Tips for reducing your risk of fraud this holiday shopping season

/in /by

With November upon us, the holiday shopping season is shifting into high gear. While Black Friday and Cyber Monday deals can save shoppers cash on gifts, they are also an opportunity for scammers who are looking to capitalize in consumers’ interest in shopping online. To help reduce your risk of being their next victim, keep the following safe shopping tips in mind through the end of the year. 

Different payment methods have better fraud protections. Due to differences in consumer protection law and the ways that payment methods have been designed, how you choose to pay can determine if you are entitled to a refund in the case of fraud. Credit cards and debit cards have the most protection, with card issuers allowing you to dispute phony charges. Checks, peer-to-peer payment apps, wire transfers, and cash do not have such protections, even if a criminal convinces you send them money via one of those methods. 

In this vein, stick with the payment system set up for third-party marketplaces like Amazon, eBay, and Etsy. These platforms often ensure that the seller will deliver your purchase and give you the ability to dispute undelivered or fraudulent goods. There is no reason a seller should ask you to use a different payment method than the ones available on the platform. Avoid those asking for you to pay them in gift cards, with cryptocurrency, or through a peer-to-peer app (like Venmo, Zelle, Cash App, or PayPal). 

Be careful of delivery impersonations. One of fraudsters’ popular phishing methods is impersonating delivery companies like USPS, UPS, FedEx, and Amazon. Usually sent in a text message, the scammer will claim that a delivery can’t be completed until you provide more information. While they’re typically looking to steal personal information, these messages may also seek some type of payment peddled as a delivery fee or contain infectious malware. 

Given the higher chance that you may actually have a package on the way during the holiday season, it can be difficult to tell which notifications are genuine or not. If you are waiting for a real delivery, go to the shipment confirmation page (either through your email or through the seller’s website) and check if they really do need any further information from you. Don’t click on links from unknown senders or respond to suspicious messages. 

Just because your friend shared it on social media doesn’t mean it’s true. Last month, the Federal Trade Commission highlighted social platforms’ role in spreading scams. It’s a real problem for young individuals especially, with nearly half of those aged 18 and 19 reporting that social media was the first point of contact with a fraudster who stole their money. Regardless of age, scammers are trying to reach you on social media through posts of their own, posts that your friends shared, accounts impersonating people you may know, and purchased advertisements. These often include fake products and services that otherwise might be a good gift. 

If something seems off, don’t dismiss the alarm bells only because you know the person who shared the content. Links may impersonate genuine websites and businesses, often with only one letter misspelled. Scammers frequently take over the accounts of people you may know or create a new account to mimic a friend. Reach out to the person through text message (or another contact method besides the suspicious account) and check if it is really them making posts or sending messages. 

Watch out for cheap fakes. Scammers know it can be tough to find the hottest items at an affordable price. They often advertise popular or sold-out goods, like gaming consoles and smartphones, at unbeatable prices. After they take your money, they’ll ghost you and leave you empty-handed or send you a poor knock-off. If an item is known to be out of stock, you should question how this seller came by their goods. Similarly, if someone is selling items well below the going rate, that warrants extra care as a potential buyer.  

A reverse image search of the seller’s pictures could reveal if they swiped the advertised images from somewhere else (a good sign that they’re not genuine). Also check the seller’s account to see if they have a trustworthy history of doing business. If you decide to make a purchase, stick with the marketplace’s payment system and use a credit card so you can dispute the charges if it turns out to be fraudulent.

 

If you or someone you know has targeted by or been a victim of a fraudulent student loan repayment scam or any other type of fraud, we encourage you to report it via Fraud.org’s complaint system. Complaints filed with Fraud.org are shared with a network of more than 200 law enforcement and consumer protection agency partners who can investigate these crimes. 

Stay smart as student loan payments restart

/in /by

This month, millions of borrowers will have to make payments on their student loans for the first time in over three years. For many, this will be the first time that they will put money towards their student debt. For all borrowers, this marks a significant transition that can affect their budgets. Unfortunately, we anticipate that criminals will seek to take advantage of consumers unfamiliarity with the student debt system to try and defraud them. 

Given the popular focus on debt cancellation over the past few years, it is unsurprising that fraudsters have tried to deceive borrowers with illegitimate promises of debt relief. These schemes usually involve outreach to consumers with requests for sensitive information, such as a Social Security number, bank account information, or Federal Student Aid (FSA) login credentials. In addition, scammers may attempt to charge a bogus fee for their “debt cancellation” services without ever helping the victim. 

