off, his or her residence often represents an inviting target for reverse mortgage scams and property tax ploys. Fraudsters have been known to convince elderly homeowners to relinquish title to their homes and, unfortunately, adult relatives of seniors are often the perpetrators of this type of abuse.

The elderly tend to be polite. Having been raised in a more civil generation, seniors may find it difficult to just hang up. They may balk at the idea that some telemarketers are, in fact, hardened criminals who ought to be serving time in jail.

They're not as familiar with the Internet. Pop-up advertisements selling everything from magazine subscriptions to virus protection can be a front for gathering a senior's personal information. Elderly people who haven't been warned of the Internet's dangers may be susceptible to identity theft.

Some elderly people have specialized needs. Health insurance and medical fraud, while not exclusive to seniors, are often perpetrated on that segment of the population. Fake anti-aging products, inflated funeral and cemetery expenses, bogus pharmaceuticals, unlicensed caretaking services - all have been sold to trusting senior citizens.

If you have elderly parents or grandparents, be sure to educate them about fraud. For additional information, check out the FBI's website, publications by the National Consumers League, and our articles on fraud prevention.

With millions of Americans working remotely for the first time this year, the Federal Trade Commission is warning people about work-from-home scams.

Here are some common work-from-home offers to be careful of according to the FTC:

At-Home Medical Billing Businesses. Many medical billing business opportunities are worthless. Their promoters don’t tell the truth about earnings potential and fail to provide key information.

Envelope-Stuffing Schemes. Offers that promise quick and easy income from stuffing envelopes at home virtually never pay off.

Telemarketing Resale Scams. Selling brand-name merchandise from home can be a great way to work-at-home making some extra money. But fraudsters sometimes call to lure you into a resale proposition. They’re the ones who make the money – and they make it from you.

Work-at-Home Businesses. Many work-at-home opportunities are promoted by scam artists. If you pay in, it’s likely that you will spend more than you can earn.

How to Protect Yourself

Do your research. Talk to other people and read reviews about the work-from-home opportunity you are considering. Also consider checking out a company with your local consumer protection agency, your state’s Attorney General or the Better Business Bureau.

Request the FTC’s one-page disclosure document. Sellers of work-from-home opportunities are required by the FTC to give you a one-page disclosure document that offers key pieces of information about the opportunity. Click here to see what the document looks like.

Ask follow-up questions. In addition to reviewing the disclosure document, ask the sellers follow-up questions such as the following: What tasks will you have to perform? Will you be paid a salary or be on commission? What is the basis for the company’s claims about what you can earn? When will you get your first paycheck?

Reporting a Scam

If you have spent time and money on a work-at-home program and now believe it may not be legitimate, contact the company and ask for a refund. If you can’t resolve any disputes with the company, file a complaint with the FTC at ftc.gov/complaint or call 877-FTC-HELP.

Also file a complaint with your state’s Attorney General’s office or the state where the company is located.

Small Business Administration Grapples With Fraudulent Loan Applications

Financial institutions are raising red flags about suspected fraud surrounding the Small Business Administration’s COVID-19 Economic Injury Disaster Loan (EIDL) program, according to the SBA’s Office of Inspector General.

Nearly 440 financial institutions ranging from small, local credit unions to major national institutions are alerting the SBA about suspected fraudulent EIDL loan applications. The IG's office identified $250 million in EIDL loans and advance grants given to potentially ineligible businesses and found $45.6 million in potentially duplicate payments.

Examples of suspicious activity reported by financial institutions include:

Accounts established using stolen identities

Account holders unable to explain origins of deposits or identify business names on loans

Account holders attempting to transfer funds into investment or foreign accounts

Loan deposits being made into accounts with no other account activity that were established remotely just before receiving the loan funds

Account holders attempting to withdraw loan funds in cash or transfer the funds to other newly established accounts

In some situations, financial institutions have frozen funds and are trying to contact the appropriate department in the SBA to provide information about the borrower and resolve the frozen funds.

How to protect your business

Apply for SBA loans through your lender. All SBA loan applications must go through a preferred lender. The SBA WILL NOT initiate contact asking you to apply for an EIDL loan or any other SBA loan.

Look out for phishing attacks using the SBA logo. These may be attempts to obtain your business’s personally identifiable information.

The presence of an SBA logo on a webpage does not guarantee the information is accurate or endorsed by the SBA. You should cross-reference any information you receive with your lender, or visit www.sba.gov to verify information.

Report any suspected fraud to the Inspector General’s office at 800-767-0385 or online by clicking here.

If you need to apply for Medicaid, here’s how you can protect your information from falling into the wrong hands, as fraudsters continue looking for ways to exploit the COVID-19 pandemic.

Protect your Medicaid number. Treat your Medicaid card and number like you would your Social Security card and number. Only give out your number to health care professionals who need it. And be aware when others ask you for your Medicaid number or offer free services in exchange for your Medicaid number.

Protect all your medical information. Proceed with caution if someone other than your doctors or health care providers asks for any information regarding your medical history.

Learn about Medicaid’s coverage rules. Scammers may try to get you to agree to a service that isn’t normally covered by Medicaid. Educate yourself on what services are typically covered so you can be alert if someone asks to perform a non-covered procedure.

Always be skeptical. It’s ok to ask questions about any procedure that does not sound medically necessary. You can always go get a second opinion.

