Scam-apalooza! Don’t let fraud ruin your holiday


ruined-holidayThe CT commissioner of insurance warns policyholders of a recent insurance phone scam. People are getting calls that their insurance is cancelled and they need to make a credit card payment to reinstate their policy. The commissioner says: Never give out your credit card information to an unsolicited caller.

Good advice – particularly over the holiday. Scams are plentiful in the holiday season so keep your radar set on high. We’ve heard about fake shipping notifications, pyramid schemes, gift card scams, fake charities and plain old package theft. Don’t let scammers ruin your holiday – learn about the most common holiday fraud schemes.

General Alerts

Gift Card Scams

Package Theft

Delivery Scams

Charity Scams

Santa Scams

Holiday Pyramid Schemes

Holiday job Scams

General shopping & holiday safety

Scam alert: The IRS won’t phone you to make threats


phone-scammer

Police are warning residents in West Springfield about phone scammers pretending to be IRS agents. Actually, this scam is happening throughout the country – and it’s likely to continue because the IRS says that thieves have conned more than $5 million from victims already.

Here’s how it works: You get a call from an alleged agent who tells you that you owe back taxes. These are pretty sophisticated scammers – they may spoof the IRS toll-free number on caller ID to make it appear that it’s the IRS calling. They may even know the last 4 digits of your Social Security number. The caller threatens to jail you, send police, deport you, seize property or freeze accounts if you don’t take immediate action. The callers are said to be very aggressive and threatening and make repeat calls. After they hang up, they may have other people call you to pretend they are local police or other officials who “corroborate” the scam.

Another variation is to tell you they owe you money and they need details of your bank account to send it to you. There’s always a “you need to act immediately” aspect to the scam.

One North Carolina couple describes how the scam that bilked them out of $16,000 went: they withdrew money from the bank and bought a prepaid credit card and read the number to the fake agent over the phone.

Who are the most susceptible victims? The elderly. Immigrants worried about deportation. People who actually do owe money and are worried about it. But anyone, really. Most of us think we are too smart to be scammed but even smart people can be fooled by master criminals who know how to expertly prey on our trust, our fears or our greed.

If you have elderly parents or neighbors, you may want to alert them to this scam!

Here’s what the IRS says:
The IRS has issued repeated warnings but have issued another recent phone scam warning due to the volume of the calls happening around the country.

There are clear warning signs about these scams, which continue at high levels throughout the nation,” said IRS Commissioner John Koskinen. “Taxpayers should remember their first contact with the IRS will not be a call from out of the blue, but through official correspondence sent through the mail. A big red flag for these scams are angry, threatening calls from people who say they are from the IRS and urging immediate payment. This is not how we operate. People should hang up immediately and contact TIGTA or the IRS.”

Additionally, it is important for taxpayers to know that the IRS:

  • Never asks for credit card, debit card or prepaid card information over the telephone.
  • Never insists that taxpayers use a specific payment method to pay tax obligations
  • Never requests immediate payment over the telephone and will not take enforcement action immediately following a phone conversation. Taxpayers usually receive prior notification of IRS enforcement action involving IRS tax liens or levies.

Fraud Watch: Staged Auto Accidents


In cooperation with the Los Angeles Police Department (LAPD), the National Insurance Crime Bureau (NICB) has produced new high definition videos showing some of the most common methods of staging motor vehicle accidents to defraud insurance companies.

According to NICB: “Staged traffic accidents are on the rise, endangering the lives and boosting the car insurance rates of innocent drivers who may unwittingly think they’re at fault. Staged accidents are most common in “no-fault” states such as Florida and New York, where the insured stager can collect for bodily injury from their own car insurance company through their personal injury protection, or PIP, coverage.”

“Staged accidents are usually conducted by organized groups that target drivers and vehicles that are likely to be insured. The organizers frequently recruit participants who receive a cash payment to join in the scheme and to claim they were injured in the crash. The organizers then have the medical providers who are in on the scheme bill the auto insurance companies for medical treatments that may be unnecessary and which may or may not be completed.”

Brace yourself: Here come the tax time phishing scams


It’s that time of year again … it’s so predictable you could almost set your watch by it: Tax season email scams. Thieves are pretty smart and can create a convincing-looking phony email – don’t fall for their traps. Clicking on a phony or “phish” mail could result in a computer virus, lost money, or a stolen identity. And guess what? It’s not just computer newbies who fall for these scams: smart, experienced people can be tricked too.
First rule of thumb, right from the IRS:

The IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels.

All unsolicited email claiming to be from either the IRS or any other IRS-related components such as the Office of Professional Responsibility or EFTPS, should be reported to phishing@irs.gov.

Here’s a guide from the IRS with more information about recognizing and reporting phishing and other fraudulent solicitations.
Second rule of thumb: Never send sensitive financial information via email – it is not secure. This includes social security numbers or PIN numbers, passwords and other access information for credit cards, banks or other financial accounts.
Third rule of thumb: If you get an email request to update your password or to enter an account number, password, or other identifiable information, DO NOT click on a link or reply. Instead, go directly to the site of the organization that is asking for the update and sign in to your account. If there is a request for updated information, you will find it there.
Fourth rule of thumb: Never enter any financial or account information on a site unless you are sure it is secure. How can you tell? Look for the “s” – most websites are preceded by http:// – secure websites use https:// – that one little letter makes all the difference. Most browsers will also show a little icon of a padlock right in the address bar beside the web address. You can’t always trust a web page graphic promising security since these can be faked – look for the website address and the padlock in the address bar.
For more, see our past posts:
How Can I Securely Send Sensitive Tax Docs to My Tax Preparer?
Don’t get hooked by tax-time phishing!

Clickjacking: A New Digital Trap for the Unwary


The internet is a wonderful thing and a tool that many of us no longer know how we ever did without. Still, as wonderful as the internet can be, there are dangers online. Most of us are savvy enough these days never to click on a link in an email from a stranger but unfortunately, just as we have wised up, so have the scammers. There are new tricks out there that every citizen of this wired age should be aware of.
Clickjacking is one of the newer tricks in the internet scammers repertoire. First discussed in 2008, clickjacking has come into its own with the popularity of social media like Facebook. Clickjacking occurs when a scam artist or other internet-based bad guy places an invisible button or other user interface element over top of a seemingly innocent web page button. In a clickjack attack, an unwary Facebook user may click on a innocent looking web page, thinking that the link is fine. In reality, the invisible link they are actually clicking can activate a button that can do any number of things, including changing the privacy settings on their Facebook account, putting up a fake “like” on their Facebook feed, asking them to submit personal information or even, in a worst case scenario, activating something on their computer like a webcam or microphone. Not only is the immediate user affected, but a fake Facebook “like” can lead many of their friends to click as well. This is embarrassing as well as potentially dangerous. Clickjacking is so serious that both Facebook and the state of Washington have taken legal action against suspected clickjackers in recent weeks.
How can you make sure that you’re not taken in? Always be sure that you are using the latest version of your chosen internet browser. The latest version of Firefox can be found here at Mozilla; Internet Explorer here at Microsoft and Google Chrome here. You may also want to consider some browser add-ons, like NoScript, available for free download here. As always, however, your best protection against scammers is your own common sense. Review your Facebook privacy settings often and make sure you’re comfortable with how much you’re sharing. Always be aware of what you’re clicking on. Remember, anything that’s promising something for nothing is too good to be true.
If you are concerned about your vulnerabilities to identity theft, find a New England Renaissance Alliance insurance agent to discuss identity theft insurance. And if you are a business, you may want to inquire about Cyberliability Insurance.