SCAMS: Protect your identity on phone and online

June 01--Anne Higgins thought something didn't sound right when she got a phone call claiming to be from the police department.

The Stafford County woman was told that she hadn't shown up for jury duty, which the caller said was a serious offense.

Higgins replied that she hadn't received a letter about jury duty, but the caller pressed her for information. He first asked her to confirm her address, then wanted her birthday and mother's maiden name.

If she didn't give it to him, he warned, she would be arrested and put in jail.

"I live in America, and I don't think that's true," Higgins replied tartly. "I am 77 years old and not going to give you any more information."

Her suspicion--and her response--were right on the money, said Tom Gallagher, president and chief executive officer of the Better Business Bureau office in Richmond. They prevented her from falling victim to a version of "the arrest-warrant scam."

This identity-theft ploy made the BBB's top-10 list of scams for 2013. In it, con artists use technology to change the number that shows up on caller ID so they can pose as the office of a local law enforcement agency. They call potential victims to say there is a warrant out for their arrest--or threaten them with arrest, as in Higgins' case.

"He was very intimidating," she said of her caller. "I can see where someone would fall for it."

The callers are fishing for information, such as an address, mother's maiden name and Social Security number. Landing those is like finding a gold mine, Gallagher said. That information is the key to unlock access to the victim's credit and banking information.

When Higgins' caller told her that someone her age was exempt from jury duty and offered to fill out a form for her over the phone, she asked for his phone number and said she'd call him back.

She heard a click--and the phone went dead.

"The next thing I did was to call the sheriff's department to see what this was," Higgins said. "He said he would check it out and call me back and let me know what he found out. He did in five minutes. He said it was a scam."

When someone isn't as savvy as Higgins, con artists will typically tell the victim that they can avoid arrest by paying a fine, but refuse to accept payment by credit card. Only a wire transfer or pre-paid debit card will do.

"Sometimes these scams seem very personal: The scammer may refer to a loan or other financial matter," according to a BBB report on major scams. "It may just be a lucky guess, but don't be fooled into thinking you're about to be arrested."

Gallagher said his office gets a complaint about scams almost every day, including some from victims who have lost money. Their liability for any charges made on their credit or debit cards depends on several factors.

Under the Fair Credit Billing Act, they're on the hook for up to $50 for unauthorized use of their credit card. If they report the loss before the card is used, however, they aren't responsible for any charges they didn't authorize.

If a victim reports that an ATM or debit card has been stolen before an unauthorized purchase is made, the Electronic Fund Transfer Act says they aren't responsible. If it is used before the victim reports the theft, the amount they are liable for depends on how fast they report that it has been stolen.

If it is reported within two business days, they pay $50. That amount jumps to $500 if it is reported between two and 60 days after their statement is sent out. After that, they can lose all the money in their ATM/debit card account, and possibly more if any accounts are linked to the debit account.

This is why is is important to order credit reports from the three credit reporting agencies, Experian, Equifax and TransUnion, Gallagher said. One copy from each is available free each year, and he recommends that people stagger the requests so they get one every four months.

"See who's asking for information and using your credit cards. See if anyone is using your information," he said. "In the hands of the wrong person, they can wipe you out."

Cathy Jett: 540/374-5407

[email protected]

Top Ten Scams of 2013

MEDICAL ALERT SCAM: Targets seniors and caretakers with offers of a medical alert system that the scammers claim to be offering for free because a family member or friend had already paid for it.

In many cases, seniors were asked to provide their bank account or credit information to "verify" their identity and, as a result, were charged the monthly $35 service fee. The system, of course, never arrived and the seniors were left with a charge they had trouble getting refunded.

The Better Business Bureau warns people to be wary of "free" offers that require personal information up front and recommends that they always verify with the supposed friend or family member that the caller says paid for the service.

Auction Reseller Scam: Scammers have figured out a way to fool sellers into shipping goods without receiving payment. Usually the buyer claims it's an "emergency" of some sort--a child's birthday, a member of the military shipping out--and asks the seller to ship the same day.

The seller receives an email that looks like it's from PayPal confirming the payment, but emails are easy to fake.

Always confirm payment in your eBay and PayPal accounts before shipping, especially to an overseas address.

ARREST WARRANT SCAM: Con artists use technology that can change what is visible on Caller ID, which allows them to pose as the office of the local sheriff or other law enforcement agency. They call to say there is a warrant out for your arrest, but that you can pay a fine--by wire transfer or pre-paid debit card only--in order to avoid criminal charges.

INVISIBLE HOME IMPROVEMENTS: Home improvement scams vary little from year to year, and most involve some type of shoddy workmanship from unlicensed or untrained workers.

Scammers may simply knock at your door offering a great deal because they were "in the neighborhood," but more often they are using telemarketing, email and even social media to reach homeowners.

Helpful videos on YouTube can add legitimacy to a contractor, but consumers have no way of knowing if the video is real or "borrowed" from a legitimate contractor. Check out home contractors at bbb.org before saying yes.

SCAM TEXTS: One major tactic recently is the use of scam texts, known as "smishing," to steal personal information. It looks like a text alert from your bank, asking you to confirm information or "reactivate your debit card" by following a link on your smart phone.

Banks of all sizes have been targeted, and details of the scam vary, but the outcome is the same: Scammers get your banking information, maybe even your ATM number and PIN.

You may even inadvertently download malicious software that gives the scammer access to anything on your phone.

CASTING CALL SCAM: This seems to be on the rise, thanks to the popularity of television talent shows like "American Idol" and "Project Runway."

Scammers pose as agents or talent scouts looking for actors, singers, models, reality show contestants, etc., and use phony audition notices to fool aspiring performers into paying to try out for parts that don't exist. There are several ways this plays out.

It can simply be an unscrupulous way to sell acting lessons, photography services, etc., or it can be an outright scam for things such as fees for online "applications" or upcoming "casting calls." Even worse, the information provided on an online application could be everything a scammer needs for identity theft.

FOREIGN CURRENCY SCAM: Investments in foreign currency can sound like a great idea, and scammers frequently use real current events and news stories to make their pitches even more appealing.

They advertise an easy investment with high return and low risk when you purchase Iraqi dinar, Vietnamese dong or, most recently, the Egyptian pound. The plan is that, when those governments revalue their currencies, increasing their worth against the dollar, you just sell and cash in.

The problem is that they will be very difficult to sell, and it's extremely unlikely they will ever significantly increase in value.

DO NOT CALL SCAMS: The scammers pretend to be a government official calling to sign you up or confirming your previous participation on the Dot Not call list.

In one variation, they ask for personal information, such as your name, address and Social Security/Social Insurance number. In another, they try to charge a fee to join the registry.

Either way, hang up. These services are free, but sharing personal information with a scammer could be costly.

FAKE FRIEND SCAM: Scammers create fake Facebook profiles, which can be used in a variety of ways. A new "friend" can learn a lot about you to scam you later, recommend sketchy websites that carry malware, use your account to collect information on your other friends, even impersonate a military officer or other trustworthy person to perpetrate a romance scam.

Be careful on social media, keep your privacy settings high, and don't share confidential information.

AFFORDABLE CARE ACT SCAM: Scammers call claiming to be from the federal government and saying the would-be victim needs a new insurance card or Medicare card. However, before they can mail the card, they say they need to collect personal information.

Scammers do a lot to make their requests seem credible. For example, they may have your bank's routing number and ask you to provide your account number, or they may ask for your credit card or Social Security number, Medicare ID or other personal information. Sharing personal information with a scammer puts you at risk for identity theft.

--Better Business Bureau

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