- Medicare Insurance Fraud
- Deepwater Horizon Oil Spill Charity Scam
- Free iPad Scam
- Summer Travel Scams
- Sweepstakes Letter Scams
- Bank of Cascades Phishing Scam
- "Free" Puppy Offer
- Mystery/Secret Shopper Scam
- Fake U.S. Census Scam
- Scam regarding the return of family members from Haiti
- Haiti Earthquake E-Scam
- Phony IRS W-2 E-mail Scam
- Résumé Examination Scam
- New Counterfeit Check Scam
- Fake Tax Preparers Scam
- Shipping Service Scam
- Prison Telephone Scam
- “Dialing Out” Scam
- Online Diploma Scam
- U.S. Food and Drug Administration (FDA) Personnel Scam
TOPIC: Medicare Insurance Fraud
WHO IS THE TARGETED VICTIM? Medicare beneficiaries
WHAT IS THE SCAM? The New York State Department of State Division of Consumer Protection and the New York State Office for the Aging (SOFA) are alerting New Yorkers to a scam where fraudsters call senior citizens informing them that in order to receive their $250 check to cover the amount spent on medical care over their Medicare coverage, they must disclose personally identifying information to the scammer. Some seniors have been told that their check can be expedited by paying a small fee.
WHAT STEPS SHOULD YOU TAKE?
- Do not give out personally identifying information over the phone
- Be wary of calls requesting personal information regarding benefits
- Do not pay any up-front fee to receive your Medicare rebate
- Senior citizens who suspect they have been contacted improperly should contact SOFA, the Division, New York State Insurance Department, or their local Health Insurance Information Counseling and Assistance Program (HIICAP)
TOPIC: Deepwater Horizon Oil Spill Charity Scam
WHO IS THE TARGETED VICTIM? Charitable consumers
WHAT IS THE SCAM? Consumers are receiving unsolicited phone calls and e-mails urgently requesting, and in some cases, pressuring, consumers to donate money for disaster relief related to the BP oil spill. These calls usually request immediate donations, which is in contrast to solicitations from generally reputable charities that tend to temper their requests.
WHAT STEPS SHOULD YOU TAKE?
- Always conduct research on any charity to which you may want to make a donation. If the charity has not registered with the New York State Attorney General, there is a real risk it is not legitimate, and you should not donate to that organization
- Ask for written information about the charity and what percentage of the donation is directed towards programming
- Avoid charities that do not provide proof that donations are tax-deductible
- Avoid charities that thank you for donations you did not make
- Avoid charities that, ask for financial information before you have contributed, or guarantees sweepstakes entry or winnings upon contributing
- Avoid charities that request donations by wire-transfer
Visit the Division's Avoid Charity Scams page for more information.
TOPIC: Free iPad Scam
WHO ARE THE TARGETED VICTIMS? All consumers
WHAT IS THE SCAM? Consumers receive an offer, by e-mail or through a pop-up Internet ad, to be a "tester" or "researcher" for the iPad. In order to become a tester or researcher, consumers must provide the scammer with some personally identifying information, which is then used by the scammer to steal that consumer's identity.
WHAT STEPS SHOULD YOU TAKE?
- Be wary of offers that appear to be "too-good-to-be-true"
- Take note that scammers attempt to take advantage of trends and the desire to own hot, new products
- Buy an iPad only through an authorized retailer or through Apple
Visit the Division's Scam Prevention section for additional tips.
TOPIC: Summer Travel Scams
WHO ARE THE TARGETED VICTIMS? Consumers looking to travel or take a vacation
WHAT IS THE SCAM? There are multiple types of travel-related scams. Some common types involve vacation rentals, timeshare incentives and purchases, , fraudulent vacation packages and airfare scams.
Vacation rental scams are generally conducted through online classified sites. The offer will be an attractive one, generally a very cheap rental. The caveat will be a requirement for a wire-transferred deposit. When a consumer arrives at the rental, it will either not exist or be unavailable. Some scammers will use real images of the property (taken from real estate or legitimate rental sites) to create the appearance of legitimacy.
Timeshare purchase scams generally involve an offer for a timeshare combined with a "free gift" that will be delivered subsequent to the purchase of the timeshare. The consumer must pay a fee for handling or processing, and the gift, if it arrives, is generally of much lower value than advertised.