Another common fraud related to student debt is phony consolidation and refinancing offerings. Often under the premise of lower interest rates or lower monthly payments, bad actors will perpetrate these schemes in a similar fashion as cancellation fraud with the hope of gaining sensitive consumer information or extracting payment. For most victims who believe their loans are consolidated under one of these scams, they never officially change their loan servicer. This means that despite potentially months of repayment, their charges were going to the fraudsters while their actual debt balances grew with interest and suffered penalties. 

The criminals behind these scams can impersonate legitimate entities within the student debt space, such as the U.S. Department of Education, a borrower’s university, or legitimate loan servicers. Others, however, peddle their scams under novel (and fake) branding. Many scammers will also charge for filing services that would normally be free if the consumer filed directly themselves. For example, one Pennsylvanian reported to Fraud.org a bogus “document preparation services” company that charged hundreds of dollars under the guise of helping borrowers get ready for repayment. 

With student loan payments resuming, keep the following in mind: 

  • The federal government offers loan consolidation services and limited debt relief programs (like Public Service Loan Forgiveness, Teacher Loan Forgiveness, and Income-Driven Repayment) free of charge. Anyone seeking a fee to provide these services is likely a criminal. 
  • The federal government and its contracted partners will never ask you for your login credentials over text, phone, or email. 
  • Ask your loan servicer about the details of your repayment plan and make sure you’re enrolled in the best plan for you. If you’re unsure which plan is right for you, check on the Federal Student Aid website. 
  • Make sure your monthly payments line up with the estimated monthly payments under your desired repayment plan. If they don’t, that may be a sign that you are paying a fraudulent business or that your legitimate servicer enrolled you in the wrong repayment plan. 

 

If you or someone you know has targeted by or been a victim of a fraudulent student loan repayment scam or any other type of fraud, we encourage you to report it via Fraud.org’s complaint system. Complaints filed with Fraud.org are shared with a network of more than 200 law enforcement and consumer protection agency partners who can investigate these crimes. 

Beware of charity scams following Hurricane Idalia and wildfires in Maui

/in /by

Following disasters, scammers frequently set up fraudulent charities to take advantage of consumers’ interest in helping victims. Beyond stealing victims’ money, these scams rob legitimate charities of funds that would otherwise go to support victims of disasters. Hurricane Idalia and the wildfires in Maui are no exception. At Fraud.org, we have seen an increasing tempo of reports of scammers fraudulently soliciting donations for these natural disasters. 

The basic premise of a charity scam is simple: fraudsters solicit donations on behalf of a non-profit effort, while actually diverting some (or all) of the funds to themselves. These phony charities crop up in many contexts in addition to natural disasters. For example, criminal charges have been brought in relation to scams targeting veterans assistance programs and political initiatives. In 2022, the FTC received over 10,000 reports of charity fraud. These scams can solicit funds through a variety of mediums, including social media, text messages, and robocalls. They sometimes impersonate governmental agencies or legitimate charity organizations, such as FEMA and the American Red Cross. However, they may also operate under a novel name and premise, trying to take advantage of media coverage in the wake of a disaster. 

If you’re looking to provide assistance to victims of Hurricane Idalia and the Maui wildfires, keep the following tips in mind: 

  • Don’t assume a charity is legitimate just because a friend promoted it on social media. 
  • Look for a history of charity work. If the organization was established a few days ago, it’s more likely to be a fraud. 
  • Be suspicious of charities seeking donations via cryptocurrency, gift cards, or wire transfers. These kinds of payment methods contain the least fraud protections and typically have greater uncertainty about who is receiving the funds. The safest way to donate is via credit card or debit card. 
  • Think twice before donating to a charity that is not listed on charitynavigator.org or the IRS’ tax exempt organization search. 
  • Legitimate charities shouldn’t pressure you into making a donation quickly. 
  • Check for signs that the charity is an imposter. Unusual wording and spelling mistakes are a red flag. Also be sure that the URL is spelled correctly—just one letter difference can redirect you to a scam. 
  • If you have been affected by a disaster, visit DisasterAssistance.gov for next steps on receiving federal aid. 

 

If you or someone you know have been a victim of a charity scam, we urge you to report it via Fraud.org’s secure online complaint form. Complaints are shared with Fraud.org’s network of consumer protection and law enforcement partners who use complaints to identify trends and build cases. 

