From identity theft to online and phone scams, Facebook schemes and Internet dating websites, the ways are many and varied when it comes to channels criminals use to try and take your money and sometimes your financial identity.
And according to Madison County Sheriff’s Investigator Doug Martin, the methods criminals use are changing all the time, often faster than law enforcement can keep up with.
“All these things like online shopping, dating, social media, even pre-loaded credit cards from the IRS at tax time are making things more convenient for us – but there is a price, and that price is that it is opening us all up to more fraud,” said Martin, who spends most of his time investigating these crimes. “It’s ultimately making us and our money less secure.”
Martin has been with the sheriff’s office for 18 years and has spent the last six as an investigator. As time went by and identity theft and fraud crimes in the county increased, he’s moved to working on these cases full-time.
In Madison County, the primary crimes of this type are financial crimes like credit card fraud, identity theft, forgeries and scams.
“That’s the bulk of my case load right now,” Martin said.
It complicated and time-consuming work, tracking down leads and it’s all very paperwork intensive, Martin said.
For example, when someone reports their credit or debit card information has been used without their permission, Martin has to make a formal request to the financial institution(s) involved to get information to compile a case. It helps, he said, that he’s been on the job for a while now and has developed relationships that allow him to gain access a little quicker, but it still takes time. Much of the time now, the victim still has their actual credit/debit card in hand when they discover their card information has been used somewhere without their permission.
“Their number, pin, etc. could have been obtained by a wide range of methods,” he said.
One way is through a “skimmer” (credit card reader) that can be placed at a gas pump or an ATM to steal information when a card is swiped, another is that many businesses have had their computer systems hacked or a third party credit card processor has been hacked. A personal computer may contain malware or a virus that picks up information as an online transaction is made. Martin says another common method is that a waiter or waitress who collects a card for payment at a restaurant could have a credit card reader on their smart phones. A recent case at a restaurant in the county involved a restaurant worker simply snapping a photo of credit cards with his/her smartphone.
“That case is still pending,” Martin said.
Another thing is that the further away from Madison County a fraudulent purchase is made the harder it becomes to make a case. “If it’s in Atlanta, I can maybe go to Atlanta to investigate, but if it’s Los Angeles, etc. it’s harder to get anywhere with it,” Martin said. Companies and banks also have “thresholds,” or a loss amount they are willing to “let go” rather than spend the time and resources to investigate.
“If it’s fraud, you’ll get your money back or it’ll be credited back to your credit card account eventually, but we’ll all pay for it in terms of higher interest rates, more fees, etc.,” Martin said. “It all comes back to the consumer in the end.”
Martin’s advice is to be aware – check your account balances and financial information regularly and if you note anything suspicious, contact the financial institution immediately.
And use a credit card, if you can pay back the balance regularly, instead of a debit card.
“Credit cards have a limit, and you’re not responsible if they’re used without your authorization,” he said. “Debit cards are tied to a bank account. You’ll get that $500 back, eventually, but in the meantime, you can’t use that money.”
There’s also overdraft and other fees to consider that may occur before you are aware your bank account’s been compromised.
SCAMS
The most “popular” scam in this area is the lottery/sweepstakes scam, Martin said.
“You get a phone call, you’ve won $10 million dollars in a lottery drawing or a sweepstakes but the caller needs you to send $5,000 in taxes or ‘processing fees’ to get your money,’” Martin said. “That’s a big red flag. Hang up. It’s a scam.”
The scammers usually want those funds sent by Western Union on loaded onto a Green Dot card that can be purchased at a local department store or pharmacy.
“Most of these are foreign-based,” Martin said. “These folks are in Nigeria or Jamaica, even though your caller ID may show a local phone number.”
Martin said local numbers are easily obtained through voice over Internet protocol systems, like Vonage.
“People can be vulnerable, at times like that you just have to take a minute and ask yourself – first, did I enter that sweepstakes, make that lottery purchase or buy that ticket?” Martin said. “Also, if the funds they need are taxes or fees, the logical question is, why can’t you just take it out of the winnings?”
Martin said, as in most of these scams, the elderly seem particularly vulnerable.
For one thing, many older folks can be naïve to the rapidly changing technology and most were raised in a different generation.