Fraudulent timeshare scams usually have a consumer receive an offer for a timeshare purchase or rental, with a deposit. This can arrive by package or e-mail. If the customer invests, they later find that the renting or selling company has gone out of business, with no means to get back their deposit.
Fraudulent vacation packages offer discounted luxury hotel or cruise deals. If a consumer makes a deposit and purchases the package, they find that the quality of the trip has been misrepresented, or that significant secondary fees are associated with the package. The deposit is usually unrecoverable.
Airfare scams occur when a consumer purchases a heavily discounted airline ticket, and receives either no ticket, or a counterfeit ticket. There is a variation on this scam where, following the purchase of the ticket, the consumer is told their credit card has been declined, and then asked to wire transfer the money.
WHAT STEPS SHOULD YOU TAKE?
- If a "deal" requires a wire transfer, it is most likely a scam
- Compare deals
- Document all payments, and pay by credit card, so charges can be disputed under the law
- Read the fine print on vacation and travel deals. If you do not like something in a contract, back away or ask for clarification. Consider conducting business with travel agents and agencies verified by organizations such as International Airline Travel Agency Network, the United States Tour Operators Association, or the American Society of Travel Agents
Visit the Division's Scam Prevention section for additional tips.
TOPIC: Sweepstakes Letter Scams
WHO ARE THE TARGETED VICTIMS? New York State Consumers
WHAT IS THE SCAM? Consumers receive a letter claiming they have won a large amount of money in a sweepstakes. In order to receive their prize, they must pay a fee in advance. The letter says it is a "guaranteed sweepstakes reward," but in fact it is a fraudulent solicitation. In reality, the consumer has not won a sweepstakes and any funds sent in advance are lost to the scammer.
WHAT STEPS SHOULD YOU TAKE?
- Do not respond to "pay-for-play" sweepstakes solicitations
- You cannot win a sweepstakes that you did not enter
- Never send fees in advance of receiving the prize money
- Look for discrepancies in the name of the group sending the letter. Scammers and scam organizations often use names that are very similar to well-established, legitimate organizations
- Governments do not conduct sweepstakes. This includes federal, state, and local governments
- Do not respond to sweepstakes that look like bills or charges
Visit the Division's Scam Prevention section for additional tips.
TOPIC: Bank of Cascades Phishing Scam
WHO ARE THE TARGETED VICTIMS? All consumers
WHAT IS THE SCAM? Consumers receive a call or e-mail from a "Bank of Cascades" claiming that their account may have been compromised, and asking them to confirm their bank account number. This is a phishing scam, designed to convince consumers to give scammers their bank account numbers.
WHAT STEPS SHOULD YOU TAKE?
- Do not provide your bank account number in response to an unsolicited phone call or e-mail
- Legitimate institutions do not ask for sensitive information over the phone or by e-mail
Additional phishing prevention information can be found on the Division's Protecting Yourself Online section. Visit the Division's Scam Prevention section for additional tips.
TOPIC: "Free" Puppy Offer
WHO ARE THE TARGETED VICTIMS? Animal lovers
WHAT IS THE SCAM? The consumer is offered, through an advertisement, the chance to adopt a puppy or pure-bred dog. The consumer is generally asked to wire money to cover transport costs, only to find that the dog never arrives. There are other new versions of this scam, including one where a puppy mill operator pretends to be a puppy mill rescue group, and offers to send "rescued" puppies to loving families, sometimes for $1000 or more.
WHAT STEPS SHOULD YOU TAKE?
- Evaluate the offer: is the group offering the deal legitimate? Conduct research. Do not wire money unless you are certain you are dealing with a legitimate business
- If you have doubts, contact a local branch of the ASPCA or other animal protection organization
Visit the Division's Scam Prevention section for additional tips.
TOPIC: Mystery/Secret Shopper Scam
WHO ARE THE TARGETED VICTIMS? E-mail users
WHAT IS THE SCAM? The New York State Department of State Division of Consumer Protection has been alerted to an increase in employment schemes pertaining to mystery/secret shopper positions.
