Tag Archives for Frank Abagnale

With Tax Day Looming, Watch Out for IRS Imposters

Published in the Woonsocket Call on April 8, 2018

With the April 15th tax filing deadline just around the corner, AARP’s Fraud Watch Network is gearing up to keep taxpayers from falling victim to imposter scams aimed at taking away their hard earned dollars.

Tax fraud and other identity theft schemes are a growing problem, says the U.S. Federal Trade Commission (FTC), a federal consumer protection agency. Last month, FTC released its Consumer Sentinel Data Book 2017 reporting that scammers took $ 900 million away from their victims. Tax fraud ranked second that year in types of identity theft reported, as over 82,000 reports were made. Meanwhile, the Treasury Inspector General for Tax Administration found that as of May 2017, the Internal Revenue Service (IRS) had identified 195,941 tax returns with more than $2 billion in fraudulent refund claims and the agency prevented the issuance of appropriately 92 percent of those refunds.

Don’t fall Victim to the IRS Scammers

Criminals impersonating the IRS often make aggressive threats – of arrest, court action, confiscation of property, or even deportation unless they make immediate payment on back taxes, says AARP fraud expert Kathy Stokes.

“We see repeatedly that scammers who impersonate the IRS work year round at trying to swindle Americans, and they’re particularly relentless in April,” said Stokes, in a statement released with AARP’s new survey, ‘Experience and Knowledge of Tax Fraud.’ “While there’s no simple solution, you can outsmart cons: file your taxes early, before they beat you to it, shred financial documents you no longer need and beware of high pressure tactics. The IRS will not call and threaten arrest for taxes owed, and they certainly won’t ask for a gift card as a form of payment, but imposter’s will,” adds Stokes.

AARP’s new phone poll, released on March 28, 2018, which surveyed 1,005 Americans ages 18 and older to gauge their experience and knowledge of fraud, reveals that people may have a false sense of security, as three-fifths (62 percent) report they’re either extremely confident or very confident in their ability to detect fraud. Despite the confidence expressed by the respondents that fraud and scams are easy to recognize, the data from the survey indicate that most (80 percent) are concerned, with half saying that they are extremely or very concerned about becoming a target or victim of fraud.

But, AARP’s survey findings show that many consumers will fall victim to IRS scammers who will keep calling until they land victims, with one in four respondents (25 percent) receiving a phony call from someone impersonating an IRS agent over the last year. The IRS does not email or text for your information, but more than a quarter of respondents (26 percent) incorrectly believe or are uncertain about whether the IRS can text or email requests for personal or financial information.

Taking Responsibility to Fight Fraud

Although survey respondents say it is important to take precautions to deter scams, many do not putting themselves at risk for being a target or victim of fraud. While most say it is extremely or very important to shred paper copies of financial or personal information, half reported that they only sometimes, rarely or never shred documents. Over one in five indicate that they rarely or never do.

More than eight in ten (79 percent) say that they have not ordered a free copy of their credit report through annualcreditreport.com, this report could alert them if identify theft has occurred.

The survey also found that respondents are putting themselves at risk of fraud or identify theft by leaving valuable personal and financial information in unsecured places, like their car. One in seven respondents admitted to leaving their checkbook in their car, while nearly a third say they left their purse or wallet in their car.

Knowledge Can Keep the Scammers Away

AARP believes that that gaining knowledge on how to avoid being scammed is key to not becoming a victim. This is why AARP continues building on its antifraud efforts, currently a free fraud helpline (877-908-3360), by adding the survey, training webinars, a “Tax ID Theft” tip sheet, and a new podcast series, called “The Perfect Scam.” The series features tips from Frank Abagnale, whose personal story inspired the Spielberg film, “Catch Me if You Can,” who now advises the FBI on how to outsmart con artists. Also, the April issue of AARP Bulletin will more broadly examine fraud, including an exclusive interview with U.S. Attorney General Jeff Sessions.

“The Perfect Scam” podcast was launched on April 6 and will be available AARP’s website and on popular podcasting platforms.

For more details about the IRS scam and other tax-related frauds, visit http://www.aarp.org/FraudWatchNetwork. Consumers who think that they are being targeted by a scammer may call the AARP Fraud Helpline at 877-908-3360 and speak with a volunteer trained in fraud counseling.

The Federal Trade Commission encourages consumers to file a complaint whenever they have been the victim of fraud, identity theft, or other unfair or deceptive business practices. They can do it online, or by calling the FTC’s Consumer Response Center at 1-877-FTC-HELP (1-877-382-4357).

