FBI: ’Tis The Season For Holiday Scams

The FBI released the below report:

Shoppers looking for a good deal this holiday season should also be aware of increasingly aggressive and creative scams designed by criminals to steal money and personal information. According to the FBI’s Internet Crime Complaint Center (IC3), Florida again ranked second in the number of alleged scam victims reported in 2015, with 20,306 consumers claiming a total loss of over $94.5 million. This year, the FBI Jacksonville Division wants local shoppers to be extra vigilant of the following schemes and red flags.

Online Shopping Scams: If a deal looks too good to be true, it probably is. Steer clear of unfamiliar sites offering unrealistic discounts on brand name merchandise or gift cards as an incentive to purchase a product, as you may end up paying for an item, giving away personal information, and receive nothing in return except a compromised identity. In addition, do not open any unsolicited e-mails or click on the links provided. Before shopping online, secure all bank and credit accounts with strong and different passwords. The same should be done for airline and rewards accounts, because the emergence of these offerings has led to an increase in the demand for and resale value of stolen information.

Social Media Scams: Beware of posts on social media sites that appear to offer vouchers or gift cards, even if it appears the offer was shared by an online friend. Some may pose as holiday promotions or contests that lead to participation in an online survey designed to steal personal information. In addition, do not post photos of event tickets on social media sites as fraudsters can use the barcode to recreate tickets for resale.

Smartphone App Scams: Some apps, often disguised as games and offered for free, may be designed to steal personal information from your device. Before downloading an app from an unknown source, look for third-party reviews and be mindful that alternative app marketplaces can potentially include stolen content and compromised versions of otherwise trustworthy applications.

Work-From-Home Scams: Beware of postings offering work that can be done from the comfort of home, as these opportunities may have unscrupulous motivations behind them. Take caution when money is required up front for instructions or products, or when a job post claims “no experience necessary.” Carefully research individuals or companies before providing them with personal information and never provide personal information when first interacting with a potential employer.

Additional steps to avoid becoming a victim of fraud:

Check bank and credit card statements routinely, including immediately after making an online purchase and weeks following the holiday season.

Only purchase merchandise from a reputable source.

Don’t trust a website to be secure just because it claims to be.

Do not respond to spam e-mails or click on links contained within them.

Avoid filling out forms contained in e-mails that ask for personal information.

Be cautious of all e-mail attachments and scan them for viruses before opening.

Verify requests for personal information from businesses or financial institutions by contacting them using the main contact information on their official website.

Be cautious when dealing with individuals outside of your own country.

How to report fraud: Consumers who suspect they’ve been victimized should immediately contact their financial institution and then law enforcement. They are also encouraged to file a complaint with the FBI’s Internet Crime Complaint Center regardless of dollar amount lost, and provide all relevant information regarding the complaint.

The Internet Crime Complaint Center Releases Annual Snapshot Of Internet Crimes

The FBI website offers the below information:

Today, the Internet Crime Complaint Center (IC3) released its annual report highlighting the numbers and common types of complaints it received during 2014 on suspected Internet fraud and other Internet-based crimes.

The report mentions two new trends that took shape during 2014: criminals increasingly taking advantage of personal data found on social media to start relationships with victims and scam them out of their money; and the emerging popularity of virtual currency, which has attracted perpetrators who capitalize on the vulnerabilities of the developing digital currency system.

Other common scams reported to the IC3—which received an average of 22,000 complaints a month during 2014—included auto fraud, impersonation e-mails, intimidation/extortion scams, real estate fraud, confidence fraud/romance scams, and business e-mail compromise schemes.

According to the report, the IC3 adapted its approach to handling complaints during 2014: Analysts began reviewing more recent complaints first and then looked back at older submissions to better identify urgent threats, recognize new trends more quickly, and disseminate information to law enforcement and the general public based on the most recent data.

The IC3—which houses well over three million complaints from consumers in its database—continues to encourage anyone who thinks they’ve been the victim of an Internet crime, regardless of dollar loss, to file a complaint through the IC3 website. The more complaints it receives, the more effective it will be in helping law enforcement gain a more accurate picture of the extent and nature of Internet-facilitated crimes.

You can read the report via the below link:

http://www.fbi.gov/news/news_blog/2014-ic3-annual-report 

FBI Warns Of Tax Refund Fraud

The FBI offers the below information regarding tax fraud:

Criminals are proficient in stealing the personally identifiable information (PII) of individuals to facilitate various fraud activities, including using stolen identity information to file fraudulent tax returns. Once the fraudsters obtain victim PII, they electronically file tax returns and set up pre-paid debit cards or bank accounts to route fraudulent returns. The balances on the pre-paid cards and bank accounts are depleted shortly after the tax refund is issued.

The fraudsters utilize multiple methods to obtain the information needed to file a tax return. The most popular methods include: computer intrusion, the online purchase of stolen PII, the recruitment of insiders who have legitimate access to sensitive information, the physical theft of computers that contain PII, the impersonation of Internal Revenue Service personnel, and the aggregation of information that is obtained through multiple publicly available Web sites.
 
Recent open source reporting indicates that cyber criminals also target and compromise legitimate online tax software accounts of individuals. Cyber criminals conducting this scheme modify victims’ bank accounts to divert transfers to bank accounts or pre-paid cards under their control.

Victims who filed complaints with the Internet Crime Complaint Center (IC3) reported they discovered they were victims of tax refund fraud when they tried to file a return and were notified by the Internal Revenue Service that their Social Security Numbers had already been used to file a tax return. One individual reported that due to an error in direct deposit account information submitted on his return, he was issued a check. However, the victim had not yet filed a return. Others reported before they filed their return, they received notification that their returns were being audited or were under review.

A recent investigation identified a tax refund fraud ring responsible for filing approximately 644 fraudulent tax returns totaling over $1.9 million in attempted fraud. Using fraudulently obtained PII, the fraudsters submitted tax returns and requested the funds be deposited into bank accounts under their control. The group recruited college students to open accounts to collect the tax refund monies. The students withdrew funds via ATMs and counter withdrawals. The students then passed the majority of the funds to another group member and kept a portion of the refund as payment for the use of their bank accounts to conduct the scheme.

This type of fraud is a growing concern as the number of complaints filed with the IC3 has doubled from 2013 to 2014.

If you believe you have been a victim of this scam, you should reach out to your local IRS or FBI field office, and you may file a complaint with the IC3 at www.IC3.gov. Please provide any relevant information in your complaint.

Tips to protect yourself:

• Monitor your credit statements for any fraudulent activity.
• Report unauthorized transactions to your bank or credit card company as soon as possible.
• Review a copy of your credit report at least once a year.
• Be cautious of scams requiring you to provide your personal information.
• Do not open email or attachments from unknown individuals.
• Never provide credentials of any sort via email. This includes clicking on links sent via email. Always go to an official website.
• If you use online tax services, double check to ensure your bank account is accurately listed before and after you file your tax return.
• Ensure accounts that are no longer being utilized are properly deleted or scrubbed of sensitive information. Allowing online accounts to become dormant can be risky and make you more susceptible to tax fraud schemes.