Mystery shopping is a legitimate tool used by companies to measure the quality of retail service. Companies hire mystery shoppers to pose as customers and then provide detailed reports and feedback about their experiences. Individuals might be asked to visit a particular business, purchase a product, ask questions or register a complaint. After a mystery shopper submits their findings, the employer mails a payment to the mystery shopper for the work performed.
Scam artists are using mystery shopping as a way to perpetrate fraud and steal money from innocent victims. People who are interested in earning additional income might be lured by a letter or e-mail from a company stating they have been selected as a mystery shopper. The letter includes a list of assignments and a check made out to the individual for several thousand dollars. The mystery shopper is instructed to deposit the check in their bank account, take their fee out of the check plus the cost of the merchandise they are buying, , and wire the rest of the money back to the company. The supposed "job" is to report on the customer experience at the retail establishment.
Unfortunately, the check will eventually bounce and the mystery shopper will be out of any funds they spent on merchandise and sent back to the company. We offer these tips to avoid becoming a victim:
- Do not cash or deposit a check if you do not know its origin. Forgeries can take weeks to be discovered and untangled
- Verify that the business that offers you a mystery shopper job is legitimate by contacting the authorities, including the New York State Department of Labor and the Better Business Bureau
- Do not be lulled into a false sense of security by official-sounding corporate names
- Do not pay a company to hire you. It is unnecessary to pay money to anyone to get into the mystery shopping business
- Be wary of companies that ask you to disburse money from your own pocket for the goods you buy as their secret shopper
- Do not wire money to strangers or to firms that have supposedly hired you
In other versions of the scheme, applicants are requested to provide bank account information to have money directly deposited into their accounts. The fraudster then has acquired access to these victims' accounts and can withdraw money, which makes the applicant a victim of identity theft.
WHAT STEPS SHOULD YOU TAKE?
- There are legitimate mystery/secret shopper programs available. Research the legitimacy of companies claiming to hire mystery shoppers. Legitimate companies will not charge an application fee and will accept applications online. No legitimate mystery/secret shopper program will send payment in advance and ask the employee to return a portion of the funds
- Do not respond to unsolicited (spam) e-mail
- Do not click on links contained within an unsolicited e-mail
- Avoid filling out forms contained in e-mail messages that ask for personally identifying information
Individuals who believe they have information pertaining to mystery/secret shopper schemes are encouraged to file a complaint at Internet Crime Complaint Center (IC3).
Visit the Division's Scam Prevention section for additional tips.
WHO IS THE TARGETED VICTIM? All consumers
WHAT IS THE SCAM? Scammers are posing as U.S. Census workers. Conducted every ten years, the U.S. Census is an important process that helps to define legislative districts and determine how to allocate federal aid to local, state and tribal governments. Census forms are to be mailed or delivered to households in March 2010.
For every person living at an address in the U.S., the U.S. Census will ask for a name, age, gender, race, ethnic origin, birth date, marital status, employment status, and other similar information. Scammers posing as Census employees ask for donations, personal financial information, and/or Social Security numbers.
WHAT STEPS SHOULD YOU TAKE? Here are some tips to tell the difference between a U.S. Census worker and a scammer:
- The Census Bureau does NOT conduct the 2010 Census via e-mail or the Internet. The Census Bureau does not request detailed personal information through e-mail.
- U.S. Census workers will not ask you about past debt, solicit money, or in any way harass you about finances.
- U.S. Census workers will not ask for your Social Security number, banking information, or credit card number.
- U.S. Census workers will have identification; a copy of the notification letter you received, or should have received, in the mail describing the survey; and, depending on the area, a laptop and laptop case bearing the insignia of the U.S. Census Bureau.
If you receive an e-mail or find a website that you suspect is falsely representing the Census Bureau:
- Do not reply or click on any links within the e-mail.
- Do not open any attachments. Attachments may contain code that could infect your computer.
- Forward the e-mail or website URL to the Census Bureau.
- After you forward the e-mail delete the message.
You will not receive a confirmation e-mail after forwarding the information to the Census Bureau. However, the Census Bureau will investigate the information and notify you of its findings. The Census Bureau can use the information, URLs and links you forward to trace the hosting website and alert authorities to help shut down the fraudulent site.
If you have questions regarding the legitimacy of a survey questionnaire received in the mail, a phone call or visit by a Census Bureau employee, or other concerns of a non-cyber nature, please visit the Bureau’s Survey page.
