Is that really your friend messaging you online?

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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

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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

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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?

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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. 

Ten New Year’s resolutions to fight fraud

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We all know the traditional New Year’s resolutions: saving money, going to the gym, or eating more greens. At Fraud.org, we wanted to offer some novel resolutions to ring in the new year.

Here are ten ways you can help combat fraud in 2023:

1 – Resolve to use multi-factor authentication. Using multi-factor authentication (which includes two-factor authentication) requires your permission through a separate mode of communication, usually text or email, before someone can log in to your account. This feature is widely available for most online accounts and easy to set up. Most importantly, it will reduce the risk of intruders getting access to your accounts if passwords appear in a leak.

2 – Make sure to take data breach notifications seriously. While they may seem like a nuisance, carefully reading any email or letter stating that your sensitive information appeared in a data breach can be critical to safeguarding yourself against identity theft and financial harm. If you receive notice that your information leaked, change the compromised information as soon as possible. After receiving a breach notice, be sure to monitor your financial statements and online accounts for any suspicious activity. 

3 – Create unique passwords across accounts. By using different passwords across multiple online accounts, you can better ensure that if one account is compromised, the rest won’t fall with it. Adding a password manager extension on your browser (or using one that comes pre-installed) can be a big help for this.

4 – Keep personal information private. Sharing seemingly harmless pieces of information about yourself online, such as where you grew up or details about your family history, may inadvertently provide scammers with the information they need to defraud you. These anecdotes may be used to guess answers to your accounts’ security questions or they may be used to put together a convincing imposter scam.

5 – Be sure to report incidents of fraud. Many incidents of fraud go unreported as the victims may feel embarrassed or they may not think that the scam was a crime worth reporting. If you are a victim of fraud or if someone attempts to defraud you, don’t hesitate to report the incident. You can report incidents to Fraud.org, the U.S. Federal Trade Commission (FTC), and your local or state law enforcement. Victims who report fraud can connect with resources to alleviate harm as well as inform policymakers who work to combat scams. 

6 – Only send sensitive data over trusted internet networks. Unsecured Wi-Fi networks can allow other users of the network, including fraudsters, to view the information you’re sending on the web. Public Wi-Fi networks at commercial establishments are commonly unsecured. Don’t transmit passwords and other sensitive information on unsecured networks or unsecured websites (websites that don’t start with “https”). 

7 – Regularly monitor your financial statements. Routinely checking your bank and credit card statements for unrecognized charges can help you to spot fraud that you may have otherwise missed. Contact your bank or credit card issuer and lock your account to prevent further misuse and receive a refund for fraudulent charges. 

8 – Learn more about who you’re doing business with. Knowing the refund policies and guarantees of the businesses you’re shopping with can help you make informed decisions. This is especially important for digital marketplaces that facilitate the purchase of third-party products.

9 – Always trust your gut. If something seems off, too good to be true, or coerced, it’s best to think twice. Legitimate offers should allow you to take your time and look into the details.

10 – Remember to treat fraud victims with compassion. Too often, fraud is discussed within a context of blaming the victim. This has unfortunately created a culture where many individuals who have been scammed are too embarrassed to report the incident and therefore miss critical, remedial resources. Ultimately, the blame rests on the scammers and victims of any crime deserve our compassion. 

 

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 fraud ruin your holidays

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While most individuals think of the holiday season as a time to gather with loved ones and get some rest, scammers use it as another opportunity to defraud consumers. Especially as we all look to save money amidst rising costs, it is important to remain vigilant against suspicious deals and offers. 

Coupon scams 

Scammers have been preying on consumers hoping to save on holiday expenses. While utilizing legitimate discount codes is a great way to save money, it can be difficult to distinguish between genuine coupons and fraudulent offers. Frequently, fraudsters will offer digital discount codes with eye-popping savings in exchange for personal and contact information—or they may even charge a fee. The scammers may peddle these fake discounts as part of a monthly subscription service or another bogus scheme. Although the specific front will vary, the end goal is the same: the criminals will try to glean the victim’s contact information, if not their cash. 