Senate Aging Panel Releases its 2018 Fraud Book

Published in Woonsocket Call on April 1, 2018

In early March, the U.S. Senate Special Committee on Aging again put the spotlight on common fraud schemes directed at America’s seniors at a panel hearing, “Stopping Senior Scams.” At the Senate panel hearing, held in Dirksen Senate Office Building 562, the Committee officially released its 2018 Fraud Book detailing the Top 10 scams reported to its Fraud Hotline last year. In 2017, the Committee’s Fraud Hotline received more than 1,400 complaints of frauds targeting seniors around the country, clearly revealing the extent of this epidemic.

Last year, the most prevalent scam reported to the Committee’s Hotline, detailed in the Senate Aging Committee’s 56-page 2018 Fraud Book, was the IRS Impersonation Scam in which con artists call, pretending to be IRS representatives, to collect payment of taxes and threaten arrest if payment is not immediately made by phone (During tax filing season, seniors and others should be on high alert for scam artists claiming to be the IRS).

The March 7th hearing was the third hearing this Congress—and the 12th in the past three years—that the Senate Aging Committee has held examining scams affecting older Americans. These hearings c=examined notoriously widespread scams including the IRS imposter scams, lottery and sweepstakes scams, computer tech support scams, grandparent scams, elder financial exploitation, and identity theft.

“This Committee’s dedication to fighting fraud against older Americans is raising awareness and it is making a real difference,” said Chairman Susan Collins (R-ME), of the Senate Aging Committee, in her opening remarks. “Just two weeks ago, the Department of Justice announced it has charged more than 250 people with stealing more than half billion dollars from more than a million Americans. This is the largest ever law enforcement action to protect our nation’s seniors from fraud,” noted Collins.

Seniors Lose Billions in Exploitation Schemes and Scams

Collins called the “stakes extremely high” in fighting against the skyrocketing incidence of senior fraud, noting that according to the Government Accountability Office, older American’s lose a staggering $2.9 billion a year to an ever-growing array of financial exploitation schemes and scams.

Ranking Member, Bob Casey (D-PA), called for more aggressive action to be taken “to ensure that not one more senior loses another penny to a con artist.” The Pennsylvania Senator called for working more closely with businesses to create “another line of defense to help prevent assets from ever leaving the hands of unsuspecting victims.”

Witnesses Stephen and Rita Shiman from Saco, ME, came to share and educate others as to how they fell victim to a grandparent scam. During his testimony, Shiman acknowledged the special bond between grandparents and their grandchildren. “The scammers knew this well and took full advantage of it with my wife and myself. They knew that when a grandchild is in trouble, grandparents go all out to help,” he said.

With over 20 years working as a lead volunteer with Pennsylvania, chairing the nonprofits Consumer Issue Task Force, Witness Mary Bach explained how her 15-member task force team from across the commonwealth keep residents of all ages educated about current scams sweeping the state. She stated, “[w]e know that education is power, and when someone hears the specifics of a scam they are much less likely to be victimized. If you can spot a scam, you can stop a scam!”

Witness Doug Shadel, State Director of AARP Washington State. testified about the current state of fraud targeting seniors and outlined that impostor scams are still the most prevalent.” In the new age of technology, it is easier than ever for scammers to be someone they are not,” he said, noting that “combining this ability with a tactic to incite fear or excitement upon their victim, paints a very convincing picture, one that has enabled scammers to easily take many seniors of their hard-earned savings.”

Finally, Witness Adrienne Omansky of Los Angeles, CA, described how she formed the Stop Senior Scams Acting Program in 2009 after learning from students in her commercial acting class about fraud they had experienced. Over the past few years, this volunteer group has grown significantly and now performs in about 30 venues each year, ranging from small veteran’s halls to a large convention center. As part of her testimony, Omansky played a few clips of the Public Service Announcements her group has recorded and shared several of the lessons the members of her acting program have learned through their own performances, including that seniors are often more comfortable learning about scams from their peers.

AARP Fights Against Senior Fraud

AARP recognized early on that older Americans are extremely vulnerable to fraud and identity theft,” says AARP Rhode Island State Director Kathleen Connell. “It’s a multi-billion-dollar problem and getting worse. That’s why our organization has made a significant investment in public outreach as well as a free alert system available to our members as well as the general public.

“One aspect of prevention that has been our focus is explaining to people how con artists operate. We hired Frank Abagnale, the real-life former con man depicted in the movie Catch Me If You Can, as a national spokesman. His job is to help people spot a con. He goes way beyond “if it’s too good to be true.” Abagnale explains the psychological triggers that con artists employ to snag even the seemingly brightest and most cautious victims. This is laid out in our free publication The Con Artists Playbook. It is a hand out at events and presentations we’ve been conducting across the state the past three years.