Forty years ago car owners could often grab a wrench, peek under an automobile's hood, and fix minor problems. For most of us, those days are gone. Nowadays, computers operate many of our cars' systems. Skilled technicians with sophisticated diagnostic gear are needed to check an auto's vital signs. When mechanics have finished probing and prodding and repairing, they may hand you a hefty bill for their work.

Although most auto repair shops employ honest and skilled technicians, some shops take advantage of unsuspecting car owners. Less-than-ethical mechanics may jack up prices, provide services that aren't necessary, pad invoices with bogus fees, or install poor-quality parts.

Following are two of the most common auto repair scams and how to avoid them:

Bait and switch. A shop may advertise cheap oil changes or other routine maintenance services to get your car into the repair bay. Once there, myriad problems may begin to surface. Before you know it, a simple oil change has morphed into an expensive transmission repair. Reputable mechanics will inform you of items requiring attention, but shysters may pad a work order with unnecessary repairs or replacements. Protect yourself by getting written estimates that specify repairs to be performed and fees for parts, labor, storage, and loaner cars. Refuse to pay for work that hasn't been authorized in advance. Mechanics should allow you to inspect damaged parts and should never hold your car as collateral. In some cases, a second or third opinion may be warranted, even if it means paying reasonable diagnostic or reassembly fees.

Charges for used or damaged parts. Dishonest repair shops have been known to replace a vehicle's tires with retreads, install another car's castaways, even purposely damage existing car parts and charge for expensive repairs. Avoid such scams by inspecting tires before and after the work is completed. Examine all parts to ensure that used parts haven't been substituted for new. And watch for evidence of fresh damage. You may authorize a mechanic to use reconditioned parts, but charges should be commensurate with the items installed.

If you're unsure about a particular repair shop, check with trusted friends or scan for complaints on the Better Business Bureau's website. Pull out your owner's manual and follow its advice. Track repair expenses and shop around until you're satisfied that you'll be getting your money's worth.

Employment scams are not new, but they've become increasingly sophisticated as scammers design websites that effectively mimic the sites of legitimate companies. How can you keep from being ripped off by bogus job agencies?

Do you research. Gather information about the job placement companies you're interested in. Also ask around. Chances are you know someone else in your industry that has worked with a job agency and can offer opinions based on personal experience working with the agency.

Beware bogus job e-mails. When contacted by a job placement service, watch for misspellings, grammatical mistakes, or a personal e-mail address. They're red flags for fraud. Some descriptive words that may be tip-offs to fraud are "package forwarding" or "foreign agent agreement." When used in e-mails, such words may indicate that a scammer is trying to entice you into a money laundering scheme.

Job placement or job counseling? Some legitimate companies charge a fee to help you identify and hone your skills, prepare a professional resume, and practice interview techniques. But they don't guarantee job placement. You're paying for a service. It's your responsibility to send out that resume and ace that interview. If you're looking for someone that can place you in a job, make sure you're working with a job agency.

Get the details. Read the job listing and contract and ask specific questions. What happens if the job lead doesn't pan out? If you get vague or confusing answers, back away.

Refuse upfront payments. If a company representative says he's got a job ready for you, but you need to pay a fee for certification, training materials or placement expenses, hold on to your money. The promise of a job isn't a job. If possible, contact the potential employer directly to find out if the company is actually hiring.

If you think you've been a scam victim, close all bank accounts that may have been involved in the fraud and keep a close watch on your credit reports for unusual activity.

A wide variety of businesses routinely advertise free Wi-Fi access. While it may seem easy and convenient to use, free Wi-Fi comes with major risks.

Why? Because it's possible that instead of connecting to a legitimate hot spot, you may actually be connecting to a peer-to-peer or computer-to-computer network set up by a hacker who is nearby using a laptop. A hacker can enable their PC to allow you to browse the Internet through their connection. Since you're using the hacker's Internet connection, all your online activity is routed through their computer, enabling them to track your activity, including stealing your usernames and passwords.

Smartphones also pose security risks, especially when used with free Wi-Fi networks in densely-populated public places. Seemingly innocuous conversations, when shared over insecure networks, may allow clever hackers to steal your identity.

Protect yourself from Wi-Fi fraud

You can take steps against Wi-Fi fraud by taking the following precautions:

Avoid connecting to a network identified as computer-to-computer.

Don't access banking, credit card or other accounts that contain sensitive financial or personal information.

Don't share credit card or banking information over unsecured e-mail, even if a hotel or merchant asks for it.

Encrypt files before transferring or e-mailing them.

Install anti-virus software on all mobile devices.

Use virtual private networks or VPNs (provided by your employer or a private company) that encrypt all information transfers.

Routinely update your operating system and make sure you have the most recent security downloads.

Turn on your smartphone's encryption settings, if available.

Automated teller machines, or ATMs, provide ample opportunities for criminals, often at less risk than an old-fashioned bank robbery or a stick-'em-up scenario.

Crooks employ various methods to commit ATM fraud. One method is the brute-force scenario: The criminal attaches a chain to the machine, drags it down the street behind a truck, finds an out-of-the-way spot, and opens the safe with explosives. But this type of scheme carries significant risks. Police might be slightly suspicious of a truck pulling an ATM machine down Main Street! Also, banks are doing a better job of securing their machines and may even install ink dye systems to render stolen currency useless.

A more common scenario is the use of devices called skimmers. These are legitimate-looking devices that fit over existing ATM hardware. They're used to capture account numbers and verification codes from the magnetic strips on bank cards.

