2021 Scams with Loss Reported to the Consumer Assistance Program 

Reports of scams to the Attorney General’s Consumer Assistance Program (CAP) totaled 5,154 in 2021, up just slightly from the previous year’s 5,021 reports. As imposter scams are of ongoing concern in Vermont, CAP recently distributed a video imposter scam prevention project, highlighting three concerning imposter scams with high dollar loss: the Romance Imposter scam, the Family Emergency/Imposter Scam, and the Business Imposter Email Scam.  We work in partnership with the Community of Vermont Elders (COVE), FAST of Vermont and local community partners to provide referrals and resources to victims of scams. In addition, CAP connects with service providers and local community organizations to provide training and scam prevention presentations.   

As highlighted in the prevention project, taking steps to verify can help individuals avoid scams. A simple verification process to follow for all scams is the SLOW Method

S – SLOW DOWN 
Scammers pressure you to act urgently. Don’t! 

L – LOG THE CONTACT 
Write down the info of the contact and disengage. 

O – ONE CALL 
Make one call to a primary contact and discuss the incident. 

W – WHO CARES? 
Call CAP to identify and report scams at 1-800-649-2424. 

CAP reminds Vermonters to never give out personal information or make payments to parties you cannot verify. Scammers will ask for payment in all forms, including wire transfer, cryptocurrency, cash, peer-to-peer payment, money order, check, credit/debit card, and gift cards. If you have sent money to a scammer, follow recovery steps now

Vermonters can help stop scams by sharing information with community members and by reporting scams to CAP to support educational outreach. To report scams, complete CAP’s online scam reporting form or call 1-800-649-2424. 

Top 10 Scam Types with Incurred Loss in Vermont by Total Loss Amount: Romance Imposter, $1,203,457: Financial Advisor/Investment Imposter, $820,233: Computer Tech Support, $695,240: Sweepstakes/Lottery/Contest/Prize, $439,685: Business Email Imposter, $388,295: Legal Authority Imposter, $197,011: Claims Order Made/Package Delivery, $129,818: Fake Website, $83,461: Buy/Sell Listing, $60,376: Phishing-Bank Representation, $51,436.
Top 10 Scam Types with Incurred Loss in Vermont by Total Loss Amount
Scam with Loss data according to reports to the Consumer Assistance Program in 2021

Computer Tech Support (Traditional) 

The scam: You receive a phone call, pop-up, or email on your computer claiming to be from Norton, Microsoft, Apple, or another well-known tech company. They will make claims such as your electronic device has a virus, your device security subscription has been automatically renewed, or stating you have been charged for services you did not receive or ask for. You may be prompted to click a link or call a number to contact. They will try to persuade you to give remote access to your device to fix the issue, and sometimes will even ask for immediate payment for their services. 

 How to spot the scam: Legitimate tech support companies do not display communications to their customers as random pop-ups on your device. Tech support will not call you to warn of security incidents; that your account has been renewed for a subscription you do not recognize; and will not send you random links, often shortened, with instructions for you to click on URLs. 

What to do: When contacted about a supposed business relationship, take steps to verify, especially if you do not remember signing up for services. Never click on links or provide remote access to your computer from an unknown email sender or pop-up message on your device’s screen. If you received a pop-up message you cannot click out of, shut down, restart, or unplug your device. If you get a call from “tech support”, hang up. Also, be careful when searching for tech support online. Some users have been scammed by calling illegitimate phone numbers listed on the internet. 

Fake Website/Online Listings 

The scam: Fake websites or phony listings on sites like Facebook Marketplace and Craigslist draw you into a purchase that’s likely too good to be true. This scam can also appear in online rental listings, and as a buyer offering well-over the selling price for an item. As a seller, the fake buyer sends a fake check or pays with a fraudulent credit card and asks you to advance funds to another fake vendor, causing you to be out the funds. 

How to spot the scam: Be skeptical of unrealistic offers. Watch out for requests for money in any form (gift cards, wire transfers, cash) when not made in person. Scammers likely will not want to talk on the phone or meet in person. Heed warnings in user reviews and other online commentary. 

What to do: Playing it safe online takes a bit of detective work to determine legitimacy of an offer. Investigate the person/profile of the seller. If their profile is new and they have no friends and photos, they are likely a scam. Research new websites you are considering doing business with by looking up online reviews and state business registrations, taking note of how long the company has been operating. Perform online searches of the business with “scam” and “complaints” to see if issues generate. Complete your transactions in cash and preferably a safe place in-person. 

Romance Imposter  

The Scam:  Scammers connect usually through social media and pose to be someone you trust and care for. After the trust has been developed, they claim they are in an emergency to convince you to send them money or will ask you for a favor. Scammers impersonate a love interest and play on your fears to have you send money urgently.  

How to spot the scam: Use reverse image searches to look up images of the person; if ther are many results, the contact may be using someone else’s image and is a scam. Video chat on your terms and at random times. If they are typically unavailable, they may be scamming someone else.  

What to do: consult with your close in person contacts and reach out to an organization in your life who cares. They may spot something you don’t. Never send money to someone you have not met in person.  