IRS warns taxpayers of mail scam

/in , /by

The Internal Revenue Service (IRS) is warning taxpayers about a new scam designed to trick potential victims into believing that they are owed a refund. IRS and government impersonation scams are nothing new. In fact, Federal Trade Commission data shows that they are one of the most reported forms of fraud for years now. However, this scam stands out from the rest as it involves postal mail and is related to a refund rather than outstanding taxes. 

Specifically, the impersonators are mailing cardboard envelopes containing a letter with IRS masthead and claiming to be regarding the recipient’s “unclaimed refund.” It then asks for multiple photos of the potential victim’s driver’s license and various personal information (such as a phone number, bank routing information, and a Social Security number) to receive the refund. As with other scams, the contact information provided by the fraudsters does not belong to the IRS. The personal information they are seeking allows the criminals to commit identity theft. Additionally, the letter is filled with awkward and incorrect phrasing—another common sign of fraud. 

Fraud.org continues to receive complaints from consumers regarding this and other IRS impersonation schemes. For example, a consumer reported receiving a letter with a demand for over $27,000 to pay off a tax debt that did not exist. Another individual living overseas submitted a fraud report detailing a phishing website pretending to help international taxpayers resolve IRS matters. 

To reduce your risk of being a victim of a government imposter scheme, keep the following tips in mind: 

  • Double check the legitimacy of any phone numbers, email addresses, URLs, or filing dates sent to you with the official information available on the irs.gov website. 
  • Typos, grammatical errors, and improper phrasing are all red flags that an incoming communication may be a scam. 
  • Remember that the IRS never contacts taxpayers via email, text, or social media regarding a bill or tax refund. 
  • Do not respond to suspected phishing attempts and do not click any weblinks that may be contained within the message. 
  • Report suspected fraud to fraud.org and learn more about official reporting mechanisms at the IRS here: https://www.irs.gov/privacy-disclosure/report-phishing 

 

If you or someone you know have been a victim of a tax scam, we urge you to report it via Fraud.org’s secure online complaint form. Complaints are shared with Fraud.org’s network of consumer protection and law enforcement partners who use complaints to identify trends and build cases. 

Check fraud is on the rise

/in , /by

At a time when fraud has gone high-tech, with artificial intelligence being embraced to drive ever-more ingenious scams, scammers are again turning to an old-fashioned tactic: swiping physical checks from individuals’ mailboxes and U.S. Postal Service collection boxes. Despite the declining usage of checks over the past several years, incidents of mail theft are on track to nearly double this year and check fraud is on the same trajectory. Considering the significant amount of money that scammers can steal via check (especially when compared to cash or digital payments), the potential harm from this trend should not be ignored.  

The fraud is simple. Scammers open mailboxes flagged with outgoing mail (or they rummage through mail collection boxes) and steal envelopes they believe may contain a check. They can then douse the checks in consumer-grade chemical solutions to remove the original recipient and check amount information. Once the checks dry, the fraudsters fill in the now blank checks and address the check to themselves or an accomplice, rerouting the money away from the victim’s intended addressee.  

Mail theft naturally jeopardizes other payment methods as well. Scammers could easily charge a stolen credit card, especially if the victim had already activated it. Additionally, money orders can be rewritten similarly to checks. One Californian reported to Fraud.org that four of their Moneygram money orders were stolen from their mailbox, with two of them successfully cashed by the thief. The crime resulted in a $2,000 loss to the victim.  

If you’re thinking about sending or receiving money in the mail, remember the following:  

  • Drop off mail containing a check or credit card with an employee at a post office. Sending mail through a staffed post office will lower the chance of a fraudster intercepting your payment. 
  • Remove mail from your mailbox frequently. Fraudsters can’t swipe your incoming mail if you get to it first.  
  • Confirm with the recipient that they received the money. Additionally, check your bank statements for any charges that may be greater than authorized or sent to the wrong individual.  
  • Report fraud immediately. If you notice suspicious payments from your account, contact your bank as soon as possible to begin protective measures and possibly receive a refund. 

 

If you or someone you know have been a victim of check fraud, we urge you to report it via Fraud.org’s secure online complaint form. Complaints are shared with Fraud.org’s network of consumer protection and law enforcement partners who use complaints to identify trends and build cases. 