Card "trapping" has also proved lucrative. In this scenario, a device is placed directly over the ATM's card reader slot. The device retains the card after a customer inserts it, then a "helpful" Samaritan shows up and suggests that the customer enter his or her personal identification number (PIN) to get the card back. The thief observes entry of the PIN number, and later retrieves the card and withdraws cash from the ATM machine.

How can you protect yourself from ATM fraud?

Use ATMs that are located in highly visible, well-traveled areas.

Scrutinize the ATM machine before using it. Note any visual clues of tampering.

Use your hand or body to shield entry of your PIN.

Regularly review your bank statements for unusual charges, and follow up immediately if something looks wrong.

A wide variety of businesses routinely advertise free Wi-Fi access. While it may seem easy and convenient to use, free Wi-Fi comes with major risks.

Why? Because it's possible that instead of connecting to a legitimate hot spot, you may actually be connecting to a peer-to-peer or computer-to-computer network set up by a hacker who is nearby using a laptop. A hacker can enable their PC to allow you to browse the Internet through their connection. Since you're using the hacker's Internet connection, all your online activity is routed through their computer, enabling them to track your activity, including stealing your usernames and passwords.

Smartphones also pose security risks, especially when used with free Wi-Fi networks in densely-populated public places. Seemingly innocuous conversations, when shared over insecure networks, may allow clever hackers to steal your identity.

Protect yourself from Wi-Fi fraud

You can take steps against Wi-Fi fraud by taking the following precautions:

Avoid connecting to a network identified as computer-to-computer.

Don't access banking, credit card or other accounts that contain sensitive financial or personal information.

Don't share credit card or banking information over unsecured e-mail, even if a hotel or merchant asks for it.

Encrypt files before transferring or e-mailing them.

Install anti-virus software on all mobile devices.

Use virtual private networks or VPNs (provided by your employer or a private company) that encrypt all information transfers.

Routinely update your operating system and make sure you have the most recent security downloads.

Turn on your smartphone's encryption settings, if available.

Remember, when using your phone or laptop in a public place, take note of the people around you. Enhancing security on your mobile device may be as simple as walking to a more isolated location. Sophisticated software won't protect you from someone who's looking over your shoulder and watching as you type.

Automated teller machines, or ATMs, provide ample opportunities for criminals, often at less risk than an old-fashioned bank robbery or a stick-'em-up scenario.

Crooks employ various methods to commit ATM fraud. One method is the brute-force scenario: The criminal attaches a chain to the machine, drags it down the street behind a truck, finds an out-of-the-way spot, and opens the safe with explosives. But this type of scheme carries significant risks. Police might be slightly suspicious of a truck pulling an ATM machine down Main Street! Also, banks are doing a better job of securing their machines and may even install ink dye systems to render stolen currency useless.

A more common scenario is the use of devices called skimmers. These are legitimate-looking devices that fit over existing ATM hardware. They're used to capture account numbers and verification codes from the magnetic strips on bank cards.

Card "trapping" has also proved lucrative. In this scenario, a device is placed directly over the ATM's card reader slot. The device retains the card after a customer inserts it, then a "helpful" Samaritan shows up and suggests that the customer enter his or her personal identification number (PIN) to get the card back. The thief observes entry of the PIN number, and later retrieves the card and withdraws cash from the ATM machine.

How can you protect yourself from ATM fraud?

Use ATMs that are located in highly visible, well-traveled areas.

Scrutinize the ATM machine before using it. Note any visual clues of tampering.

Use your hand or body to shield entry of your PIN.

Regularly review your bank statements for unusual charges, and follow up immediately if something looks wrong.

Vacation time is fast approaching, and con artists are gearing up. Beware of these four indicators that a travel “deal” is actually a rip-off:

You can be a travel agent. A fraudster promises free trips and discounted hotel rates if you become a travel agent. They may even send course materials (for a fee, of course). Don’t fall for it. That “certification” won’t convince airlines and hotels to grant you special treatment.

How to avoid: If you want facts about becoming a travel agent, contact professional organizations such as the International Association of Travel Agents. It’s a career path, not a ticket to freebies.

Advance payment required — without a contract. A friendly telemarketer cons you into paying for a vacation over the phone with your credit card. Without a signed contract you don’t know what you’re actually buying. Don’t plan to win in court.

How to avoid: Never surrender your credit card or banking numbers over the phone. Demand details in writing. Always.

“Limited Time Offer.” Some legitimate airline and hotel offers are time-sensitive. But beware of sales representatives requiring immediate payment, especially for departure dates 60 days or more in the future. It’s a red flag. Many banks set a 60-day time limit for disputing credit card charges.

How to avoid: Contact airlines and hotels directly to find last-minute deals. Hang up on high-pressure sellers.

Bait and switch. A scam artist touts a great deal at the luxury beach hotel. But guess what? The rundown hotel is located 10 miles from the beach. If you want an upgrade, you’ll be charged a fee.

How to avoid: Book with hotels directly. Determine where they’re located before you travel. Check online reviews for complaints.