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WHO IS THE TARGETED VICTIM? People with family members in Haiti
WHAT IS THE SCAM? It has been reported that there is an ongoing scam promising to safely transport relatives in earthquake-ravaged Haiti to the United States for a wire transfer of $500.
The scheme preys on grief-stricken Haitian-Americans with current U.S. Passports. People who call the suspected fraud phone number, (877) 269-2008, are told to wire $500 via a wire transfer agent. In return, they will allegedly receive a package and confirmation number to fly to Haiti to bring back five relatives to the United States. This scam is a new twist on the advance fee scheme.
WHAT STEPS SHOULD YOU TAKE? The Embassy of Haiti strongly urges Haitian-Americans to use caution when approached by any person or organization that promises flights for Haitians still on the island. If you have any suspicions of fraud related to the Haiti Earthquake Relief efforts, please contact the Federal Bureau of Investigation disaster fraud hotline at (866) 720-5721, fax (225) 334-4707, or e-mail [email protected]. Haitian- Americans who want to bring their relatives from the earthquake-ravaged country to the United States should contact the U.S. Citizenship and Immigration Services at (800) 375-5283. They can also contact the agency online at www.uscis.gov.
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WHO IS THE TARGETED VICTIM? E-mail and Internet users
WHAT IS THE SCAM? The New York State Department of State Division of Consumer Protection is warning consumers to beware of unfamiliar organizations soliciting funds for victims of the recent earthquake in Haiti. Past tragedies and natural disasters have demonstrated that some individuals fraudulently solicit contributions for a charitable organization and/or a good cause.
WHAT STEPS SHOULD YOU TAKE? Before making a donation of any kind, consumers should adhere to certain guidelines, including the following:
- Do not respond to any unsolicited incoming e-mails and do not click on any links contained within those messages
- Maintain up-to-date antivirus software
- Avoid giving cash
- Be skeptical of individuals representing themselves as surviving victims or officials asking for donations via e-mail or social networking sites
- Verify the legitimacy of nonprofit organizations by utilizing various resources that may assist in confirming the group’s existence and its nonprofit status by contacting the Division, Office of the NYS Attorney General, the Internal Revenue Service (IRS) and/or the Better Business Bureau. You can search the New York State Attorney General’s online database of registered charities at Office of Attorney General's website.
- Be cautious of e-mails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders
- Make contributions directly to known organizations rather than relying on others to make the donation on your behalf to ensure that contributions are received and used for intended purposes
- Do not give your personal or financial information to anyone who solicits contributions: providing such information may compromise your identity and make you vulnerable to identity theft
More steps and tips may be found on the Division’s Haiti earthquake scam prevention press release and the U.S. Department of Homeland Security Haiti Earthquake cyberscams page. This alert is also available in Spanish.
Anyone who has received an e-mail referencing the above information or who may have been a victim of this scam should notify the Internet Crime Complaint Center (IC3).
HO IS THE TARGETED VICTIM? Employers
WHAT IS THE SCAM? Spam e-mail messages are being sent to employers stating that there have been important changes in the IRS Employers W-2 form. The message also comes with an attachment, which is supposedly a copy of the updated version of the W-2 form. The attached file (Update.doc) contains an embedded file named W-2update.pdf, which is actually a malicious executable file (malware). Below in italics are the details of the e-mail:
From: "Internal Revenue Service" [email protected] Subject: W-2 Form update
Message body: Important changes within the IRS Employers W-2 forms. Attached is an updated version of the W-2 form that needs to be completed by all US based employers. Please update your records and make sure the W-2 form will updated before February 10 2010.
Whether you rely on a tax professional or handle your own taxes, the IRS offers you convenient programs to make filing and payment easier.
Spend less time and worry on taxes and more time running your business. Use e-file and the Electronic Federal Tax Payment System (EFTPS) to your benefit.
. For e-file, visit www.irs.gov for additional information.
. For EFTPS, visit www.eftps.gov or call EFTPS Customer Service at 1-800-555-4477.
WHAT STEPS SHOULD YOU TAKE? Do not open an attachment in an unsolicited e-mail, even if the e-mail appears to be from a known or “official “source. The IRS does not initiate taxpayer communications through e-mail nor does it request detailed personal information or your PIN numbers, passwords or similar access information for credit cards, banks or other financial accounts through e-mail. Report suspicious e-mails and bogus IRS websites.