Computer Tech Support (Claims Order Made/Package Delivery) 

The scam: A variation of the traditional Computer Tech Support scam (see # 3 below). You receive an automated phone call, text message, or email claiming that you have been charged for an online order, have an outstanding balance on your account, or are sent an item you did not order. The scammer then instructs individuals to call a number provided in the scammer’s communications to get a refund or to resolve the charge. At this point, they will ask you to provide your card number to “confirm your account” or prompt you to provide them remote access to your computer. As soon as the scammer has remote access to your device, they can access every single document, file, and transaction you have saved to your device. 

How to spot the scam: Companies will not call with tech support unless you requested that they contact you. If you receive a package that you do not recall ordering, check your statement history to see if you have been charged. Packages without a return address are highly suspicious. 

What to do: Hang up the phone immediately and do not call back. If you receive an email or text regarding a package delivery or order that has been made, do not click on any links. Mark the email as “Junk” or “Spam”. Furthermore, never allow remote access to your device to unknown parties. If you are concerned about charges made to your accounts, log in to your account directly and contact your financial institution. If you receive a package that you did not order, mark it return to sender and give it back to the mail carrier. 

Sweepstakes/Lotteries/Contest/Prize 

The scam: You will be notified by phone, email, or mail that you won a prize or a quantity of money. In some cases, you will even receive a realistic-looking check – but it is fake! You are instructed to pay fees and give your financial and personal information to claim your prize. They often use a legitimate sweepstakes name, like Publishers Clearing House. 

How to spot the scam: Legitimate sweepstakes and contest businesses, like Publishers Clearing House and Mega Millions lottery, will contact you in person if you win a major prize. For prizes under $10,000, the notification is done through certified mail by overnight delivery services (FedEx, UPS). They will not contact you by phone, nor require a payment or processing fee to release your prize. 

What to do: If it sounds too good to be true, then it’s not true. You don’t need to pay fees or give your financial information in order to claim a prize. 

Family/Friend Emergency/Imposter 

The scam: Scammers pose to be someone you trust and pretend to be in an emergency to convince you to send them money or will ask you for a favor. These scammers pose as grandchildren, friends, relatives, and close contacts and seem like the real deal. Scammers impersonate people you love and play on your fears to have you send money urgently. After the initial call, you may be told a lawyer, parole officer or courtroom may contact you for further information. 

How to spot the scam: Contacts come in as calls or emails or online messages. Sometimes it’s someone you haven’t heard from in a while. They require urgency and ask for secrecy. You may not be allowed to speak to your loved one on the phone. 

What to do: Take steps to verify. Check out if they really are who they say even if they sound like a loved one. Slow down your response and contact someone you trust to verify if there is an emergency. You can also choose a “code word” with friends and family to verify the person is who they claim to be. If they don’t know the word, they are not your friend or family member. 

Phishing-Bank Representation 

The scam: You receive an email or phone call claiming to be from a bank. Emails might claim that your account is in danger or has been suspended, or that your card is on hold due to suspicious activity. The email also includes links to phony websites. Phone calls may claim that there has been fraudulent activity involving your account, and the scammers demand personal information about you and your account. 

How to spot the scam: Scammers mask their actual identity by changing the sender name to the name of the financial institution. Look at the email address before opening the email. You will often find an account not affiliated with your bank. Similarly, scammers can spoof phone numbers of financial institutions. If you answer a call that appears to be from your bank and they ask for your personal and/or account information, hang up and call your bank directly on a number you trust to verify their attempt to contact you. 

What to do: Do not reply to the email or click on any links or attachments included in the message. If you receive a call, hang up the phone. To correspond directly with your bank or financial institution, use verified contact information, such as information listed on your statement. 

Financial Advisor/ Investment Imposter  

The scam: Scammers are spoofing websites and using fake social media accounts to obscure their identities. Scammers also pose an imposter friend with an investment tip.  Investors should always take steps to identify phony accounts by looking closely at content, analyzing dates of inception and considering the quality of engagement. To ensure investors do not accidently deal with an imposter firm, pay careful attention to domain names and learn more about how to protect your online accounts. 

How to spot the scam: Beware of fake client reviews. Scammers often reference or publish positive, yet bogus testimonials purportedly drafted by satisfied customers. These testimonials create the appearance the promoter is reliable – he or she has already earned significant profits in the past, and new investors can reap the same financial benefits as prior investors. 

What to do: The North American Securities Administrators Association (NASAA) recommends investors independently research registration of investment firms.  

TOP 10 SCAMS OF 2021 RELEASED BY THE ATTORNEY GENERAL’S OFFICE

Reports of scams to the Attorney General’s Consumer Assistance Program (CAP) totaled 5,154 in 2021, up just slightly from the previous year’s 5,021 reports. Two variations of the Computer Tech Support scam and the Online Listing scam claimed the number one, three, and seven spots respectively on CAP’s list of top ten scams in 2021, covering nearly a quarter of the total reports filed by Vermonters. Businesses were also targeted by internet-based scams in 2021. The Business Imposter Email Scam, where scammers represent themselves as business personnel to extort funds, had 62 reports filed—a figure that did not make the top ten but notably jumped nearly 50% from the previous year.         

