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Change-of-address scam. You receive a notice that purports to be from the Social Security Administration (SSA) confirming a change of address for where your future Social Security benefits checks will be sent (or a change of bank account where your future benefits checks will be direct deposited). Trouble is, you have not moved and did not authorize any change. When you call the toll-free number listed on the notice, a person who claims to be an SSA representative explains that someone is trying to steal your identity, but that the representative can help you sort it out.
The scam: Someone is trying to steal your identity -- the phony SSA representative who claims to want to help. The change-of-address notice was sent by a con artist, and the toll-free number listed on it connected you with this crook. At some point during the call you will be asked to provide your Social Security number and other personal data. If you provide this information, you make it very easy for your identity to be stolen.
Refund scam. A fake financial adviser offers to help you opt out of the Social Security system and reclaim all of the money that you paid into it over the years, for a fee.
The scam: There is no legal way to opt out of Social Security. This "adviser" will pocket your fee, then use the Social Security number you provide to steal your identity or sell it to others to do so.
Replacement card scam. A letter claiming to be from the SSA states that your Social Security card is in poor condition and must be replaced. Just fill out the enclosed form and a new card will be mailed to you.
The scam: If you fill out the form, a scammer will use the information to steal your identity. The SSA does not replace old Social Security cards unless the cardholder requests a replacement. The scammer likely assumed that your card was in poor condition because many people’s cards are in poor condition.
Online dating or social network scam
If you establish a relationship with someone you met on line who well into your exchange of emails or even phone calls asks you for money, do not send it. If you have received a photo which you think might be bogus you can check it out by going to tineye.com and uploading the photo. This site will tell you where on the Internet the photo has appeared.
IF YOU ALREADY RECEIVE SOCIAL SECURITY BENEFITS
Inheritance scam. A communication that seems to be from the SSA informs you that because you recently received an inheritance, you no longer qualify for full Social Security benefits and must pay back a portion of benefits you received.
The scam: Receiving an inheritance does not affect your Social Security benefits. If you "pay back" the money as instructed, you are handing it to a con artist. This thief likely saw your name listed among the surviving relatives in a newspaper obituary and guessed that you received an inheritance.
Cost-of-Living Adjustment (COLA) scam. The SSA informs you that you qualify for a benefits increase to keep pace with inflation -- but only if you apply for it.
The scam: Cost-of-living adjustments are automatic, so anyone who prods you to apply for an adjustment is likely a con artist attempting to trick you into revealing your Social Security number and bank account information.
Extra check scam. The SSA says that you were the victim of a benefits miscalculation and are now entitled to an extra payment. You just have to complete a form (and perhaps pay a filing fee).
The scam: You have not really been underpaid by the SSA, you have been targeted by a con artist. In the extremely unlikely event that there really was a benefits miscalculation, once it was discovered by the SSA, you would not have to fill out a form or pay a fee to receive the money owed -- your future checks would simply increase.
Direct-deposit scam. A scammer pretending to be from the SSA contacts you to confirm the direct-deposit bank account number it has on file for you. Like other Social Security scams, this contact might come via phone, mail or e-mail. You are warned that you will not receive your next check if you do not supply the requested information.
The scam: You have been contacted by a con artist, not the SSA. He/she likely is guessing that you recieve checks by direct deposit, as most benefits recipients do. If you provide your bank account information, the thief can arrange a funds transfer or print counterfeit checks for your account. If the request to verify direct deposit information came via a phone call or e-mail, it is almost certainly a con. If it arrived in a letter, there is a chance that it could be legitimate. Rather than trust any contact information listed on this form, call the real SSA at 800-772-1213 to confirm. Do this with any communication that claims to come from the SSA.
From an interview: Steve Weisman, Esq., an attorney in Cambridge, Massachusetts, who specializes in elder law issues (www.steveweisman.com). He is host of the syndicated radio program A Touch of Grey, which focuses on issues affecting those over age 50. Weisman is also a senior lecturer at Bentley College in Waltham, Massachusetts, and author of The Truth About Avoiding Scams (FT)
Annuity Scam. Targets seniors and terminally ill patients by inducing them to purchase an annuity which is largely for the benefit of investors and intermediaries.
Medicare spoof: A caller claims to be a Medicare representative and asks for bank account information to activate new federal benefits. Often the caller appears to be legitimate because con artists are able to purchase "spoofing cards" to falsify the phone number that appears on the victim's caller ID and make it appear as if they are calling from a federal agency.
