IRS issues scam warning - www.wane.com - 11 Jun 2008

INDIANAPOLIS -The Internal Revenue Service wants you to know there may be a scam waiting in your e-mail inbox that looks very official but is dangerous to you and your computer.
"We're getting reports of people receiving an e-mail that appears to come from the IRS and tells recipients to respond to get their 2008 Economic Stimulus Refund," said Jodie Reynolds, IRS spokesperson for Indiana and Kentucky.

Reynolds says there are three things the IRS needs people to remember:
-The IRS never sends unsolicited e-mails about your taxes.
-If you get a scam e-mail, don't access any links or attachments.
-If you have filed a 2007 federal tax return with the IRS, you don't need to do anything else to get a stimulus payment. The IRS will take care of the rest.

According to Reynolds, if you have accessed a link or attachment in a scam e-mail, you may have allowed the scammer to download malicious software to your computer and you should immediately scan for viruses and spyware, plus be alert for suspicious activity on your financial accounts.

"If you have actually responded to a scam e-mail by giving out your private information," Reynolds said, "you should immediately take steps to prevent identity theft. You may now be a prime target."

"Taxpayers can help the IRS stop scammers by sending the original scam e-mail to the IRS at phishing@irs.gov. The e-mail must be forwarded using special instructions at IRS.gov or it loses the encoding needed to track it to its source," Reynolds said.

The IRS has received about 33,000 forwarded scam e-mails, reflecting more than a thousand different incidents. Investigations by the Treasury Inspector General for Tax Administration have identified host sites in numerous countries, including Argentina, Aruba, Australia, Austria, Canada, Chile, China, England, Germany, Indonesia, Italy, Japan, Korea, Malaysia, Mexico, Poland, Singapore and Slovakia, as well as the United States.

Reynolds also cautioned that scammers make contacts in various ways.

"While the IRS never sends unsolicited e-mails or text messages," she said, "we do frequently use the U.S. Mail and may even use a phone call or a visit to make contact with taxpayers. Scammers know this and may also use one of these methods to contact people."

The IRS usually already has information that includes your Social Security number, so it would be unusual for an IRS employee to ask for that. And if the person is asking for credit card, bank account or PIN numbers, that's a big red flag that it's not really the IRS contacting you.
If you have any doubt as to whether the person contacting you is really from the IRS, decline giving out any information until you have contacted the IRS toll-free at 1-800-829-1040 to confirm that it is a legitimate contact.

For more information about tax scams, visit www.irs.gov and check out the Dirty Dozen, a list of tax scams updated each year by the IRS. The IRS also provides information on its Web site to help taxpayers protect their personal and financial information. Just type Identity Theft in the key word search feature for additional information.

Cayman Islands Police Warning Issued on Jewelry Scam - israelidiamond.co.il - 04 Jun 2008

Police have issued a warning to jewelry store owners and managers to be on the lookout for a scam currently targeting the Cayman Islands.

According to the Royal Cayman Islands Police Service (RCIPS), a number of local stores have been contacted by people ostensibly interested in purchasing expensive watches in the $25,000 price range. The scammers asked to spread the purchase over five or six credit cards, some of which go through, while others are declined.

In an attempt to prove that the credit cards are genuine, the scammers sometimes fax passport photos, signatures and copies of the credit cards bearing their name to the jewelry store.

According to the Financial Crime Unit (FCU), fake cards have been made based on the numbers of stolen cards, and fake cards have been produced bearing the stolen card’s details.

Detective Constable Sherry Francella said local store managers have been extremely cooperative so far and have even sent empty boxes to the perpetrators in an attempt to apprehend them.

Francella noted: “It appears this scam is originating from London and it is hoped that by sending the empty boxes police in the UK will be able to identify the offenders.”

By: Rachel Lieberman,

Con artists eye seniors for swindles - JDnews.com - 02 Jun 2008

Dear Readers: A man in California is found guilty of taking more than $5 million dollars in an investment scheme carried out in a retirement home. A Canadian couple is arrested for allegedly victimizing many consumers across the U.S. by selling a bogus credit card protection plan via telemarketing. Finally, a financial planner/estate lawyer in Maryland pleads guilty to defrauding his own clients.

In these three cases, there is one common thread: All of the victims were senior citizens. Why are seniors more likely to become victims of such bogus schemes?

According to the FBI, con artists seek out older citizens for several reasons. Many seniors have a nest egg. In addition, they are not as likely to report fraud because they aren't sure to whom such a report should be made. Furthermore, they are quite embarrassed at having been victimized and really don't want to discuss it.And finally, the products being sold tend to be age-related.

Given the fact that baby boomers (those born between 1946 and 1964) are now the largest segment of our population - 78 million - it's reasonable to believe such swindles will only grow in numbers. In addition, even those willing to acknowledge they've been scammed may never see their money again because more and more con artists are operating outside the U.S. and thus are more difficult for law enforcement to track down.

Among the many types of scams commonly used to defraud seniors are: identity theft; home repair schemes; health insurance fraud; foreign lotteries and sweepstakes; advance fee, credit card and investment scams.

Though the FBI does not handle isolated cases, they offer the following recommendations to avoid becoming a victim. Many of these suggestions will be familiar to regular readers:
Do not give out personal information to anyone via telephone, Internet or mail unless you personally initiated the contact.

Shred credit card receipts and old bank account statements. Close credit card and bank accounts you no longer use.

If you don't understand the offer, do not respond. Even if you do have some interest, ask that all information be provided to you in writing.

Do not pay for any services in advance.

If you are not sure about a particular offer, talk to your family or a trusted friend. Let them review the paperwork and give you the benefit of their opinion.

Should you become a victim of fraud, don't allow yourself to go into denial. Contact local law enforcement immediately and follow their recommendations.

BONNIE THROCKMORTON

Scams Exploiting Use of Cell Phone Remote Services - dongA.com - 28 May 2008

"Your personal information has been released. Failure to subscribe to the X-rated Internet site I’ve mentioned and pay the fee immediately will result in blockage of your cell phone.”

A 42-year-old urban worker, identified only as Hwang, got this message from an unidentified person this month. He considered it a nuisance and hung up, but then his cell phone could not connect to its wireless network.

Feeling confused, Hwang felt he had no choice but to join the site and pay the subscription fee of 80,000 won.

After reporting the case to the Korea Information Security Agency, the victim found out con artists employed a new type of voice phishing in which they illegally exploited remote control services and deceived handset users.

Remote control services are designed to help subscribers register, change, and cancel services via a phone call to service providers. Most users use the last four digits of their cell phone numbers as passwords instead of creating new numbers. The new phishing scam targets handset users who do not change their passwords.

Since Hwang kept the same password when he subscribed to the service, the swindler was able to block his cell phone calls.

The security agency said, “A few similar cases have been reported, but we’re worried that more people will be conned by the new voice phishing as many mobile phone users have subscribed to remote control service.”

More than 870,000 people subscribe to the remote control service of SK Telecom, the nation’s largest wireless service provider. In addition, 5,000 subscribers of LG Telecom and 1,000 of KTF use remote control services every month.

LG helps subscribers of remote control services with call blocking and forwarding. KTF offers voice mail and call rejection while SK provides call waiting and forwarding.

Wireless carriers said that since they provide many services, they generally use the last four digits of mobile phone numbers as passwords to help subscribers better remember the numbers.

The security agency said, “Subscribers can significantly protect themselves from swindlers if they just change their passwords in advance. If handset users get similar phone calls, they should unlock cell phones at customer service centers and sellers of wireless service and report them to the agency