Charity scams 

As consumers are feeling charitable during the holiday season, fraudsters often seek to take advantage of our charitable inclinations. Scammers may solicit donations for a phony, non-existent charity or they may impersonate a legitimate nonprofit. Unfortunately, impersonations can be nearly indistinguishable from the cloned organization; the only difference might be one letter missing in the web URL and the destination of the giver’s funds. These fraudsters also may try to pressure the consumer into “donating” quickly with a time-sensitive offer, such as matching a portion of the contribution if it’s made within a certain number of minutes. 

Online merchandise scams 

Almost as much of a staple of the holidays as exchanging presents itself, fraudsters always traffic counterfeit goods in time for annual festivities. Scammers will frequently advertise expensive and in-demand items, such as a new gaming console or sold-out concert tickets, only to leave consumers with cheap imitations or nothing at all. To further entice potential-victims, these scams usually list much cheaper prices than the legitimate items sell for. 

Impersonation scams 

With millions of consumers turning to online shopping for holiday gifts, scammers have grown adept at impersonating Amazon, Postal Service, UPS and other commonly-used delivery services. Other common impersonation scams involve tech support, organizations offering free prizes or gifts, survey firms, and even organizations claiming your account was compromised. These scams can use text messaging, email, phone calls, instant messages, and other communication tools to reach potential victims. Other indicators of fraud may be unsolicited requests for payment, creating a false sense of urgency, or offering something that is “too good to be true.”  

Gift card resale scams 

Although lesser known than other forms of gift card related fraud, gift card resale scams can be a headache following a season of gift-giving. Bad actors usually offer to buy a potential victim’s gift card from them at the full value it’s worth, if they don’t offer to pay extra. This is a clear indicator of a gift card resale scam as true gift card buyers will almost never purchase a consumer’s gift card at full value. Finding a friend or family member willing to purchase a gift card is usually the least risky method of getting value out of unwanted cards.  

While different forms of holiday fraud come and go, the following tips can help in determining the legitimacy of any suspicious offer: 

  • If it sounds too good to be true, it probably is. Whether it’s a cheap price for a sold-out item or coupons offering extreme discounts, be cautious of surprising deals. 
  • Don’t give in to pressure. While some sales are certainly time sensitive, they usually won’t disappear after only a few minutes. If the person you’re speaking with isn’t taking “no” for an answer and they’re pressuring you to hand over money, that’s a red flag. 
  • Use a credit card when possible. Credit cards have better fraud protections than debit cards; this allows you to dispute a charge resulting from a scam. Never send money to strangers over a peer-to-peer app like Zelle, Venmo, or Cash App. 
  • Do a Google search of the name of the seller, charity, or discount site. A quick search could bring up warnings from law enforcement or other consumers. Adding the terms “scam,” “fraud,” or “counterfeit” to your query may help in narrowing the results. It’s important to note that a lack of warnings doesn’t necessarily mean the suspicious entity is authentic. 
  • Check the marketplace’s refund policies. If you’re using a third-party marketplace to make a purchase or sale (common examples include eBay and Amazon), take a few minutes to check their refund and fraud policies. Knowing what recourse is available—or not available—may inform your decision-making. 
  • When in doubt, do not reply to text messages, emails, phone calls, or instant messages. Do not click on links in those messages. The best way to check on your online orders or the security of an account is to log in to your accounts on your own. For more details on how to spot and avoid impersonation scams, check out the Better Business Bureaus’ new resource page. 

If you or someone you know has been a victim on a holiday scam or any other type of fraud, 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. 

Skimming fraud targeting government benefit cards

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The U.S. Department of Agriculture has reported a spike in scammers targeting users of Supplemental Nutrition Assistance Program (SNAP) benefits. Specifically, fraudsters have been utilizing card skimming to swipe the funds from individuals’ Electronic Benefit Transfer (EBT) cards. This type of fraud jeopardizes the food security of SNAP beneficiaries and any dependents they may care for. This is because there is no guarantee that their SNAP administrator will replace the stolen funds. The harm to victims is compounded by the headache of needing to change their cards’ personal identification numbers (PINs) or waiting to receive replacement cards.  