The prevalence of internet-based scams in 2021 sends a clear message about the importance of staying safe online in our social and work lives. If you receive a suspicious contact, whether it’s made by email, online message, or phone, know that CAP is here to help.

Vermont Attorney general t.j. donovan

Impersonation scams remain of concern, with an adapted law enforcement and lawyer imposter scam at the number four spot in 2021, threatening arrest and lawsuits on unsuspecting call recipients. The Family Emergency/Imposter scam, which includes the Grandchild Imposter also known as the “Grandparent scam” and needy friends and relatives asking for funds, made the top ten list again in 2021. A similar scam, which fabricates a romantic relationship or friendship of confidence, the Romance Imposter scam, saw a 36% increase in reports. As imposter scams are of ongoing concern in Vermont, CAP recently distributed a video imposter scam prevention project, highlighting three concerning imposter scams with high dollar loss: the Romance Imposter scam, the Family Emergency/Imposter Scam, and the Business Imposter Email Scam.

As highlighted in the prevention project, taking steps to verify can help individuals avoid scams. A simple verification process to follow for all scams is the SLOW Method:

SLOW Method
  • S – SLOW DOWN
  • Scammers pressure you to act urgently. Don’t!
  • L – LOG THE CONTACT
  • Write down the info of the contact and disengage.
  • O – ONE CALL
  • Make one call to a primary contact and discuss the incident.
  • W – WHO CARES?
  • Call CAP to identify and report scams at 1-800-649-2424.

CAP reminds Vermonters to never give out personal information or make payments to parties you cannot verify. Scammers will ask for payment in all forms, including wire transfer, cryptocurrency, cash, peer-to-peer payment, money order, check, credit/debit card, and gift cards. If you have sent money to a scammer, follow recovery steps now.

Vermonters can help stop scams by sharing information with community members and by reporting scams to CAP to support educational outreach. To report scams, complete CAP’s online scam reporting form or call 1-800-649-2424.

CAP Assistant Director on Across The Fence reviewing VT’s Top 10 Scams of 2021

The Top 10 Scams of 2021:

  1. Computer Tech Support (Variation)
  2. Social Security Number Phishing
  3. Computer Tech Support (Traditional)
  4. Legal Authority Imposter
  5. Sweepstakes/Lotteries
  6. Identity Theft
  7. Online Listings
  8. Medicare Card Phishing
  9. Family Emergency/Imposter
  10. Auto Warranty Expiration
The Top 10 Scams Reported to the Vermont Attorney General's Consumer Assistance Program in 2021
The Top 10 Scams Reported to the Vermont Attorney General’s Consumer Assistance Program in 2021

The scam: A variation of the traditional Computer Tech Support scam (see # 3 below). You receive an automated phone call, text message, or email claiming that you have been charged for an online order, have an outstanding balance on your account, or are sent an item you did not order. The scammer then instructs individuals to call a number provided in the scammer’s communications to get a refund or to resolve the charge. At this point, they will ask you to provide your card number to “confirm your account” or prompt you to provide them remote access to your computer. As soon as the scammer has remote access to your device, they can access every single document, file, and transaction you have saved to your device.   

How to spot the scam: Companies will not call with tech support unless you requested that they contact you. If you receive a package that you do not recall ordering, check your statement history to see if you have been charged. Packages without a return address are highly suspicious.

What to do: Hang up the phone immediately and do not call back. If you receive an email or text regarding a package delivery or order that has been made, do not click on any links. Mark the email as “Junk” or “Spam”. Furthermore, never allow remote access to your device to unknown parties. If you are concerned about charges made to your accounts, log in to your account directly and contact your financial institution. If you receive a package that you did not order, mark it return to sender and give it back to the mail carrier.

The scam: You receive a phone call (often a robocall) stating that there has been criminal or fraudulent activity involving your Social Security number. The call may even claim you will lose your benefits, or they will expire.

How to spot the scam: Social Security and other government agencies typically contact you by mail before initiating phone communication; they usually don’t call you first, you call them. They also would not threaten you for your information or payment.

What to do: Whenever you receive an unsolicited contact, take steps to verify. Never provide personal information to unknown contacts. Report robocalls to CAP for enforcement.

The scam: You receive a phone call, pop-up, or email on your computer claiming to be from Norton, Microsoft, Apple, or another well-known tech company. They will make claims such as your electronic device has a virus, your device security subscription has been automatically renewed, or stating you have been charged for services you did not receive or ask for. You may be prompted to click a link or call a number to contact. They will try to persuade you to give remote access to your device to fix the issue, and sometimes will even ask for immediate payment for their services.  

How to spot the scam: Legitimate tech support companies do not display communications to their customers as random pop-ups on your device. Tech support will not call you to warn of security incidents; that your account has been renewed for a subscription you do not recognize; and will not send you random links, often shortened, with instructions for you to click on URLs. 

What to do: When contacted about a supposed business relationship, take steps to verify, especially if you do not remember signing up for services. Never click on links or provide remote access to your computer from an unknown email sender or pop-up message on your device’s screen. If you received a pop-up message you cannot click out of, shut down, restart, or unplug your device. If you get a call from “tech support”, hang up. Also, be careful when searching for tech support online. Some users have been scammed by calling illegitimate phone numbers listed on the internet.  

