Computer tech support scammers are imposters that immediately gain trust by using well-known company names like Norton, Microsoft, or Apple, or by expressing a desire to help fix a daunting problem. Ranking third among the scams with the highest dollar loss, $695,240, in Vermont in 2021, this scam is historically successful due to its ability to establish a sense of familiarity and legitimacy garnered by the scammer’s suggested affiliation with a company and their technical prowess.
Computer Tech Support Scam Alert
In the computer tech support scam, you are contacted by phone, pop-up or email on your computer. The message spikes your anxiety and drives your response to be reactive. Tech scammers may claim, “There is a virus on your device,” “Your security subscription has been automatically renewed,” or “You have been charged for a year’s subscription of antivirus.” In the communication, a link or phone number is included, which you are urged to contact immediately to rectify the issue.
While in reaction mode, you call, hoping to resolve the issue. During the call, the scammer will try to persuade you to give remote access to your device to fix the problem, and sometimes will ask for immediate payment for their services. In scenarios where a refund is requested, they facilitate what appears to be a transfer of funds by walking you through steps to log into your own online bank account. Utilizing their program and ability to freely roam on your computer while they have remote access, they disguise the origin of the funds transfer, which is in actuality a transfer of funds between your own bank accounts.
Tech support scammers further escalate the call, using high tones of voice, demands of urgency, and call on your empathy to help solve a problem they created. The scammer’s tactics pull the recipient of the scam further into reaction mode. While in reaction mode, responses are based on impulse and with little additional collective data. Once a person has more information, through the process of asking questions and seeking out resources, the ability to think critically and problem-solve the issue comes back online.
For this scam and consumer transactions generally, you can apply the SLOW method to disrupt the unpredictable reaction response by substituting a planned response instead. At the onset of the first communication, start with SLOW as a strategy to help you take steps to verify.
Stop scams with SLOW
S – Slow down – scammers pressure you to react urgently. Don’t! Instead, take a breath and find your calm by doing what is immediately natural to you.
L – Log the contact – write down the information of the email, or phone call. If they are on the phone, you can tell them you will call them back, even if you don’t intend to. Then, disengage.
O – One call – make one call to a primary contact, such as a friend or family member and discuss the incident. It works best if you have pre-established who this will be; someone you can trust no matter what. The contact is a sounding board, who will ask questions and help you get curious about the interaction. Some questions might include:
How do I know the contact is who they say they are? –What proof is there? Where can I verify their contact information that is not part of the communication I received? –Was my credit card charged? What other parties can I contact that might know more about this? How can I be sure this is not a scam?
W – Who cares? Contact another party or organization in your life who cares. The Consumer Assistance Program (CAP) can help you identify scams and report them: 1-800-649-2424 and ago.vermont.gov/cap
Know what to watch out for in computer tech scams, so you can avoid them:
Be wary of pop-ups and unexpected emails/phone calls.
Watch out for security warnings and account renewals.
Don’t trust contact information, like links, URLs and phone numbers provided in unexpected emails.
Never click on links or provide remote access to your computer from an unknown email or source.
If you received an email or pop-up message, you cannot click out of, don’t engage. Instead, shut down, restart, or unplug your device.
If you get a call from “tech support,” hang up.
Be careful when searching for tech support online. Some users have been scammed by calling illegitimate phone numbers listed on the internet.
In the age of the internet and free flowing technology scammers hope to capitalize at every turn. You can prevent scams by practicing SLOW in all your consumer transactions now—and commit to being a primary contact for others. Everyone can help stop scams by following a scam prevention plan and sharing scam knowledge with your community.
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 AmountScam with Loss data according to reports to the Consumer Assistance Program in 2021
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.
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.
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 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: 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.
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:
Computer Tech Support (Variation)
Social Security Number Phishing
Computer Tech Support (Traditional)
Legal Authority Imposter
Sweepstakes/Lotteries
Identity Theft
Online Listings
Medicare Card Phishing
Family Emergency/Imposter
Auto Warranty Expiration
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.
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.
$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.
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.
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.
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.
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.
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.
