SCAM ALERTS
This area of the site is designed to keep you updated on any special alerts or advisories regarding public messages provided by the Attoney General's Office. It is our goal to do everything possible to keep our citizens safe so make sure to check back here regularly to update yourself on current scams that are designed to steal your money.
To help keep you updated, the warnings will be posted as they are sent from the AG Office as well as with the posting date.
February 12, 2008
CONSUMER ALERT
Scammers Taking Advantage Of New Federal Economic Stimulus Package
Texans should be aware of a scam that has emerged in connection with the proposed federal economic stimulus package. Under recently passed legislation, the IRS will mail tax rebate checks to eligible Texans over the next few months. President Bush has indicated he will sign the package into law on Wednesday.
Several Texans recently filed complaints with the Office of the Attorney General after receiving unsolicited e-mails and telephone calls from purported IRS agents claiming that the taxpayers are eligible for “Bush refunds.” The scammers demand taxpayers’ Social Security and bank account numbers, claiming the IRS will use the information to directly deposit “rebate checks” into the taxpayers’ accounts.
This is outright identity theft fraud. The IRS does not call or e-mail taxpayers unexpectedly to demand personal information for direct deposits. Taxpayers solicited in this manner should just hang up or delete the e-mail.
Texans who have received these bogus solicitations can file a complaint with the IRS at www.irs.gov or by calling (800) 829-1040. Consumers also can report such calls to our office.
January 7, 2008
CONSUMER ALERT
Landlords, Roommates Can Fall Prey to Counterfeit Checks
Texans who plan to get a roommate or rent out their house or apartment in the new year should beware of a new version of an old counterfeit check scam.
The U.S. Postal Inspector recently warned that some property owners are being duped by con artists using counterfeit checks. Managers of large apartment complexes and owners of a single rental property are targeted by the scam. A landlord should not trust a prospective tenant who responds from overseas to an online advertisement, pays a deposit with a cashier’s check (possibly even offering to pay several months’ rent in advance), and then asks the landlord to wire back part of the money. The checks often turn out to be clever counterfeits.
People who advertise seeking roommates should be careful of this scam as well. Roommates abroad who send large deposit checks and then ask to have some funds returned to them because of a “family emergency” or similar reason are simply trying to profit from the prospective roommate’s trust.
To provide further reassurances, the scammer might even telephone the person who places the advertisement. But the result is invariably the same: They want to separate consumers from their money.
Many consumers mistakenly believe it is possible to get back their money, but the con artists behind these ploys are almost always in other countries. Even with the assistance of international law enforcement authorities, these thieves are nearly impossible to catch because they are constantly on the move.
Landlords and roommate seekers who are contacted with one of these offers should simply say “no.”
December 14, 2007
CONSUMER ALERT
Identity Thieves Impersonate Texas
A new identity theft scheme is targeting Texans, particularly those who bank at Amarillo National Bank, a legitimate
This type of scam, also known as "phishing," typically involves e-mails that falsely appear to have been sent by trusted and well-known institutions, such as large banks or popular Internet-based merchants, like eBay and PayPal. In the latest twist, however, identity thieves are clearly targeting Texans by posing as trusted local institutions.
The Office of the Attorney General first learned of the Amarillo National Bank scam when its own employees received a series of e-mails with the subject line: "New Message From Amarillo National Bank." The e-mails read, in part:
We recently reviewed your account, and we suspect an unauthorized ATM based transaction. Therefore as a preventive measure we will temporary limit your access to sensitive features. To ensure that your account is not compromised please call our security center ... and verify your identity to prevent deactivation.
If this is not completed by Dec 15, 2007, we will be forced to suspend your account indefinitely, as it may have been used for fraudulent purposes.
The message provides a toll-free number for consumers to call and furnish their personal information. However, neither the e-mail nor the telephone number is affiliated with Amarillo National Bank.
As always, Texans should NEVER provide personal information in response to unexpected e-mails or telephone calls, even if they appear to be from a respected local institution.
