Scams & Cons

Why does Amazon condone phishing emails? You could substitute any big business name such as Apple, Starbucks, or Walmart, and ask the same question. Over the years, I’ve written about all of these companies and many more. From big banks to the Social Security Administration itself, they’ve all been the lure used by scammers. They, just like those who were taken in by the scams, were the victims. So, the question I often hear is why don’t they do something about it?

Third-party emails are like a Halloween party

I know, the comparison seems crazy at first, but a third-party email is nothing more than one person posing as another. Some people go all out when they dress up for Halloween. Others, those who don’t have the expertise or commitment, aren’t nearly as convincing. We see right through their disguise and come away from the experience unconvinced.

A third-party email works exactly the same way. The sender poses as someone else. He doesn’t contact Amazon to ask for permission. He just does it. After the fact, Amazon may learn that someone has been sending emails using their logo and name, but by then the smart scammer has already moved on.

Amazon provides resources to fight phishing email

To use another analogy, phishing emails are a disease that can only be treated after it occurs. The same disease exists for authors whose books have been pirated (it’s happened to me, many times), victims of in-person scams, or any other crime.

The only thing Amazon can do is provide a mechanism to report the problem. They don’t want scammers impersonating them, but there is no way for Amazon to prevent abuse of their name or logo. If you’ve received an email and would like to report it, use this link to visit Amazon’s page for reporting phishing emails.

Ed McMahon might have passed on, but Publishers Clearing House (PCH) is still hitting the streets and giving away money. That’s right, a new version of the Publishers Clearing House sweepstakes is alive and well…and it’s not a scam. Unless, of course, it is.

The catch

I still recall seeing Ed McMahon on TV going to a house with a camera crew and ‘surprising’ the resident with a check for a million dollars. These days, the contest has moved from a lump-sum payout to an annuity of $5,000 a week for life. Actually, with the current contest it’s $7,000 a week for life, but who’s going to quibble over a couple of grand a week? Right?

Here’s the catch. Scammers are using a Publishers Clearing House or PCH scam via both phone and email. Victims have reported being told they’ve won prizes like the current $5,000 a week payout, a check for $2.5 million cash, and/or a car. The perpetrator may ask for payment via Western Union or a Walmart money order to cover the ‘taxes’ on the prize. In other cases, they merely ask for bank account information or a social security number to enable them to send the prizes.

The tip

The PCH scam appears to be most effective with senior citizens and is likely receiving a big boost because the real PCH will televise their next big payout on April 26th on NBC. In any case, don’t be fooled. Publishers Clearing House never calls to tell you you’ve won. They send notifications via registered mail, and they don’t ask for money to cover ‘taxes.’

Social Security scams—the new wave

The Inspector General has warned consumers to beware of robocalls from the main Social Security number. This warning comes in response to an increase in Social Security scams. Thanks to technological advances, scammers are now able to trick CallerID into displaying almost any number they choose. Is it any wonder the bad guys have chosen the number for an organization millions of older Americans rely on to do their worst? Welcome to the new Social Security scam.

CallerID Spoofing

For many years, telephone scams became less common because they weren’t cost-effective for scammers. But thanks to advances in technology, scammers use CallerID spoofing and a robodialer to make calls for very little money.

You may be familiar with those fake ‘local numbers’. In our case, our cell phones use a 208 prefix. We receive calls from other 208 numbers regularly, but have learned the calls are really a robocall and a phishing attempt.

Just like those calls that appear to be coming from a local number, scammers have zeroed in on the Social Security Administration. This is a real problem for consumers. The SSA has always been a trusted organization. Now, the scammers are leveraging that reputation to trick consumers.

Request for personal information

According to the Social Security Administration announcement, “People who have accepted the calls said the caller identifies as an SSA employee. In some cases, the caller states that SSA does not have all of the person’s personal information, such as their Social Security number (SSN), on file. Other callers claim SSA needs additional information so the agency can increase the person’s benefit payment, or that SSA will terminate the person’s benefits if they do not confirm their information. This appears to be a widespread issue, as reports have come from citizens across the country.”

How to avoid Social Security scams

Tip #1: Never answer a call from a number you don’t recognize. Personally, unless I have a pressing reason, I never answer the phone unless the number is already in my address book.

Tip #2: You should still be cautious about answering even if the caller is in your address book. Why? Your phone will display the contact information for any number in the address book, even if the CallerID is being faked.

Tip #3: Never give out personal information on the phone unless you know exactly who you’re dealing with. That means getting numbers for companies from their websites, not from materials they send you.

The only way to avoid these scams is to be vigilant. Why not leave a comment to let me know if you found this tip helpful? I’d love to hear from you.

We all know the cost of medical health insurance is sky high, which means during November and open enrollment people are looking at new health plans. It also means we need to be on alert for a health plan scam during our search. One example of a health plan scam is Simple Health, a company that used misleading statements to sell their products. 

Know what you’re buying

According to the Federal Trade Commission, customers of Simple Health were led to believe the company was selling comprehensive health insurance. The company claimed the plans covered a variety of medical conditions, including preexisting conditions. Instead, consumers were purchasing a medical discount program or very limited medical coverage. 

With companies advertising heavily during open enrollment, it’s easy to be deceived by ads and marketing materials. Be sure to get a copy of what a company’s health plan covers in writing. If their material isn’t written in plain English or is confusing, look for a different company.

Avoid responding to email or web solicitations

Search engines such as Google track our every page view, then turn around and sell that information to advertisers. Is it any wonder we are assaulted by online ads and email solicitations daily? Targeted marketing can help people find a legitimate company—or a health plan scam. That’s because the ads you see are from the highest bidder, not the best qualified. If you see an online ad, be skeptical if it’s not from a company you know.

Medicare recipients are not immune from a health plan scam

If you’re on Medicare, you could be targeted for a Medicare Advantage plan scam. Here’s an excerpt from the FTC’s announcement.

For example, one of the websites, www.trumpcarequotes.com, deceptively claimed to offer “Health Insurance for Smart People” from “the Nation’s Leading Carriers” at “Low Affordable Premiums” with “Prescription Drug Coverage.” Another Simple Health website, www.simplemedicareplans.com, promoted “Medicare Health Plans for Your Needs and Budget.”

Next steps

If you find a company and a plan you like, be sure to check the company’s license for your state as well as the Better Business Bureau website for complaints. 

Whether you’re looking for traditional health care insurance or a Medicare Advantage plan, be careful. Get the facts in writing, make an informed decision, and do not make a hurried choice. If you do find yourself having purchased based on deceptive business practices, read this FTC Consumer Information page about filing a complaint.