Card skimming is relatively simple for fraudsters and occurs undetected frequently. It requires no extra steps from the SNAP beneficiary or direct communication with the criminal—all the victim has to do is make a purchase or use an ATM like normal and swipe their EBT card. Unless the merchant or ATM operator notices the skimmer before the consumer swipes their card, victims often discover the scam occurred after the fact, when they notice missing funds.  

It’s important to understand that EBT cards differ from debit and credit cards in a couple of ways. First, debit and credit cards now almost always come with a chip that is used instead of a magnetic stripe, as well as near field communication (NFC) technology that allows consumers to tap their cards. Both methods of transferring money are exponentially more secure than swiping a card. Unfortunately, very few EBT cards come with a chip, and none are equipped with NFC technology. This leaves beneficiaries to rely on insecure magnetic stripe technology, which will transfer card information to card skimmers if one is active. 

Second, federal law protects traditional debt and credit card holders from unauthorized use of their cards. If a fraudster skims the information from one of these cards and uses that information to purchase items for themselves, the victim has limited liability for the stolen funds and is able to be reimbursed for the loss by their card issuer. Unfortunately, these same federal laws exclude EBT cards from fraud protections. The combination of these two issues leaves SNAP beneficiaries vulnerable to bad actors—both technologically and legally.  

With policy and technological fixes to insecure EBT cards still far in the future, the best defense for consumers who use these cards is to learn to spot the signs of skimming fraud. Tip include: 

  1. Look for signs of tampering on ATMs and point of sale terminals before paying. Check for pieces that appear out of place, crooked, dislodged, or uneven on the payment terminal. New York City’s Department of Social Services published a helpful flyer with sample images of tampered devices. 
  2. Try lifting the keypad or card reader components. Often, the skimmer will be loose and may come right off. 
  3. Cover your PIN. Sometimes, fraudsters place a hidden camera above the payment terminal to capture victims’ PINs. As you enter your PIN, physically covering the action with your other hand can minimize PIN insecurity. 
  4. Frequently check your benefits account for unrecognized charges. If there are unauthorized transactions, change your PIN immediately to prevent further misuse. Some authorities even recommend changing your PIN regularly. 
  5. Report suspicious activity to your state and local authorities. Although reimbursement isn’t federally guaranteed, it’s still worth contacting your SNAP administrator. 

If you or a loved one has been a victim of EBT card skimming fraud or another other scam, reporting the crime helps enforcement agencies spot trends and build cases against the crooks. You can file a complaint via Fraud.org’s online complaint form at this link. 

Beware of scammers claiming your grandchild needs cash urgently

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While grandparent scams are not particularly new, the proliferation of technologies that enable these frauds are ever evolving. The basic premise of the scheme involves a fraudster contacting an older adult and impersonating the victim’s loved one. Variations of this fraud involve the imposter claiming to be a law enforcement officer, doctor, or lawyer who is contacting the victim on behalf of their relative. Next, the scammer deceives the victim into believing that their relative is in trouble and requires money for reasons such as paying bail or a fine, paying a doctor’s bill, or some other reason. The criminal will often ask that the grandparent not tell anyone about the situation—especially the parents of the “grandkid”—to prevent embarrassment over their (fictitious) predicament.  

By preying on family relationships, particularly the responsibility that older adults often feel for grandchildren, fraudsters can extract substantial amounts of money from victims who just want to help their loved ones.  

One consumer in Florida reported to Fraud.org that they received a call from someone who claimed to be their grandson and “was in an accident and needed money to get out of jail.” Soon after, the victim received a second call from an individual pretending to be the grandson’s public defender, providing further instructions on how to send the money. The impersonators successfully deceived the victim into paying over $9,000—a portion of which was sent via PayPal. 

Unfortunately, there are thousands of similar incidents where the victim believed they were assisting a grandchild who was in legal trouble, hospitalized, or facing other sudden expenses. Federal Trade Commission (FTC) data shows that imposter scams (which include grandparent scams as well as government impersonation fraud) has remained the most commonly-reported category of fraud since 2018. Additionally, Fraud.org’s Top Ten Scams Report of 2021 listed family/friend imposter scams specifically as the eighth most common type of fraud. 