Be wary of quick cash for “ugly” houses

/in , /by

Streets across the country are littered with “we buy ugly houses” and similarly phrased signs. While many of these ads are not false—consumers can get quick cash for an unsightly abode— there are many reports of the companies behind the signs using deceptive and predatory tactics to take advantage of vulnerable homeowners. From significantly undervaluing a seller’s house to outright lying to homeowners, bad actors have taken advantage of many consumers who are in a pinch. 

Predatory businesses in this space look to target individuals in difficult situations. These may be people who need cash quickly, who may be dealing with a death of a loved one, or who are experiencing cognitive issues. While buyers typically offer money up front, sometimes thousands of dollars, it comes with a catch. They may significantly undervalue the home, tack on junk fees, or trap the consumer in complicated contracts that make it difficult for the homeowner to back out. A ProPublica report investigating these purchases found numerous instances of buyers targeting older Americans with unfair and deceptive tactics. The report highlights an 82-year-old homeowner with dementia who lost 1/3 of the value of her house in such a deal. 

While entities touting their ability to offer cash for your “ugly house” are major proponents of these tactics, there are other unscrupulous businesses in this space to watch out for as well. Some of those offering reverse mortgages target similarly vulnerable homeowners with pitches that disguise the true cost (and net loss) of the proposition. Additionally, both buyers and financers have been documented lying to individuals to secure a deal. In one instance, they had falsely claimed that the victim was going to lose their home through legal action if they did not sell. Other individuals were deceived about how long they could remain in their home after they completed the sale.  

Beyond unfair contracts, there are more traditional scammers—those seeking your money for nothing in return. One consumer from California reported to Fraud.org that when they were at risk of losing their home, they were approached by a mortgage servicing company offering a solution. However, over a year later, the homeowner lost $19,000 to the fraudsters and still ended up in foreclosure.  

If there is an opportunity to sell or refinance your home, keep the following tips in mind: 

  1. Know the value of your home. Home value estimates and the price of recently sold homes in your neighborhood can be found online, often via free-to-use websites. Knowing the prices of properties comparable to your own house can help you better recognize if someone is taking advantage of you. 
  2. Get multiple quotes. If possible, try to get multiple offers from different businesses for the service you are seeking. 
  3. Review everything in writing. Especially scrutinize any fees, interest rates, future obligations, or cancellation mechanisms. 
  4. Seek an outside opinion. Run the offer by a trusted advisor. The U.S. Department of Housing and Urban Development has a directory of housing counselors. Note that while some services are free, such as those for foreclosure prevention, homeless counseling, and individuals who cannot afford a fee, HUD-sponsored counselors are permitted to charge reasonable fees for other services. 
  5. Search for reviews or warnings about the business or person pushing the offer. An online search of the company or individual’s name alongside “fraud,” “scam,” or “reviews” may produce warnings from other consumers, law enforcement, or watchdog groups. The Better Business Bureau may also be a resource for checking out companies looking to buy your home. 
  6. Pressure tactics are a red flag. If someone is prompting you to act quickly, often with a time-sensitive offer, think twice before accepting their proposal. 
  7. Be wary of unsolicited offers. Many bad actors in the housing space seek out individuals they believe to be vulnerable targets for their predatory tactics.  

If you or someone you know has been targeted by predatory home-buying services, we urge you to report it via Fraud.org’s secure online complaint form. Complaints are shared with Fraud.org’s network of consumer protection and law enforcement partners who use complaints to identify trends and build cases. 

Is that really your friend messaging you online?

/in , , /by

Social media has made it easier than ever to connect with people you know. This also means that scammers are only a few clicks away from causing serious harm. Consumers have submitted numerous reports to Fraud.org about scammers who have solicited money and personal information while impersonating someone else on a social media platform. 

This impersonation typically happens in one of two ways. In an account takeover, the fraudster gains unauthorized access to someone’s account. The other way is by setting up an imposter account where the fraudster creates a new account pretending to be someone else, often by using pictures that their target had publicly uploaded before. In both cases, the scammer will use the hacked or impersonated account to distribute a web link or ask for personal information from accounts in their target’s following/friends list.  

These messages often come with a plausible sounding ask. For example, imposter accounts may claim that they are trying to regain access to their original account and to help them do so, you must answer their questions or click on a link. It is also common for compromised accounts to share fraudulent money-making opportunities for things like fake cryptocurrencies or government programs. 

