Trust & Estate Planning Professionals of Monterey & Santa Cruz, California

SCAMS & ALERTS

Monterey County Sheriff Mike Kanalakis’ Office Report

May, 2008:
Never Dial 90# (Submitted by a local senior who wished to remain anonymous)
I received a telephone call last evening from an individual identifying himself as an AT&T Service technician (could also be Telus) who was conducting a test on the telephone lines. He stated that to complete a test of the line and I should touch nine ( 9 ), zero( 0 ), the pound sign ( # ), and then hang up.

Luckily, I was suspicious and refused.

Upon contacting the telephone company, I was informed that by pushing 90#, you give the requesting individual full access to your telephone line, which enables them to place long distance calls billed to your home phone number.

I was further informed that this scam has been originating from many local jails/prisons
DO NOT press 90# for ANYONE !!

May, 2008:
OFFICIAL SECURITY ALERT FROM COUNTY INFORMATION SECURITY
Steve Lucas, Monterey County Information Technology, Security & Privacy Group

Security researchers say that thousands have fallen victim to an e-mail scam in which senior managers are told that they have been sued in federal court and must click on a Web link to download court documents. Victims of the crime are taken to a phony Web site where they are told they need to install browser plug-in software to view the documents. That software gives the criminals access to the victim's computer.

This type of targeted e-mail attack, called "spear-phishing," is a variation on the more common "phishing" attack. Both attacks use fake e-mail messages to try to lure victims to malicious Web sites, but with spear-phishing the attackers try to make their messages more believable by including information tailored to the victim.

May, 2008:
PREVENTIVE ACTION FOR IDENTIY THEFT
An Annomous Corporate Attorney sent the following out to the employees in his company:

The next time you order checks have only your initials (instead of first name) and last name put on them. If someone takes your check book they will not know if you sign your checks with just your initials or your first name; but your bank will know how you sign your checks.

When you are writing checks to pay on your credit card accounts, DO NOT put the complete account number on the "For" line. Instead, just put the last four numbers. The credit card company knows the rest of the number and anyone who might be handling your check as it passes through all the check processing channels won't have access to it.

Put your work phone # on your checks instead of your home phone. If you have a PO Box use that instead of your home address. If you do not have a PO Box use your work address.

Never have your SS# printed on your checks (DUH!) you can add it if it is necessary. But if you have it printed, anyone can get it.

Place the contents of your wallet on a photocopy machine, do both sides of each license, credit card, etc. You will know what you had in your wallet, and all of the account numbers and phone numbers to call and cancel. Keep the photocopy in a safe place. I also carry a photocopy of my passport when I travel either here or abroad.

We've all heard horror stories about fraud that's committed on us in stealing a name, address, Social Security number, credit cards, etc. Unfortunately, I, an attorney, have firsthand knowledge because my wallet was stolen last month. Within a week, the thieve(s) ordered an expensive monthly cell phone package, applied for a VISA credit card, had a credit line approved to buy a Gateway computer, received a PIN number from DMV to change my driving record information online, and more.

But here's some critical information to limit the damage in case this happens to you or someone you know: We have been told we should cancel our credit cards immediately. But the key is having the toll free numbers and your card numbers handy so you know whom to call. Keep those where you can find them easily. File a police report immediately in the jurisdiction where it was stolen, this proves to credit providers you were diligent, and is a first step toward an investigation (if there ever is one). But here's what is perhaps most important: (I never even thought to do this). Call the three national credit reporting organizations immediately to place a fraud alert on your name and Social Security number. I had never heard of doing that until advised by a bank that called to tell me an application for credit was made over the Internet in my name. The alert means any company that checks your credit knows your information was stolen and they have to contact you by phone to authorize new credit.

By the time I was advised to do this, almost two weeks after the theft, all the damage had been done. There are records of all the credit checks initiated by the thieves' purchases, none of which I knew about before placing the alert. Since then, no additional damage has been done, and the
thieves threw my wallet away this weekend (someone turned it in). It seems to have stopped them in their tracks.