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WHO IS THE TARGETED VICTIM? E-mail users
WHAT IS THE SCAM? Scammers are circulating an e-mail that purports to be from a human resources director who is offering a job based on a resume they found on the Internet. The e-mail citing past “bad experience,” asks the recipient to click on a link, go to a website, and provide a “credit safety inspection.” However, the link is actually to a phishing website, and personal information that is input can be used to commit identity theft. At no time does the e-mailer provide specifics about the job.
WHAT STEPS SHOULD YOU TAKE? Refrain from clicking on links in an unsolicited e-mail. Delete these e-mails. If you are expecting an e-mail from a potential employer, verify that the e-mail is legitimate, by phone or other means, before responding.
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WHO IS THE TARGETED VICTIM? U.S. Law Firms
WHAT IS THE SCAM? Scammers send e-mails to lawyers, claiming to be overseas and seeking legal representation to collect delinquent payments from third parties in the U.S. The law firm receives a retainer agreement, invoices reflecting the amount owed, and a check payable to the firm. The firm is instructed to extract the retainer fee, including any other fees associated with the transaction, and wire the remaining funds to banks in Korea, China, Ireland, or Canada. By the time the check is determined to be counterfeit, the funds have already been wired overseas.
In a new twist, the fraudulent client seeking legal representation is an ex-wife "on assignment" in an Asian country, and she claims to be pursuing a collection of divorce settlement monies from her ex-husband in the U.S. The law firm agrees to represent the ex-wife, sends an e-mail to the ex-husband, and receives a "certified" check for the settlement via delivery service. The ex-wife instructs the firm to wire the funds, less the retainer fee, to an overseas bank account. When the scam is executed successfully, the law firm wires the money before discovering the check is counterfeit.
WHAT STEPS SHOULD YOU TAKE? All Internet users need to be cautious when they receive unsolicited e-mails. Law firms are advised to conduct as much due diligence as possible before engaging in transactions with parties who are handling their business solely via e-mail, particularly those parties claiming to reside overseas.
Individuals who receive information pertaining to counterfeit check schemes are encouraged to file a complaint at Internet Crime Complaint Center (IC3).
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WHO IS THE TARGETED VICTIM? Taxpayers
WHAT IS THE SCAM? As tax season approaches, the New York State Department of State Division of Consumer Protection is urging taxpayers to watch out for fraudulent tax preparers. Every year, scammers prey on unsuspecting New Yorkers, stealing their refunds and leaving them with significant tax liabilities. The scammers also inflate expenses and claim false deductions and unallowable credits.
WHAT STEPS SHOULD YOU TAKE? The Division offers the following tips when choosing an income-tax preparer:
- Know you rights. Read the New York State Department of Taxation and Finance’s Consumer Bill of Rights Regarding Tax Preparers
- Never give out personal information such as your Social Security number, bank account or mortgage receipt to a tax preparer unless you have determined they are legitimate
- Be wary of tax preparers who claim they can obtain larger than normal refunds or larger refunds than other preparers
- Avoid preparers who base their fee on a percentage of your refund
- Ask for a written estimate of all fees before giving your tax records to the preparer
- Ask if the preparer will e-file your return
- Ask if the preparer will represent you if you are audited
To file a complaint about a tax preparer:
- Visit New York State Department of Tax and Finance website
- Call (518) 457-2721 (in-state callers without free long distance, call 1 800 417-2678)
- If your preparer is located in New York City, contact the NYC Department of Consumer Affairs
by calling 311 or (212-NEW-YORK from outside New York City)
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WHO IS THE TARGETED VICTIM? E-mail users
WHAT IS THE SCAM? Scammers are distributing “spoof” e-mails claiming to be from shipping companies, such as the United Parcel Service (UPS) and DHL Express. The e-mail subject often contains a fake tracking number. In the e-mail, the scammer alerts the consumer to a shipped package that was undelivered due to a wrong address. The e-mail goes on to advise the consumer that they may pick up the package at their local post office after printing the attached label. The attachment is a zip file which, when opened, has an executable file that places a Trojan horse virus on the user’s computer.