  • Legal Authority Imposter

The scam: You receive a phone call unexpectedly, claiming to be a police officer, U.S. Marshall, U.S. Customs and Border Protection, or an attorney with legal authority. The caller threatens arrest or pending lawsuits against you. When you engage, urgent payment is demanded to make the problem go away. Payment does not solve the supposed problem, and they keep calling. 

How to spot the scam: The police would not warn you ahead of time about a pending warrant. If you were going to be sued, the papers would be served without notice.

What to do: Know your rights. Harassing debt collection practice is unlawful, and collectors aren’t allowed to make claims they can’t or won’t pursue. Hang up on all threats and report them.

The scam: You will be notified by phone, email, or mail that you won a prize or a quantity of money. In some cases, you will even receive a realistic-looking check – but it is fake! You are instructed to pay fees and give your financial and personal information to claim your prize. They often use a legitimate sweepstakes name, like Publishers Clearing House.

How to spot the scam: Legitimate sweepstakes and contest businesses, like Publishers Clearing House and Mega Millions lottery, will contact you in person if you win a major prize. For prizes under $10,000, the notification is done through certified mail by overnight delivery services (FedEx, UPS). They will not contact you by phone, nor require a payment or processing fee to release your prize.

What to do: If it sounds too good to be true, then it’s not true. You don’t need to pay fees or give your financial information in order to claim a prize.

The scam: You receive a letter that claims you have requested government benefits, opened a bank account, filled a credit card application, or are notified about a security breach. Sometimes you will stop receiving legitimate bills and other mail or start to get bills for products and services that you didn’t pursue.

How to spot the scam: Be aware of unsolicited phone calls, mail and emails stating unexpected bank transactions, credit card or benefit applications. If your expected bills are not showing up, or you are receiving correspondence in someone else’s name, report it.

What to do: Don’t give out personal information, such as your Social Security number, passwords, personal identification numbers, and financial accounts. Review your credit reports at least once a year. Carefully check bank account statements and benefits to verify transactions. Shred documents and expired credit cards before you throw them out. Verify security breach notification letters received on the Attorney General’s website. If your information has been stolen by an identity thief, take identity theft protection steps.

The scam: Fake websites or phony listings on sites like Facebook Marketplace and Craigslist draw you into a purchase that’s likely too good to be true. This scam can also appear in online rental listings, and as a buyer offering well-over the selling price for an item. As a seller, the fake buyer sends a fake check or pays with a fraudulent credit card and asks you to advance funds to another fake vendor, causing you to be out the funds.

How to spot the scam: Be skeptical of unrealistic offers. Watch out for requests for money in any form (gift cards, wire transfers, cash) when not made in person. Scammers likely will not want to talk on the phone or meet in person. Heed warnings in user reviews and other online commentary.

What to do: Playing it safe online takes a bit of detective work to determine legitimacy of an offer. Investigate the person/profile of the seller. If their profile is new and they have no friends and photos, they are likely a scam. Research new websites you are considering doing business with by looking up online reviews and state business registrations, taking note of how long the company has been operating. Perform online searches of the business with “scam” and “complaints” to see if issues generate. Complete your transactions in cash and preferably a safe place in-person.

The scam: Scammers will call, often with a live call and from a spoofed caller ID number, and pose as Medicare representatives to gain your personal information and money. These scams are most frequent during times of open enrollment but can occur year-round. The scammers will state they need your Medicare card number or Social Security number to keep your coverage active and verify medical information. The calls may also claim that coverage is expiring or in need of renewal. Scammers will also ask if you received a “new Medicare card”, often referred to as a “gold card” or “red, white, and blue card”.

How to spot the scam: In general, Medicare cards do not expire. Unless you have called Medicare using the 800 number on the back of your card and requested a callback, Medicare will not call you. If a phone call is required, you would receive a letter from the Social Security Administration to schedule a call. Medicare representatives will never call you to verify your information, sell you products, tell you that your coverage is expiring, or to issue you a new card.

What to do: Never provide your Medicare number or other personal information and payment to unknown callers. In Vermont, representatives of the State Health Insurance Assistance Program (SHIP) at 1-800-642-5119 through local Area Agencies on Aging can help address Medicare questions. Other questions and concerns about Medicare coverage can be directed to Medicare at 1-800-MEDICARE. You may also report this scam to the Federal Trade Commission.

The scam: Scammers pose to be someone you trust and pretend to be in an emergency to convince you to send them money or will ask you for a favor. These scammers pose as grandchildren, friends, relatives, and close contacts and seem like the real deal. Scammers impersonate people you love and play on your fears to have you send money urgently. After the initial call, you may be told a lawyer, parole officer or courtroom may contact you for further information.

How to spot the scam: Contacts come in as calls or emails or online messages. Sometimes it’s someone you haven’t heard from in a while. They require urgency and ask for secrecy. You may not be allowed to speak to your loved one on the phone.