Facebook, Twitter, Snapchat and other social media sites provide innovative ways to connect with friends, share recipes and even find your soulmate. Such sites are also a treasure trove for cybercriminals. Day in and day out crooks scan social media accounts to glean personal information. Their goal? Steal your identity and/or pilfer your bank accounts. Watch for these common scams:

Twitter traps. You can use Twitter to make money from home by paying a small sign-up fee for a “Twitter Cash Starter Kit.” To purchase the kit, you need to provide a credit card number. Sound familiar? In another scam, you’re contacted by a “bot” (software that mimics a human being) pretending to give you access to a “pay-for- follower” service. If you take the bait, your bank or credit card information may be compromised. You could be accused of distributing spam and may be banished from the networking platform.

Facebook cons. With more than two billion active monthly users, Facebook is a prime target for rip-off artists. One type of scam is called “catfishing.” The crook trolls the user base to find a victim, then begins establishing trust and building a relationship. Once an online “friendship” is in place, the crook agrees to meet the victim offline. Unfortunately, the “friend” needs travel funds or help with some other financial crisis. That’s when they ask you to provide the requisite funds, preferably via wire transfer.

Snapchat hoaxes. You receive a message that your “memories” (photos) will be deleted unless you copy a message and share it with friends. The goal, of course, is to gain access to your online contacts and exploit them.

The above social media scams may sound alarming, but there are ways you can protect yourself and your personal data. Consider the following:

Set privacy controls.

Choose strong passwords.

Use caution when sharing personal information online.

Never send money or give credit card information to someone you don’t know.

Right before dinner you receive a phone call. According to the caller ID, it seems legitimate. So you pick up. You’re immediately assaulted by a fast-talking sales representative who claims your car warranty is about to expire. He’s offering a low-cost extended warranty and service contract. The guy even knows your name. You need to decide right now. Otherwise, the offer will expire.

Is the call legitimate?

Probably not. Thousands of consumers have been bilked by telemarketers claiming to represent auto manufacturers, dealers or state motor vehicle departments. Several years ago, the Federal Trade Commission (FTC) filed a complaint in a Florida district court on behalf of consumers bombarded with illegal robocalls and tricked into paying thousands of dollars for bogus “extended auto warranties.” In the end, the FTC refunded over $4.2 million to nearly 6,000 people.

If you receive a phone call, email or postcard urging you to extend your car warranty or buy a service contract, take these steps:

Contact the manufacturer. Call and find out what’s covered with a legitimate factory warranty, as credible, trained mechanics will attend to needed repairs. Don’t expect such assurance from third-party warranty providers.

Check out the company. Start with the Better Business Bureau, then dig a little deeper. If people have been scammed by this particular business, they won’t keep quiet. Don’t fret over a few bad reviews, but if the internet’s brimming with grievances, be wary.

Get the details. Never send money or provide personal information without taking time to review the terms and conditions of any service contract or warranty. If the caller won’t send a copy, hang up.

Consider other options. Make a plan. Buy a reliable car and maintain it according to the manufacturer’s instructions. Set aside money each month to cover repairs and maintenance so you’ll have cash to service your vehicle — without a contract.

Paying for a funeral is often an expensive proposition, with costs ranging from a few thousand dollars to more than $10,000. That’s why some families opt for a funeral- planning fund. That way, surviving family members struggling with raw emotions after the death of a loved one will have funds needed for the cost of caskets, burial sites and funeral services.

Unfortunately, prepaid funeral scammers know that funeral planning can often be emotionally charged, making it easier to prey on vulnerable families trying to plan ahead.

One of the most despicable prepaid funeral scams prosecuted in recent years involved a Missouri-based company called National Prearranged Services, Inc. (NPS). The Department of Justice found that NPS sold approximately 100,000 prepaid funeral contracts, defrauding thousands of customers in more than 16 states. Losses exceeded $450 million.

So how can you protect yourself and those you love against prepaid funeral fraud?

Insist on references. Before entering into any significant contract, get to know the party on the other side of the table. Verify pertinent representations. Check for complaints. Contact the Better Business Bureau.

Ask questions. If you retire to another state, make sure your prepaid plan be honored. Check to see if you can get regular statements from the bank or insurance company holding the funds and a breakdown of what are you actually paying for.

Consider your options. In lieu of a prepaid funeral plan, you might establish a payable-on-death account at your bank, naming survivors as beneficiaries. Strange as it may sound, comparison shopping among funeral providers also makes sense.

For further information, check out the Funeral Consumer’s Alliance, a non-profit consumer advocacy group.

It's time to move! As you scan apartment listings on Craigslist, you spy a great deal. The rental unit comes with amenities galore and lease payments well below market rates. You’re in a time crunch, so you make an appointment to tour the apartment.

Unbeknownst to you, the “landlord” (AKA the guy who’s leading you on a tour of the property) doesn’t own it. In fact, he’s a crook trolling for victims who will sign a bogus lease, hand over a deposit and first month’s rent, and ask no questions. Once the money exchanges hands, the fraudster's never to be seen again.

Rental scams are real

A recent Apartment List survey found that more than 40 percent of all renters have encountered a suspicious listing in their hunt for new housing. About 5 million people have reported financial losses from rental scams. And nearly one in 10 renters under 30 has lost money in this type of swindle, meaning younger adults may be more likely to experience rental fraud.

So how can you avoid rental scams?

Don’t send payments by wire transfer. If the landlord or broker demands that you transfer money electronically, don't do it. This is a common tactic in fraudulent schemes.

Visit the property first. Meet the landlord or broker in person. If that’s not feasible, ask a family member or friend to visit the property on your behalf.

