Tag: check scams

The U.S. Is the Most Scammed Country In the World

by Advantage One, posted in Announcements, Lifestyle, online security, security, Tips & Best Practices, Uncategorized

A recent report by Social Catfish, an online investigation service, found that the U.S. is the most scammed country in the world. A staggering amount of money was lost to scams in 2022, and that number will likely continue to trend upward, thanks to newly available mediums for scammers, like artificial intelligence (AI). 

The good news is, with the right information, you can protect yourself from being part of next year’s scam statistics. 

Let’s take a look at some of the significant findings of the report, and how you can keep your money and your information safe. 

Who gets scammed the most?

With an astounding 466,501 online scams in 2022, the U.S. leads the world as the country with the most scam victims per year. The U.K., Canada, India and Australia follow as the respective second through fifth most-scammed countries across the globe. 

Of the 50 states, California had the most online scam victims in 2022, at 80,766, with an average of $24,921 lost per victim at a total loss of $2,012,806,866. Florida is next in line with 42,792 victims with an average loss per victim of $19,746. North Dakota takes the prize for the lowest number of scam victims, at just 703. It’s important to note that these are actual numbers and not percentages of each state’s population. Of course, more populated states, like California and Florida, have higher numbers of scam victims than more sparsely populated states, like Montana.

Among age groups, teens and children have seen the largest percentage increase in money lost. Victims in the under-20 age group lost $210 million in 2022, compared to $8.2 million in 2017. Seniors still hold the place as the most victimized group, though, with their overall losses totalling $3.1 billion. 

How much money was lost to scams in 2022?

A record $10.3 billion was lost to online scams in 2022, up from $6.9 billion in 2021. This represents an increase of 277% from $2.7 billion in 2017, according to the FBI Internet Crime Complaint Center. When including an estimate for unreported scam victims, the total money lost to online scams in 2022 jumps to a staggering $200 billion. In addition, the average loss per victim per incident was a whopping $12,859, which is up from $8,142 in 2021. 

The report also shows that 81% of romance scam victims do not come forward. As one of the most common scams, this means there are likely thousands more victims who are not part of the report.

Unfortunately, only 4.2% of stolen funds were recovered, the report shows. The FBI IC3 Recovery Asset Team was only able to recover $433 million of the $10.3 billion lost in 2022. This is largely due to the fact that the majority of scams originated out of the country and out of the jurisdiction of the FBI. 

Where are people getting scammed?

Social Catfish polled 5,500 online scam victims to identify the platforms and apps where people are getting scammed most often. The poll found that most online scams happen on Facebook (32%), Google Hangouts (16%), WhatsApp (16), Plenty of Fish (16%) and Instagram (14%). 

How to avoid scams

Keep your money and your information safe with these protective measures:

  • Keep the security on your devices at its strongest settings and updated with the most recent patches.
  • Never share personally identifiable information, including your Social Security number, banking details and credit card number, with an unverified contact. 
  • When interacting with a new online friend or love interest, perform a reverse photo search on any shared pics to verify their authenticity. 
  • Never click on embedded links or download attachments from emails sent by unknown contacts. 
  • Never wire money to an unverified contact. 
  • Use strong, unique and long passwords for each of your accounts. A password manager can help you generate and remember unbreakable passwords. 
  • Watch out for these red flags in websites, ads and emails: poor grammar and spelling, lack of a physical address and/or phone number, claims of being in the military and/or working overseas, demands to be paid by wire transfer, or in gift card or cryptocurrency and use of a URL that is very similar to a reputable company’s web address.
  • Report any scam and scam attempt to the FTC, IC3, FBI and your financial institution.

The statistics on scams may be frightening, but you don’t have to be the next victim. Follow the tips outlined above to stay safe. 

Beware Check Washing Scams

by Advantage One, posted in Checking, security, Tips & Best Practices

When Midge Laurin, of Chicago, Illinois, mailed out a $30 check, she had no idea it would be intercepted by a scammer and written out to someone else to the tune of $9,475. Check-washing scams like this are on the rise, and can leave victims struggling to reclaim their lost funds for months. Here’s what you need to know about these scams and how to avoid them.

How the scams play out

In a check-washing scam, the target places a check in the mail, and it is then stolen by scammers who nick envelopes from private mailboxes or lift them out of public mailboxes using “fishing rods” made of strings attached to a sticky substance. With check in hand, the scammer uses ordinary household chemicals, like acetone or bleach, to erase the ink off the stolen checks. Finally, they’ll rewrite the numbers and/or the payee before depositing the checks into their own accounts. 

Sometimes, the scammer will take the ruse one step further by using the checking account details found on the check to commit further crimes against the check-writer. This may include producing counterfeit checks in the victim’s name, as well as fake IDs, driver’s licenses and passports. The victim may only learn about these crimes when they begin receiving overdraft notices or are informed that their ID is no longer valid.

Protect yourself

Unfortunately, check washing may not be discovered for weeks, or even months after its occurrence. Sometimes, the victim will only learn of the ruse when they review their monthly checking account statement and see that the check amount and/or payee has been altered. Or, they may only find out about it when the intended recipient reaches out to let the check-writer know they still have not received the check. The scam’s discovery is more likely to be delayed when the scammers have not modified any information on the check and have simply stolen and deposited a check made out to “cash”. 