What to do: Take steps to verify. Check out if they really are who they say even if they sound like a loved one. Slow down your response and contact someone you trust to verify if there is an emergency. You can also choose a “code word” with friends and family to verify the person is who they claim to be. If they don’t know the word, they are not your friend or family member.

  • Auto Warranty Expiration

The scam: You receive a call or mail from fake representatives of auto dealers, manufacturers, and insurance companies, trying to convince you to renew your auto warranty or insurance or claim your warranty is expired. You may be instructed to press a number or stay on the line for a representative that seems like a real person. When contacted by these scammers, you may be asked personal information about yourself and your vehicle or financial information to pay off this fake claim.

How to spot the scam: Be mindful that only a vehicle’s manufacturer can extend factory warranties, not an outside company. Avoid any call or mailing that states it’s urgent for you to take immediate action to continue your car’s warranty.

What to do: If you have inquiries on your vehicle or its warranty, call the number on your purchase paperwork. You can also contact the dealership you purchased the vehicle from to inquire about the warranty as well. Hang up on or discard any suspicious mailing or person claiming to know about your auto warranty. Do not provide any personal or identifying information unless you can verify you are dealing directly with a verified company that you have a business relationship with.

Scammers are using cryptocurrency to steal your money

By Crystal Baldwin 

Recently, three Vermonters reported losing just under $1 million in total to cryptocurrency scams.  Entire retirement accounts were drained, and because of early withdrawal penalties, thousands of dollars are due to the IRS.  Some owe family members for funds borrowed on the chance that cryptocurrency would substantially increase their investment. 

$80 Million Lost to Cryptocurrency Scams since late 2020 as reported by the Federal Trade Commission.
$80M Lost to cryptocurrency scams since October 2020 as reported by the Federal Trade Commission

As a peer-to-peer spending source, every type of scam could at any point use cryptocurrency as the preferred form of payment, over gift cards, wire transfers, and cash, for example.  According to the Federal Trade Commission, cryptocurrency scams have been increasing since 2017 and “skyrocketed” at the end of 2020 (ftc.gov). 

So, what is cryptocurrency? 
In very basic terms, it’s virtual money that uses its own currency, or monetary system.  When we usually think of currency, it’s affiliated with a specific country, has an exchange rate and is produced as banknotes and coins known as fiat currency.  The money in a U.S. bank account will note an amount in U.S. dollars, for example.  Cryptocurrency is usually unaffiliated with a particular country, maintaining its own exchange rate.  As such, cryptocurrency is not backed by any government or other central bank (ncsl.org) like we are used to with US banks which are FDIC insured—insurance that protects your money from bank failure. 

Cryptocurrency is...Risky digital currency recorded in an online public ledger called the "blockchain"

A peer-to-peer payment method

Stored in a digital wallet (software/app) accessible to users with a computer or a mobile device

Transferred as encrypted information (called public and private keys)

Not bound by geography nor backed by government or other central bank

Anonymous, like cash transactions

Taxed as any other income
Information by ncsl.org and finra.org

How is cryptocurrency used? 
To spend using cryptocurrency, a user needs a digital wallet accessible through software or an app and some funds to deposit to convert into cryptocurrency, such as Bitcoin.  There are many different cryptocurrencies, affiliated applications/websites.  Not all cryptocurrencies are the same and, unfortunately, some are entirely fake. 

When transferring, your funds are assigned a unique password that is required to move funds. As such, the transfer of funds happens instantly, with little federal oversight or regulation, making cryptocurrency the currency of choice for fraudsters. 

Cryptocurrency is the preferred payment method of scammers.   
Any type of scam can manifest with crypto being the scammer’s preferred mode of transfer.  Scammers like cryptocurrency, because, unlike with traditional bank transfers and transfers done by a money transmitter (like Western Union and Money Gram), there is no third-party banking institution involved in the transfer.  The transfer itself is peer-to-peer and performed with a unique encryption code (in simple terms, think of the best password you have ever set eyes on).  This means, if you have money in bitcoin and the receiving party receives your encryption code, now the receiving party has your money.  All cryptocurrency transactions that are completed on the blockchain are irreversible and funds cannot be recovered. 

Cryptocurrency scam alert: Ponzi schemes, investment scams and unlicensed sellers, stock scams, hackers and computer tech support scams
Be on the lookout for these cryptocurrency scams

The exchange of funds happens instantaneously, virtually and globally, making the jurisdiction of the monetary exchange difficult to determine.  Even if the receiver says they are in the U.S., you will not be able to verify this claim.  

Is Cryptocurrency an investment or a scam—an investment scam, or something else? 
According to the Securities and Exchange Commission (SEC), cryptocurrency is a “highly speculative investment” and the “Bitcoin futures market should be pursued only by mutual funds with appropriate strategies that support this type of investment” (sec.gov).  A speculative investment is one with a high degree of risk with hopeful long term gains. 