Magazine scam: Door-to-door solicitors falsely say they are raising money for local sports teams by selling magazines that will be sent to troops in Iraq.
Grandparents scam: Caller claims to be a lawyer or police officer who states that a grandchild is in trouble, in a hospital or in jail, and asks for money to be wired.
Counterfeit check scam: Consumer receives a real-looking fake check with a letter explaining they have won a lottery or sweepstakes. The person is instructed to deposit the check and wire back a specified amount of money to cover the taxes on the winnings. Often it takes the bank several days to verify that the check is fake. By that time, it is too late to recover money that was wired from the account.
Credit card interest rate scam: Con artist says he can help lower credit interest rate but is actually trying to collect credit account information.
Jury duty scam: Caller claims that the victim missed jury duty. When the victim protests that she never received a jury summons, the caller asks for her Social Security number and birth date so he can "verify the information and cancel the arrest warrant."
Sweepstakes Scams
You are asked to pay to receive the prize.
Legitimate sweepstakes will never ask you to pay fees
The sweepstakes uses a free e-mail account.
If you receive a win notice claiming to be from a sweepstakes it is bogus if it arrived from a free account such as Hotmail or Gmail.
You don’t recognize the contest you’ve supposed won.
The only sweepstakes you can win are those you enter. This is a scam.
You receive a large check with your winning notification.
Do not attempt to cash it. Legitimate sweepstakes require affidavits before sending out any prize valued at more than $600
You are instructed to wire money.
Criminals use services such a Western Union to receive illicit funds because it is nearly impossible to trace who receives the money. Do not send money to get back money.
You bank or credit card info is required in order to receive your prize.
Legitimate sweepstakes do not send wins by direct deposit or do they need to withdraw moneys from your bank or need your credit card information.
You are told you won the lottery.
If you purchased a lottery ticket you must find the winning numbers in a newspaper or via the Internet or TV. The lottery does not notify you to tell you that you’ve won.
Internet Scams
Verify your bank account
This is the most common email scam today. It is designed to lure you into divulging your password information. These email and Web pages closely resemble legitimate credit authorities like Citibank, Bank of America, eBay, or PayPal. They entice you into visiting a phony web page and entering your ID and password. Often the guise is an urgent need to "confirm your identity" or tell you your account has been compromised or hacked and you must change your password.
Tip: the beginning of legitimate link address should have https://. These fakes will just have http:// (no “s”). If you question the legitimacy of the email call your financial institution to verify if the email is genuine.
The Nigerian scam
You receive an email from a supposed member of a wealthy Nigerian family interested in getting money out of Nigeria. The scam involves paying you a great deal of money for your help.
Advanced fees paid for a guaranteed loan or credit card
You receive information concerning a “pre-approved” loan or a credit card that charges an up-front fee.
Overpayment scam for item you are selling
This scam involves an item you might have listed for sale such as a car, or some other expensive item. The scammer finds your ad and sends you an email offering to pay much more than your asking price. The reason for overpayment is supposedly related to the international fees to ship the car or item overseas. In return, you are to send the car and the cash for the difference between what you listed your item for and what the scammer has agreed to pay you.
The scammer pays by money order and the money order you receive looks real so you deposit it into your account. In a couple of days (or the time it takes to clear) your bank informs you the money order was fake. In the mean time you have sent the item you were selling as well as the difference you were to pay over your asking price.
Lottery scam
You receive an email from saying that you won a huge amount of money.
The catch is that prior to collecting your “winnings”, you must pay the “processing” fee of several thousands of dollars.
Employment search scam
After posting a resume on an employment site you receive a job offer to become a "financial representative" of an overseas company. They state the reason they want to hire you is that this company has problems accepting money from US customers and they need you to handle those payments. You will be paid 5 to 15 percent commission per transaction.
In your application process, which they demand you do to get the job, you provide the scammer with your personal data, such as bank account information, so you can “get paid” and other personal information. As a result you are subject to identity theft as well as open to have money stolen from any account you list.
Disaster relief scam
You receive a request for donation via email to donate to a major disaster relieve fund or to volunteer.
Sometimes the name of the charity or organization sounds like a legitimate organization, but the Website they link you to is bogus. Always contact the recognized charitable organization directly by phone or their Website and donate or volunteer this way
Travel scams
You receive an email with the offer to get a low fares to some exotic destination but you must book on line through the provided Website immediately as the offer expires that evening. If you call, to check this out you are likely to find out the travel is at a lower price but the hotel rates are jacked up to cover the travel savings.
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