According to urban legend, the infamous criminal Willie Sutton said he robbed banks “because that’s where the money is.”
Today’s criminals, thanks to modern technology, no longer have to rob banks to get to the money. The ability to break into people’s bank accounts or steal their identity can be done with the simple click of a computer icon.
And, unfortunately, few people take the simple steps necessary to protect themselves from becoming victims. The Federal Trade Commission estimates that Americans lost $1.4 billion to scams in 2012 and that the number could be significantly higher.
“Many people don’t report scams or even know they’ve been victimized,” said Katherine Hutt of the Council of Better Business Bureaus.
The bureau has just released its list of the top scams for 2013. Many of the frauds target senior citizens and play on people’s emotions.
For instance, the BBB reports says, “With promises of a ‘free’ medical alert system, the scam targets seniors and caregivers and claimed to be offering the system free of charge because a family member or friend had already paid for it.”
However, the victims were asked to provide a bank account or credit card number to verify their identity. As a result, they were then charged a $35 service fee every month.
The BBB report also says, “Scammers had a field day with the Affordable Care Act, using it as a way to fool Americans into sharing their personal information. Often they would sell bogus health care service or, even worse, use personal information for identity theft.”
Another frequent scam, especially here in San Diego County, has involved real estate and mortgage fraud. Last year, Timothy Mark Brachmanis of San Diego was sentenced to nine years and eight months in state prison and ordered to pay more than $3.7 million in restitution and fines for stealing millions of dollars in a real estate investment scheme.
“This defendant preyed on victim after victim, eventually bilking them out of more than $3 million. The prosecution team did an outstanding job prosecuting this case and working with our law enforcement partners to help obtain a measure of justice for the victims,” District Attorney Bonnie Dumanis said.
Brachmanis claimed to be a real estate investment attorney who solicited victims to invest in a variety of properties that he planned to develop and sell for a profit. Instead, he diverted the money to other projects or his for own personal use.
Of course, this is the time of the year scamsters use the tax filing season to reap their profits. The Internal Revenue Service is warning of fraud ranging from identity theft to bogus tax return preparers.
“These schemes jump up every year at tax time. Scams can be sophisticated and take many different forms. We urge people to protect themselves and use caution when viewing emails, receiving telephone calls and getting advice on tax issues,” Commissioner John Koskinen said.
The IRS has observed an increase in phone calls by intimidating scamsters claiming to be government agents telling people they either owe money or are entitled to big refunds.
“Some calls can threaten arrest and threaten a driver’s license revocation. Sometimes these calls are paired with follow-up calls from people saying they are the local police department or the state motor vehicle department,” claims the IRS report.
Bottom line, the IRS — or almost any other government agency — will not initiate its contact with a consumer either by telephone or email. Almost all contact will be done my mail. A call or Internet message is likely the first step in a dangerous scam.