Anyone can be a victim of the grandparents scam or other imposter scams. By familiarizing yourself with the following red flags, you can reduce your risk of being the next victim: 

  1. If someone asks you to pay a bill via gift card, peer-to-peer money transfer (such as Zelle, Venmo, Cash App, or PayPal), or via wire transfer (e.g., Western Union or Moneygram), it is a strong indicator of a scam. 
  2. Resist urgent requests for cash. Few legitimate legal or medical bills, if any, will require immediate payment at the time of the incident.  
  3. Hang up and independently contact the grandchild in distress (or their parents) directly. Many victims of grandparent scams realize the fraud occurred once they speak with their actual grandchild, who then informs the victim that they were not in any trouble. Double checking that the family member needs help before sending cash can prevent the fraud from occurring.  
  4. Consider changing the privacy settings on your social media accounts (such as Facebook, Instagram, and Twitter) to only allow your friends to view your account. This can help prevent fraudsters from finding out who your close family members are.

If you suspect that you or someone you know has become a victim of one of these scams or any other fraud, it is important that you report it. You can file a complaint at Fraud.org via our online complaint form, your local police department, your state attorney general’s office, or the Federal Trade Commission. Complaints filed with Fraud.org are shared with our network of law enforcement and consumer protection agency partners who can investigate and help put fraudsters behind bars. 

Scammers are ready to pounce on student loan debt forgiveness news

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The Biden Administration’s announcement that it will forgive up to $20,000 of student loan debt per person will undoubtedly help boost millions of Americans’ finances. Unfortunately, as we have seen in previous rounds of debt payment pause extensions, scammers know an opportunity when they see one. The new federal program will require many borrowers to complete an application to receive debt relief. We anticipate that criminals will step up their efforts to direct potential victims to fraudulent relief schemes that mimic the official process. 

Fraud around student debt commonly involves a form of an imposter scam, where the fraudster claims to be a representative of the Department of Education or a partner of the Department, sometimes presenting accurate borrower information, such as loan balances or consolidation history. After convincing the victim of their legitimacy, the criminals often request fees for processing forms, initiating debt forgiveness, or other administrative work that the Department of Education does not actually charge borrowers for doing. Short of directly taking the borrower’s money, impersonators may also request sensitive information, such as Social Security numbers, Federal Student Aid (FSA) ID, or bank account credentials. 

Additionally, scammers have started fraudulent loan servicing companies. These fraudsters sometimes claim that they can reduce borrowers’ interest rates, lower monthly payments, or offer other forms of debt relief. In reality, the criminals divert borrowers’ monthly payments to their fake servicing company. This not only directly enriches the scammers, but it can also have dramatic consequences for borrowers who become delinquent on their loans as their regular payments never make it to the actual loan balance.  

While paying off your loans or applying for debt relief, keep the following in mind: 

  1. It is free to apply for debt cancellation programs offered by the U.S. Department of Education. Whether this is the one-time $10k cancellation ($20k for Pell Grant recipients) announced in August or the rolling forgiveness programs (such as Teacher Loan Forgiveness), debt forgiveness is available to qualified borrowers at no cost. Outside services are not necessary to complete the application processes. 
  2. Beware of unknown individuals contacting you about your debt. In addition to charging fees for completing processes that would normally be free, scammers also might ask for personal information over the phone and pressure potential victims into acting quickly with “limited-time offers.” If it seems suspicious, hang up and contact your loan servicer through their website or phone number (either of which should be available on a monthly statement or original notification of loan servicing). 
  3. Stick with trusted government sources when possible. In addition to debt cancellation, for federal loans, the Department of Education offers different repayment plans that may lower your monthly payments, loan consolidation services, and deferment options for repayment at no charge. https://studentaid.gov is a great resource to gain accurate information. 
  4. The federal government automatically assigns borrowers a student loan servicer for free. You do not need to search for companies to facilitate your payments. In fact, the Department of Education explicitly discourages debtors from doing just that. 
  5. DO sign up to get updates on the $10,000 cancellation. If you subscribe through the Department of Education here, they will let you know when the process to receive the one-time $10k cancellation has begun. This will lower the chances that you are directed to a fraudulent debt relief scheme when searching for cancellation information on your own. 