“The AARP Fraud Watch Network is a free service,” Connell continued. “Sign up and you will receive email alerts on the latest scams. One of our Fraud Watch presenters is fond of saying that when you hear about a scam on the TV news it is natural to say, ’I’d never fall for that. ’Maybe, he tells audiences, it’s only because you were just warned. That’s the thing. It’s the new scam that you haven’t heard about that is especially dangerous. In addition to the alerts, you can report scans so the word spreads as new cons make the rounds. There’s also a national fraud hotline (877-908-3360) with specialists who take on any questions. And an online map allows you identify scams reported in your area. We urge everyone to check out the Web site (www. fraudwatchnetwork.org) to learn more.”

For a copy of the 2018 Senate Aging Committee Fraud Book, go to http://www.aging.senate.gov/imo/media/doc/Fraud%20Book%202018%20FINAL.pdf.

Technical Support Scam Running Rampant Across Nation

Published in Woonsocket Call on December 25, 2016

If one penny was given to me for every phone call I received from a “Microsoft employee” warning me about a virus in my 10-year-old computer, I could retire as a millionaire. The Washington, DC-based AARP says that thousands of consumers across the nation may have fallen victim to the ‘technical support scam,’ more than ever before. Last month, the AARP Fraud Watch Network launched a new initiative to raise the awareness of the scam and educate consumers about how they can protect themselves.

A survey released on November 14, 2016 by Microsoft found that over the past year two-thirds of consumers surveyed have experienced the tech support scam, in which the phone caller poses as a technician from one of the major computer companies. AARP’s efforts to educate consumers about this scam includes online content, advertising and media appearances featuring renowned security expert and Fraud Watch Network Ambassador Frank Abagnale.

The Nuts and Bolts of the ‘Technical Support Scam’

Executing the scam via telephone, email or even pop-up ads, the phone caller informs a targeted person that a virus or some other security problem has been detected on the victim’s computer, and offers to easily make a repair. Instead, their goal is to gain control of the computer, access personal files and pass words, and obtain credit card information to charge the consumer for the supposed repair or a warranty program – which proves to be worthless.

“If you or someone you know receives a call or an email from someone identifying themselves as a technician with Microsoft, Google, Apple or some other well-known technology company, it is likely to be a scam. Just hang up the phone,” said Abagnale, in a statement. The large computer firms never make proactive calls or send email to provide unrequested technical support.”

Microsoft’s survey findings indicate that 20 percent of the people surveyed around the world continued with a potentially fraudulent interaction to their computer, visited a scam website, or even provided a credit card or other forms of payment, after the initial contract. This means that the victim downloaded harmful software, giving the scammers access to their computer.

Interestingly, the victims who continued to interacting with the scammers, half were millennials (ages 18 to 34), the technology savvy generation. Thirty four percent were ages 36 to 54 and 17 percent were age 55 or older.

Abagnale advises consumers never to give control of their computer to a third party, nor to provide a credit card number to pay for unsolicited repair services or warranty programs.

Don’t Let Your Guard Down

Adds AARP Rhode Island Director Kathleen Connell, “We’ve had an enthusiastic response to our multi-media Fraudwatch presentation. “Many older Rhode Islanders are relatively new to the online world and they are the most vulnerable. But anyone who lets his or her guard down can suffer enormously at the hands of online scammers. And by no means have criminals abandoned their old-fashioned tactic via the U.S. Mail and land-line phones. Our presentation is based on the perspective of former con artists and we include a copy of AARP’s Con-Artist’s Playbook, which reveals the nasty tricks of the trade.

“As we often say, people hear about scams in the media and think, ‘I would never fall for that.” Well, of course not. You just watched a news story warning the scam is active. It’s the one you haven’t heard about that can be fatal because the cons know exactly which emotional and psychological buttons to push.

“We’re most pleased by how volunteers have stepped up to take our training and become presenters,” Connell added. “We couldn’t manage the demand ourselves.”

“Most consumers don’t have the technical skills to know that their computer has been infected with malicious software, exposing them to widespread theft and fraud,” said Attorney General Peter Kilmartin. “A growing number of consumers make purchases, pay bills, or monitor bank account information online. Giving a thief access to that information is akin to inviting them into your house to take whatever they want.”

Kilmartin suggests the following tips from Microsoft to protect from these telephone tech support scams:

Do not purchase any unsolicited software or services.

Ask if there is a fee or subscription associated with the “service.” If there is, hang up.

Finally, Kilmartin urges Rhode Islanders to never give control of your computer to a third party unless you can confirm that it is a legitimate representative of a computer support team with whom you are already a customer. Immediately report the scam call to the Consumer Protection Unit at the Office of Attorney General at 401-274-4400 (Monday – Friday, 8:30 a.m. – 4:30 p.m.) or email at consumers@riag.ri.gov.

Any group interested in scheduling a Fraudwatch presentation can call the AARP state office at 401-248-2674 and speak with Outreach Director Darlene Reza Rossi. AARP also offers free scam alerts via smart phone or computer. You can learn more about Fraudwatch in Rhode Island and enroll in the Fraudwatch Network at http://www.aarp.org/rifraudwatch.