There are a number of fake and a number of honestly operating cryptocurrency investment firms. There remains little regulation in the field.  The SEC indicates, “While these digital assets and the technology behind them may present a new and efficient means for carrying out financial transactions, they also bring increased risk of fraud and manipulation because the markets for these assets are less regulated than traditional capital markets” (sec.gov).  The Financial Industry Regulatory Authority (FINRA) echoes that “The markets for cryptocurrencies remain highly volatile and risky.” To learn more about cryptocurrency markets and products, review the helpful resources on the FINRA website

More to consider: 
As an entirely digital currency, all access points are digital.  Individual accounts can be hacked and cryptocurrencies themselves are not foolproof.  When a cryptocurrency’s system is breached, millions of dollars are lost, as demonstrated in breaches; Bithumb lost $30 million, Coinrail lost $37.2 million, BitGrail lost $195 million, and Coincheck lost $534 million (investopedia.com).  

A person that opts to use cryptocurrency must ensure their account is protected and secure against the most determined hacker.  Even still, there are ways that scammers can obtain direct access to your digital accounts.  Through a convincing tech support scam, they claim there is a problem with your account that must be solved, and you sign them in, allowing them access to everything.  Another easy route is with a simple click of the mouse, the computer can be infected with viruses, opening the virtual door for your computer and accounts on it to be susceptible to scams.   

Without proper security, ensuring your systems will not be breached, one simple hack can risk your entire cryptocurrency account.  With this in mind, digital currency may not be the right choice for someone who sets easy passwords, performs few antivirus checks, or is a carefree web user.     

Report Scams: 
If you or someone you know have encountered a scam in Vermont, report it. Use CAP’s online scam reporting form.  

Help us stop these scams by sharing this information with those you care about. 

References: Finra.org, sec.gov, investopedia.com, ncsl.org, investor.gov. fdic.gov, ftc.gov

Identity Theft and Phishing

By Crystal Baldwin

When I presented on the topic of identity theft a decade ago, the concept seemed somewhat distant, impacting few individuals with identity thieves using dated and laborious tactics to steal identities.  A section of my presentation was devoted to informing about dumpster diving—the fact that people can get a lot of information about your identity from the trash you discard—and encouraging shredding as an identity theft prevention step.  Another section focused on phishing and educating about what phishing is; not to be confused with fishing, except metaphorically of course. 

Protect yourself from Identity Theft! Safeguard your personal information.  Verify requests for information. Shred documents using a cross cutting shredder.

In the age of the robocall and the internet, phishing and identity theft have become more sophisticated in that scammers can make the same automated call to many people at once and data security breaches expose consumers to widespread identity theft.   

Even with advances in technology, identity thieves can still obtain your personal information by rummaging through your trash and phishing.  To demonstrate, let’s take a quiz: 

What do you do with your expired credit card when a replacement arrives in the mail? 

A. Cut it down the middle and throw it out.  The card cannot be used once the magnetic strip is severed.  

B. Run it through a straight-line shredding machine. The card will be of no use when made into little strips.  

C. Cut it into as many small pieces as possible, either with scissors or a cross-cutting shredder. Throw out the pieces in different trash bags. It will be virtually impossible to decipher the card with it in so many pieces and places. 

D. Discard as it is.  Without additional instruction from the bank, no additional steps are necessary.  The card is of no use once it expires. 

My answer is C: Cut the card into a million pieces and discard in multiple places.  Why?  Because even though the card is expired, with card updates the card number stays the same.  Once a determined scammer has obtained the card, all they need to do is follow up with a strategic phishing phone call to you.  When they call, they may claim to be your financial institution and ask a series of phishing questions, which exposes other important numbers about the valid card in your possession: the expiration date and the CCV.   

What exactly is phishing?  

A. A sport of catching fish, using a fishing pole. 

B. A fun excursion with Vermont Phish Phans.  

C. The fraudulent attempt to obtain your personal information or data. 

D. Testing the water pH before ice fishing.  

Hopefully this quiz question was easier.  The answer is also C.   

Identity thieves phish for information about you, your Social Security number, your bank account number, your credit card and debit card numbers, your birthday, and more in order to use the information for their own financial gain.  When an email purports to be your bank, saying you have been locked out of your account and you must login using the enclosed link, a scammer hopes you provide them all of your personal information by completing their realistic-looking bogus form.  Once you have, they can access and use your account.  And, depending on the information you have provided, they may also open up new lines of credit in your name without your knowledge or consent.  Identity thieves have opened home loans, car loans and credit cards.  They usually don’t pay the bills they run up, creating a mountain of work for you to dispute debts you do not owe.  

Phishing scammers may contact you by email, phone, text message, and any other communication mechanism you use currently, including social media.  Phishing scams often present a problem that must be solved by you disclosing some personal information.  They may even pretend to be your computer company, warning about viruses that need to be repaired on your computer.  They offer to help you resolve your virus problem, if you grant them access to your computer and, unknowingly, your personal information stored on your computer.  Phishing scammers may also say a package will soon be delivered to you and you must reply if you did not order a product, or else your credit card will be charged. Then when you call, they ask for your credit card number. 

Protect yourself from phishing scams! Scammers claim to be someone you know. They present a problem that can only be resolved by providing personal info or money, they may contact you by phone, email, text, mail, and even social media.

