Are financial scammers haunting you this Halloween?

Beware of frightening financial scams this Halloween season, where the treats are really tricks, and the fraudsters are characters in disguise.

Virtual Vampires:

It is projected that Americans will spend over $12 billion on costumes, candy, yard decorations, and party favors this Halloween. And where there are treats, there are tricks, and a “virtual vampire” waiting to drain your account.  

Virtual vampires are well-disguised scammers, who want you to buy fake items or expose your personal information online. They create fake websites to lure you in and then disappear into the night with your money.

Tips when navigating online shopping:

·                     Check the website security settings. If the site is secure, its URL (web address) should start with “https://”and include a lock icon on the purchase or shopping cart page.

·                     Read through the website very closely. Look for typos, grammatical errors, and unusual photos or logos. Fake e-commerce websites often look legitimate until you take a closer look.

·                     Beware of deals that are too good to be true! Be skeptical if the prices are unusually low.

·                     Don’t get lured in by “flash sales” and urgent or limited-time offers. Be especially mindful if these ads pop up on social media platforms. 

·                     Stay away from online websites requesting payment only by gift card, electronic transfer, or cryptocurrency. 

·                     Review the return policy on unfamiliar sites before purchasing. Legitimate retailers make returns easy, scammers don’t.

Phantom Debt:

Being called repeatedly by someone attempting to collect a debt you do not owe is considered fraud. In March of 2021, the Federal Trade Commission (FTC) acted against a number of Phantom debt collection agencies.

The FTC alleged that the defendants in the case used robocalls to leave deceptive messages claiming consumers faced imminent legal action —lawsuits or even arrest — for unpaid debts. The defendants also violated federal law by illegally failing to provide proper notices and disclaimers, which is a requirement under federal law.

Legitimate debt collectors are allowed to call debtors, but they cannot threaten imprisonment for the failure to pay a debt. They also cannot communicate with the debtor’s employer, although they can contact the employer to obtain contact information. 

Tips to consider:

·                     Never give personal information over the phone to anyone who calls you attempting to collect a debt. 

·                     Since it may be difficult to know if a caller is legitimate or not, the best way is to insist on verification. Request a written “validation notice” via mail that describes the debt owed and includes a listing of your rights under the Federal Fair Debt Collection Practices Act.

·                     Let the potential creditor in this situation know about the suspicious call you received and ask if they’ve authorized any third party to collect on their behalf.

·                     Contact authorities – inform the Federal Trade Commission, as well as the Texas Attorney General’s office, of the call you received.

Ghosting

Ghosting is a type of identity theft that involves stealing a person’s identity after they have passed away. Perpetrators check obituaries for personal information of the deceased and use this information to establish new accounts or lines of credit in the name of the deceased or to impersonate the deceased in other ways. 

Unfortunately, this form of identity theft has become more prevalent over the years simply because many death records are public information and can be easily accessed online. Also, many obituaries are now available online through funeral home websites or obituary sites.

Additionally, obituary phone scams have been on the rise. Scammers are using recent obituaries to find information about the deceased person’s family. Scammers contact the family pretending to be a representative from the funeral home or cemetery to obtain their financial information.

Here are the details that scammers look for:  

·                     Full name of the deceased

·                     Date of birth and date of death

·                     Place of birth and place of death

·                     Home address

·                     Cell phone number

·                     Email address

·                     Education history

·                     Employment history

·                     Military service history

·                     Names of family members and relationships

·                     Funeral or memorial service information

Tips to minimize your loved ones’ identity from being stolen once they have passed:

·                     Leave sensitive information out of the obituary, such as specific dates, birth locations, mother’s maiden name, and extensive family history. 

·                     Inform credit bureaus and financial institutions of their passing by providing a copy of their death certificate and keep a few copies for your own records.

·                     Monitor their credit reports periodically for any suspicious activity.

·                     Close all open and active accounts in your loved one’s name as soon as possible. If their bank accounts have outstanding transactions or activity, the financial institution can flag the account, noting that the owner is now deceased.

·                     Provide the IRS, government agencies, and mortgage companies with a copy of the death records to ensure there is no fraudulent activity with their identity.