Scammers And Law: Who's Breaking What?

Scammers are breaking the law. Fraud is illegal, and scammers can face criminal charges for their actions. Scammers violate the law in many ways, including fraud, embezzlement, computer crimes, and other theft crimes. Scammers often use deception and manipulation to trick people out of their money or personal information, which can lead to identity theft and financial loss. While technology has provided new opportunities for scammers to operate, there are still legal consequences for their actions. Scams can have serious financial and emotional impacts on victims, and it is essential to be vigilant and aware of common scamming tactics to protect oneself.

Phishing and identity theft

Phishing is a type of online scam where scammers send emails that appear to be from a well-known source, such as a bank or a credit card company. These emails aim to trick recipients into providing personal and financial information, such as passwords, account numbers, or Social Security numbers. Scammers often update their tactics to align with the latest news or trends, making their requests seem more plausible and urgent. For example, they may claim there is a problem with your account or payment information, or that you are eligible for a government refund.

Phishing is a significant concern because it can lead to identity theft, which is one of the worst consequences of personal data breaches. With just a few pieces of information, such as your Social Security number, current address, and occupation, phishers can open credit cards in your name and cause extensive financial damage. Cleaning up the mess after identity theft is challenging and time-consuming. Victims often have to jump through hoops to prove their identities to banks and creditors, and their credit ratings may be affected, impacting their ability to take out loans or mortgages and even find employment.

To protect yourself from phishing attacks, it is essential to be vigilant and educate yourself about common signs of phishing attempts. Be cautious when receiving emails or text messages requesting personal or financial information, and never click on suspicious links or attachments. Always verify the legitimacy of the sender by contacting the company directly through a known phone number or website, rather than the information provided in the email. Additionally, using security software and multi-factor authentication can provide extra layers of protection for your accounts and devices.

While phishing and identity theft are illegal, scammers continuously devise new ways to exploit loopholes in the law. For example, they may send messages offering subscription services or charging domain owners for unnecessary services, resulting in exorbitant or recurring fees. Therefore, it is crucial to stay informed about the latest scamming techniques and take proactive measures to safeguard your personal information.

Scammers posing as law enforcement

Scammers are increasingly posing as law enforcement to extort personal information and money from unsuspecting individuals. This is a serious issue that has prompted warnings from the FBI and other law enforcement agencies.

In these scams, fraudsters typically spoof authentic numbers and credentials of well-known government and law enforcement agencies. They may contact potential victims via text messages, phone calls, or email. They often claim that the victim's identity has been used in a crime, such as drug dealing or money laundering, and request personal information such as Social Security numbers and dates of birth to verify the victim's identity.

The scammers then threaten the victim with arrest, prosecution, or imprisonment if they do not pay to remove charges or assist in an investigation against "real" criminals. They instruct victims to make payments through various means, including prepaid cards, wire transfers, cash sent by mail, or cryptocurrency ATMs.

It is important to remember that law enforcement agencies will never call or email individuals to demand payment or request personal or sensitive information. They will also not threaten arrest, fines, or deportation for unpaid taxes or debts. If you receive such a call or email, hang up immediately and do not provide any information or send any payments. Instead, report the incident to the Federal Trade Commission or your local law enforcement agency.

To protect yourself from these scams, be cautious when receiving unsolicited messages or calls. Do not disclose personal or financial information to unknown individuals or organisations. Always verify the identity of the person contacting you, and contact the relevant law enforcement agency directly if you have any doubts or concerns.

Scammers demanding unusual payment methods

Scammers are criminals who use deception to cheat people out of their money. They are breaking the law, and their actions can be classified as theft or fraud. Scammers are always coming up with new ways to trick people, and they particularly like payment methods that are untraceable or erasable.

• Gift cards: Scammers often request payment via gift cards because they can be quickly redeemed to buy other gift cards. Once that's done, the money becomes untraceable. They may also sell the cards online at a discount to convert them into cash.
• Cryptocurrency: With the rise of Bitcoin ATMs and the ease of buying small amounts of cryptocurrency online, scammers are increasingly directing victims to ATMs to purchase Bitcoin, which can then be transferred to the scammer and never traced.
• Cash: Old-fashioned hard currency is still a favourite among scammers because it is totally untraceable. Scammers may instruct targets to wrap cash in newspaper or tinfoil and send it via overnight shipment to avoid detection.
• Peer-to-peer apps: Apps like Venmo, Zelle, and Cash App are designed for easily transferring funds to friends and relatives. However, scammers may try to exploit these apps because they lack the same consumer protections as banks. Always decline transfer requests from strangers.
• Money transfer services: Services like MoneyGram and Western Union are useful for sending money to loved ones, but they are also favoured by scammers because the transactions are mostly untraceable and have limited protections. Never use these services to send money to someone you don't know.
• Wire transfers: Scammers often request victims to wire money to an account controlled by the scammer, often under the guise of a fake investment opportunity or payment to a legitimate organisation.