Phishing scams can be tricky, because there are scenarios in which a bank institution may contact you, such as if there has been fraudulent activity on your credit card. Scammers take advantage of this and try to replicate it.  Rather than trying to determine the difference between a scam call and a call from your bank, take out the guesswork by disconnecting the contact and calling your bank directly on a number you know to be valid.   

Resist the impulse to reply to urgent requests of phishing scammers.  By slowing down and taking steps to verify, you can stop phishing scammers from reeling you into their trap. 

Help CAP prevent scams by sharing this information with your community.  Have a scam to report? Use CAP’s online scam reporting form

For more information about identity theft, visit our website

Help us stop these scams by sharing this information with those you care about. Get notified about the latest scams: Sign up for VT Scam Alert System alerts.  

Vermont’s Top Ten Scams of 2020

Vermonters filed 5,021 scam reports with the Attorney General’s Consumer Assistance Program (CAP) in 2020. The Social Security number phishing scam, which typically involves calls claiming that your Social Security number has been compromised, suspended, or linked to criminal activity, remained the most commonly scam for the second year in a row with 1,160 reports filed. Claiming the number two spot on the list of top ten scams in 2020 were “free money” scams. Six-hundred-eighty-three Vermonters reported receiving “free money” scam calls where they were told that they had won a prize or money and needed to pay fees or taxes upfront to collect. With scam attempts remaining high, Attorney General T.J. Donovan urges Vermonters to Take it Slow: scammers will pressure you to act fast, demanding personal information and payment, while threatening extreme consequences if you do not comply. Don’t let them pressure you!

“If you get a suspicious call, remember to slow down, hang up the phone, and take notes on the interaction,” warned Attorney General Donovan. “If you still need help identifying if something is a scam, call us at CAP at 800-649-2424.”

Unfortunately, many scam encounters result in monetary loss in Vermont. In 2020, 249 Vermonters lost approximately $1.5 million, in total, to scammers. The most common scams associated with monetary loss were imposter scams (scammers posing as friends, family members, or romantic interests) and online classified listing scams (scams perpetrated on sites such as Craigslist or Facebook Marketplace). Scammers ask their victims to send money using a variety of methods, including gift card transactions, peer-to-peer payments apps like Venmo or CashApp, wire transfers, and cash or checks in the mail.

Vermonters can report a scam or sign up for the Scam Alert system by going to ago.vermont.gov/cap or by calling the Consumer Assistance Program at 1-800-649-2424. 

The top 10 scams of 2020 are

  1. Social Security number phishing 
  1. Free money 
  1. Amazon and package deliveries phishing 
  1. Computer tech support 
  1. Phony relationships (not grandchild) 
  1. Debt collection  
  1. Online classified listings 
  1. Extortion emails 
  1. Grandchild imposter 
  1. Bank/financial institution phishing 
Vermont’s Top Ten Scams of 2020 by the Consumer Assistance Program of the Vermont Attorney General’s Office and the University of Vermont
  1. Social Security number phishing 

The scam: You receive a phone call (usually a robocall) stating that there has been criminal or fraudulent activity involving your Social Security number. The scammer may also claim to be a government agency or law enforcement, threatening arrest or serious consequences. The scam often begins as a robocall. 

How to spot the scam: If Social Security (or any official agency) wanted to contact you, they would not call to ask for your personal information, especially your Social Security number, over the phone. These agencies mail communications and would never threaten you for information or payment over the phone. 

What to do: Be wary when responding to unsolicited contacts and never provide personal information to unknown contactors, especially over the phone.  

  1. Free money 

The scam: You receive a phone call, email, or mailing that claims you have won money or a prize—but there’s a catch: you have to pay money up front for taxes or fees. Sometimes the outreach includes a realistic-looking fake check. The check bounces and no “winnings” are ever dispersed. Often, they claim to be Publishers Clearing House. Scammers may also claim to offer government grants or stimulus money, getting touch via social media. 

How to spot the scam: If you actually win a major prize from Publishers Clearing House, they will contact you in person. For smaller prizes (less than $10,000), winners are notified by overnight delivery services (FedEx, UPS), certified mail, or email in the case on online giveaways. They never make phone calls. An unsolicited check in the mail from an unknown sender is usually a scam. 

What to do: If it sounds too good be true, then it’s not true. Never pay an upfront fee to receive winnings or a grant. If you win something, they will pay you – not the other way around. No actual contest or sweepstakes would you make you pay first to receive money. 

  1. Amazon and package deliveries phishing 

The scam:  An automated phone call or email claiming that your credit card has been charged by Amazon or that you have an outstanding balance on your account. The scammer instructs people to call them to get a refund or resolve the charge, at which point they request your card number and attempt to gain remote access to your computer. You might also receive a text message or email claiming that you have a package, but they need to verify your information. 

How to spot the scam: Amazon will not call you unless you request that they do so. If you have legitimate concerns about your Amazon account, or other accounts, contact the company directly through a trusted contact, such as through the customer portal within your account. 

What to do: Hang up the phone and do not call back. Furthermore, you should not allow remote access to your computer to unknown parties. If you are concerned about charges made to your credit card, contact your credit card company directly. If you receive a text regarding a package delivery, don’t click any links or reply.  