“They were raised in a time where your word was your bond,” he said. “It’s just difficult to believe that someone is flat out lying to you, they expect to be told the truth.”
Martin noted a case from five or six years ago where a local man (who recently passed away) with dementia fell victim to a lottery-based scam.
His family was unaware and by the time they found out, the man had lost life savings to the tune of more than $70,000.
“This particular lottery scam had an extra layer to it,” he said. The local victim was told he had won the lottery and to send money orders to another man in Nashville, TN to receive his winnings. This man, another elderly gentleman also suffering from dementia, believed he was earning extra money by working from home for a company he became involved with by answering an online employment ad.
The “company” was actually based in Nigeria. They told the man in Tennessee that he was receiving payments for goods they had sold to customers in the USA. He would receive the money, keep a few hundred dollars for himself as his “paycheck” and forward the rest on to the scammers.
“They found checks in that poor man’s home from all over the country,” Martin said.
The second biggest scam is one Martin refers to as “the lonely hearts club” and it particularly targets the elderly, especially those who live alone.
“The go online to a dating website, they are lonely or they just want some companionship, they set up a profile, and began communicating with someone,” Martin said. Most of the communication is electronic, he said, starting out as emails, then maybe texts as the “relationship progresses.”
“This ‘person’ tells them everything they want to hear, at first,” he said. “They want to visit, but can’t, they work overseas or are on an oil platform in the Gulf of Mexico or something like that.”
Then there is inevitably a crisis.
“They are robbed, they are in Dubai and there is a mishap at their construction site, they are sick, something that puts them in dire straits,” he said. “They need money.”
They usually ask that a “loan” of a particular amount be sent through Western Union, or deposited into an account at a major well-known bank (that has worldwide offices).
Martin said these types of scams are on the increase.
“I’ve seen probably 15 to 20 of them in the last couple of years,” he said.
He said the consequences were particularly devastating for one local woman and her family.
“This lady was widowed, she had some funds in a 401K, but she was living mainly on her Social Security,” Martin said. “She withdrew all her 401k money, she even took out a loan, and the money’s all gone, leaving her on the hook for a loan she may not be able to pay back.”
The third most “popular scam” is the work-from-home scam.
“You find these on Craigslist, Monster.com, maybe even a newspaper ad,” Martin said. In this scam, you do work for a company and they send you a check for more than you earned and expect you to cash it at your bank and send them back the difference.
“The check turns out to be fraudulent and you, not them, are on the hook for the difference,” Martin said.
“A question to ask yourself, ‘would you do that?’”
The same logic applies if you sell something online.
“If you sell a chair for $100 and they send you $500, telling you to just ‘take out shipping’ and send them the rest back, think about it — who does that,” he said. “That’s a clue. Be aware, be vigilant.”
SOCIAL MEDIA/FACEBOOK
Scams on social media, particularly Facebook, are also growing, Martin said.
Consider these very recent incident reports from the sheriff’s office.
A man reported that he received a friend request from someone he knows on Facebook. He accepted the request and got a message from the man who told him he saw his name posted somewhere as a sweepstakes winner and urged him to “friend” someone else he named and message her about his winnings.
He did this and he and his new “friend” told him he was a $50,000 winner in a sweepstakes and she could help him collect his winnings if he sent her his name, birthdate, address, email address, driver’s license number and $1,500. He complied, giving the woman all this information so he could get his $50,000. He told the investigator that he did not, however, send her the $1,500.
Needless to say, he realized too late he had been scammed and his “friend” had all his information that could now be used to open fraudulent accounts.
Similarly, a woman also reported a Facebook scam to the sheriff’s office. In this case, she said someone claiming to be her aunt messaged her and began to tell her about programs for people in debt to get out of debt. The “aunt” advised her to send all of her personal information to another person on FB in hopes of getting some money. Too late, she realized her mistake and reported the scam. She was advised by the sheriff’s office to contact the Social Security Administration and the IRS in case a fraudulent tax return should be filed in the upcoming tax season.
Martin says if your FB account is hacked, change your password immediately. If someone sends you suspicious messages, do not respond and again, change your password.
“If it seems too good to be true, it probably is,” Martin said.
