Identity theft is the fastest growing form of fraud today

BY ERNIE DORLING

Identity theft is one of the most insidious forms of white-collar crime.

Prospective victims are contacted directly by criminals who use lies and deception to persuade victims to part with their money. Sadly, credulous senior citizens who lack technological sophistication are the primary targets of identity theft.

“You think of your bank as being a place where your money is not only safe, but a place that will take strides to protect you,” Gail Sherry said.

Gail and John Sherry of Suntree were both victims of an elaborate fraud scheme that resulted in them losing $73,900.

The Sherrys said their bank did virtually nothing to help recover any of their money. “In the end, we were responsible for the entire amount of the fraud,” John Sherry said

The painful lesson the Sherrys learned was that victims of such criminal acts are often alone to fend for themselves. However, banks such as Wells Fargo, JP Morgan Chase, and Bank of America are committed to combating fraud, spending millions of dollars each year on technology and client education in order to prevent scammers from tricking customers. Still, some certified fraud examiners believe banks bear some responsibility for failing to implement stronger security measures like the lack of measures that failed the Sherrys.

“I don’t feel like the bank did much to prevent this,” Gail Sherry said. “They should have realized what I was doing, (wiring money to Hong Kong from my home-equity line of credit), was out of the ordinary.”

Threats are changing daily as scams become more sophisticated. Banks, however, will never ask you to send money to reverse fraud on your account or resolve an issue; something that the Sherrys were asked to do. It’s always important to know where you’re sending your money. If it’s to a scammer, the chances of you getting your money back are almost impossible.

So, who is behind this? Well, more often than not, it is now organized crime groups, terrorist groups and foreign criminal enterprises. They seek to drain your savings accounts, open new credit cards in your name, and open new bank accounts.

The number of types of schemes that scammers are using today are only restricted by one’s imagination. Don’t be fooled.

Imposters are looking for ways to appear legitimate as they seek to obtain your personal information. For instance, you might get a voicemail or text message telling you your bank account has been compromised, or, will be closed unless you go to a website where you’ll be asked to provide personal information. This is called phishing. Think of throwing a line in the water hoping to catch a fish. In this case, they’re phishing for personal information, and you’re the fish. They might say your account has been hacked, then ask you for personal information. They might ask you to confirm, verify or update your account information. Banks don’t do this.

Be skeptical. Think before you open an email and/or text message. Never open an email with an attachment on it from people or businesses that you don’t know. Scammers are also turning to Zelle as a means to steal your money. In this case, the scammer will email, text or call pretending to work for the bank’s fraud department. They’ll claim someone is trying to steal your money and will solicit your help in fixing the issue.

Another new scheme involves QR codes, like we see in restaurants where the menu is online, or which allows us to make a payment.

Scammers are placing their QR codes in inconspicuous spots. When you scan the code, you’re prompted to make a small purchase or enter your credentials or password on a similar website.

Learn how not to engage. Learn how to say no when a caller you don’t know gets through to you. SL

Note: In the next edition, we’ll tell you about what you can do to prevent yourself from being a victim of fraud. And, what critical steps you must take if you are.