WHAT STEPS SHOULD YOU TAKE? Consumers should refrain from opening these attachments and delete the e-mail. If you are expecting a package from a parcel company and receive this message, contact the shipping company by phone or directly via their official website. Consumers should run a virus scan of their computer and make sure their software is up-to-date.
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WHO IS THE TARGETED VICTIM? Phone users
WHAT IS THE SCAM? You receive a call from an operator saying there is an inmate from a correctional facility who needs you to accept a collect call and the associated charges. Once the call is accepted, the caller convinces the consumer to hang up the phone, dial *72 and another phone number. * 72 is the code used by some phone carriers to forward your incoming calls to another number, if you have call forwarding service or if it's available on a per-use basis in your local exchange. If you do this, the inmate will then make additional collect calls to your number, but the calls will be forwarded to someone the inmate knows at the number where you forwarded the calls. That person accepts the charges, but they are billed to you. Often you don't realize this has happened until you notice your phone not ringing or you receive your bill with numerous unexpected charges.
WHAT STEPS SHOULD YOU TAKE? Never accept collect calls unless you are absolutely sure you know the person calling. Never activate call forwarding unless you need to do it for your own reasons.
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WHO IS THE TARGETED VICTIM? Primarily business phone users
WHAT IS THE SCAM? This fraud preys on businesses that use telecommunication systems where you must dial "9" to get an outside line to make a call. The people attempting the scam will call the main number at a business and identify themselves as working for the phone company. To perform a system check, the person will ask the receptionist to initiate a conference call and then press 9 plus 0, which accesses an outside line. The receptionist is then asked to hang up. Often, this leaves the scam artist with access to the outside line. They then make fraudulent long distance calls that are billed to the business.
WHAT STEPS SHOULD YOU TAKE? Legitimate major telecom companies don't have to dial into a phone system to perform such a check. Just hang up or ask pointed questions, including requesting a callback number. Most of the time, the scam artist hangs up and moves on to someone else rather than answering your question.
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WHO IS THE TARGETED VICTIM? Perspective students
WHAT IS THE SCAM? As millions struggle to find a job, earning a diploma or an advanced degree is one way to stand out from the crowd. The Division is warning consumers against online programs that offer fast and easy high school diplomas or college degrees. Some of these institutions are not accredited, provide credit for “life experience,” and offer phony transcripts.
WHAT STEPS SHOULD YOU TAKE? Consumers should look for the following red flags to help identify this type of diploma mill:
- Degrees or diplomas are awarded based on “life experience” and require very little or no work
- The institution guarantees you will receive a degree or diploma within a few days, weeks or months
- The institution offers deals if you sign up to receive more than one degree at a time, such as a Bachelor’s Degree and a Master’s Degree for one low price
- Addresses for administration buildings include P.O. boxes or suite numbers
- Prices are stated per degree instead of per credit hour
Make sure the college or university you are enrolling in is accredited from one of the six regional accreditation boards. The U.S. Department of Education has a searchable database of accredited post-secondary schools at the accreditation page.
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WHO IS THE TARGETED VICTIM? All consumers
WHAT IS THE SCAM? Criminals are posing as FDA special agents and other law enforcement personnel as part of an international extortion scam. The criminal’s call the victims -- who in most cases previously purchased drugs over the Internet or via "telepharmacies" -- and identify themselves as FDA special agents or other law enforcement officials. The criminals inform the victims that purchasing drugs over the Internet or the telephone is illegal, and that law enforcement action will be pursued unless a fine or fee ranging from $100 to $250,000 is paid. The criminals request the money be sent by wire transfer to a designated location. If victims refuse to send money, they are often threatened with a search of their property, arrest, deportation, physical harm, and/or incarceration. Some victims also have fraudulent transactions placed against their credit cards.
WHAT STEPS SHOULD YOU TAKE? FDA special agents and other law enforcement officials are not authorized to impose or collect criminal fines. Only a court can take such action, with fines payable to the U.S. Treasury.
Anyone receiving a telephone call from a person purporting to be an FDA or other law enforcement official who is seeking money to settle a law enforcement action for the illegal purchase of drugs over the Internet should refuse the demand and call the FDA’s Office of Criminal Investigations Office at 1-800-521-5783 to report the crime.