The Office of the Attorney General is working with Amarillo National Bank and
IMPORTANT NOTE!
One of our employees received this very email this morning addressed to his work email account. Be warned that this can happen to anyone at any email account. While the email body would appear to show someone is concerned about your financial well being, it is simply a ploy to steal your personal identifying information. If your email program shows return email addresses, you will immediately see that this email did not originate with any Amarillo National Bank service, but an online service that anyone can sign up for. This is just one clue that things may not be as they seem. Always remember to be careful with your identity. It takes a great deal of time and money to clear your good name should thieves manage to steal your identity.
Below is the email received in its entirety but with the toll free number blocked:
Dear customer,
At ANB, we understand how important it is to protect your personal and financial information. That's why we make every effort to protect the information that you share with us online.
We recently reviewed your account, and we suspect an unauthorized ATM based transaction. Therefore as a preventive measure we will temporary limit your access to sensitive features.
Please call our security center toll free at: 800-XXX-XXXX to verify your identity to prevent deactivation and then no additional action is required by you to continue to use your online services.
As part of our commitment to you, we are enhancing our current online security. This security upgrade is free, easy, and most importantly gives you additional protection from fraud and identity theft.
If this is not completed by Dec 16, 2007, we will be forced to suspend your account indefinitely, as it may have been used for fraudulent purposes.
This enhanced security is just one more way to prevent fraud, protect against identity theft and strengthen your online security. Your online security is our top priority, and we'll make every effort to provide you with the best online security available.
We look forward to continuing to provide you excellent service.
Sincerely,
ANB Online
If you do not have an account with us, please ignore this message as it has reached your email address by mistake. We are sorry for any inconvenience this may caused.
Please do not reply to this e-mail as this is only a notification. Mail sent to this address cannot be answered.
December 6, 2007
CONSUMER ALERT
Don't Pay Up-Front To Borrow Holiday Cash
With the holiday season in full swing, many Texans might encounter advertisements promising instant cash loans. Consumers should avoid loan offers that require up-front payments for "taxes" or "processing fees." Legitimate lenders never ask borrowers to pay money up-front in order to obtain a loan.
Posing as legitimate loan offers, these slick loan promotions often appear online, in newspaper classified ads or on flyers. Some scammers provide a toll-free number for borrowers to call and supposedly speak with someone who claims to be a reputable bank representative. Other con artists send official-looking correspondence guaranteeing a loan for hundreds or even thousands of dollars at a reasonable interest rate.
In both schemes, borrowers are instructed to wire several hundred dollars in advance to cover the loans' taxes or processing charges. Once consumers send the money, they never hear from the scam artist again.
Many of these schemes give the impression that they are based in the United States. Often, they provide "confirmation" correspondence with a return address in this country. The unfortunate reality is that most scammers are based abroad and use stolen or disposable cell phones that cannot be traced. The correspondence addresses are either nonexistent or anonymous drop boxes. Once money is wired to the scammers, they are able to pick it up from any of thousands of locations around the world, with little chance of being caught.
Consumers who need extra cash over the holidays should consider approaching local lenders to discuss their options in person. Borrowers should also carefully protect their personal information, especially Social Security and bank account numbers. While reputable lenders typically require Social Security numbers and other information to conduct credit checks on a borrower, scam artists often obtain victims' personal information to perpetrate identity theft.
Texans can verify they are dealing with a legitimate, properly licensed organization by contacting the Texas Department of Banking toll-free at (877) 276-5554 or online at www.banking.state.tx.us.
To report an advance fee scam or to obtain additional information, call the Office of the Attorney General at (800) 252-8011 or visit us online at www.oag.state.tx.us.
December 3, 2007
Five Holiday Scams Texans Should Avoid
With Texans across the state preparing holiday meals and shopping for gifts, a few con artists are dusting off old scams and looking for new victims. Law enforcement can help Texans by spreading the word about how to avoid five popular holiday scams: gift card scams; online shopping schemes; phony charities; credit repair scams; and spam e-mail and other unsolicited offers.