Confirm the identity of the landlord or agent. Verify that the rental isn’t listed under another broker’s name. Ask for documentation. Talk to current tenants and check public records to substantiate details.

Don’t bow to pressure. If the “landlord” seems overeager or indifferent to normal safeguards (such as background checks), beware.

If you're a victim of a rental scam, contact local law enforcement and consider filing a complaint with the Federal Trade Commission on ftccomplaintassistant.gov.

Having some form of health care insurance makes sense no matter if you’re currently employed, between jobs or retired. Otherwise you or your loved ones could spend decades paying off medical bills in the aftermath of a serious accident or life-threatening illness. Con artists know this. They’re masters at preying on the vulnerabilities of unsuspecting victims, especially senior citizens.

So how can you tell if a health care insurance policy is phony or too good to be true? Here are four warning signs:

High-pressure sales pitches. A salesperson calls or emails with a “limited-time offer” for health care insurance. You’re asked to provide your bank account number or other financial information before a policy can be issued. Best advice? Hang up the phone or delete the email.

Vague details. You talk to the insurance agent, but he or she won’t provide specifics about the policy. You can’t get facts and figures about benefits, premiums, inflation adjustments or other particulars. You’re directed to a glossy brochure or website for answers.

Extremely low premiums. You know the saying, “You get what you pay for.” This is often true with health care insurance. For instance, quality health insurance can be expensive. That’s because legitimate insurers often pay the lion’s share of your medical bills. On the other hand, a scam artist, eager to make a quick profit, may leave you holding the bag.

Super easy signup. You may not be required to take a medical exam or complete a health questionnaire to get this “great” insurance. That’s because the insurer doesn’t plan to make good on your medical claims.

Some people have discovered too late that their recently-purchased policy is riddled with loopholes and ambiguities. Promised benefits may never materialize.

Don’t sign anything until you’ve verified the company’s license with your state department of insurance. Report suspected frauds to the Federal Trade Commission at FTC.gov.

Fraudsters have been using “easy money” scams for years. However, methods have been adapted to exploit advances in technology, which has helped with tricking victims into new cons.

For instance, the Federal Trade Commission (FTC) filed a complaint against Digital Altitude LLC and other defendants in February. The agency alleged that the company’s operations misrepresented an online business “coaching program.” The defendants told consumers they would receive individualized coaching from successful marketers, yet most of defendants’ customers never earned substantial income as a result of the coaching. The scheme was promoted using webpages and social media platforms, including Facebook and Instagram.

While scams may have changed over the years, the goal never varies. Swindlers want access to your wallet and your bank account.

You can avoid “easy money” schemes by following three straight-to-the-point practices:

Conduct an online search. Look for complaints by searching for the company’s name and phone number online, including the Better Business Bureau (BBB) website. You may be able to find out if the company has a a good -- or bad -- reputation, and why.

Hang up on high-pressure sellers. If you’re told something like, “You’re leaving thousands of dollars on the table by not moving up to the next membership tier,” don’t fall for it. Trust your gut feeling and pass on the offer. You can always do a search online to learn more if you're still curious about the service or offer.

Be skeptical of outrageous claims. Does this company really offer a turnkey system that will enable you to earn six figures in 90 days or less? If the claim sounds too good to be true, it probably is.

To report fraud, identity theft, or an unfair business practice, visit the FTC Complaint Assistant page. You can also file a business complaint using the BBB Online Complaint System.

For decades chain letters have been making the rounds. These days they’re more likely to show up in your email than your post office box. Regardless of the process used, chain letters often have a common goal: to separate you from your money.

That money, by the way, can include cryptocurrencies such as bitcoin. In fact, the Federal Trade Commission (FTC) recently announced a complaint against four people for promoting deceptive cryptocurrency schemes online. In two of these schemes, participants were required to use bitcoin or another cryptocurrency to pay for the right to recruit others. Typical of many fraudulent “opportunities,” no actual product or service exchanged hands. Using YouTube videos, social networking sites and conference calls, the promoters promised to pay participants in cryptocurrencies.

Whether you’re being asked to pay in bitcoins or dollars, don’t be fooled by claims that chain letters will generate outsized returns or free money.

How a typical chain letter works

Here's an example: Bob receives an email with a list of names. He’s told to send $5 to the person at the top of the list. He sends the money, removes the first name and adds his own name to the bottom of the list. He forwards the letter to seven more people. As his name moves up the list, he’s promised a huge return for a minimal contribution.

Newsflash: This is just another pyramid scheme.

Don't be a victim

There are several warning signs you can look for to protect yourself. Fraudulent chain letters will:

Require you to send money and/or personal information to someone you don’t know

Claim the U.S. Postal Service has given its approval

Claim it’s not a hoax

Promise to generate stellar returns using mysterious financial models

Urge you to forward the message and suggests dire consequences if you don’t

Contain numerous spelling or grammatical errors (a common indicator of fraud)

If you think you’ve received a bogus chain email, delete it. Don’t pass it on.

Contrary to the over-the-top claims published online, in infomercials and in advertisements nailed to telephone poles, working at home doesn’t build wealth any faster than working in an office or on the factory floor. In fact, startup businesses (including those located in your home) require a great deal of time, work and investment.

So how can you tell whether an employment offer to work at home represents a legitimate business opportunity or a fraudulent scheme? Here are some pointers:

Beware of wild claims. If the ad claims “a guaranteed income” or that you can “work part - time and earn a full-time salary,” hold on to your wallet!