The numbers are:
Equifax: 1-800-525-6285
Experian (formerly TRW): 1-888-397-3742
Trans Union: 1-800-680-7289
Social Security Administration (fraud line): 1-800-269-0271

May, 2008:
SCAM PROOF YOUR LIFE
It can be embarrassing, not to mention expensive. Here's some tips:

Book- "SCAM Proof your life: 377 Smart ways to protect you and your family from ripoffs, bogus deals and other consumer headaches"
Published by AARP Books and Sterling Publishing. Get a Big Discount at www.aarp.org/books

March, 2008:
David Crozier, Crime Prevention Officer for Sheriff Mike Kanalakis reports that we have seen an increase in the number of seniors receiving calls from individuals asking for information and stating that they are calling on behalf of a Bank or other common business entity. They ask for information to “verify” that they are speaking with the account holder. Unless you have initiated the call, do not provide information. Tell the caller that you will call the institution and provide the needed information then get the phone number from the phonebook, directory or go to the Bank or business. If they are not the ones who initiated the call, report the problem to the police or Sheriff.

For those seniors on-line, the Sheriffs Office has received increased reports of “phising” when individuals log on to bank web sites. This is where you may type in bankofamerica.com and you come to a site that looks just like the usual BofA site. The site looks just like B of A’s site and asks for your id and password, you enter those and press return and you go back to your own homepage. You may then try again and go to the actual site. Remember, most bank sites now offer an extra layer of protection by offering you to use a site key. ALWAYS remember to look at the site key, if it’s the right one, proceed. If not, DON’T LOG IN and call the police or sheriff.

Senior Legal Services Report

March, 2008:
Kellie Morgantini, Attorney with Legal Services for Seniors in Monterey has helped a number of seniors where a check arrives in the mail, it appears to be real and in fact when the senior deposits it, it goes into their account. The problem is that the check does not clear the other institution, in this case an institution in Canada. Unfortunately, it takes up to a week to clear the Canadian Bank (or in this case not clear the Canadian Bank) and then the senior’s own Bank may put it through again and only then may notify the senior, via letter that the check did not clear. The senior may be charged fees for the bad check, which they are liable to pay.

Adult Protective Services

District Attorneys Report
(Pending)

Other Scams & Articles
(Pending)

IRS Alert - IRS Publishes "Dirty Dozen" Tax Scams

March, 2008:

The IRS has recently published the 2008 "Dirty Dozen" tax scams. These are the various strategies that taxpayers use to reduce taxes or to steal from other persons.

Acting IRS Commissioner Linda Stiff noted, "Taxpayers should be wary of scams and promises to avoid paying taxes that seem to be too good to be true." Most of these tax schemes can lead to audits and even imprisonment. Tax preparers can also be subject to penalties and criminal prosecution.

The "Dirty Dozen" tax scams are the following:

1. Internet Trickery - Phishing. A thief sends the victim an e-mail claiming to be from the IRS and often uses the IRS web address www.irs.gov. When the victim replies with bank account numbers or credit card numbers, the thief then uses this information to charge items or withdraw funds from the victim's bank account.

2. Economic Stimulus Scams. A thief uses an e-mail to claim that disclosure of a credit card number or bank account is necessary for the victim to receive a federal stimulus check.

3. Frivolous Schemes. Some taxpayers claim that they no longer owe income tax because they object to military spending, that they qualify for the "Mariner's Tax Deduction" or they do not have a "fiduciary relationship" with the United States that requires payment of tax. Several tax protesters who used these arguments are now in federal "housing."

4. Fuel Tax Credits. Farmers and ranchers who use fuel in their fields rather than on the highways may qualify for a fuel tax credit. Other taxpayers who improperly claim the credit will be subject to penalties and prosecution.

5. Offshore Income. U. S. citizens are subject to tax on income throughout the world. Hiding income in offshore tax havens does not relieve a person from the obligation to pay tax.

6. Abusing Roth IRAs. Some advisors claim that highly appreciated property can be transferred into Roth IRAs with only the basis counting against the IRA contribution amount. This claim is clearly incorrect and could subject a person to penalties.