Be an ally in the fight against fraud!

If you suspect that you or someone you know has become a victim of one of these scams or any other fraud, don’t just delete the message — report it at once to the social media platform. You can file a complaint at Fraud.org via our online complaint form. We’ll share your complaint with our network of law enforcement and consumer protection agency partners who can investigate and help put fraudsters behind bars.

High rent prices create an opportunity for scammers

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Searching for a new rental unit can be a stressful time for many consumers. Unfortunately, scammers often make the housing hunt an even bigger headache by preying on individuals seeking new accommodations. Being aware of common rental scams is an especially good idea at a time when rent prices are sky-high, and competition for affordable housing is fierce. 

Rental scams often start with a digital advertisement either for a unit that does not exist, a unit that the poster does not own, or similar situations where potential renters would never be able to actually live in the displayed housing. These scams seek victims’ money in the form of illegitimate application fees or a security deposit on the unit, usually without allowing the respondent to tour the housing in person. 

While these scams can be found on websites dedicated to apartment and rental listings, they are more prolific on loosely monitored or peer moderated forums, such as Facebook groups and Craigslist ads. Some common red flags include: 

  • Either no images of the unit are included in the post or the images don’t fit the listing. While it can be harder to determine the authenticity of images when they do appear in the ad. One thing to look for are photos not matching the advertised unit, such as a large backyard in a city apartment listing.
  • Generic descriptions. Landlords typically try to advertise all of their amenities, including the neighborhood and features unique to the area (such as precise public transit stops, school zones, and landmarks). Fraudulent postings often omit specific names of locations and instead use nondescript language like “near bus stops” or “in a good neighborhood.” 
  • Lists an invalid address or no address at all. Sometimes the address is for a non-housing unit or a unit that is not currently available for rent. Commonly, the listing does not include an address at all and the seller will not provide one upon request.  
  • The seller is out of town. Once a potential renter responds to one of these ads, the poster usually claims that they are out of town and therefore unable to give a tour of the unit. This doesn’t stop them from asking for a deposit on the place though, which raises the next red flag. 
  • They push for a deposit. Or an application fee. These criminals try to get their victims’ money ASAP, frequently within minutes of communicating with the potential renter. 

Although these fraudsters can add to the frustrations of moving, there are a number of tips you can keep in mind to stay on guard. 

  1. Look closely at any images provided. Search for inconsistencies, either from photo to photo or between the listing and the photo. Additionally, conducting a reverse Google Image search may confirm suspicions if the pictures appear in other, unrelated results. 
  2. Ask for details. If the seller is unable to provide an address, the name of the neighborhood, nearby landmarks, or other critical information, it’s best to look elsewhere. 
  3. Don’t pay until you see the place in person. Going on a tour of your future housing unit can help to determine the listing’s authenticity, in addition to revealing previously non-disclosed issues. 
  4. Wait to provide personal information or payment. Until thorough vetting has taken place, including a tour if possible, hold off on handing over money or sensitive information. 
  5. Search for third-party reviews. Established housing companies often have a reputation that can be easily found online. While the absence of reviews isn’t necessarily a major red flag (especially for smaller buildings and landlords), previous renters can provide great insight before you commit to a move. 
  6. Question abnormally inexpensive listings. Search for similarly-sized listings in the neighborhood of the listing you are considering. If similar rentals near yours are priced significantly higher, your dream rental may be too good to be true. 

 

Be an ally in the fight against fraud!

If you suspect that you or someone you know has become a victim of one of these scams or any other fraud, don’t just delete the message — report it at once to the social media platform. You can file a complaint at Fraud.org via our online complaint form. We’ll share your complaint with our network of law enforcement and consumer protection agency partners who can investigate and help put fraudsters behind bars.

NCL’s Programs

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

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