Get the details. Find out exactly what you’ll be doing, who you’ll be working for, and what the company will provide. Are you required to purchase your own software or equipment? How often will you be paid? Do you have to sell anything or recruit others? A legitimate company will be glad to provide this information in writing; a scam artist won’t.

Check references. Request a list of the firm’s other employees or contractors; then follow up to find out how this opportunity worked for them.

Study the market. Research whether there are really customers for such a service or product in your area. For example, if you’re considering working at home for a dental billing service, ask dentists in your area if they use such a service. You’ll also want to determine whether the state requires any kind of license or certification for providing such a service.

If you need additional help evaluating a work-at-home business, give us a call.

Employee Theft

Employee theft happens frequently enough for it to be a concern of every business. It makes no difference whether your business is a one-employee medical office or a forty-employee retail outlet. Absentee business owners should be even more alert to the problem of employee theft.

Busy managers find it easy to turn the recordkeeping over to a qualified employee. Don't do so without proper controls and constant review.

Some examples of employee theft

Consider these examples of the methods by which employees have been known to steal from their employers:

Opening a checking account in a nearby community under the same name as the employer company.

Overpaying the payroll taxes or large suppliers and asking for refunds which are then deposited in the employee's new company account.

Convincing the employer that the independent accountant is an expensive luxury which the company can do without now that the employee is available to do financial statements.

Soliciting the help of a supplier's employee, then overpaying the supplier and sharing the overpayment.

Opening a checking account with the same name as the employer's major suppliers and then paying invoices twice. The first payment is sent to the supplier, and the second is deposited in the employee's "extra supplier account."

Some small businesses have paid a high price to learn about employee theft. Don't be lulled into thinking it could never happen in your business.

Learn to spot employee theft

Whether your business deals in products or services and whether you have one employee or many, you should be aware of the signs of employee fraud or embezzlement.

Fraud most often develops over a period of time and will sometimes involve employees with outstanding track records. What would cause a long-term, trusted employee to go bad? Watch for employees who are under new pressures such as:

Unusually large medical bills

Living beyond their financial means

Excessive use of alcohol or drugs

Large investment losses

Excessive gambling

Also, watch for a growing disregard for the company in favor of personal gain.

Identify problem areas

What circumstances in your company make fraud or embezzlement easy? Small companies find it especially hard to segregate duties of employees. That can increase the chance of losses to the company. Consider these problem areas:

Inadequate accounting records.

Too many related transactions handled by the same person.

Too close a relationship between your staff and specific staff members of your suppliers.

An employee who takes very brief vacations or no vacations at all.

It is not necessary that you become paranoid about employee theft. It is wise, however, to have a system set up that makes fraud less likely.

Take steps to prevent employee theft

Many businesses have too few employees to provide for proper segregation of the duties. If one employee is allowed to handle too many functions, such as paying bills, collecting receivables, preparing payroll reports, handling petty cash, and making bank deposits, the company is wide open to fraud.

If you're a small business owner, you should stay close enough to the business transactions to be able to spot unusual problems with the receivables, payables, refunds, etc. Ask questions about accounts receivable balances from time to time. Insist on being the first one to open the bank statement. This gives you the opportunity to spot unusual checks, odd vendor names, etc.

Open all incoming mail from customers and vendors. This allows you to see customer complaints and adjustments to account balances. It also allows you to view anything out of the ordinary.

Finally, be curious. Conducting random spot checks in different areas of the business will let employees know you are involved. If done correctly, employees will see this activity as caring and valuing what they do and not that you do not trust them.

It was revealed in a recent Taxpayer Advocate Forum in Iowa that in some cases the IRS initiates contact with taxpayers via a phone call. This initial phone call is causing confusion and potential identity theft scam concerns with taxpayers. It is now being reported that the IRS will no longer be making initial taxpayer contact via phone.

Phone Scams

While the vast majority of IRS notifications are via mail notice, in a few cases the IRS auditor was calling to set up an appointment. The conversation would include the scope of the audit and a request for records to have available for the auditor. The IRS would then send a follow-up confirmation of the interview via mail.

Because of the increase in the number and sophistication of IRS phone scams, the telephone contact practice is being stopped.

What you need to know

Assume initial calls are scams. If you receive a phone call from the IRS without prior notice, treat it as a scam. Never give or confirm your personal information over the phone.

Hang up and initiate independent contact. If someone representing the IRS calls you, get their information (name, ID number, and location) and then hang up.Then call for assistance. Consider contacting the IRS directly so you can determine if there is audit activity on your tax account with the IRS. Remember, do not use the contact information provided to you by the person calling you.

Never ignore mail notices. If you receive a mailed notice of an audit from the IRS, open the envelope and determine what they are requesting. Immediately call for assistance.

While this policy change at the IRS only impacts a few taxpayers, the mail notification consistency helps all of us more readily identify potential scams.

What did thieves try to steal?

Along with tax season comes the season of tax identification theft. Those who have become victims know how frustrating the experience can be.

The frustration

Until now, if you were a victim of tax identity theft, you would be unable to receive information from the IRS about the depth of the fraud. Many frustrated taxpayers have tried to get copies of the fraudulently filed tax returns. The IRS has repeatedly refused freedom of information requests to get these copies.

What’s new?

