ScamSafe

What to Do if You Got Taken by 12 Daily Pro Scam

Do you have money in 12 Daily Pro (or StormPay) and don’t know what to do? Go here: Truston Identity Theft Blog.

Tags: 12DailyPro, 12+Daily+Pro, Fraud, Ponzi, StormPay

Work at home scams thriving as always

I keep seeing victims report getting hit by these scams. The fake companies offering great paying home employment continuously reconstitute themselves under different names.

These scammers and fraudsters are so devious they even used the name of a victim that reported them on this web site. That's right, one of the people that first reported the work at home scams here on Scamsafe.com, back in 2004, had his name used as the "representative" of one of the fraudulent employers.

And careerbuilder.com and the other job boards have utterly failed to protect consumers. Last year careerbuilder contacted me directly saying they were making a committment to deal with these scams. I don't feel they are making any impact. The solution they proposed was that consumers should report the crimes and they would follow up. That's totally upside down. The job web sites should be taking a proactive approach to this. eBay has over 1,000 people dedicated just to fraud investigations. There needs to be a similar thing going on at careerbuilder and the other sites like monster.com.

Sorry to single you out so much careerbuilder, but a victim just reported losing $12,000 to a scam perptrated by one of YOUR customers. Go to this link and read the comments (at the bottom, as of today). The company is called Escrow Cheque Corp and the business is a scam. Click here to see, if you are in doubt (opens a Google search).

I propose that the online job services work together and cooperate to close down these scams. They cannot rely on law enforcement because most of these scammers operate from overseas. Do you have any idea how difficult it is for law enforcement to crack down on a ring that is based in Russia or Nigeria?

H&R Block's Blunders Put Consumers at Risk of ID Theft

Financial giant H&R Block's TaxCut software is designed to help users avoid nasty surprises when calculating their taxes. But many past and present customers of Block were surprised in a different way recently, as they received unsolicited copies of TaxCut in packages that prominently displayed their Social Security number (SSN) on the outside.

The recipient's SSN is embedded in a string of numbers printed on the shipping label, and many confused individuals had received a notice about the error long before they received the package. Some haven't received any package at all.

More: http://www.consumeraffairs.com/news04/2006/01/block_id_theft.html

 

HeightMax and similar "scams"

***UPDATED 12/12/06. SCROLL FOR UPDATE***

I usually focus on identity theft and financial account fraud. But I couldn't help but hear about HeightMax, yet another consumer supplement product. Seth Godin, a prominent blogger, posted about it today. There's nothing new here, people have been hawking "snake-oil" type miracle cures and fixes for, I would guess, centuries.

In recent times, I'm sure we've all heard of Focus Factor. It's a supplement (a pill) that's supposed to help you think clearer, focus better, etc. Yep, they got in trouble with the Federal Trade Commission . HeightMax' claim to fame is that its mix of vitamins, minerals and whatever else will help you grow taller. Once again, if it sounds too good to be true, and you have to pay for it, it usually is.

When do products like HeightMax cross the line into unlawful claims? That's usually for the Federal Trade Commission to decide, which they only do when enough people complain.

But HeightMax does shows ScamSafe's 4 signs of a scam:

(1) Questionable testimonials. Lots of people on their web site or brochure claim it's a great product but you can't possibly find out who they are. HeightMax says it's founder is William Thompson, PhD. Who is he? I did a Google search on "William Thompson" and got 345,000 results. Think it's a coincidence they chose such a common name?
(2) Tough to reach. Most scams make it impossible to reach them easily and usually hide their address. Often you don't find a telephone number or mangement's names on the web site. (Be warned though, lots of the top scammers use fake phone numbers and fake names to appear legit).
(3) Claims that are remarkable but truly impossible to back up. Super low interest rates, no fees, or a pill that will make you grow are just a few examples.
(4) SOMETHING THAT PROVIDES EASY RESULTS. Want to get respect, lots of dates, or beat up the bully? Take a pill and...grow tall. It's easy. So people pay the $59 for a bottle of HeightMax. The real winners in life had to work hard (although they usually make it look easy).

Please be careful everyone. Believe it or not, it's super easy for a bad person to set up a business that takes advantage of people. And usually it's hard for them to get caught or punished. They know the system.

**********
Update: I just posted important news on Heightmax on my new blog. The FTC has nailed the scammer behind Heightmax. Click here to read the article.
**********

Be Alert Using Personal Information This Month

Be Alert Using Personal Information This Month, Cautions Identity Theft Assistance Center

Holiday Shopping, New Phishing Schemes, Ongoing Katrina Aftermath Make Consumers More Vulnerable

WASHINGTON, Dec. 2 /PRNewswire/ -- Several factors have combined to make consumers especially vulnerable to identity thieves during the month of December, according to the Identity Theft Assistance Center (ITAC).

"Identity thieves don't take a holiday," said Anne Wallace, executive director of ITAC. "Consumers should be especially careful in the coming weeks about sharing their personal information, especially their social security numbers, whether it's a request from an individual or comes unsolicited through the internet," she adds.

Identity thieves use consumers' personal information to open financial accounts in their name. Wallace cites several factors that point to an especially bad month for consumers:

* Tax refund scheme. The Internal Revenue Service (IRS) has warned
consumers about a bogus email offering tax refunds. The emails, which
purport to be from tax.refunds@irs.gov, direct consumers to a website
where they are asked for their social security number and credit card
number to receive a refund.

* Holiday Shopping. Retailers often use the holidays to entice
consumers into opening store credit accounts. Wallace explains
consumers can decrease their chances of becoming victims of identity
theft by limiting the number of credit accounts, which generally
require a social security number. The holidays are also a good time
to cancel credit accounts that have not been used over the past 12
months.

* Hurricane aftermath. Authorities continue to report arrests related
to identity theft in the aftermath of hurricanes Katrina and Rita.
Criminals attempt to trick survivors into revealing personal
information, or may use information from abandoned personal documents
or intercepted mail to open accounts.

