Frauds and Scams 2

Cryptocurrency Scams

As the price and popularity of Bitcoin and other cyber-currencies skyrocketed in late 2017, scammers eagerly sought to take advantage of the frenzy. The Japanese Bitcoin exchange Coincheck was hacked in January and the thieves were able to steal more than $500 million in cryptocurrencies. This is the largest cryptocurrency hack to date.

Facebook and Instagram have banned advertisements for certain bitcoin, initial coin offerings (ICOs), and some other cryptocurrency-related products because of deceptive and misleading practices. Several ads were leading victims to sites such as Prodeum , whose only purpose was to take their money and not provide the advertised service.

Death Threat Hoax

The FBI came out warning consumers about death threats being made through emails that state “I will be short. I’ve got an order to kill you.” The email then demands money or bitcoin as a payout from the email recipients. Other versions of the scam could state that a “hitman has been hired to kill” them. This scam is very aggressive and threatening in nature to convince people that they have to pay or else.

Fake Bank Apps

Big banks have scammers posing as them in the form of apps. A recent survey by an Avast, a multi-national cybersecurity firm, found that one in three worldwide users mistakenly believed that a fake mobile banking app was the real thing, putting their financial data at risk. Thieves use the big customer base of major banks to try to get past the secure app stores and collect personal information.

Home Improvement Scams

Another common seasonal scam centers around home improvement. As the weather gets nicer, homeowners often look to improve their homes. The Better Business Bureau says in 2017, there were nearly 350 home improvement scams reported to BBB Scam Tracker across the U.S., resulting in more than $600,000 lost.

Some scammers go door-to-door, offering to do improvement projects. They may take a deposit, and then never complete the work If you’re not sure the salesman is legit, you can ask for a card and get back to them once you have been able to research the company by visiting the BBB website. These scams can also happen after major national disasters—hail storms, tornadoes, hurricanes, mudslides, and fires, among other things.

Jackpotting

Jackpotting is a new cyber-attack scam that the Secret Service warned financial institutions about criminals installing software or hardware on ATMs that force the machines to issue large amounts of cash. Criminals have found ways to exploit the standalone machines commonly found in pharmacies, big-box retailers, and some drive-thru ATMs. It’s hard to know the exact financial implications because sometimes these crimes aren’t disclosed publicly, but any time money is missing, it’s sure to have an impact on the banks and ultimately you, the consumer, in the former of higher fees or more obstacles to accessing your cash.

Jury Duty Scams

Another new spoofing phone call scam has popped up and involves scammers posing as judicial officials or police and calling people to let them know they failed to report for jury duty and owe a fine. Scammers can spoof law enforcement phone numbers or names so people receiving the call may think that the call is legitimate. The FBI in Atlanta has received numerous complaints about the scam from people in and around the Savannah, Georgia area.

Medicare Card Scam

The Federal Government mailed out new Medicare cards that now have an 11-digit identification number instead of an enrollee’s Social Security number to help protect seniors from identity theft. About 59 million people will receive the cards with a requirement from Congress that the Centers for Medicare & Medicaid Services remove Social Security numbers from Medicare cards by April 2019.  Because of the update, scammers are taking to the phones to

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Netflix Scam