In addition, many financial institutions do not offer complete protection on fraud that is not reported within a few days of its occurrence. Some offer partial protection for up to 60 days.

Law enforcement agencies on local and federal levels, including the U.S. Postal Inspection Service and the FBI, have task forces to help stop check washing. They offer the following strategies for keeping your checks and your information safe from scams:

  • Whenever possible, use mobile and online banking services and P2P systems as a replacement for checks.
  • When writing checks, use black ink, preferably the gel kind. The ink found in blue ballpoint pens can be easily removed with acetone.
  • Don’t raise your mailbox flag when there are bill payments inside. Hand this mail directly to your carrier or mail it from the post office.
  • Retrieve your mail daily and never leave the mailbox full overnight. If you’ll be traveling, you can arrange for the post office to hold your mail for up to 30 days. Alternatively, have a friend or trusted neighbor retrieve your mail so it doesn’t pile up.
  • When mailing checks, use envelopes that have security tinting.
  • Shred or burn all canceled checks, checks deposited through your mobile app, credit card statements and bills. 
  • Review your checking account activity frequently. Ensure all checks have cleared for the correct amounts and to the correct payees. You can generally access this information through your financial institution’s mobile banking app or website.
  • Store your checks in a secure place within your home.
  •  Avoid making checks out to “cash”. Instead, write out your checks to a specific person or business.

Check washing can wreak havoc on a victim’s finances before they even know it’s occurred. Follow the tips outlined here to keep your checks safe.

TikTok Inspo: Have you side-stepped a check-washing scam? Tell us your story in a 15-second video.

Fake Check Scams On The Rise

by Advantage One, posted in Lifestyle, Tips & Best Practices, Uncategorized

Married woman writing check out at homeIn early September, the Better Business Bureau (BBB) released a report warning about a spike in fake check scams across the country. While these scams are not new, their occurrence rate has doubled over the last three years and is up 12% from 2017.

The BBB further announced that billions of dollars in fake checks circulate each year, and that the number of victims this scam snares annually is close to 500,000.

The amount of money lost from these scams is just as staggering: The FTC reported losses of approximately $40 million from fake check scams in just one year.

Perhaps the most alarming aspect of this scam is the fact that the largest pool of its victims falls between the ages of 20 and 29 – a segment of the population that is far more familiar with electronic payment methods, like PayPal and Venmo, than with the archaic paper check. This makes them easy victims for the scam.

Aside from ordinary paper checks, this scam can also be pulled off with cashier’s checks and money orders. Regardless of the medium, each of these scams involves a scammer “overpaying” a victim and requesting the check be cashed with the difference being deposited into a designated account belonging to the scammer.

Steve Baker, an investigator with the BBB, cautions: “What they all have in common is that the check is counterfeit, and just because the money is credited to your account does not mean the check is good.”

Here are the most common variations of the fake check scam:

  • “Buyers” send sellers a check written out for more than the asking price of an object sold on an online marketplace, such as Craigslist.
  • Lottery “winners” are rewarded with an inflated prize and given instructions to pay back a part of the check to cover taxes or fees.
  • “Employees” are granted checks for supplies, with instructions to wire back a part of it to the “company.”

In each case, the fake check or money order seems to clear in the bank or credit union. It is only a few days later, when the victim’s payout to the scammer is deposited and the account does not have sufficient funds to cover it, that the scam becomes clear.

The BBB warns that this scam can be hard to spot, especially for millennials who may not be familiar with paper checks. To that end, learning what to look for to determine a check’s authenticity is the public’s best weapon against this scam.

Wondering if a check is a fake? Hold it up to this checklist:

  • Is the check’s paper stock weak and flimsy?
  • Check the company’s name and address. Are they spelled correctly?
    Every check will have an identification number printed toward its top and again at the bottom. Verify that these numbers match up.
  • If you’re allegedly holding a lottery-winning check in your hands, the check should be written out from a state lottery commission. If it’s made out by a random company, it’s bogus.
  • Look for the special ink required for the Magnetic Ink Character Recognition (MICR) code that’s at the bottom of the check.
  • The check should have a routing number from its bank. You can Google the bank to find out if the routing number is genuine.

Aside from knowing how to recognize a fake check, it’s important to know which kinds of transactions are likely to be scams. If you come across any of the following, run the other way and don’t look back:

  • You’re asked to wire money to a company you’re not familiar with.
  • You’re given a check by a “buyer” that is made out for more than the item’s sale price.
  • You’re given a check from a foreign bank you’ve never heard of.
  • You’re asked to pay a fee to claim a “prize.”

Now that you know how to spot a fake check and which kind of transactions to avoid at all cost, those scammers don’t stand a chance!

Your Turn:
Have you ever been targeted by a fake check scam? Share your story with us in the comments!

SOURCES:
http://www.semissourian.com/story/2549480.html

https://www.news-leader.com/story/news/local/ozarks/2018/09/05/better-business-bureau-releases-report-fake-check-scams/1202964002/

https://www.google.com/amp/s/www.cbsnews.com/amp/news/fake-check-scams-an-exploding-epidemic-new-report-says-better-business-bureau/