More from Yahoo!

Fake IRS E-Mail Scam Goes Phishing

Users are now being targeted with a new phishing attack posing as a tax refund from the Internal Revenue Service.

A new phishing attack posing as a tax refund from the Internal Revenue Service is using a configuration problem on the GovBenefits.gov Web site to fool users into thinking they're safe in offering up personal information such as Social Security and credit card numbers.

The fraud begins with an e-mail supposedly from the IRS, which claims the recipient is owed a tax refund. In the message from "taxrefunds@irs.gov," a link is embedded to a site where recipients can supposedly collect the refund.

More from InformationWeek

Scottrade Informs Customers of Third-Party Data Security Breach

This one is bad, because of what data was potentially stolen.

Scottrade, an online trading company, has informed its customers that the company's electronic checking provider, TROY Group, suffered a security breach which compromised personal data including names, driver's licenses, bank account and bank routing numbers and trading account numbers. The TROY Group acknowledged the security breach in an October 25 press release.

More at Wash Post blog

Stolen Boeing laptop held ID data on 161,000 people

Thousands of Boeing workers got some worrisome news Friday to end their workweek.

The company said personal information on 161,000 current and former employees was put at risk of exposure with the theft of a laptop computer belonging to a Boeing human-resources employee.

The exposed information includes names, Social Security numbers and, for some, birth dates, bank names and account numbers. Also on the stolen computer are some employees' home addresses and bank-account routing numbers for direct-deposit paychecks.

More from SEATTLE POST-INTELLIGENCER

Calif. schools warned of identity theft

Missing hard drives put nearly 600,000 at risk

More from MSNBC

Trans Union Data Breach Exposes Consumers to Identity Theft

November 9, 2005 - A desktop computer containing the names, Social Security Numbers, and other personal information on more than 3,600 consumers was stolen from a Trans Union sales office last month. The theft highlights the need for regulation of large data brokers, which have exposed millions of American’s to identity theft over the past year. It also showcases the need for Congress to leave in place strong state laws that currently require consumer notification when this type of theft occurs. More from ACCESS

New Scam Targets Elderly Medicare Recipients

September 30, 2005 - Beginning October 1, 2005, approved companies can begin marketing their prescription drug plans to Medicare recipients. A new scam is using this event to target those on Medicare; gaining access to their personal financial information including Social Security numbers.

More at Guardmycreditfile.org

FBI Fraud Alert

This poster has been created by the FBI to provide critical information about scamming and fraud devices used by criminals. (Click on this image to see a larger version.) Specifically, this poster addresses the Internet Fraudulent Check Scam, Foreign Lottery Scam, Nigerian Fraud Scam, Re-Shippers Facilitating Illicit Money Transfers, and the Phishing Scam. It also addresses these scams used in combination or in tandem. Many of these scams are perpetrated by foreign individuals and originate outside the United States. These individuals hide behind the anonymity of the internet and the inherent logistical and cultural barriers facing U.S. law enforcement in coordinating with foreign law enforcement to bring the perpetrators to justice.

The poster tells you what to look for. See further below for information on what to do if you are a victim.

WHAT TO DO IF YOU ARE A VICTIM OR SUSPECT FRAUD:
If you suspect a payment or check is fraudulent or a scam, contact your bank branch manager. Financial Institutions and/or customers who have suffered a loss are encouraged to report the loss to law enforcement. One avenue is the FBI's Internet Fraud Complaint Center website.

Security Breach Could Expose 40 million to Fraud

By JOE BEL BRUNO, Associated Press Writer

NEW YORK - A security breach of customer information at a credit card-processing company could expose to fraud up to 40 million cardholders of multiple brands, MasterCard International Inc. said Friday.

The credit card giant said its security division detected multiple instances of fraud that tracked back to CardSystems Solutions Inc. of Tucson, Ariz., which processes transactions for banks and merchants.

More: Security Breach Could Expose 40M to Fraud - Yahoo! News.

Receiving strange or random checks

Dear Readers,

One of the "newest" and increasingly popular scams today is electronic check fraud. The Internet has made it much easier for these scams to happen.

If you EVER receive a check (either on paper or via email) that you didn't expect to receive, do NOT cash it.  Even if the bank says the check is legit and will clear. What do you do? Contact your local police or sheriff. Or stay tuned to scamsafe.com for more instructions.

Also, very important: NEVER give out your checking account and routing number to anyone. Even if they tell you they want to wire you money. If you're a business and you need to do wire transfers to operate, be absolutely sure you are working with someone you know and trust.

And if you ever receive a check, email or any correspondence that references "Qchex," please be very careful. We recommend that you assume anything with Qchex on it is a scam. The victim could be you or someone else (using you as the conduit).

I can't go into the details of how the scams work. But please--protect your checking account information as carefully as your social security number. And don't trust anyone asking you to cash checks on their behalf.

--Tom

Editor, ScamSafe.com

Ps. Food for thought. Why would someone send you a check for no reason? Or why would someone need you to cash checks for them (and give you a huge % to keep yourself). The answer is: no one legitimately would. And bear in mind...you could either 1) be a direct victim yourself or 2) help someone commit a felony--a Federal crime.

FRAUD ALERT: Work-at-home, check cashing scams

We are getting swamped in reports about check cashing and work-at-home scams. Here's an example of the email solicitation they use to people who post their resume on Careerbuilder and other job boards. (The job boards continue to aid and abet international crime rings. )

Hello,

Rilan Soft LABS - one of the largest developers of the Unix-based software in the East Europe. Company is the winner of prizes of the exhibition Neo Tech 2004, our production is widely known in the countries of Euro Union. Now, we advance our production on the American market and you have an opportunity join one of the most successful and fastest growing companies in the manufacture of custom software.