One consumer from Iowa reported to Fraud.org that a friend’s account shared details about a grant on social media. After learning more, the consumer was told that they qualified for the award, but they had to pay delivery fees first. In the end, the fraudsters took $1,000 from the Iowan through bogus fees and the grant never materialized. 

If you think an imposter is contacting you, remember the following tips: 

  1. Do not open any links or comply with requests for information. Even if they provide reasonable justification for their requests, you could be putting your own account at risk by cooperating. It is best not to interact or respond to a suspicious account.  
  2. Do not send them money. It is unusual for people to ask for money over social media. If you are close enough with someone that they are asking for help, they should be able to get in touch with you by other methods. 
  3. Contact the person another way. If you think someone might be impersonating your friend on social media, send your friend a text message and see if it is really them. If you suspect that their phone may be stolen (or that they are a victim of SIM-swapping), ask a mutual friend if they have noticed unusual behavior as well. 
  4. Report the account. Most social media platforms allow users to report accounts for suspected impersonation, fraud, or both. The sooner the platform becomes aware of the problem, the quicker they can take action. 
  5. Pay attention to warnings from the platform. Major digital platforms that allow messaging between users will automatically filter out suspicious communications. Think twice before opening messages flagged as spam.  

If you or someone you know has been a fraud victim, help yourself and other by reporting it! By using Fraud.org’s secure online complaint form, your complaint will be shared with our network of consumer protection and law enforcement agency partners. 

Don’t let timeshares turn your vacation into a nightmare

/in /by

The concept of a timeshare certainly may seem attractive. Who wouldn’t want to have the option of having a dedicated vacation destination that they can use on a regular basis? Timeshares advertise themselves as allowing multiple individuals to split the costs of vacation real estate and be allotted windows of access (“time shares”) to the property. In reality, the industry is rife with predatory practices. From the moment one enters into a timeshare contract until they attempt to get out of a bad deal, almost nothing is straightforward. 

Similar schemes include deeded timeshares, points-based timeshares, and vacation clubs. While the names differ, the basic premise is the same: the consumer is promised affordable access to a resort-like investment property that is actually extremely costly and difficult to use. 

Joining a timeshare  

Timeshare sales pitches are notoriously intense on the consumer. Common tactics include long delays or presentations to tire the prospective buyer, as well as claims that certain offers will only be available “today.” These predatory sales practices are designed to pressure the individual into agreeing to the timeshare impulsively. It is also common for salespersons to mislead consumers by over-exaggerating benefits, omitting certain costs, or outright lying about terms of a contract. 

Exiting a timeshare 

Once the purchaser realizes the hidden costs (such as recurring maintenance fees) or the inaccessibility of their timeshare, they may try to back out of the contract. Unfortunately, this is often difficult—if not impossible—to do. Timeshare companies craft their contracts in ways that make it hard to exit the deal. Some last for the lifetime of the purchaser and some contracts even pass on to the consumer’s inheritors when the timeshare purchaser passes away.  

To take advantage of the complexities surrounding timeshare cancellation, an industry – timeshare exit firms — has popped up just to get individuals out of their timeshare. However, this industry itself is rife with controversy. Consumer complaints about timeshare exit companies frequently claim that such companies overcharge thousands of dollars for their services, provide assistance that the consumer could have accomplished on their own, or never fulfill their duties once they receive the money. In one instance, an individual from Illinois reported to Fraud.org that they paid $7,000 to a company that claimed it could cancel the consumer’s timeshare commitment. After paying the sum, the company abandoned the individual and never provided the promised assistance. 

Reselling a timeshare 

The high number of consumers seeking to sell their timeshares has flooded the market, making it extremely difficult to do so without incurring a significant financial loss. As a result, fraudsters have been preying on individuals who are stuck with a timeshare. Such scams typically begin with fraudsters promising to buy the timeshare from the consumer, who is often desperate to get out from under the financial burden of an unwanted timeshare. Victims report subsequently being hit with “banking fees,” “wire transfer fees,” “taxes,” “currency exchange fees,” and other charges, while the alleged purchaser never sends the funds and never takes the timeshare from the consumer.  

In one Fraud.org complaint, a Maryland resident detailed a $45,000 loss when they attempted to use such an outfit to resell their timeshare. Like other similar cases, the scammers demanded the consumer pay previously undisclosed processing fees before they could sell their timeshare, all of which were bogus.  

