Scam Alert

Con artists are individuals who use deception and manipulation to trick people out of money or valuables. Online scammers employ various tactics to deceive victims into falling for their schemes. In some cases, they can be friendly, sympathetic and seem willing to help. In others, they use fear tactics to persuade a victim.

Scammers use dead people's social media accounts and accounts that have been abandoned. Scammers hack into abandoned or inactive accounts to gain control. Hackers delete content from old accounts and recycle them to create seemingly legitimate profiles with an established history. Abandoned accounts often remain unmonitored, giving scammers more time to operate without detection. Once they have access, scammers use these accounts to:

• Send spam posts and ads, often for counterfeit products like fake Ray-Ban sunglasses 
• Promote other scams like weight-loss pills 
• Potentially send malicious files or links via messaging

Scams come in many forms, ranging from the classic "Bait and Switch" to more elaborate schemes like the infamous "Nigerian Prince" email fraud. Here are some common scam types and tactics, along with advice on how to protect yourself:

Business Email Compromise (BEC) Scams - BEC scams involve fraudsters impersonating trusted contacts or companies to trick victims into transferring money or sensitive information.

Tactics:

• Spoofing supplier/vendor email addresses
• Requesting changes to payment accounts
• Creating a sense of urgency

Red Flags:

• Unexpected requests to change payment details
• Pressure to act quickly
• Slight variations in email addresses

Protection:

• Verify any payment changes through a known, trusted contact
• Use multi-factor authentication for email accounts
• Implement strict payment authorization protocols

Charity Scams - Fraudsters exploit people's generosity by posing as legitimate charities.

Tactics:

• Creating fake charity names similar to real ones
• Pressuring for immediate donations
• Using emotional appeals

Red Flags:

• Unfamiliar charity names
• Lack of verifiable information online
• Requests for cash or gift card donations

Protection:

• Research charities before donating
• Verify charity registration status
• Donate directly through official charity websites

Check Cashing Scams - Scammers try to get victims to cash fraudulent checks.

Tactics:

• Approaching people near banks
• Claiming to lack ID or bank account
• Offering a share of the check amount

Red Flags:

• Strangers asking to cash checks
• Promises of easy money
• Pressure to act quickly

Protection:

• Never cash checks for strangers
• Be wary of unsolicited financial requests
• Remember that you're liable for checks you deposit

Debt Relief Scams - Fraudsters offer false promises of debt elimination or reduction.

Tactics:

• Guaranteeing to eliminate debt quickly
• Requesting upfront fees
• Pressuring for immediate action

Red Flags:

• Promises of instant debt relief
• Demands for payment before services
• Lack of clear explanation of services

Protection:

• Research debt relief companies thoroughly
• Be wary of guarantees or quick fixes
• Consult with a financial advisor or credit counselor

Employment Scams - Scammers create fake job opportunities to steal money or personal information.

Tactics:

• Offering work-from-home jobs with high pay
• Requesting personal information for "background checks"
• Sending fake checks for "equipment purchases"

Red Flags:

• Jobs with unrealistic pay or benefits
• Requests for upfront payments
• Overpayment schemes

Protection:

• Research companies and job postings thoroughly
• Never provide sensitive information before verifying a job offer
• Be cautious of jobs that seem too good to be true

Rental Scams - Fraudsters create fake rental listings to collect deposits or personal information.

Tactics:

• Copying legitimate property listings
• Offering rentals at below-market rates
• Claiming to be out of town and unable to show the property

Red Flags:

• Requests for deposits before viewing the property
• Pressure to act quickly
• Unwillingness to meet in person or show the property

Protection:

• Always view a property in person before paying
• Research property ownership records
• Be cautious of deals that seem too good to be true

Impersonation Scams - Scammers pose as legitimate companies or government agencies to steal information or money.

Tactics:

• Using official-looking caller IDs
• Creating a sense of urgency or fear
• Requesting personal information or immediate payment

Red Flags:

• Unsolicited calls or messages from "official" sources
• Threats of legal action or service disconnection
• Requests for immediate payment via gift cards or wire transfers

Protection:

• Verify caller identity independently
• Never provide personal information to unsolicited callers
• Be skeptical of threats or pressure tactics

Investment Scams - Fraudsters offer fake investment opportunities promising high returns.

Tactics:

• Guaranteeing unrealistic returns
• Creating fake investment platforms or websites
• Using social proof or celebrity endorsements

Red Flags:

• Promises of guaranteed high returns
• Pressure to invest quickly
• Lack of clear information about the investment

Protection:

• Research investment opportunities thoroughly
• Be wary of unsolicited investment offers
• Consult with a licensed financial advisor

Scamming is big business

Scams target consumers of all demographics, from young adults to seniors. It is estimated that consumers lose over $10 Billion dollars a year to scammers. The FTC and other agencies receive tens of thousands of consumer complaints each year related to various scams. The Federal Trade Commission (FTC) allocates a significant portion of its budget to consumer protection efforts. The 2024 budget is estimated to be over $230 million.

Scams target consumers of all demographics, from young adults to seniors. Scammers constantly adapt their methods, using technology and social engineering to make their schemes more convincing. They often exploit current events or trends to create new scams.