Our basic office is located in Moscow (Russia), also we have branches in the countries of the East Europe, such as Ukraine, Belarus and Poland, in the near future we open representation in Germany. As a result of the USA market research we are convinced that our products have good sales potential, but after we have made approach to sell our programs in USA, we regret to find that we can't receive payments. Most of our clients prefer payment orders through PayPal payment system. The job we offer you requires receiving payments from our clients on your PayPal account. Your salary will make the % from the sum of the payments acting on your account.

We reviewed your resume closely and considered you as a possible candidate for the job. Work consists in receiving payments from our clients in USA for software we sell. For receiving payments you should have confirmed PayPal account registered with. At present time we have quite big amount of potential clients in purchasing our products. So, first sales are expected to be in the nearest future. Once you receive payment, you should withdraw it from your account and inform us. After that, send amount in cash to our manager in Russia using Western Union service. Your compensation will consist in percent of payment's sum which you keep from the receiving money. Your earnings depends on the sum of payment you receive, we offer the following terms of contract:

the Sum of payment, USD your compensation, from the sum

up to 200 25% (up to 50 USD); from 200 up to 500 20% (from 40 up to 100 USD); from 500 up to 1000 16% (from 80 up to 160 USD); from 1000 up to 1500 13% (from 130 up to 195 USD); from 1500 10% (from 150 USD)

As a result of the USA market research we convinced that our products have good sales potential. We assume that your earnings in the first month will make about 1000 USD, however we also assume that the quantity of sales the nearest half-year will increase, and accordingly your earnings will increase also. If you accept the offered conditions please send your e-mail, or fax number, which we will use to send you copy of labor contract.

All information concerning your resume has been taken from materials of a site careerbuilder.com

Sincerely, Alex Eftimov

Rilan Soft LABS a_rilansoft@juno.com

Please report any contact from such fraudsters or crime of this kind. See this web page on ScamSafe.com on how to do so:

http://www.scamsafe.com/scamsafe/2004/06/reporting_check.html

FRAUD ALERT: E-Z Checkcash

Check cashing schemes keep popping up. This from D. Hambrice, who is still on the trail of the check cashing frausters...

"www.cashers1.biz, is a stolen and forged check ring with ties to Russia and are being sought aggressively by the FBI. Evidence of their damage may be seen on www.scam.com, www.ripoffreport.com and www.scamsafe.com in the name E-Z CheckCASH. They have also stolen the identity of a legitimate business in the SeaTac, WA area."

FRAUD ALERT: Beware of Tsumani scams & viruses

A mass e-mail posing as a plea for aid to help the victims of last month's Asian tsunami disaster is actually a vehicle for spreading a computer virus

And there have been a number of mass e-mails sent out in an attempt to steal money, many of them versions of the so-called Nigerian Letter scam, to which readers are invited to reply with their details, apparently in order to help transfer large sums of money and receive a cut themselves.

Computer worm exploits tsunami to spread virus - Jan. 17, 2005.

FRAUD ALERT: Beware of Pyramid Schemes

What is a pyramid scheme?

Pyramid schemes are illegal scams in which large numbers of people at the bottom of the pyramid pay money to a few people at the top. Each new participant pays for the chance to advance to the top and profit from payments of others who might join later.

Of course, the pyramid may collapse long before you reach the top. In order for everyone in a pyramid scheme to profit, there would have to be a never-ending supply of new participants. In reality, however, the supply of participants is limited, and each new level of participants has less chance of recruiting others and a greater chance of losing money.

What you should know about pyramid schemes

They are losers. Pyramiding is based on simple mathematics: many losers pay a few winners.

They are fraudulent. Participants in a pyramid scheme are, consciously or unconsciously, deceiving those they recruit. Few would pay to join if the diminishing odds were explained to them.

They are illegal. There is a real risk that a pyramid operation will be closed down by law enforcement officials and the participants subject to fines and possible arrest.

For more details: Direct Selling Association - Protecting Yourself from Pyramid Schemes.

FRAUD ALERT: Phishing reminder--scam targets MSN customers

There are far too many phishing scams for us to list on this blog. And they just keep coming and coming. But I felt it was worth a reminder to everyone to watch out for emails that appear to be from a trusted sourced and, in some way, ask you to click on a link and update or input some account information. The rule here is: NEVER TRUST A LINK OR URL IN AN EMAIL YOU RECEIVE. And don't input information of any kind into a web site that you got to from clicking on an email link.

Internet and e-mail users should be wary of an identity theft scam appearing in the guise of an information request of Microsoft Network Web site customers.

A fictitious “James Dawson of MSN Support” asks customers via e-mail to update account information, threatening deletion of one’s account.

FRAUD ALERT: Scam traps

Guide to common cyberscams

Here is a list of common Internet fraud schemes drawn from the 100-plus investigations launched under Operation Cyber Sweep, a government initiative to combat online crime. The investigations were prompted by referrals from the Internet Fraud Complaint Center, which posted the list.

See the article on CNET News.com.

The types of scams listed are:

Credit/debit card fraud
Identity theft
Nondelivery of goods/services
Spoofing/phishing
Online auction/retail
Freight forwarding/reshipping
Advance-fee fraud schemes
Counterfeit check schemes
Business/employment schemes
Investment fraud
Phony escrow services
Ponzi/pyramid schemes

FRAUD ALERT: Holiday Consumer Alert

IDENTITY THIEVES DON’T TAKE A HOLIDAY

Press Release from the Identity Theft Resource Center

The time between Thanksgiving and Christmas is the biggest shopping season of the year. As we enter the holiday season this is a good time to remind everyone to take additional precautions against identity theft. Because of the distractions of the holidays and crowded shopping environments, conditions are ripe for identity thieves to take advantage of the situation. Please keep in mind that not all thieves work alone. They may have an accomplice whose job is solely to distract the shopper from the theft.