Gift card scams. Scam artists often take advantage of gift cards by writing down or memorizing the serial numbers on the face of the card while the cards are still displayed in the store. When an unsuspecting consumer purchases and activates the card, the scammer simply calls the card's customer service number, verifies it is active, and uses the memorized serial number to make online purchases. Sadly, it is often days or weeks before the legitimate buyer learns that the card balance was drained by a thief.
To avoid scammers who drain gift card balances, consumers should ask a store clerk to provide them with a gift card from behind a counter or one that has not otherwise been accessible to the general public. Some gift cards have additional security measures, such as scratch off codes, so consumers should always verify that no one has tampered with a card or its packaging.
Online shopping schemes. Consumers should never respond to bulk e-mails that offer merchandise, travel deals or solicit charitable contributions. Crooks often set up Web sites that look like they sell products or collect money for charities when, in fact, all they do is collect credit card numbers, take the money and run. Consumers should always verify a Web site's security status before placing an order. Online shoppers also should consider using a credit card for online purchases. Paying by credit card often makes it easier for consumers to dispute unauthorized charges or undelivered products.
Bogus charities. Charitable giving is commendable, but consumers should ask questions before donating to a telephone or door-to-door solicitor: Does the solicitor have identification? How will contributions be used? Texans also should independently check what they are told about the organization and make sure their gifts will count. To verify an organization's legitimacy, donors can contact www.give.org. This Web site is maintained by the Council of Better Business Bureaus to promote wise charitable giving. Consumers also should confirm the tax-exempt status of any organization before they reach for their wallets.
Credit repair scams. Online or in the classifieds, credit repair offers often guarantee consumers loans despite their poor credit ratings; all consumers have to do is pay an upfront "processing fee." These offers are invariably a form of advance fee fraud, so Texans should steer clear of them. Consumers who need extra money over the holidays should visit a local lender in person.
Unsolicited offers. The best way to guard against scams and swindles is simple: Never respond to unsolicited offers. Consumers should never respond to spam e-mails sent by strangers or unfamiliar companies.
Consumers should also be skeptical of unsolicited telephone offers. Even if the caller claims to represent a trusted company or pitches an interesting offer, Texans should hang up and call the well-known company directly using a number that appears in the local telephone directory. This simple precaution ensures that consumers are talking to an actual company representative.
Fraudulent offers also can arrive in the mail. As tempting as it sounds, consumers can rest assured they did NOT win the Spanish lottery, the Canadian lottery, or any other foreign lottery just in time for the holidays. Texans should be extremely wary of cashier's checks sent by people they do not know and should never provide their personal financial information to unfamiliar solicitors.
Con artists tend to spend money just as fast as they steal it, so money lost in these or similar scams is difficult to recover. Prevention is an important key to stopping thieves in their tracks. By taking a few simple precautions, Texans can enjoy a safe and happy holiday season.
November 27, 2007
CONSUMER ALERT
Spoof Credit Union E-Mails Could Ruin Consumers' Holidays
A new, dangerous identity theft scheme is targeting credit union customers across the country. According to consumer and credit union groups, spoof e-mails are directing credit union customers to call a telephone number and confirm their personal information. Consumers who make the call do not reach their credit union, but instead end up on the telephone with a scam artist who wants to steal their identity.
Savvy consumers have increasingly learned to identify and delete spoof e-mails that falsely appear to originate from legitimate banks or credit card companies. Known as "phishing," these e-mails direct consumers to a decoy Web site that allows the scammers to collect all the information they need to empty the customers' bank accounts and ruin their credit.
"Phishing" scams have been around for years, but increasingly sophisticated criminals now send e-mails instructing consumers to call a telephone number instead of clicking on a link. This tactic, known as "vishing," can be especially effective because consumers who encounter a live person are much more likely to let down their guard.