7. Zero Wages or Income. Taxpayers may claim they have zero wages or income. Some even file a "corrected" Form 1099 and report zero income. Federal law indicates that "all income from whatever source derived" is taxable.

8. False Refund Claims. IRS Form 83 "Claim For Refund and Request For Abatement" may be filed to try to recover taxes paid previously.

9. Corrupt Return Preparers. Some return preparers file aggressive tax returns and underpay taxes. They then claim a portion of tax refunds as their fee.

10. Shell Corporations. Forming a domestic corporation is perfectly legal. Attempting to use it to hide income or wages is unlawful.

11. "No Taxes Ever" Trusts. Some promoters continue to promote a "constitutional" trust or other method to claim that the individual is no longer subject to any type of federal tax. These trusts do not relieve a person of any tax obligations.

12. Abusive Charitable Deductions. Some individuals continue to attempt to incorporate themselves as a charity and claim all of their personal living expenses are charitable. The IRS is not charitably disposed toward these strategies. Other abuses include over valuation of gifts of land or business interests and attempting to take a charitable deduction for tuition payments for children or grandchildren.

Editor's Note: Some secondary, college and university programs have participated in these efforts to disguise tuition payments as charitable contributions. All educational organizations should exercise caution, particularly when creating "limited scholarship" funds that apply only to small groups or family members.

FBI - Jury Duty Scam

March, 2008:

FBI - THE VERDICT: HANG UP
Don't Fall for Jury Duty Scam

The phone rings, you pick it up, and the caller identifies himself as an officer of the court. He says you failed to report for jury duty and that a warrant is out for your arrest. You say you never received a notice. To clear it up, the caller says he'll need some information for "verification purposes"-your birth date, social security number, maybe even a credit card number.

This is when you should hang up the phone. It's a scam.

Jury scams have been around for years, but have seen a resurgence in recent months. Communities in more than a dozen states have issued public warnings about cold calls from people claiming to be court officials seeking personal information. As a rule, court officers never ask for confidential information over the phone; they generally correspond with prospective jurors via mail.

The scam's bold simplicity may be what makes it so effective. Facing the unexpected threat of arrest, victims are caught off guard and may be quick to part with some information to defuse the situation.

"They get you scared first," says a special agent in the Minneapolis field office who has heard the complaints. "They get people saying, 'Oh my gosh! I'm not a criminal. What's going on?'" That's when the scammer dangles a solution-a fine, payable by credit card, that will clear up the problem.

With enough information, scammers can assume your identity and empty your bank accounts.

"It seems like a very simple scam," the agent adds. The trick is putting people on the defensive, then reeling them back in with the promise of a clean slate. "It's kind of ingenious. It's social engineering."

In recent months, communities in Florida, New York, Minnesota, Illinois, Colorado, Oregon, California, Virginia, Oklahoma, Arizona, and New Hampshire reported scams or posted warnings or press releases on their local websites. In August, the federal court system issued a warning on the scam and urged people to call their local District Court office if they receive suspicious calls. In September, the FBI issued a press release about jury scams and suggested victims also contact their local FBI field office.

The jury scam is a simple variation of the identity-theft ploys that have proliferated in recent years as personal information and good credit have become thieves' preferred prey, particularly on the Internet. Scammers might tap your information to make a purchase on your credit card, but could just as easily sell your information to the highest bidder on the Internet's black market.

Protecting yourself is the key: Never give out personal information when you receive an unsolicited phone call.

Protecting Yourself - Open Letter to Seniors by Attorney Barry Harrow

March, 2008:

AN OPEN LETTER TO SENIORS
From: Barry R. Harrow, Attorney at Law

Dear Senior:

There are a lot of scams out there. The world is not as safe as it used to be. A lot of schemes are being hatched to steal your money. In some cases, those schemes are designed to steal your identity. This letter is about some schemes designed to steal your money when you are
comfortably sitting in your own home. And it doesn’t involve guns, knives or any kind of force or intimidation.
How can someone steal your money without any force or intimidation? Well, let me tell you how. The easiest way is through a simple device that you have grown up with. It’s a device that you have come to trust and rely upon. It’s a device that you will go to whenever you are in need of contacting someone.