The Identity Theft Resource Center identifies the following problems and offers the attached positive recommendations.

See the full press release for details

FRAUD ALERT: Lottery Fraud

Beware of Lottery Schemes

Fraudulent telemarketers have often used offers of “investing” in foreign lottery tickets or chances as a vehicle to defraud consumers. Although federal laws forbids the importation, interstate transportation, and foreign transportation of lottery tickets or chances, many fraudulent telemarketers routinely contact people in the United States, through mailings, advertisements, and telephone calls, to solicit their involvement in foreign lotteries such as the “Canadian Lottery.”

Victims often begin by paying as little as $5 or $10 for lottery chances. Many of those who do are later contacted by telemarketers who hold themselves out as “experts” in “investing” in lottery chances, and who solicit the victims for larger and larger amounts of money. Law enforcement authorities in the United States and Canada are aware of many instances in which victims have sent thousands, tens of thousands, and even hundreds of thousands of dollars to lottery telemarketers, after hearing repeated promises or guarantees of vast returns.

In reality, the telemarketers invest little or none of the victims' money in the lottery tickets or chances, and keep the money for themselves after paying salaries and other expenses of their fraudulent business. In some instances, where victims had been given certain lottery numbers by the telemarketers, and later learned independently that their numbers had won a real lottery, the victims were told that their winnings had been “invested” in other lottery tickets rather than being paid to them directly.

In other words, never take part or give money to anyone talking about a lottery investment--hang up the phone. It's a scam.

Thanks to the US Dept of Justice

FRAUD ALERT: ID Lock.com

Watch out for this one: www.IDLock.com. ID lock offers to help you totally lock your identity and provide complete protection from ID theft or financial fraud. It's an absurd claim. Furthermore, what they charge you over $200 for is simply a few easy things you can do yourself (see our FAQ). Don't get suckered into this--it's a lousy deal for all consumers. We believe that eventually the FTC will shut them down.

FRAUD ALERT: First Link Benefits & credit card scam

This company uses telemarketing to deliver its scam. They offer a pre-approved credit card with a computer "bonus" at a very very low price. They get consumers to give checking account numbers in order to pay for the computer...and they say this is so the consumer will have the entire credit line available for their own purchases. Then the criminals use an electronic demand to draw money from the checking account--leaving you with no computer, no cash and no credit card.

Keep in mind that scams like this will change their form slightly (a different name or instead of a computer it will be something else, for example). Don't fall for them. USE THIS RULE: NEVER GIVE YOUR BANK ACCOUNT OR SOCIAL SECURITY NUMBER OVER THE PHONE.

If you feel that is too restrictive, then at the least you should use this rule: GIVE YOURSELF A COOLING OFF PERIOD. Wait a day before signing up. The scam artists will always say something like "you have to order now or you'll lose this offer." That's a FRAUD SIGNAL. If they were legitimate, they wouldn't mind waiting a day to get your business. So, wait a day yourself, think it over and if you can, do a Google search on them. My guess is the next day you'll realize it's a bad deal.

See more: http://www.badbusinessbureau.com/results.asp?q1=ALL&q4=&q6=&q3=&q2=&q7=&searchtype=0&submit2=Search%21&q5=first+link+benefit

419 spammers use Holocaust to boost credibility

A spammer has bombarded at least 75,000 inboxes with an e-mail scam that offers recipients a share of US$35m from a World War II Holocaust victim's bank account, experts say.

In what appears to be similar to a Nigerian 419 scam, the fraudster has used legitimate organisations to plead his case. The supposed author, Ronald Lauder, said he was a member of Swiss organisation the Independent Committee of Eminent Persons (ICEP), which he said tracked down bank accounts that have been dormant since 1945.

More from ZDNet Australia

Wells Fargo customer data stolen again

For the third time in a year, Wells Fargo & Co. has reported computers containing customer personal data have been stolen from a third-party vendor.

This time the $422 billion financial services giant sent letters to thousands of mortgage and student loan customers saying four computers were stolen last month from Atlanta-based Regulus Integrated Solutions LLC, which prints loan statements for a number of big banks. Wells Fargo did not say how many of its 4.9 million mortgage and almost 900,000 student loan customers were at risk. Though no passwords or PINs were on the machines, the stolen computers did hold customer names, addresses, social security numbers and account numbers, according to the Associated Press.

A spokeswoman said there were no reports of misuse and that the company was providing its free credit-monitoring service to those who enrolled by March 31, 2005.

FDIC warns consumers on e-mail ''phishing'' scam

The FDIC issued an alert about an increasingly common e-mail scam designed to steal personal information and money from millions of unwary consumers. The Federal Deposit Insurance Corp. (FDIC), perhaps best known as an insurer of bank deposits, issued its warning about so-called "phishing" eight months after criminals began misappropriating its name and reputation to perpetrate e-mail fraud.

More from IndiaDaily

Lottery Scam Targets Elderly

NEW YORK (CBS) Every year, one out of three adults in the United States gets a call from a con man, and the very best in the business of telemarketing fraud are known in the con game as "the closers."

They are the smooth, persuasive talkers who convince people to send them millions of dollars based on a phone conversation.

Recently, the most talented closers in the business have been working something called the Canadian lottery scam, one of the largest, most successful cons ever.

More from CBS 2

CA Dept of Corp - Consumer Alerts

08/02/04 - **INTERNET ALERT - BETTERBUSINESSSUPPORT.COM ** -

The Department of Corporations has been notified that Betterbusinesssupport.com is offering escrow services over the internet to residents in California. Betterbusinesssupport.com states its license number is 963-1865. Betterbusinesssupport.com is not licensed by the California Department of Corporations as an escrow agent and does not hold California Department of Corporations license number 963-1865

More

Watch out for "debt elimination" companies

You can eliminate your debts without paying them off. If you don't mind the possibility of going to jail, that is

If it were only so. Web sites are proliferating that promise they can wipe off your credit card debt, your mortgage and even your car loan. And if you're feeling guilty about doing it, they give you plenty of justification: The banking system is a fraud, they say, the Federal Reserve is a sham, and the American dollar is worthless paper.