If you think you have been the victim of a scam, contact your bank or payment services provider immediately, report the scam to the relevant authorities, and keep records of all communication with the scammer.

Scammers selling fake goods

One such loophole is the ability to set up an online store, even if the goods being sold are not real. E-commerce stores are easy to set up, and it can be almost impossible to keep track of which are legitimate. Many knockoff retailers are operating legally, as long as they don't infringe on trademarks or copyrights. However, some scammers sell faulty or non-existent products, or use malicious tactics to trick people into buying something that is not what it was advertised to be.

There are several ways to avoid being scammed by fake online stores. It is important to do your research before making a purchase, such as checking for reviews, comparing prices with other retailers, and verifying the legitimacy of the website. It is also recommended to use trusted payment providers and avoid paying through unsecured methods such as wire transfers or money orders.

In addition to selling fake goods, scammers may also use other tactics to defraud unsuspecting buyers. This includes fake payments, bogus refund requests, fake check overpayments, and fake verification codes. It is important to be vigilant and cautious when making online transactions to avoid falling victim to these scams.

Scammers targeting the elderly

Scammers often target the elderly, taking advantage of their retirement savings or the fact that they may live alone. These fraudsters employ a range of tactics to manipulate their victims, such as being friendly and sympathetic, creating a sense of urgency, and pretending to be associated with credible companies or government agencies.

• Health Insurance Scams: Seniors are eligible for Medicare benefits, making them vulnerable to medical-related scams. Scammers impersonate Medicare representatives and ask for personal information, such as Social Security numbers, or fees to navigate new healthcare landscapes.
• Telemarketing Swindles: Scammers pretend to offer investment opportunities or cheap travel deals over the phone. They may also impersonate authority figures to gain trust. If successful, they may pass on the victim's name to other scammers.
• Fake Accident Scenario: Scammers call and claim that someone known to the victim has been injured and needs immediate financial assistance. They often involve another scammer pretending to be an authority figure, such as a police officer or doctor, to add credibility.
• Robocalls: Scammers use pre-recorded calls to trick victims into saying "yes." They can then use this voice signature to authorise charges on credit cards or other financial instruments.
• Charity Scams: Scammers approach seniors for donations to a fake charity or cause, taking advantage of their goodwill. They may also steal the victim's identity.
• Phishing Scams: Scammers send emails pretending to be from banks, credit card companies, or other businesses to obtain personal information. They may also trick victims into downloading malicious software.
• Tech or Computer Support Scams: Scammers offer to provide tech support or remove viruses from the victim's computer. Their goal is to gain access to sensitive financial information or lock victims out of their devices until a fee is paid.
• Lottery and Fake Prize Scams: Scammers trick seniors into believing they have won a prize but must first pay taxes or fees. After paying, the victim never receives the prize and may be targeted for similar scams in the future.
• Counterfeit Prescription Medications: Scammers offer cheap prescription medications online, which are often counterfeit and harmful to health.
• The "Grandparent Scam": Scammers pretend to be a grandchild or someone representing them, claiming to be in trouble and in need of money. They urge the victim to keep the situation a secret.
• Investment Schemes: Scammers take advantage of the victim's religious affiliation or other personal beliefs to offer fraudulent investment opportunities. They often create a sense of urgency to pressure victims into investing.
• Property and Timeshare Deals: Scammers offer property deals with free gifts or limited-time offers. They may also impersonate county assessors to claim that homeowners can reduce their property taxes by paying a fee.
• Funeral-Related Scams: Con artists target grieving widows and widowers at funerals, claiming that the deceased had outstanding debts. Dishonest funeral homes may also add unnecessary charges.
• Government Impersonation Scams: Scammers pretend to be from government agencies such as the IRS, Social Security Administration, or Medicare. They threaten arrest or benefit cuts if the victim doesn't provide personal information or pay alleged unpaid taxes.
• Sweepstakes and Lottery Scams: Scammers inform victims that they have won a prize but must first send money to cover taxes or processing fees. No prize is ever delivered, and victims may be harassed for additional payments.
• Computer Tech Support Scams: Scammers use pop-up messages or blank screens to warn victims that their devices are damaged. They then request remote access or payment to fix the issue.

Frequently asked questions