Fraud Alert-2008 - District Attorney's Office

Fraud Alert-2008

Expecting a Refund?

DON'T BE FOOLED BY EMAIL FROM THE IRS
Few names invoke fear and intrigue like the IRS. No one plans to make a mistake on a tax form or win the AUDIT lottery. Everyone hopes to receive a bigger refund than they expected.
Tax time is stressful for the law abiding. For others, like identity thieves, it is often very profitable. They have fine-tuned "phishing" schemes to get your personal financial information by exploiting the trust taxpayers have in the IRS. "Phishing" is just that--fishing for your information. Scammers methods often involve threats of an audit or of a penalty due to a mistake on a tax return. They may also offer an unexpected return based on discovery of an error in the taxpayers' favor.
Remember that the IRS will never contact a taxpayer by email. Let's put an end to the success of crooks who use tax schemes to obtain personal information to commit identity theft. Here are some common phishing schemes:

The recent tax rebate authorized by Congress allows scammers an opportunity to entice people by offering a faster refund. All you need to do to be eligible for the Congressional refund is file a tax return this year; no one from the IRS will contact you by email.
There is also a scam that comes as an email, purportedly from the IRS, stating, "We owe you money." The letter states that by going to a link they provide, and entering the necessary information, the refund will be processed and sent. The link takes the recipient to a website that is an excellent imitation of the official IRS website.
Another scheme involves notification that the IRS has found a mistake or discovered that information is lacking on your tax return. You are directed to a fraudulent website requesting your personal information

These are only a few examples of popular schemes targeting your personal and financial information by taking advantage of tax season. These identity thieves may also contact you by telephone or mail sent through the U.S. Postal Service. Remember, the IRS will not contact you by email or telephone for any reason. Visit www.irs.gov for more information.

January/February 2008

Protecting Your Identity During Income Tax Season

In this world nothing can be said to be certain, except death and taxes, so uttered Benjamin Franklin in 1789. I'll add another certainty: Identity thieves are already considering ways to access your tax forms so that your personal information can be stolen and used to their advantage.

protect your identity during tax season During tax season, cunning identity thieves are looking for people to make innocent mistakes with their tax information. Practices we've used for years today can easily give thieves access to your tax forms or other information that they can then use for identity theft. Tax time can already be painful; don't make it worse by becoming a victim of identity theft. Here are some hints to help keep your income tax documents safe:

Do not leave tax preparation information out on a table or your desk. Put everything away when you are not working on your taxes;
Do not throw practice and duplicate forms in your trash if they contain your Social Security number or other personal information shred these forms;
When you have finished your tax preparation, make copies of every form and store your information in a safe and secure place;
Do not store tax preparation materials, like bank account numbers or Social Security numbers, on your computer;
If you must send a check to the IRS, do not write your Social Security number on the check; consider filing and paying online;
If you choose to mail your tax return, take it to the Post Office, stop your car and walk inside to deposit this information. Do not leave your documents in your mailbox at home with the "Come and Get Me" flag up. We also recommend that you not use the blue postal box to mail your tax return or that you leave this information sitting openly in your car for any length of time;
Consider sending your tax return to the IRS by "Certified Mail, Return Receipt," so you will know it arrived and someone signed for it;
Opt to have any tax refund electronically deposited into a bank account rather than having a refund check sit in your mailbox.

December 2007

Be smart with end of the year charitable donations!
Even with threats of recession looming, Americans remain very generous. In 2006, over $295 billion was donated to non-profit organizations by good-hearted individuals. That's up 13% from 2005.

charity donations? take care... Charitable giving is generally accelerated during the end of the year holidays. Unfortunately, this generosity is just one more area that criminals are eager to exploit.

Many people review their financial and tax status at year's end and make a gift to a charity. These gifts need to be made wisely and some research. There is no federal law governing how non-profits spend any portion of the funds they raise. Consequently, the charitable giver should take a little time and investigate worthy, legitimate contenders for their gift:

Research how a particular charity uses its funds by calling the Better Business Bureau (303-758-2100) or download a report online at www.give.org or www.charitynavigator.org;
If you receive a telephone solicitation from a charity, do not immediately pledge funds. Ask that a company report be sent so that you will have information on which to base your giving decisions;
Remember that crooks can impersonate a charity when contacting you by telephone or email; you never know who is really at the end of the line when you receive an unsolicited contact. Never give out bank account or credit card numbers when contacted by telephone or email without doing your homework first;
Use caution when you hear the name of a charity. It is not unusual crooks to find a close imitation to an established and well-known charity. For example, instead of the "American Red Cross" they might solicit in the name of the "United States Red Cross."
Don't be "guilted into giving." You owe nothing to solicitors that send you free incentives like mailing labels, greeting cards or coins;
Make your own "Charitable Giving Plan" each year and stick to it. Avoid impulse giving.