It’s your telephone.

You grew up in a time when the telephone was a tool that was almost always used for good. You could call your friends and family and the experiences you had on the telephone were usually great. You could call the doctor, the police or other people in time of need. You could even talk to a lot of people at once when there were “party lines”.

Unfortunately, times have changed. Your telephone is now the easiest entryway into your private sanctuary and the tool of choice for many scam artists to steal your money.

The caller will usually start out with some kind of good-sounding pitch. A popular one is that their company is selling things you need (plastic kitchen bags, light bulbs, and so on). They tell you that they have a special group of volunteers or employees working for them.

“These people” are handicapped, veterans, down and out, bouncing back from hard times, etc. “These people” are good people. They are in need. If this company doesn’t do well, these people will lose their jobs. You wouldn’t want that to happen, would you?

They make you really sad and concerned about “these people”. They put you in the position that you feel like you have to help “these people”. You think to yourself, how can I help these people?

Right about the time that you are thinking about helping these people, the caller explains to you just how you can do it. All you have to do is buy some of their plastic kitchen bags, light bulbs, whatever they are selling. Oh, these things will cost a little bit more than normal because they need to make a profit to keep these people employed. A normal $1 light bulb might be around $10. A normal $3 box of kitchen bags might be $89.95. And so on.

Do you have a credit card? They ask you for the information and charge your card.

Don’t have a credit card? No problem, they’ll ask you if you have a checking account. Why, of course you do. They ask you about your bank and they call your bank right there, on the spot, so that you can authorize your bank to give them your money right out of your checking account. Now, doesn’t that make you feel good? You’re helping “these people”. In reality, you’ve just been conned. They will send you whatever you bought. But that won’t be the end of it. It’s not a one-time deal.

Once they have you identified as someone who can be conned, they will pass your name on to other people in the same business and you will start getting more calls. Instead of buying a box of kitchen bags for $89.95 once every 6 months, they’ll sell you 2 boxes, 3 boxes, a box every week, every day if you like. And as they call more and more, they will become more pressuring over the phone until you want to just say “yes” to get them to stop. Your losses can quickly get into the thousands of dollars.

How can you protect yourself?

Let me ask you a question. Would you open your front door when someone knocks or rings the bell without knowing who it is? No, of course not. You would wait until you know who is on the other side of that door. That’s why door-to-door salesmen are a thing of the past.

Well, why not do the same with your telephone?

I tell my clients to attach an answering machine to their phone and leave it on. Then I tell them to have patience. DO NOT ANSWER THE PHONE UNTIL YOU KNOW WHO IS CALLING. Just like you would do with your front door. It takes patience and it takes practice because we’re all used to answering right away. Our good manners tell us that we don’t want the caller to have to wait any longer than necessary. When that phone rings, we all jump to attention, don’t we?

One of my clients was concerned that the caller would hang up if the phone wasn’t answered right away. My answer to this concern is as follows:

Bad People Hang Up. Good People Leave Messages.

You don’t have to worry about the Good People hanging up. If they are your friends or family (as opposed to con artists), they will wait until your greeting finishes and they will start to leave a message. When you know who they are, pick up the phone.

This simple technique is a great way to protect yourself from con artists. Why? Because con artists do not leave callback numbers. They do not leave messages. They don’t want you to know their telephone number because, if you know their telephone number, the police might also find out what it is. And they can’t risk being caught committing Elder Abuse over the phone. It might be a Federal crime and they don’t want to go to jail.

In summary, then, don’t answer the telephone until you recognize the caller. It is then up to you to decide if you want to answer the telephone or not. Protect yourself from telephone intruders. You’re in charge of your telephone, not them.

This article is a public service designed to provide general information to the general public. It should not be construed as legal advice. For specific legal advice, please consult your attorney.


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