Whether you’re interested in purchasing a timeshare or looking to get rid of your own, keep in mind the following: 

  • Don’t entertain timeshare offers or other similar schemes. Avoiding these entanglements in the first place is the best way to avoid future losses. 
  • Never agree to a contract while under pressure. Additionally, if you do purchase a timeshare, find out what “cooling off” or cancellation terms may apply. While cooling off periods vary by locality, they typically allow you to back out of the contract within a few days of signing. 
  • Carefully consider all terms in writing before agreeing to any contract. Whether you’re purchasing, exiting, or reselling a timeshare, ensure that all details are available in print—especially details regarding payment requirements or conditions related to exiting the contract. 
  • Do your research. See what other people have said about the timeshare company you’re buying from, or the entity seeking to buy your timeshare. Be on the lookout for previous consumer complaints, litigation, or a record of misconduct. 
  • If it’s too good to be true, it probably is. The resale market for timeshares is very tough, with little-to-no buyers. Carefully scrutinize any offer when attempting to resell a timeshare as it is likely fraudulent.  

If you or someone you know has been a fraud victim, help yourself and other by reporting it! By using Fraud.org’s secure online complaint form, your complaint will be shared with our network of consumer protection and law enforcement agency partners. 

Let’s all speak up about fraud

/in , , , , , /by

2023’s National Consumer Protection Week begins on March 5 and lasts until March 11. This is a great opportunity to brush up on your fraud prevention skills. But more than just reducing your own risk, sharing what you know with friends, family, and colleagues can help reduce everyone’s risk. It’s good to keep yourself protected—it’s better to help a friend.  

While fraud can affect anyone, regardless of age and other demographic information, Fraud.org and the National Consumers League (NCL) are putting the spotlight on scams targeting older Americans. NCL’s upcoming podcast episode features Lizette Alvarez of the Washington Post and Debra Berlyn of Project GOAL who will discuss fraud prevention strategies for seniors and their families. Below are a few key points to keep in mind as we enter Consumer Protection Week. Be sure to listen to the full podcast episode premiering March 6 for more details on elder fraud.  

Don’t be ashamed of fraud 

Each year, scammers defraud millions of Americans. Given the stigma associated with these crimes, victims often feel embarrassed and ashamed. This leads to far too many incidents of fraud going unreported. As a result, impacted individuals are not connected with resources that can help them recover. It also leaves victims more vulnerable to be re-victimized, as scammers often prey on victims again and again. If you or someone you know has been a victim of fraud, encourage them to talk about what happened and report it to the proper authorities.  

How to help spot impersonation scams: stop and verify 

Imposter scams are one of the most common types of fraud reported to Fraud.org. A common set-up involves a scammer impersonating a family member of the victim over the phone and claiming that they require money to resolve an urgent issue (bond, doctor’s bill, etc.). Scammers are very adept at making these deceptions sound legitimate and a common tactic is to tell the victim that if they tell anyone else what is going on, something terrible will occur. 

A key way to avoid being a victim of an impersonation scams to remember two words: “Stop” and “Verify.”  

First, victims should understand that scammers want you to act quickly. on emotions like fear. By stopping, you give yourself time to take a pause and think through what you’re being asked to do. 

Second, victims should verify. If the scammer claims to be a loved one, call the relative or (in cases where the scammer may be impersonating a child) a parent of the relative. If the scammer is impersonating a bank or government agency, hang up and look up the phone number for that agency or company yourself and call to check whether what you’re hearing is accurate. 

While there’s no silver bullet for preventing imposter scams, learning to stop and verify the claims you’re hearing over the phone, email, or text can help save you from becoming a fraudster’s next victim. 

Share less online 

Phishing scams are not new. Fraudsters have been seeking login information and other sensitive credentials with deceptive emails, texts, and instant messages for years. However, with the proliferation of social media and other digital platforms, more information about our personal lives is publicly available than ever before. Dedicated scammers can use this information to create more convincing phishing attacks. Seemingly harmless information such as employment history, previous residences, or recent vacations may be used to compose a message that appears as if it were written by someone who actually knows you.  

To help reduce the risk of phishing, make sure and make your social media accounts on platforms like Facebook and Instagram private, so that only people you approve can see your profile information. On public social media accounts like LinkedIn, avoid sharing information like travel plans or family members’ names that scammers can use to create more effective phishing attacks. 