In a recent announcement, the IRS has changed course on requests to get copies of fraudulently filed tax returns. As long as you follow their instructions, you are now able to get copies of what thieves attempted to do with your tax information. But be forewarned. The IRS may black out information on the requested return that does not pertain to you. They will try to present you with enough of the falsely filed tax return to allow you to determine the depth of the data that has been stolen.

Why the theft information may be important

You can see what personal information the thieves have. What has been compromised? Name, address, and Social Security Number? Do they have your dependent’s or spouse's information? Perhaps they also have your income and withholding data. Knowing this will help you plan the extent of data protection you will need.

There may be clues as to where the identity theft occurred. Of the information stolen, who had access to it? Did the data breach of your identity happen through the IRS or somewhere else?

There may be more tax years impacted than you thought. Request information from the year you first became aware of the identity theft at the IRS. But you may wish to request information in a prior year and in the year following the theft. The IRS has access to up to six years of tax returns. Try to determine whether the theft is ongoing is a one-time occurrence.

The request requires specific information. Here is a link to the IRS announcement: Instructions for Requesting Copy of Fraudulent Returns

Thankfully, the IRS’ recent decision to share this fraudulent information is allowing victims to take some action to protect themselves.

With the dramatic increase in identity theft, what can be done to protect your Social Security Number (SSN) from these would-be thieves? Here are some ideas.

Do not carry your Social Security Card with you. Your parents were encouraged to do this, but times have changed. You will need to provide it to a new employer, but that is about it.

Know who NEEDS your Social Security Number. The list of those who need to have your number is limited. It includes:

Your employer. To issue wages and pay your taxes.

The IRS. To process your taxes.

The State Revenue department. To process your state taxes.

The Social Security Administration. To note your work history and record your benefits.

Your retirement account provider. To enable annual reporting to the IRS.

Banks. To enable reporting to the IRS.

A few others. Those who need to report your activity to the government (example: investment companies.)

Do not use any part of your Social Security number for passwords or account access. Many retirement plans use your Social Security Number to enable you to access their on-line tool. When this happens, reset the login and password as soon as possible.

Do not put your Social Security Number on any form. Unless a business has a legal need for your number, do not provide it. Common requestors of this number are insurance companies and health care providers. Simply write, “not available due to theft risk” in the field that requests your number. If the supplier says they need it, ask them why.

Do not note your full Social Security number on any form. If you are required to give out your number, try marking out the first five numbers. (xxx-xx-1234)

Do not put your Social Security Number on your checks. Certainly not on your pre-printed checks. If requested by the government to place your number on your check to apply your payments, simply put the last four digits on the check.

Never give your number out over the phone or in an email. The only exception is when you make the phone call to a valid source that will need the number to access your account.This list is very limited. It includes calls you make to the IRS, Social Security, your state government, and limited partial numbers to your bank and health care insurance company.

Remember to periodically check your credit with the major agencies to ensure your data has not been stolen. Once stolen, it is often difficult to get a new SSN issued.

The IRS released its 2020 edition of its annual Dirty Dozen list of tax scams with a special emphasis on aggressive and evolving schemes related to COVID-19 tax relief, including Economic Impact Payments. Here are six of the more common scams.

Phishing. Phishing refers to potential fake emails or websites looking to steal your personal information. Remember the IRS will never initiate contact with you via email about an outstanding tax bill, refund or Economic Impact Payment.

What you can do. If you receive any suspicious phishing emails, forward them to phishing@irs.gov.

Fake charities. Criminals frequently exploit natural disasters and other crisis situations such as this year’s pandemic by setting up fake charities to steal donations. Fraudulent schemes normally start with unsolicited contact by telephone, text, social media, e-mail or even in person.

What you can do. Verify the charity’s existence by searching for it using the IRS’s search tool.

Threatening phone calls from IRS impersonators. IRS impersonation scams include phone calls threatening arrest, deportation or license revocation if you don’t pay a bogus tax bill. The IRS will never demand immediate payment or ask for financial information over the phone.

What you can do. If you received a phone call, contact your local IRS office to verify whether you owe any taxes.

Social media scams. A scammer will use social media platforms such as Facebook and Twitter to obtain personal information from you, then use that information to trick you into providing them with confidential information. For example, the scammer could impersonate a family member, friend or co-worker in an attempt to obtain financial information.

What you can do. Be careful of publishing confidential information on social media. Verify the identity of any person or organization that asks you for confidential information.

Economic impact payment or tax refund theft. Criminals file false tax returns or supply other bogus information to the IRS to divert refunds or Economic Impact Payments to wrong addresses or bank accounts.

What you can do. Contact a qualified professional to help walk you through how to report identity theft to the IRS.

Senior fraud. Senior citizens have become more comfortable with various technologies such as social media. This has opened the door for scammers to take advantage of senior citizens by using fake emails, text messages and fake websites to steal personal information.

What you can do. Be the eyes and ears for the senior citizens you come in contact with. According to the IRS, anecdotal evidence indicates that senior fraud decreases substantially when a trusted friend or family member takes an interest in the senior’s affairs.

More than 40 million Americans filing unemployment claims since March has given identity thieves a new avenue for taking your money – filing fraudulent unemployment compensation claims.

The identity thief poses as an unemployed worker filing for benefits by creating an online account with a state’s unemployment compensation insurance office. The thief uses the stolen person’s identity to create the account, including the victim’s Social Security number and mailing address.