The latest "vishing" scam immediately disarms consumers by specifically warning about similar schemes. One recently circulated e-mail reads:
Dear Credit Union Customer,
We regret to inform you that we have received numerous fraudulent emails which ask for personal account information. The emails contained links to fraudulent pages that looked legit. Please remember that we will never ask for personal account information via email or web pages.
Because of this we are launching a new security system to make Credit Union accounts more secure and safe. To take advatage [sic] of our new consumer Identity Theft Protection Program we had to deactivate access to your card account.
To activate it please call us immediately.
The e-mail provides a telephone number with a U.S. area code, adding to its air of legitimacy. In an especially brazen move, the e-mail offers identity theft tips and links to the Federal Trade Commission's identity theft prevention Web site. Consumers who think the e-mail is legitimate call the number and furnish sensitive information to a person they believe is a trusted credit union employee. Only when their identity is stolen do they realize it was all a scam.
These "vishing" scams combine the "phishing" ploy with a Web-based telephone scheme. The telephone numbers that appear in these e-mails are set up through VoIP, which is an Internet-based telecommunications service. Even though the phone number appears to be based in a familiar U.S. area code, the scammers are most likely in other countries and impossible to track down.
Consumers who receive this or any other unexpected e-mail or phone call seeking personal information should not respond. Consumers who have concerns about their account should contact their credit union by calling the telephone number that appears in the local directory or on their periodic statements. Never click on a link or call a telephone number that appears in an unexpected e-mail.
November 15, 2007
CONSUMER ALERT
Office Supply Scams
Several businesses recently complained to the Office of the Attorney General about invoices they received for office supplies that were never ordered, including paper, toner cartridges and other office products.
Business owners should be aware that scam artists often send fraudulent billing invoices to companies of all sizes, hoping that the accounting department will simply pay the bill. Crooks count on the business's failure to confirm that a purchase order was issued or that goods actually arrived.
Office supply schemes can take multiple forms. In one variation, the scam artist simply sends an invoice without ever delivering any products. Other thieves send merchandise that the business did not order and charge a price that dramatically exceeds what the same supplies would cost at a local retailer. If the invoices are unpaid, scammers try to intimate the businesses with threatening telephone calls and letters.
Most office supply scammers are based in other states, so Texas businesses can only communicate with them by telephone or e-mail. Businesses that attempt to question the invoices are often met with vague statements claiming that "someone" at the company ordered the supplies.
By law, businesses that receive unordered merchandise are under no obligation to pay to return the unwanted products. Generally, these items can be considered a gift. Otherwise, the retailer that sent the merchandise must pay to retrieve it within a reasonable period of time at no expense to the business. A scam artist will seldom bother to do so.
Businesses should consider alerting all employees about office supply scams, not just those who work in accounting and billing departments. Some scammers are known to dial random numbers throughout a business until they find an unsuspecting employee who will "accept" the unordered merchandise. According to some reports, employees have also been persuaded to fill out sweepstakes forms without realizing that the fine print committed their company to buy unwanted, overpriced supplies.
Businesses that receive fraudulent invoices or unordered supplies, or are subjected to bogus collection threats or any other scam should file a complaint with the OAG Consumer Protection Division by calling (800) 252-8011 or visiting the OAG Web site at www.oag.state.tx.us.
November 7, 2007
CONSUMER ALERT
Give Wisely To Organizations Claiming To Benefit Public Safety Officers
Before donating to an organization that claims to represent law enforcement, Texans should ask questions and check the facts. Donations to groups with the words "police," "law enforcement," or "trooper" in their names may not actually benefit real peace officers or their families. As with most things, the devil is in the details.
Two common types of organizations can serve law enforcement. The first are legitimate charities, such as police benevolent societies. These charitable organizations might honor outstanding officers with an annual gala or raise money to provide scholarships for the children of wounded or fallen officers. However, when an unknown caller solicits donations for a peace officers' charity, Texans need to ask questions before they open their wallets.