November 2007

'Tis the season to be Merry... or not? Consumer Beware!

Ready or not, the holiday season is upon us. Malls and retail stores will be crowded with busy shoppers. This retail hustle and bustle provides fertile ground for identity thieves and other crooks. Opportunities for distraction abound. A shopping cart left unattended for even a moment is all they need. The push-and-pull of people bumping into one another trying to land another retail victory creates enough confusion for crooks to quickly disappear with your property in hand.

Frequently, checks, credit cards, and driver's licenses are often laid on counters amidst crowds of onlookers. Most cell phones today are also cameras, making it easy for a crook to take a quick picture of your credit card number.

District Attorney Scott Storey offers these suggestions:

Never leave your belongings sitting visible in your car. Nor, should you get out of a car and go directly to you trunk and place a purse or other possessions there;
Put all receipts in your purse, wallet, or pocket. Do not leave them in shopping bags. Even though Colorado statute prohibits printing a whole credit card number on a receipt, many businesses still do;
Be aware of your surroundings. Watch for "shoulder surfers" who are looking to capture bank account numbers from your checks or credit card information;
Reduce your use of checks. Use your debit card, with a PIN, and cover the keypad when you enter your PIN;
Try to avoid becoming distracted. Keep your purse in sight. Better yet, carry your personal financial information in a fanny pack, neck wallet or front pants' pocket;
To the best of your ability, don't let your credit card out of your sight. In restaurants or retail stores, take an extra moment to make sure your own credit card is returned to you;
Be wary of strangers who want to engage you in conversation. While this is the holiday season and we all want to be of good cheer, it's an easy ploy for seasoned crooks wanting only to distract you for a minute.

Check your bank and credit card statements carefully. You have 30 days to report fraudulent bank charges and 60 days to report fraudulent credit card charges. Remember, crooks do not need to steal your actual checks or credit card to fraudulently use these financial instruments.

October 2007

Medicare Marketing: Real or Ruse?

Fall is the time of year when the District Attorney's Office receives calls about telemarketing solicitations for next year's (2008) Medicare/Medicaid benefits. Beware of telemarketers requesting Social Security, bank account, or credit card numbers. These numbers in the wrong hands can easily lead to identity theft.

This is a busy time of the year for marketing Medicare Advantage Programs and Part D Prescription Drug programs. Insurance companies hire telemarketers to call consumers and set appointments for their salespeople. These solicitors DO NOT represent Medicare and will not have information about Medicare programs. Many of these calls are legitimate marketing efforts, but Medicare scams are always a threat. A legitimate marketing company will not ask for any personal information, such as Medicare numbers or bank account numbers. Medicare will NEVER call and ask for your Medicare number or bank account information.
Remember these tips:

No one should come into your home uninvited. If someone knocks on your door, don?t let them in unless you have an appointment.
If you are on the Colorado NO CALL list, you should not get cold calls, but the medical provider with whom you have a relationship may call you.To register for NO CALL: www.coloradonocall.com or 1-800-309-7041.
Never give out personal information, such as your Medicare or bank account number. !!!
Medicare Advantage plans have rules you must follow to get coverage. Take time to review the full details of a plan BEFORE you sign any documents. Once enrolled in a plan, you can be locked into a choice for up to a year, unless you can show you received misleading information from the insurance salesperson.

To report suspected incidents of Medicare fraud, call the Colorado Division of Insurance's Senior Medicare Patrol at 303-894-2290 or 303-894-2268.

September 2007

Just Say No to Foreign Lotteries!

Foreign lotteries are illegal in the United States. It doesn?t matter if the solicitations come from Canada, the Caribbean, England, Ireland, Germany, or Nigeria. They are all illegal.

you may have already won.... Weekly, we receive calls from someone who has sent money to pay a "Registration Fee," "Intergovernmental Tax" ("We're Canada and you're the United States"), or a "Custom's Fee" so that a sweepstakes check can clear customs. Remember the dictum: Ignorance of the law is no excuse! No one, including your bank, is obligated to return money sent to crooks running a foreign lottery.

Just when I think that everyone knows that foreign lotteries are illegal, I get another call from a victim. Crooks do change their scheme a bit from time-to-time. Currently they send a check for the fees; it looks very real but is bogus. Your bank will typically cash this check because banks may not know it is counterfeit. Many feel safe sending off the "required" fees once the money from the check is in their account. Days later the check returns and the victim has been defrauded.

Prevention Advice:

Never respond to a phone call, letter, or E-mail stating that you?ve won a foreign lottery.
Foreign lotteries are illegal--only crooks act outside the law!;
Avoid entering any sweepstakes or lotteries because your name will be added to marketing lists that are eventually purchased by crooks;
If you believe that Ed McMahon and the Prize Patrol are coming to your door stand outside and invoke, "May lightening strike me!" You have a better chance of the latter succeeding;
Send a brief letter asking to be removed from marketing lists to the Mail Preference Service; P.O. Box 643, Carmel, NY 10512. Include your name, address, and $1. Sign the letter. You name will be removed from lottery, sweepstakes, and junk mail lists;
Remember that crooks don't buy the Direct Marketing OPT OUT List?they will continue to phone, send mail notifications, and E-mails.

