Fraud/Identity Theft

What is Identity Theft?

Identity theft occurs when someone uses your personal identification information, like your name, Social Security number or credit card number, without your permission to commit fraud or other crimes. Here are some ways you can protect yourself:

Shred financial documents and paperwork with personal information before you discard them. Don’t carry your Social Security card in your wallet or write your Social Security number on a check. Give it out only if absolutely necessary or ask to use another identifier. Don’t give out personal information over the phone, through the mail, or on the internet unless you know who you are dealing with.

Never click on links sent in unsolicited emails; instead, type in a web address you know. Keep your anti-spyware and anti-virus software up-to-date. Visit OnGuardOnline.gov for more information.

Don’t use an obvious password like your birth date, your mother’s maiden name, or the last four digits of your Social Security number.

If you’re going on vacation or a business trip, call your credit card company(s) and let them know where you’re going and for how long.

Think you might be a victim?

Check out these important steps from the Federal Trade Commission: Browse Recovery Steps

8 Ways to Stop an Identity Thief

More than 15.4 million Americans were victims of identity fraud last year, according to Javelin Strategy & Research. The American Bankers Association is offering eight tips to help consumers protect their information and avoid becoming a victim.

“Identity fraud continues to be a major problem for consumers,” said Doug Johnson, ABA’s senior vice president of payments and cybersecurity policy. “Fortunately, there are ways consumers can protect themselves, like being cautious about what information they share and who they share it with, especially online.”

ABA suggests following these eight tips:

AARP Scam Alerts

1. May
   1. The Problem with Gift Cards

      It’s not always risk-free with America’s favorite gift.

      There are two types of gift card scams.  In the first, a criminal convinces a consumer to pay a fake financial obligation buy purchasing gift cards and sharing the numbers off the back of the cards.  In the second, scammers have already accessed the cards while on the store racks, leading a consumer to purchase or receive a card with zero funds.  Shockingly, the research finds that 73 million Americans have experienced one of these forms of gift card fraud. 

      In other words, one third of U.S. adults say they have been targeted by scams seeking payment by gift card, according to a report by the AARP Fraud Watch Network. And nearly a quarter of consumers have given or received gift cards that had no funds on them. 

       According to the Federal Trade Commission, consumer reported scams led to losses of $233 million in 2021 to scams involving gift cards as the form of payment. Remember, gift cards are for gifts – not payment. If anyone you don’t know asks you to pay them with a pre-paid card, it is a scam.

   2. Bad News – But Some Good News – On ID Fraud Trends

      Last year, 42 million consumers suffered a staggering $52 billion in losses from identity fraud. Just when you think there can’t possibly be a silver lining – we found one. Much of this activity is happening via “traditional ID fraud” – the kind that happens in a way the consumer may never know, like a data breach.  The other form of identity fraud happens as part of a scam (when a criminal directly deceives someone into giving sensitive information. Victims and losses dropped significantly from last year, with 12 million fewer victims (at 27 million total) and $15 billion less in losses (for a total of $28 billion). While the numbers are still outrageous, it suggests that consumers have adopted stronger protections that have put a big dent in the success of identity fraud scams.

      The best offense is a good defense: avoid clicking on links in text messages or emails, use unique passwords for each website you do business with; enable two-factor authentication, which requires a password and a separate code to access the website; and avoid scanning unknown QR codes – it may take you to a malware-infested web addresses.

   3. We’re All Targets

      If there is one thing everyone should understand, it’s that “scammers” are career criminals skilled at the art of manipulation and no one is immune. These crooks target people of any age; in fact, 41% of those who reported a fraud loss to the Federal Trade Commission last year were under the age of 30. So, what can a person do if they find out they’ve been victimized?

      One resource is the AARP Fraud Watch Network Helpline. Every weekday, trained AARP volunteer fraud fighters are helping victims understand what happened, report the crime and start to put their lives back together

   4. When the Caregiver is a Crook

      There’s nothing more important than knowing that your loved one is being properly cared for. Unfortunately, some of those tasked with providing this care take advantage of the opportunity to line their own pockets.

      Here are three things you can do to safeguard your loved one from financial exploitation.

      Regularly check in with both the caregiver and the care recipient to ensure the quality of care. Use technology to be present even when you physically can’t be. Keep an inventory of valuables and have a system for monitoring financial transactions.

2. April
   1. Scams Soar in 2021
      

      The numbers are in. The Federal Trade Commission released its annual compendium of fraud reports from last year, and the news is shocking. Over the past three years, reported losses to consumer fraud has tripled, coming in at a reported $5.9 billion in 2021.

      Nearly six million US consumers reported a scam last year and the median loss was $500. But the FTC can only tell us about fraud that was reported – we know the losses and number of victims is far higher.

      Many factors contribute to under-reporting, including the abundant shame victims feel. This has to change, and it starts with how we talk about fraud victims. Let’s all commit to help change the current narrative that suggests it’s the victim’s fault – she was duped, he was swindled, they fell for it. Focus instead on the crime and the criminal. Let’s ease the emotional burden while making it clear that fraud is a crime and we need our lawmakers and criminal justice system to do more to combat the multi-billion-dollar fraud industry. #notthevictimsfault

   2. Avoiding IRS Impostors

      Tax time is here again and so are the IRS impostors. Scammers posing as IRS agents or Treasury Department officials are calling to convince taxpayers that they owe back taxes and face immediate arrest if they don’t pay immediately.   