The thief then directs unemployment compensation payments to be deposited into his or her own personal bank account.

Because it can be difficult to trace where the fraudsters obtained a person’s identity, you should take precautions for protecting all confidential information. The thieves could have either breached a company’s server to obtain identification information for all employees or obtained information by targeting individual people.

What you can do

Be on the lookout for mail from the state unemployment office. The first notification that an unemployment claim has been filed is usually received by the employee at their house. If you receive correspondence from your state’s unemployment office indicating that you’re enrolled to receive unemployment benefits when that isn’t the case, then forward this correspondence to your business’s owner or human resources department.

Follow your company’s data security and privacy policies. Identity and cyber thieves are becoming more creative with how to steal your employer’s confidential information. So be sure to understand and follow the policies and procedures your company has in place for data security. Alert your IT department if you receive any suspicious e-mails or phone calls.

Be vigilant with your personal data security actions. Identity thieves are attempting to get at your personal information through multiple channels – text messages and e-mails, going through physical junk mail that hasn’t been shredded, or even trying to get information by calling you over the phone. So don’t electronically share confidential information, and consider verifying any business who calls requesting information.

The Internal Revenue Service expects individual taxpayers to file more than 150 million returns this year. If prior-year statistics hold steady, over 70 percent of filers will get a refund. That’s the good news. But scammers are still on the prowl, constantly devising new ways to steal your money — including your tax refund.

How does a tax refund scam work?

Thieves may get information from your W-2 form and use it to file a fraudulent return in your name. How? By installing malicious software (malware) on your computer or tricking human resource staff at your company into divulging personal data.

In a new twist on an old scam, a thief may direct the IRS to deposit the tax refund into your account. By using real client bank account information, they make it harder to identify fraudulently filed returns and hope to remain hidden from the prying eyes of investigators.

Typically, after the refund is deposited to your account, the scam goes into overdrive.

The thief initiates a phone call. Posing as an IRS or law enforcement official, they claim the refund was deposited in error. The thief demands that you return the refund to a collection agency, an account that’s actually a front for the thief’s operation.

Follow these two guidelines to protect yourself from this latest scam:

File early (or as soon as possible). If your return is already in the IRS database, a scammer’s phony filing won’t be accepted.

Beware of phone calls claiming to come from the IRS. The IRS will contact you via regular mail before initiating any contact by phone. Also, the IRS will never demand that you pay by wire transfer, prepaid debit cards or other specific payment methods. Nor will they threaten to contact local police if you don’t pay right away.

You’re sitting down to dinner when the telephone rings. You check the caller ID and notice the call originates from a Washington D.C. area code.

A voice says, “This is Agent Jones with the Social Security Administration. We’re having problems with our computer system and I need to confirm your Social Security number.” Hang up. It’s likely a scam.

SSA scammers want your personal information

Fraudsters have devised myriad ways to trick unsuspecting victims into divulging personal information. Impersonating employees of the Social Security Administration (SSA) is one of the latest cons. Some people have received “robo- calls,” complete with real-sounding voices. Others have been directed to official- looking websites containing online forms for new Social Security cards. Still others have been hoodwinked with tantalizing references to cost-of-living increases or help with the Medicare prescription drug program.

What’s the endgame? If crooks can acquire your date of birth, mother’s maiden name, bank account information, Social Security number and other key data, they can use that information to steal your identity and/or your money.

Protect yourself by following these guidelines:

Don’t give out personal information. Unless you’re absolutely certain you know the person on the other end of the phone call or email, don’t respond.

Don’t trust caller ID. Con artists have figured out ways to disguise their identity using technology. The phone number for a bank, insurance company, or government agency on your caller ID readout may be bogus. Area codes can be faked as well.

Call the agency directly. If the caller claims to work for the SSA, call your local agency’s office or the SSA’s toll-free number at 1-800-772- 1213. Verify the reason for the contact and the person’s identity.

Beware fake websites. Get to the agency directly by typing the “ssa.gov” address into your internet browser. Don’t trust hyperlinks that may send you to a scammer’s clever imitation website.

If you think you’ve been a victim of a scam, call the SSA fraud hotline at 1-800- 269-0271, and get in touch with local law enforcement.

Identity Theft

"Identity theft" sounds like a movie title, but it is a real-life horror story for hundreds of thousands of people every year.

Identity theft occurs when someone fraudulently uses your personal information - your social security number, driver's license number, birth date, etc. - to apply for credit, services, or benefits using your name. Lawsuits, garnished wages, and tax liens can result. To make matters worse, because the theft is "invisible," you may not discover it quickly.

How can you protect yourself? Here are some practical steps you can take.

Watch the numbers. Store your social security card in a safe place. Don't print your social security number on your checks, and refrain from using it as a password on your financial or Internet accounts. If you are required to provide your social security number, find out how it will be used and how it will be protected.

Keep your data confidential.Give out your birth date only when absolutely necessary. Leave off either the day or the year, if possible.

Prevent your account numbers from falling into the wrong hands by shredding documents rather than simply discarding them. Shred all discarded mail that contains personal information, such as pre-approved credit offers.

Monitor your credit.Check your monthly bills to make sure all charges are legitimate. Investigate unusual items immediately.

Consider lowering the limit on your credit cards to reduce the extent of fraudulent activity if a card is stolen or lost. Cancel cards you no longer use.

Order a credit report at least annually. Check it for errors and notify the credit bureau if you find any.