Full story on Forbes.com

'Wrong Number' Stock Tip Scam Hits Washington State

Beware of a message on your voicemail or answering machine with what sounds like a hot stock tip; chances are it's bogus.

SEATTLE - It's an investor's wildest dream. Getting in at the bottom on a stock that's on the way up. But a new stock scam could send your money down the drain.

It's a "wrong number" fraud that recently started hitting our area. It's a simple deception that targets your voicemail.

Full story

FBI: Mortgage Fraud Is Rampant in U.S.

Fraud is running rampant in the nation's mortgage industry, with nearly three times as many reports of suspicious activity so far this year compared with 2001, a top FBI official said Friday.

"It has the potential to be an epidemic," said Chris Swecker, FBI assistant director for criminal investigations.

More from Yahoo!

DISASTER ALERT- REDUCING IDENTITY THEFT OPPORTUNITIES

The Identity Theft Resource Center wishes to alert the public of several potential identity theft-related situations that might arise from a natural or man-made disaster. This information is based on observed criminal behavior in disaster situations. It is unfortunate but thieves do take advantage of all natural and man-made events. It is important that no one assumes that they are victims of identity theft if information is missing. It could be so badly destroyed by the disaster that NO one could read it again.

READ MORE [PDF]

Social Security Refund Just Another Scam

Taxpayers should not fall victim to a scam offering refunds of the Social Security taxes they've paid during their lifetimes.

How the scheme works is in exchange for filing a claim with the IRS, victims are asked to pay a "paperwork" fee of $100, plus a percentage of any refund received.

Be aware that the law does not allow this type of refund of Social Security taxes. Victims are robbed of the up-front fee. IRS processing centers are aware of this scam and have been stopping the false claims.

Seniors Beware of "Living Trust Mills" and Annuity Scams

This fraud alert was released by the Attorney General of California in 2003. But it is no less relevant today and applies to seniors everywhere. --ScamSafe Editor

Attorney General Lockyer Warns Seniors about "Living Trust Mills" and Annuity Scams
February 19, 2003

(SACRAMENTO) – Attorney General Bill Lockyer today warned California consumers to be on the lookout for "living trust mill" con artists who fraudulently sell trusts and annuities to senior citizens.

Sales agents for these scam operations often misrepresent the disadvantages of seniors' current investments and the advantages of the investments the agents are selling. They may even make seniors believe their bank accounts are less safe than the annuities or other investments they want seniors to buy. To give themselves a cloak of legitimacy, these sales agents pretend to be experts in living trusts. They often work in assisted living centers, churches and other places where seniors gather, hooking elderly victims through free seminars and other sales presentations.

"Consumers, particularly seniors and their families, should be wary," said Lockyer. "We believe there are living trust mills violating the law -- and the trust placed in them by seniors. We are determined to investigate and punish fraudulent conduct, but we also want to help seniors avoid becoming victims."

Seniors pay substantial sums of money to sales agents for living trust mills. But through fraud and deceit, the sales agents damage seniors' estate plans, and the security of their investments and life savings.

A state appellate court recently affirmed a multi-million dollar judgment the Attorney General obtained against an insurance company that conspired with a living trust mill to commit fraud in selling trusts and annuities to seniors.

In their solicitations, sales agents often pose as expert financial or estate planners. They pass themselves off as a "trust advisor," "senior estate planner" or "paralegal," and schedule an initial appointment with seniors in their homes. Under the guise of helping set up or update a living trust, the sales agents find out about seniors' financial assets and investments.

Usually, the sales agents then schedule a second visit to deliver a completed trust and have documents signed and notarized, and title of assets transferred to the trust. Typically, the agents go over the assets to be placed in the trust. They use that review of seniors' investments to scare them into believing their investments are unsafe, and that by "moving" their money, they can earn higher interest with no risk. The agents may have seniors sign documents that transfer the senior's CD, mutual fund accounts, or other investments to an annuity, or a so-called "promissory note" or other investment.

Planning an estate and choosing investments involve important legal, financial and personal decisions. If estate planning documents are not properly prepared or executed they can be invalid and cause lasting damage.

Following are additional tips to help consumers avoid becoming victims of living trust mills and their scams:

- Living trust mills' sales agents are not attorneys and are not experts in estate planning.
- Documents in the trust packages may not comply with California law.
- Sales agents may not follow procedures set by law for executing or witnessing wills and other documents. These violations may make the documents subject to challenge.
- Watch out for companies that sell trusts and also try to sell annuities or other investments.
- Sales agents may fail to disclose possible adverse tax consequences or early withdrawal penalties that may be incurred when transferring stocks, bonds, certificates of deposit or other investments to annuities.
- An annuity is not 100% safe, and only a portion is guaranteed by the state. Insurance companies can and do fail, and their assets may not be enough to pay the full value of their customers' investments.
- So-called "promissory notes" are not insured by the FDIC or any other government agency and may be very risky. They may not be registered as securities with the state.

An attorney qualified in estate planning can help consumers decide if they need a living trust or other estate planning documents, or help them review an existing trust or will. To obtain a list of attorneys who are certified as estate planning specialists, and to receive other written information about estate planning and how to select an attorney, call the State Bar of California's toll-free number for seniors at 1-888-460-7364. Before consumers buy an annuity or any other investment, they should review it with people they know and trust, such as their financial or tax advisor, their attorney and trusted family members.

For CA residents: Consumers who feel they have been victimized by a living trust mill, or annuity or promissory-note fraud, should report it to their local district attorney and the California Department of Insurance. Consumer complaints also may be filed online at the Attorney General's Website at http://www.ag.ca.gov/consumers/mailform.htm. Residents of other states should contact their state Attorney General, department of consumer affairs or department of elder services.