      Know that anytime a taxpayer faces a tax problem, the real IRS will reach out via mail, and will not call unless they don’t hear back after multiple letters. If you receive an unexpected phone call, email or text indicating it’s the IRS, do not engage.

   3. Debt Relief Scams

      Debt is something that can creep up on anyone, and before long, you are looking for a way out of it. But use caution — sometimes, tempting offers of debt relief will only make your own problems worse, while lining the pockets of criminal scammers.
      
      Debt relief scams promise "guarantees" to get you out of debt quickly and cleanly. They often ask for advance payment (which is illegal) for the “services” they provide. Sometimes they will even advise you to stop paying your creditors.
      
      If you are struggling with debt, consider negotiating with creditors directly or connect with a debt counselor through a nonprofit credit counseling organization, such as the National Foundation for Credit Counseling.

   4. Crypto = Quick Currency for Criminals

      Sometimes you can spot a scam based on how you are prompted to pay for something – say, lottery winnings or a past due utility bill. What once was the domain of wire transfers and gift cards is fast becoming flooded with cryptocurrency as a form of payment in scams.  (No form of payment ever really goes out of style, but criminals jump on new ways of stealing money at every opportunity.)

      Most of us don’t understand cryptocurrency, and may not care to, and that might make us feel protected. However, buying cryptocurrency might be as close as your local grocery store. Many retail locations are adding machines that allow customers to buy and send cryptocurrency with a debit or credit card. This means that, once a criminal has their target convinced of a threat or opportunity – something they call getting them “under the ether” - they simply can send their victim to the nearest crypto machine to get paid.

3. March
   1. National Consumer Protection Week

      It’s National Consumer Protection Week —and while AARP is focused on protecting consumers year-round – this is a good time to highlight some key consumer protection tips. 

      Giving out personal or financial information to someone who contacts you is a high-risk proposition – be it by phone, email, text, or online. Rather than clicking links from texts and emails from your bank or from businesses you have accounts with, go to your app if you have one, or to a web browser and type the address in yourself – that way you know you are going to the legitimate site.   Lastly, engage your inner skeptic when a communication produces a strong emotional response; we know scammers want us “under the ether” of emotion to get us to believe their lies.

   2. Celebrity Impostor Scams

      These days, celebrities share career news, personal views, even travel videos on social media and interact with fans in comment threads. But if you get a direct message out of the blue from a favorite musician, actor or athlete, don’t get starry-eyed, get skeptical — it’s almost certainly a scam. It’s also always a scam when they ask for money for charity or say that you’ve won a large cash prize but need to pay an entry or processing fee.

      Sadly, the AARP Fraud Watch Network Helpline hears about these scams all the time. Stars like Bruce Springsteen, Trace Adkins and Oprah Winfrey are among thousands of celebrities whose personas have been used by scammers online to solicit money from fans.

      Remember, never share your personal information with or send money to someone you don’t know and have only communicated with online, no matter how supposedly famous they are. Check that the social media account of your favorite celebrity is verified (look for the checkmark in a blue circle next to their name on Facebook and Twitter).

   3. Social Media Scams

      The Federal Trade Commission (FTC) has declared social media a “Gold Mine” for scammers after consumers reported losing $770 million in social media scams in 2021. That was double the amount of reported losses from 2020 – and we know fraud is severely under-reported, so the real losses are likely much higher.

      The top three social media scams in 2021 were investment scams (many related to cryptocurrency), romance scams and shopping scams peddling counterfeit goods or not shipping anything at all.

      According to the FTC, criminals are able to use the information we provide about ourselves on social media sites to target us with ads for fake products. The relatively low cost to advertise on these sites also makes it easier for crooks to cast a wider net.

      To stay safe on social, make sure your privacy settings restrict who can see your personal information. Be wary of anyone you meet online who asks you to make an investment or help them out financially. Also, carefully research the company and product you might be interested in buying to make sure they are reputable.

   4. AARP ReST: Emotional Support for Fraud Victims

      For many fraud victims, the financial toll is only part of the story; nearly two in three victims suffer a significant health or emotional impact, according to research by the FINRA Investor Education Foundation.

      To address this reality, the AARP Fraud Watch Network and Volunteers of America (VOA) developed a free program to provide emotional support for people affected by fraud. AARP VOA ReST, which stands for Resilience, Strength and Time, features small groups whose participants are led in discussion by one or more trained peer facilitators. These online, hour-long sessions help to re-establish trust, integrate your experience and build back your resilience despite a difficult and painful occurrence. Discussions are confidential and you are welcome to attend one session or several – it’s your choice.

       

   5. Disaster Repair Scams

      Extreme weather season seems to be a misnomer, with catastrophic weather events happening throughout the year these days.  Whenever weather events occur, shady contractors and outright impostors flock to neighborhoods in search of “work” that they may or may not even attempt to do. Many will specifically target older homeowners who they perceive as more trusting, more likely to have savings, and – they think – may be experiencing cognitive decline. 

      It’s safest to trust contractors that you proactively reach out to. Also, regardless of who you are talking to, get written estimates and compare bids from multiple contractors before starting any work.  Finally, pay no more than a third of the total cost prior to the work beginning – and then only when materials arrive. 

Be a fraud fighter! If you can spot a scam, you can stop a scam.

Report scams to local law enforcement. Visit the AARP Fraud Website for more information on fraud prevention.

The Federal Trade Commission and American Bankers Association have posted a helpful infographic on Fake Check Scams.

Click here to view the Fake check Scam Infographic.