• Investment and cryptocurrency scams were identified as the riskiest scam type in 2023, with over 80% of targeted individuals reporting financial losses, with the average loss of $3,800 or more.
• Employment scams were the second riskiest scam type in 2023, with a significant increase in reports and a higher median dollar loss compared to other scams, with an average loss of $1,995 or more.
• Online purchase scams dropped to the third riskiest scam type, but still accounted for 41.9% of scams submitted to BBB Scam Tracker.
• Young adults aged 18-24 reported the highest median dollar loss of all age groups.

The overall reported susceptibility to scams (percentage of reports with monetary loss) increased by 27.8% from 2022 to 2023.

Young adults: Often targeted with job scams, student loan scams, and online shopping fraud.

Seniors: Frequently targeted with Medicare scams, grandparent scams, and tech support scams.

Middle-aged adults: May be targeted with investment scams, romance scams, and business email compromise scams.

Nextdoor is a great place to complain about a neighbor’s barking dog or chitchat about everything from lost keys found at the local park to getting recommendations on vendors. It’s also a petri dish for low-level crime.

The Nextdoor platform makes it easy to connect with your neighbors and local organizations. The site is organized into neighborhoods, so you can reach out to local users to socialize, share information, and give and receive recommendations for service providers. Despite the safety measures Nextdoor has in place, scammers sometimes use the site to commit fraud and engage in phishing.

Like many other online platforms, Nextdoor has become a target for various types of fraud and scams. Here are some common scams found on Nextdoor:

• Contractor Scams: Fraudsters pose as legitimate contractors, offering home improvement services. They may ask for upfront payments and then disappear after starting work or without completing the job.
• Fake For-Sale Ads: Scammers post fraudulent listings for vehicles or electronics at suspiciously low prices. They often request payment via gift cards or wire transfers and may claim to be selling on behalf of a friend or family member.
• Fake Home Rentals: Scammers create fraudulent rental listings for properties they don't own or manage.
• Fraudulent Buyer Scams: These involve potential "buyers" who offer to pay with fake cashier's checks and pressure sellers to complete transactions quickly.
• Identity Theft: In one case, a scammer used Nextdoor to steal a nanny's identity and personal information to defraud multiple families.
• Neighborhood Group Lottery Scam: Users receive fake text messages claiming Nextdoor is running a contest with large cash prizes. These are not legitimate Nextdoor promotions.

If you suspect suspicious behavior or believe you've been targeted by a scam:

1.      Alert your bank or credit card company if financial information was compromised

2.      Document all communication and evidence related to the suspected scam

3.      Don't engage further with the suspected scammer

4.      Report the incident to relevant authorities (e.g., FTC, FBI, local law enforcement)

5.      Warn friends and family about the scam to prevent further victims

Why is scamming so profitable?

Skilled con artists exploit emotions like greed, fear, and insecurity to pressure victims into making rash decisions. Most scams rely on exploiting basic human emotions and psychological triggers, with sympathy, fear, and greed being three of the most common:

1.      Sympathy-based scams:

• Charity scams
• Grandparent scams
• Romance scams

2.      Fear-based scams:

• IRS/FTC impersonation scams
• Tech support scams
• Debt collection scams

3.      Greed-based scams:

• Investment scams
• Lottery scams
• "Get rich quick" schemes

These emotional triggers are effective because they:

• Bypass skepticism: When emotions are engaged, people are less likely to question the situation critically.
• Cloud judgment: Strong emotions can override logical thinking.
• Create urgency: Fear and greed often prompt quick, poorly considered actions.
• Exploit trust: Sympathy-based scams take advantage of people's desire to help.

Understanding this can help in recognizing and avoiding scams:

• Be aware of your emotional state when making decisions, especially financial ones.
• Be skeptical of offers that seem too good to be true or threats that seem overly dire.
• Educate yourself and others about common scam tactics to build resilience against emotional manipulation.
• Take time to think and verify before acting on requests, even if they seem urgent.

While there are no specific services that exclusively research potential scams for individuals, there are several resources and organizations that can help you investigate and verify suspicious offers or activities:

Better Business Bureau (BBB): The BBB maintains a database of business profiles and consumer complaints. They also provide scam alerts and tips for identifying fraudulent activities.

Federal Trade Commission (FTC): The FTC offers a wealth of information on common scams and fraud. They also allow you to report suspected scams and provide consumer education resources.

Consumer protection agencies: Many states have their own consumer protection offices that can provide information on local scams and offer assistance.

Online scam databases: Websites like Scamadviser.com and ScamDetector.com allow users to search for known scams and report new ones.

Cybersecurity companies: Some cybersecurity firms offer services to businesses and individuals to help identify potential online threats, including scams.

Financial institutions: Many banks and credit card companies have fraud detection departments that can help investigate suspicious activities related to your accounts.

Local law enforcement: Police departments often have units dedicated to fraud and can provide guidance on potential scams in your area.

While these resources can be helpful, it's important to develop your own critical thinking skills and stay informed about common scam tactics.

Remember, scammers are constantly evolving their tactics, so staying informed and vigilant is crucial to avoiding fraud.

• Always verify requests independently and trust your instincts if something seems suspicious.
• Legitimate organizations and genuine needs rarely require immediate, unverified action based solely on emotional appeals.
• Legitimate organizations won't pressure you for immediate action or personal information.