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HomeNewsTennessee Consumer Affairs lists Top 10 Imposter Scams of 2015

Tennessee Consumer Affairs lists Top 10 Imposter Scams of 2015

Tennessee Division of Consumer AffairsNashville, TN – The Tennessee Department of Commerce and Insurance’s (TDCI) Division of Consumer Affairs wants to warn consumers about the most commonly reported imposter scams from 2015.

“Scammers often target consumers via email or phone calls,” TDCI Deputy Commissioner Bill Giannini said. “They use deceptive tactics to manipulate people into sending money or revealing sensitive data like Social Security numbers or banking information. Tennesseans should familiarize themselves with these tactics to avoid becoming a scam victim.”

Scams

Scammers and imposters often utilize these techniques

  • Establishing a connection: Building a rapport and a relationship with you. This usually happens face-to-face, as in home improvement scams and many investment scams, but also online romance scams.
  • Source credibility: Appearing legitimate, such as fake websites, social media posts, or hacked emails that come from a friend’s account. Most email phishing scams spoof real companies, and many scammers pretend to be a trusted business or government agency in order to add credibility.
  • Playing on emotions: Relying on emotion to get you to make a quick decision before having time to think about it. An emergency situation or a limited time offer is usually their methodology. They count on emotional rather than rational decision-making.

The following are the 10 most commonly reported scams from 2015:

Tax Scam: You receive a phone call from someone who claims to be with the IRS (U.S.) or CRA (Canada). He claims you owe money in back taxes and will be arrested or face legal consequences if you do not pay (usually by wire or prepaid debit card) immediately. The caller ID is spoofed to appear to be a government agency or the police.

Debt Collection Scam: You receive a phone call from someone claiming that you have an unpaid debt. You are threatened with garnishments, lawsuits, even jail time if you don’t pay right now. The scammer will often use caller ID spoofing and pretend to be a government agency or law enforcement in order to further invoke fear.

Sweepstakes, Prizes or Gifts Scam: You receive a call, letter, or email claiming you’ve won a prize in a sweepstakes. In order to receive the prize, you are instructed to send a fee to cover expenses associated with delivery, processing, or insurance. The prize is not real; you should never have to pay money to claim a prize you have won and you don’t win anything if you never submitted entry paperwork.

Tech Support Scam: You are contacted by “technicians” claiming to have detected a virus or security threat on your computer and for a fee, they can log-in and correct the problem remotely. These callers are actually hackers trying to steal money or sensitive computer passwords and damage your computer with malicious software.

Government Grant Scam: You receive a phone call, email, or letter informing you that you’ve qualified for a government grant. In order to receive the grant, however, you are instructed to send money as a processing or delivery fee, usually by wire transfer or prepaid debit card. Again, if you did not apply for a government grant, you will not receive one.

Advance Fee Loan Scam: While searching for loan information, you see an enticing ad and click through to the website. You fill out an application and soon receive an email or phone call advising that you are approved for the loan, but you must first send a processing fee, security deposit or insurance. You pay the “fee,” but never see the loan.

Credit Card Scam: The scammer pretends to be from your bank or credit card issuer, and they claim that you are now eligible for a lower interest rate, or that they need to verify a recent transaction. The consumer provides the scammer with their credit card number and security code to “verify” their identity.

Work from Home Scam: While looking for a job online, you answer an ad for making big bucks while working from home. The job may be stuffing envelopes, posting advertisements, or shipping packages. You could have your identity stolen when you fill out the employment forms, or even end up handling stolen merchandise.

Fake Check/Money Order Scam: This can happen any time someone is paying you for goods or services (even when you are selling something online). You receive a check in the mail that is larger than the amount owed, and you are asked to deposit the check and wire the difference. The check is a fake and when it bounces, you’re out the money.

Lottery scam: You receive a call, letter, or email advising that you have won a large amount of money in a foreign lottery, but you have to pay upfront for taxes and fees. Such lotteries are illegal. Sometimes you may be sent a check as partial payment, but the check will be counterfeit.

Scam Prevention Tips:

  • Don’t be pressured into making fast decisions.
  • Take time to research the organization. Visit www.bbb.org to check for complaints, or contact the Division of Consumer Affairs at www.tn.gov/consumer.
  • Never provide your personal information (address, date of birth, banking information, ID numbers) to people you do not know.
  • Don’t click on links from unsolicited email or text messages.
  • If you are unsure about a call or email that claims to be from your bank, utility company, etc., call the business directly using the number on your bill.
  • Never send money by wire transfer or prepaid debit card to someone you don’t know or haven’t met in person.
  • Never send money for an emergency situation unless you can verify the emergency.

Report these scams to the Federal Trade Commission at www.ftccomplaintassistant.gov

For more consumer tips, visit www.tn.gov/consumer

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