Auction Fraud & Int'l Crime Rings

In the THE WALL STREET JOURNAL, August 3, 2004, there is a story by Nick Wingfield about auction fraud on Ebay. Excerpts:

"By letting strangers sell goods to each other without meeting, eBay has created a marketplace of awesome breadth -- and a huge potential for fraud. The Federal Trade Commission says it received more than 166,000 Internet-related fraud complaints last year with reported losses of nearly $200 million. About half of the complaints involved online auctions." One detective in LA says alone "he's received more than 1,000 fraud complaints about eBay since 2002, with five to eight more coming every day."

"Despite those numbers, the high-tech crimes unit at the Los Angeles County district attorney's office estimates it has filed only about 15 cases since 2002 involving Internet-auction fraud. The biggest obstacle often is finding a suspect. Fraudsters, some of them in distant countries, use an endless supply of tricks to disguise their identities."

In one instance, a woman detained by police for taking payment on an auction and not delivering the item, actually "had been hired by a European nonprofit health organization to receive charitable donations in her account and forward them to Western Union offices in Germany and Romania." She had no idea that the money was coming from fraudulent auctions--and that the nonprofit was a hoax.

FULL STORY [Subscription required]

Duped by a check cashing scam

Too good to be true: Mother of three sued after winning $13,000 on Internet

RACINE, WI - Jaclyn Swenson, 26, was trying to figure out where she was going to get money for diapers when the doorbell rang.

A man from FedEx handed over an envelope. Inside was another envelope, made of brown paper, and inside that envelope was a certified check for $13,000. Swenson was shocked. She knew she'd won a contest on the Internet, but she never believed the money would really arrive.

Swenson says she called family, banks, the Racine Police and the Better Business Bureau to get advice about the unexpected windfall. She recalled what she learned: "Everyone says a cashier's check means the money's already there."

The $13,000 check has been trouble ever since it showed up. It has gotten her sued by her credit union, it had her afraid to leave the house, and it has her worried she'll somehow lose her children.

FULL STORY from Journal Times [pop up]

Phishing scams Jul 5-7

See alert details from Fraud Watch Int'l [pop up]

US Bank phishing email - "US Bank Account Verification Required!"
Citibank phishing email - "Citibank's account!"
US Bank phishing email - "Critical Changes to your Account Access"
eBay phishing email - "eBay Promotion - You Have Won $50,000.00 USD"
US Bank phishing email - "U.S. Bank Alert - Unauthorized Login Attempts"
US Bank phishing email - "U.S. Bank's official notice"
Citibank phishing email - "Your request for Express Transfer"
Citibank phishing email - "your Citibank account!"
Citibank phishing email - "Citibank: Urgent Message!"
Bendigo Bank phishing email - "Official information from Bendigo Bank"
Citibank phishing email - "Official information from Citibank UK"
eBay phishing email - "***Urgent Safeharbor Department Notice***"
eBay phishing email - "***Urgent Safeharbor Department Notice***"
HSBC Bank phishing email - "Official information from HSBC Bank plc"
US Bank phishing email - "Warning all U.S. Bank users."
US Bank phishing email - "Notification of U.S. Bank Internet Banking Unauthorized Account Access"
Citibank phishing email - "official Notice for all Citibank users!"
Fleet Bank phishing email - "Important Update From Fleet Bank"
US Bank phishing email - "US Bank Account Security Measure!"
AOL phishing email - "Account Verification"
Citibank phishing email - "Urgent Update: CitiSafe by Citibank!"
eBay phishing email - "Verify your eBay Account Information"
eBay phishing email - "TKO NOTICE: eBay request, please read."
eBay phishing email - "Verify your eBay ID"
eBay phishing email - "TKO NOTICE: Please verify your account"
Fleet Bank phishing email - "Members Update Request..."
Lloyds Bank phishing email - "Lloyds TSB [Mon, 05 Jul 2004 01:40:25 -0600]"
PayPal phishing email - "Security Test"
US Bank phishing email - "UsBank.com Security Update - URGENiv"
US Bank phishing email - "Critical Changes to your Account Access"
Wells Fargo Bank phishing email - "Your account at Wells Fargo has been suspended"

Phishing scams Jul 1-4

See alert details from Fraud Watch Int'l [pop up]