In 2003, the Office of the Attorney General and the Harris County Attorney's Office filed an enforcement action against the Texas Police Officers Alliance (TPOA), which collected nearly $300,000 that it claimed would benefit peace officers. Before the state intervened, TPOA had given a paltry $500 to benefit the families of three sheriff's deputies. Texans who want to donate funds to law enforcement charities should know how the organization will spend their money – and whether it will actually benefit any peace officers.
A second type of law enforcement organization is a non-profit professional association or labor union. Their membership is usually comprised of dues-paying peace officers who rely on the association for professional insurance, legal counsel, and representation before city, county, or state officials. These associations typically are governed by an elected board of directors that includes actual licensed peace officers. Non-executive board members ordinarily receive no compensation, so many organizations rely on a professional staff to administer day-to-day operations at the association.
Though many of these organizations legitimately represent actual peace officers and their interests, they are not charities. Because they do not serve a charitable purpose, donations to these organizations are not deductible for federal income tax purpose. For the same reason, it is entirely lawful for a law enforcement association to use donations to pay for administrative expenses, provided they do not mislead prospective donors about how contributions will be spent.
To separate organizations that actually serve or represent peace officers from those that may not, it helps to examine the size of an organization's membership, the composition of its governing board, its history, its affiliations, and the organization's willingness to disclose how it spends its resources.
The state's largest peace officers' organization is the Combined Law Enforcement Associations of Texas (CLEAT), a labor union with more than 15,000 members and 100 local associations. Founded in 1974, CLEAT is governed by a 17-member elected board of directors that are all licensed peace officers. It is affiliated with the National Coalition of Public Safety Officers.
Another prominent law enforcement association, the Texas Municipal Police Association, represents more than 13,000 Texas peace officers. Its 14-member board of directors, which is elected by its membership, receives no compensation and is composed almost entirely of licensed peace officers. Other examples of well-known, established organizations that represent peace officers include the Fraternal Order of Police, the Houston Police Officers Union, and the Dallas Police Association, among others.
While some organizations rely largely on membership dues to fund their operations, others solicit contributions by telephone and mail. Unfortunately, a few organizations that claim to represent law enforcement may not actually spend donors' contributions on items that directly help Texas peace officers.
Consider, for example, the Texas State Troopers Association (TSTA), which hires professional telemarketers to call potential donors for contributions. While the paid solicitor might have a good sales pitch urging potential donors to support the state police, much of the money raised by TSTA doesn't actually go to officers or their families. According to a recent IRS filing by the TSTA, its telemarketing efforts yielded $3.59 million through telephone solicitations. Of that amount, more than 75% – or $2.78 million – was spent on "professional fundraising fees." The IRS documents also indicate the organization spent just $10,800 on trooper death benefits; $22,000 on a "trooper event;" and $72,000 on contract lobbyists.
Texans who are solicited for donations by a purported law enforcement association need to ask tough questions before contributing to any non-profit organization. If the solicitation is made by telephone, prospective donors should take their time and ask for more information. Consumers should ask whether solicitors are volunteers or paid telemarketers. If a solicitor claims that a state or local police department has authorized the solicitation or will somehow benefit from a contribution, citizens should contact the local police department to determine whether the caller's claim is accurate.
To understand how their contribution will be used, prospective donors should ask the organization to provide a written comparison of how much donated revenue goes to telemarketing or lobbying expenses and how much directly benefits peace officers or their families.
Prospective donors should be wary of high-pressure sales tactics or unsolicited "pledge" letters. The Office of the Attorney General has received complaints by citizens who received unsolicited "pledge letters" from certain organizations. These letters claim that the recipients "generously agreed to donate" a certain amount when, in fact, no such promise was ever made. Texans should also question solicitors who imply their organization's donors receive special treatment by law enforcement authorities. And, of course, no legitimate public safety organization would intimidate or harass consumers who decline to give.
Consumers who receive bogus pledge cards or harassing telephone calls from organizations claiming to benefit law enforcement may file a complaint with the Office of the Attorney General by calling (800) 252-8011 or visiting our Web site at www.oag.state.tx.us.