August 2007

Beware of Malware

District Attorney Scott Storey warns computer users to beware of malware, botnets, trojans, worms and zombies, "This may seem like a foreign language malware warnings

to many computer users and while not exactly an invasion by aliens, as the names would suggest, we are indeed under attack." Up to 25% of the world's 600 million computer users may have been infected by malware and be participating in a botnet and not even know it.

Malware is a general category of malicious software that infects or accesses your computer, without your permission, often for nefarious purposes. Worms and trojans are examples of malware. A software program that can be written by virtually anyone, malware enters your computer in several ways. It comes hidden, bundled with other programs; it may come from a website, pretending to be software you need to download from that site; or, through a hole in Internet Explorer, like a virus.

Botnet is a jargon term for a collection of software robots which run autonomously. It refers generally to a network of compromised computers that can be controlled remotely (not by you) and is used to create and send spam or viruses, phishing attacks for personal information theft, to hide pornograpy or to flood a network with messages, ultimately disabling it. Tens of thousands of computer systems can be linked together and run under a common command and control system.

While connected to the Internet, your computer can be invaded by a virus or trojan and then hijacked to become part of a botnet. Your computer is compromised by trojan which opens a channel and then waits for commands from the person or system in charge of the botnet. An example of an open trojan channel would be online chat or even casual Internet browsing.

Once your computer has become compromised it is called a "zombie" computer because it is being controlled by someone other than you, and you likely will not even know.

In June, 2007 the FBI announced that they had arrested three men in connection with over one million home computers in the United States which zombie had been hijacked to become a botnet.

Botnets aren't all bad. The first known botnets were benevolent programs used to play games or manage Internet chat channels. But today's botnets are often planted across the Internet on different PCs with malicious intent.

Storey warns, "Malicious software is one of the biggest threats computer users face today. Like an invisible thief in the night, you won't even know it's there. It can hijack your browser, steal your personal information for use by identity thieves, use your email address for illegal activities, redirect your search attempts and track websites you visit. It's difficult to identify and even when you remove them from your computer, they will often reattach themselves.

There is also malware that will track and record all your keyboard and mouse activity. This can include the personal financial information you provide in an otherwise secure environment, such as shopping or paying bills online. The information the malware was sent to gather is sent back to the "mother ship" for later use.

After making entry into your computer through a trojan or a worm, one particular malware program can peruse your C: drive looking for email addresses, both yours and those in your email address book. An example of what they might do would be using your email address as a return address for distribution of illicit images such as child pornography.

The botnet business is thriving. Lists of compromised computers are sold to hackers and spammers who can then hack into or solicit your personal information. Botnets want horsepower and your Internet address. That is not an email address, but an address assigned to you by your Internet Service Provider. You may not even know what it is. You are merely a conduit to them, and often a conduit used for malevolent purposes.

Storey warns, "Most people don't have adequate virus, spyware or firewall protection. You may not even know if you are infected and, generally, the only warning sign may be that your computer seems considerably slower. The FBI warned that there may be scam campaigns in which con artists pose FBI agents asking for information about you and you and your "infected" computer, so that they can help you with the problem. The FBI will not contact victims online concerning this issue

WHAT YOU CAN DO:

The most important thing you can do is keep a valid subscription to a credible Internet Protection Suite, including good virus protection, spyware protection and a software firewall;
Regardless of your operating system (Windows, Macintosh, etc.), make sure that your software updates are enabled to update automatically;
EMAIL SAFETY: When you receive unsolicited email, or email from someone you do not know, delete it. When you receive email from someone you know, but the subject line looks incongruent with the person, be very careful. A good rule of thumb is, "when in doubt, DELETE";
If you have a high-speed Internet connection, turn off your computer or Internet connection when not in use;
Remember that government agencies, banks and credit card companies will NEVER contact you by email concerning financial or personal issues;
Make sure you have a good firewall installed and that it is turned on. Personal Computer magazine (www.pcmag.com) may be a source to evaluate firewall programs. Additionally, the website for the Kim Komando National Radio Computer Program (www.komando.com) will compare computer products and offer free downloads; and
Trend Micro, a computer software company, will provide a free analysis of your computer (they ask for a donation to a charity). Go to www.trendmicro.com click on the "Housecalls" icon. They will remotely scan your computer for viruses and other damaging infections.

More '07 Fraud Alerts
FRAUD ALERT Archives 2006

For more information, contact the District Attorney's Fraud Hotline, 303-271-6980.


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Last Modified: Aug 10, 2009 09:38 AM