AOL phishing email - "AOL Billing Update"
Citibank phishing email - "Urgent Update: CitiSafe by Citibank!"
eBay phishing email - "Your Ebay account could be suspended"
eBay phishing email - "eBay CUstomer Service - Account Update Required - T.K.O. Notice"
eBay phishing email - "**Account Pre-Suspension Notice**"
eBay phishing email - "***Urgent Safeharbor Department Notice***"
eBay phishing email - "***Urgent Safeharbor Department Notice***"
US Bank phishing email - "U.S. Bank® Internet Banking"
US Bank phishing email - "U.S. Bank Security Software Upgrade"
Westpac Bank New Zealand phishing email - "OfficiaI lnformation from Westpac New ZeaIand"
Citibank phishing email - "Your request for Express Transfer"
Barclays Bank phishing email - "Warning aII Barclays IBank users!"
Citibank phishing email - "Please update your account details with Citibank"
eBay phishing email - "SafeHarbor Pre-Suspension"
eBay phishing email - "Verification Required To Avoid Account Suspension"
eBay phishing email - "Ebay Fraud Department (R)"
eBay phishing email - "TKO Notice: eBay Account Verification"
eBay phishing email - "TKO NOTICE: Pay your fees to eBay.com"
eBay phishing email - "Verify eBay Account "
eBay phishing email - "eBay Safeharbour Department Notice"
eBay phishing email - "***Fraud Prevention Group Warning***"
eBay phishing email - "***Fraud Prevention Group Warning***"
eBay phishing email - "*****URGENT eBay Account Security Measures*****"
eBay phishing email - "*****URGENT eBay Account Security Measures*****"
Lloyds Bank phishing email - "lmportant lnformation from LIoyds TSB"
PayPal phishing email - "Verify and update your PayPal information"
US Bank phishing email - "U.S. Bank Security Software Upgrade"
Citibank phishing email - "Fri, 02 Jul 2004 04:53:15 -0200"
AOL phishing email - "Urgent AOLBilling Department Notice"
Barclays Bank phishing email - "lmportant lnformation from BarcIays lBank"
Citibank phishing email - "Citibank's account!"
eBay phishing email - "Update your eBay contact information"
eBay phishing email - "[TKO] : your eBay account could be suspended "
eBay phishing email - "Security Check."
eBay phishing email - "E Bay Fraud Prevention Group Warning"
PayPal phishing email - "Update your account records"
PayPal phishing email - "Your Account Is Under Investigation"
US Bank phishing email - "US Bank security update"
US Bank phishing email - "Update Your Account Information Until 08/01/2004"
Woolwich Bank phishing email - "Important information from Woolwich"
US Bank phishing email - "0fficiaI Notice for aII U.S. Bank customers"
Citibank phishing email - "Activate Bill Pay"
eBay phishing email - "eBay CUstomer Service - Account Update Required - T.K.O. Notice"
PayPal phishing email - "Fraud Prevention"
eBay phishing email - "Urgent Safeharbor Department Notice"
Citibank phishing email - "Please confirm your account details with Citibank!"
Citibank phishing email - "Regular Citibank verification of the accounts."
US Bank phishing email - "U.S. Bank Consumer Alert"
US Bank phishing email - "U.S. Bank Suspicious Account Activity!"
Yahoo! PayDirect phishing email - "Yahoo! PayDirect Monthly Reminder"
Citibank phishing email - "your account in Citibank!"
PayPal phishing email - "Your PayPal Account"

FRAUD ALERT: CALIFORNIA-SAFETRADE.COM

07/09/04 - **INTERNET ALERT - CALIFORNIA-SAFETRADE.COM**

The Calif. Department of Corporations has been notified that California-safetrade.com is offering escrow services over the internet to residents in California. California-safetrade.com is falsely advertising on its website that it holds California Department of Corporations license number 963-1948. California-safetrade.com is not licensed by the California Department of Corporations as an escrow agent and does not hold California Department of Corporations license number 963-1948.

Phishing scams Jun 21-26

See alert details from Fraud Watch Int'l [pop up]

US Bank phishing email - "U.S. Bank emergency Notice!"

US Bank phishing email - "U.S. Bank Fraud Verification Process"

US Bank phishing email - "U.S. Bank emergency Notice!"

eBay phishing email - "Important Information Pertaining To Your Ebay Account"

eBay phishing email - "Urgent Safeharbor Department Notice"

Citibank phishing email - "!Citibank's account "

US Bank phishing email - "Online banking issue"

eBay phishing email - "eBay.com Protection"

eBay phishing email - "Urgent Safeharbor Department Notice"

eBay phishing email - "eBay Safeharbour Department Notice"

Citibank phishing email - "Keep Your Identity To Yourself"

Citibank phishing email - "Citibank Secure Verification Process"

US Bank phishing email - "Notification of U.S. Bank Internet Banking Unauthorized Account Access"

eBay phishing email - "ebay account error"

eBay phishing email - "**Account Investigation Pre-Suspension Warning**"

eBay phishing email - "Immediate attention required.SECURE_ID: 98745856"

eBay phishing email - "TKO Notice: ***Urgent Safeharbor Department Notice***"

eBay phishing email - "Your eBay account needs attention. SECURE_ID: 30473232"

eBay phishing email - "Urgent Safeharbor Department Notice"

eBay phishing email - "Urgent Safeharbor Department Notice"

eBay phishing email - "eBay Safeharbour Department Notice"

US Bank phishing email - "U.S. Bank® Fraud Verification Process"

US Bank phishing email - "U.S. Bank Consumer Alert"

AOL phishing email - "Regarding your AOL account information"

eBay phishing email - "Your eBay account could be suspended"

PayPal phishing email - "Please Update Your PayPal Account"

eBay phishing email - "eBay Update Information"

eBay phishing email - "**Urgent Safeharbor Department Notice**"

US Bank phishing email - "U.S. Bank Online Access Blocked User Compromised"

US Bank phishing email - "Re-Submit: UsBank.com Urgent requirementpf"

Lloyds TSB Bank phishing email - "OfficiaI lnformation from LIoyds TSB"

US Bank phishing email - "Internet banking issue"

Citibank phishing email - "Your request for Express Transfer"

PayPal phishing email - "Verify your identity."

US Bank phishing email - "US Bank Account Verification"

eBay phishing email - "Confirmation - Security Measures"

eBay phishing email - "Credit/Debit card update"

eBay phishing email - "eBay Important Account Information"

eBay phishing email - "eBay: Restore Your Account!"

Citibank phishing email - "to users of Citibank"

AOL phishing email - "Activate your Account"

Fleet Bank phishing email - "!official Notice for all clients of FleetBank"

Phishing scams Jun 17-20

See alert details from Fraud Watch Int'l [pop up]

US Bank phishing email - "U.S. Bank® Fraud Verification Process"

eBay phishing email - "Your eBay account could be suspended!"

eBay phishing email - "*Account Investigation Warning*"

Citibank phishing email - "Additional Protection of Your Account at no cost"

Citibank phishing email - "!official Notice for all users of Citibank"

Citibank phishing email - "Activate Bill Pay"

Citibank phishing email - "Warning all Citibank users."