  1. Computer tech support 

The scam: A phone call or pop-up message on your computer claiming to be from Microsoft, Apple, or another well-known tech company. They will say there is a virus or other problem with your computer and try to persuade you to give them remote access to resolve the issue. They may also ask for immediate payment for their services. 

How to spot the scam: Legitimate customer service information usually won’t display as a pop-up. Companies like Microsoft, Apple, and Google do not call you to notify you of malware on your computer. 

What to do: Never provide remote access to your computer to a stranger or click links from an unknown sender in an e-mail or pop-up message. If you get a call from “tech support,” hang up. Also, be careful when searching for tech support numbers online. Some users have been scammed by calling illegitimate numbers for legitimate companies. 

  1. Phony relationships 

The scam: There is a wide variety of phony relationship scams. Sometimes, the scammer pretends to be someone you know, like a love interest, friend, relative, or even a religious leader. They typically reach out to you online or on the phone, claiming to need money.  

How to spot the scam: They ask you to send money immediately, often in the form of wire transfers or gift cards. If you met the person online, but they refuse to video-chat or talk on the phone.  

What to do: If they claim to be someone you know, call the person using a verified phone number. If you receive a suspicious email, be sure to double-check the email address. If you’re feeling suspicious, get the real story and talk to someone you trust. Cut off communication with the scammer. If you receive an email from a friend or coworker asking for money, do not send money. Be sure to call that person directly—it’s most likely a scam. 

  1. Debt collection 

The scam: Scammers pose as debt collectors or law enforcement and say legal action will be taken against you if you don’t pay them what you owe. Some may claim to be familiar businesses or the government, such as utility companies or the IRS. 

How to spot the scam: If you did owe a debt, collectors are not allowed to threaten you with arrest over the phone. You can request verification of the debt, which has to be sent to you in writing. If you ask them to stop calling you, they are generally required to stop. 

What to do: Hang up the phone, and if they call again, let the call go to voicemail. If you think you do actually owe money to a debt collector or other agency, make sure you call using a trusted number. 

  1. Online classified listings 

The scam: Sometimes the scammer responds to a seller’s post, overpays with a check, and asks for the remainder to be wired back. Sometimes the post is for a fictitious rental property and the scammer is looking for the deposit and first month’s rent to be sent immediately. Scams even happen when you are looking for that perfect puppy or pet to expand your family, but the transport of the animal is supposedly held up at the airport or elsewhere. 

How to spot the scam: If you feel suspicious, stop the sale or purchase. The scammer may ask you to wire them money, send a bank transfer, or pay using gift cards. They may not want to talk on the phone or meet in person. Remember, you should not provide a rental deposit before signing the lease or contract in-person. 

What to do: Complete your transactions in cash and preferably in-person. If they refuse to meet in-person or talk on the phone, ignore them and end communication. 

  1. Extortion emails 

The scam: You receive an email that threatens exposure of compromising home video and pictures, unless you pay, usually in Bitcoin. The email claims you have been hacked and may reference a current or former password you may have used. The sender claims that they have access to your computer and webcam and threatens to release embarrassing photos and video unless you send them money. 

How to spot the scam: The scammer is using scare tactics to make you act fast. Don’t take the bait! The email message will often include threats and hurtful language. 

What to do: Do not reply to the email or click on any links or attachments included on the message. Do not send money. If you find that your current password is listed in the email, change your passwords from another computer and run virus scans. Delete the email or add it to your spam/junk folder. 

  1. Grandchild imposter 

The scam: Scammers pose as grandchildren and claim to be in serious trouble, such as in prison or at the hospital. They urgently request money in the form of wired funds or prepaid gift cards. They may also claim that their voice sounds unfamiliar due to injury. After the initial call, they may claim you will be hearing from an attorney or officer. 

How to spot the scam: Call your grandchild or family members on known phone numbers to ensure your grandchild is safe. 

What to do: Never wire or otherwise send funds unless you can verify the emergency. Take it slow and contact someone you trust.  

  1. Bank/financial institution phishing 

The scam: You receive an email or phone call claiming to be from a bank. Emails might claim that your account is in danger or has been suspended, or that your card is on hold due to suspicion activity. The email also includes links to phony websites. Phone calls may claim that there has been fraudulent activity involving your account, and the scammers demand personal information about you and your account.  

How to spot the scam: Scammers mask their actual identity by changing the sender name to the name of the financial institution. Look at the email address before opening the email. You will often find an account not affiliated with your bank. Similarly, scammers can spoof phone numbers of financial institutions. If you answer a call that appears to be from your bank and they ask for your personal and/or account information, hang up and call your bank directly on a number you trust to verify their attempt to contact you.  

What to do: Do not reply to the email or click on any links or attachments included on the message. If you receive a call, hang up the phone. To correspond directly with your bank or financial institution, use verified contact information, such as information listed on your statement. 

Don't Get Scammed: Slow Down and Follow A Plan: Slow Down, Log the Call, make One Call to a primary contact, report to Who Cares; CAP cares, call 800-649-2424.
Don’t get scammed, slow down and follow a plan. SLOW method by the Consumer Assistance Program.

Contributing Writer: Madison Braz

Content Editor: Crystal Baldwin