Don’t send money to recipients you haven’t met 

At Fraud.org, we hear heart-breaking stories of older adults who report losing their life savings to fraud. An important message to drill home is that if you have not met someone in person, you should be very wary of sending them any money. The is doubly true if you are being asked to send money via peer-to-peer money transfer services. (e.g., Zelle, Venmo, Cash App, or PayPal), bank account debit, wire transfer, or gift cards. 

Although scams can—and do—take place offline, fraudsters can easily hide their suspicious behavior when communicating remotely. Many forms of fraud, such as imposter scams and romance scams, are much more difficult (if not impossible) to conduct in person. Be extra cautious of solicitations sent digitally. 

Pass it on 

National Consumer Protection Week is the perfect opportunity to have conversations about fraud with those you know and love. If we all commit to sharing what we know with just one other person, we can put a real dent in the harm that fraud causes to far too many people. 

 

If you or someone you know has been a fraud victim, help yourself and other by reporting it! By using Fraud.org’s secure online complaint form, your complaint will be shared with our network of consumer protection and law enforcement agency partners. 

What are dating sites doing to protect users this Valentine’s Day?

/in , /by

Over the past twelve months romance scams have had a moment thanks to shows like “The Tinder Swindler” and “Inventing Anna.” While these shows may have given out some slightly suspect advice to victims (no, you probably won’t be successful setting up an elaborate trap for a scammer), they did do a lot to raise awareness about the prevalence of these scams. Given that many scams like those portrayed on the big screen are perpetrated via online dating platforms, it seemed appropriate to check what anti-fraud measures some of the biggest websites have implemented.  

Profile verification 

Fraudsters often use someone else’s photos on their profile to disguise their own identity. This practice, also called catfishing, is becoming easier to prevent with several dating apps’ verification features. Badoo, Bumble, Hinge, and Tinder allow users to confirm that they are the same person as the one in the photos by submitting a selfie taken live, in app. This image then goes through automated and sometimes manual review to verify that the user is the same person appearing in the photos. Match does not appear to have implemented this feature in the U.S. 

If a user’s profile is not verified, they may not be who they say they are. Asking for a match to complete profile verification is a good way to reduce the risk of chatting with an imposter. 

Consumer education 

Fraud.org has received an uptick in reports of fraudsters peddling cryptocurrency scams to their matches on online dating platforms. Match Group—the parent company of Hinge, Match, and Tinder—appears to have also noticed similar misconduct on their platforms, as they have started rolling out an anti-fraud campaign across their various products. 

The campaign aims to raise awareness about romance scams and encourage users to report violative activity by displaying warnings against fraudulent activity, including crypto scams. Match Group states that it developed consumer education materials in coordination with law enforcement and financial exploitation experts. 

Community guidelines 

Badoo, Match, and Tinder have provisions within their community guidelines prohibiting scams or fraud. Badoo (owned by Bumble Inc.) has the most extensive anti-fraud provision, including a statement that appears aimed explicitly at romance scams: “Do not scam Badoo members, or deceive members in any way for financial benefit. This includes…[f]aking romantic intentions, financial and/or personal distress in order to get money.”  

Match and Tinder have identical statements in the “scamming” section of their community guidelines about “a zero-tolerance policy on predatory behavior of any kind,” as well as a prohibition on trying to receive money from users on their platforms.  

Hinge and Bumble both lack anti-fraud statements within their community guidelines. However, their terms and conditions require users to agree not to operate pyramid schemes, fraud, or other similar practices. 

If you are planning to go online looking for love this Valentine’s Day, here are some steps that can help you reduce your risk of being a victim of a romance scam: 

  • If anyone you meet on an online dating site asks you for payment, it’s almost certainly a scam. Be especially wary if they ask for payment via gift cards, cryptocurrency, peer-to-peer (e.g. Zelle, Venmo, PayPal) wire transfer, bank account debit, or other unusual forms of payment. 
  • If a match claims to be overseas and unable to meet in person, that is a big red flag. 
  • Beware of relationships that develop unusually quickly online. Know that scammers will attempt to quickly build trust so that a request for money seems more reasonable. 
  • Do a reverse-image search on any photos you receive from a match. This can help determine if a match is actually an imposter. 

If you or someone you know has been a fraud victim, help yourself and other by reporting it! By using Fraud.org’s secure online complaint form, your complaint will be shared with our network of consumer protection and law enforcement agency partners. 

NCL’s Programs

NCL-logo

Fraud.org is a project of
The National Consumers League.

info@nclnet.org
(202) 835-3323

1701 K St NW
Suite 1200,
Washington, DC 20006