Fleet Bank phishing email - "! FleetBank updates"

Fleet Bank phishing email - "! Regular FleetBank verification"

Fleet Bank phishing email - "0fficiaI Notice for aII clients of FleetBank!"

eBay phishing email - "eBay Safeharbour Department Notice"

eBay phishing email - "FPA NOTICE: eBay account suspension warning (Submit Only Once)"

eBay phishing email - "Billing Issues"

eBay phishing email - "FPA NOTICE: eBay Registration Suspension - Section 9"

eBay phishing email - "Security Test"

Citibank phishing email - "official Notice for all Citibank users"

Citibank phishing email - "! Citibank's officiaI notice"

Citibank phishing email - "Citibank!"

Citibank phishing email - "Please read this message"

Citibank phishing email - "ReguIar Citibank verification of the accounts"

Citibank phishing email - "official Notice for all Citibank users!"

Citibank phishing email - "Citibank reguIar verification of the accounts"

CompuServe phishing email - "Please confirm your CompuServe account"

US Bank phishing email - "U.S. Bank® Fraud Verification Process"

PayPal phishing email - "New email address added to your PayPal account"

eBay phishing email - "Urgent Safeharbor Department Notice"

eBay phishing email - "eBay Registration Suspended"

eBay phishing email - "Urgent Security Notice"

Citibank phishing email - "Citi ATM Card PIN Update"

The Royal Bank of Scotland phishing email - "0fficial Notice for all Royal Bank of Scotland users"

First Bank phishing email - "To all First Bank users! First Bank official notice"

US Bank phishing email - "Notification of U.S. Bank Internet Banking Unauthorized Account Access"

eBay phishing email - "RNO NOTICE: eBay Registration Reinstatement"

eBay phishing email - "eBay Safeharbour Department Notice"

Halifax Bank phishing email - "Halifax Internet banking official notice!"

Phishing scams Jun 14-16

See alert details from Fraud Watch Int'l [pop up]

US Bank phishing email - "United States Bank - Customer Service - Verification Required"

US Bank phishing email - "NOTICE: U.S. Bank account updates (please read)"

eBay phishing email - "*****Urgent Notification*****"

eBay phishing email - "TKO NOTICE: eBay request, please read."

eBay phishing email - "eBay Billing Information"

eBay phishing email - "TKO Notice: ***Urgent Safeharbor Department Notice***"

eBay phishing email - "We Need to Update Your Information"

Citibank UK phishing email - "OfficiaI linformation from Citibank UK"

AOL phishing email - "AOL Verification Required"

AOL phishing email - "Your AOL Account information has been compromised"

Lloyds TSB Bank phishing email - "Wed, 16 Jun 2004 10:15:25 +0300"

Lloyds TSB Bank phishing email - "OfficiaI lnformation from LIoyds TSB"

VISA phishing email - "Protect your debit card against any unauthorised charges"

US Bank phishing email - "U.S. Bank® Fraud Verification Process"

US Bank phishing email - "U.S. Bank Fraud Verification"

US Bank phishing email - "U.S. Bank Customer Service - Verification Required"

US Bank phishing email - "Information - Urgent Usbank.com updaqn"

eBay phishing email - "Urgent Safeharbor Department Notice From: "eBay""

eBay phishing email - "24A FPQ NOTICE: possibble account access by a third part"

eBay phishing email - "*Urgent SafeHarbor Department Warning*"

Citibank phishing email - "to users of Citibank."

Citibank phishing email - "CitiBank Customer Service - Verification Required"

Nationwide Building Society phishing email - "!Nationwide Internet banking's account"

Fleet Bank phishing email - "Online Banking: Protect Yourself from Internet Fraud"

US Bank phishing email - "Re-Submit: UsBank.com Urgent requirementjf"

US Bank phishing email - "U.S. Bank Important Warning Message"

PayPal phishing email - "Your immediate attention is required."

eBay phishing email - "TKO NOTICE: Please verify your account"

eBay phishing email - "Your account will be suspended"

eBay phishing email - "TKO Notice: ***Urgent Safeharbor Department Notice***"

Citibank phishing email - "! 0fficiaI Notice for aII users of Citibank"

Citibank phishing email - "! your Citibank account"

Citibank phishing email - "!Citibank official updates"

AOL phishing email - "AOL Reminder-- You've Got Pictures! 7b2z0f"

HSBC Bank phishing email - "! officiaI Notice for aII users of HSBC Bank plc"

HSBC Bank phishing email - "! official Notice for all HSBC Bank plc customers"

Phishing scams Jun 11-13

See alert details from Fraud Watch Int'l [pop up]

US Bank phishing email - "U.S. Bank® Fraud Verification Process"

PayPal phishing email - "PayPal Service Fraud Warning !"

PayPal phishing email - "Update your account records"

eBay phishing email - "Update your eBay contact information"

Citibank phishing email - "Protect yourself from Internet fraud"

eBay phishing email - "eBay Security Measures: Verify your identity"

Citibank phishing email - "Info Regarding Identity Fraud Targeting Citi"

PayPal phishing email - "Notification of PayPal Limited Account Access"

eBay phishing email - "eBay Safeharbour Department Notice"

eBay phishing email - "Account update"

eBay phishing email - "Update Your Account Urgently"

eBay phishing email - "24A FPQ NOTICE: possibble account access by a third part"

eBay phishing email - "TKO NOTICE:Update Your User Informationa"

Citibank phishing email - "Update your account information"

Check cashing scam has new domain name

Next Day Finance, one alias for the notorious work-at-home check cashing fraud ring, has set itself up on a new domain name for its web site: www.worldremittances.com. The are also advertising on the job web site dice.com.

For more information, check out Scam.com.

Update on work-at-home check cashing scam

This report from Dick Hambrice:

"All known 'Check Cashing Opportunity' websites are either shutdown or are non-functioning for [new] applications. The ONLY site still viewable is one called "ntt-body.com" but their signup page doesn't open. This site appears to be hosted by Verio-Hostin