Common Types of Fraud
Phishing: fraudulent e-mail. A message, appearing to be from a trusted source, such as your bank or a government agency, directs you to a Web site asking you to "verify" personal information. Do not click on the link. Instead, you should initiate a call by using a phone number or Web site address you know to be legitimate. Ask if there is a problem with your account.Pharming: similar to Phishing. Pharming seeks to obtain personal information by secretly directing you to a copycat Web site where your information is stolen, usually with a legitimate-looking form. Be wary of unsolicited or unexpected e-mails from all sources. Treat it as you would a phishing source by checking to make sure the sight is legitimate.
Grandchild scammers: The scammer calls elderly residents claiming to be a grandchild. They claim they are in jail in Canada and need money wired to them in order to post bail. Similarly, you may get an e-mail from someone who claims to be a relative who is overseas and has lost a wallet or purse containing all of his/her money, etc. You should never agree to send money, but instead call your relatives to verify the location of your grandchildren and other relatives.
Malware: short for malicious software and also known as "spyware". It is often included in spam e-mails. It can take control of your computer and forward personal data to fraudsters. Install and update regularly your anti-virus software, anti-malware programs and operating system updates.
Ebay/Craigslist/Paypal Scams: A persons buys an item you have for sale. They send more money than the amount due and ask for the extra funds to be wired back. The original funds for payment are always worthless. If in doubt, ask for the appropriate amount due and ship items when the payment has cleared.
Work at home/ Secret shopper scams: A fraudulent business mails a check to be used to "test" a business, such as MoneyGram. You are told to wire a portion of the funds and that the remainder of the funds will be your pay. The original check turns out to be fraudulent & you are out of the funds that you wired.
Foreign Lotteries: You receive an email notifying you that you have won a lottery that you haven't entered. You are instructed to wire in money as a deposit on the taxes, for some sort of fee or some other reason. You will lose the money that you wire.
SMiShing: text messaging fraud. You receive a text message to call a phony phone number. When you call, you think you are talking to a financial institution, but it is actually a crook who is asking you for your bank account information.
Tax Fraud: Be aware of schemes that offer instant wealth or exemption from your obligation to file tax returns and/or pay taxes. If it sounds too good to be true, it probably is. You are ultimately responsible making sure your tax return is sent in and for verifying that all of the information on your tax return is correct.
Free Lunch: Individuals near retirement are solicited to attend and learn more about investing in retirement. Often attendees are being pressured into purchasing fraudulent or unsuitable investments. Further, once at the seminar, attendees are often asked for personal information, including information about their finances.
Stimulus Scams: An email, online ad or website says you're eligible to get an economic stimulus payment. You are asked to send back a form or submit one online to get the rebate in return for a fee or financial information. The IRS does not solicit in this manner, and rebate companies are not to be trusted.
Money transfer request through your bank account: The scam has you pay to receive a deposit on behalf of someone. You will be told that you will get to keep a portion of the money, or you will receive pay or a commission for facilitating the money transfers through your bank account.
Services solicited by phone or e-mail: An offer for a service is accepted which consumers believe is a one-time event; but they find they are being charged monthly for ongoing services they don't need.
Reporting consumer complaints:
Phishing@irs.gov
http://www.ftc.gov/complaint or 1-877-382-4357