Theft of Services -- Part 2
(Continued from last week)
To attack the growing problem of cable service theft, the District of Colombia enacted this law: “No person shall:
a) Obtain, intercept or receive, or attempt to obtain, intercept or receive cable television services from a cable television company by device, converter, decoder, trick, artifice, deception or other means with the intent or purpose to deprive such company of an or all lawful compensation for rendering each type of service obtained;
b) Assist or instruct any other person or persons in obtaining, intercepting or receiving, or attempting to obtain, intercept or receive any cable television service, by any means whatsoever, without payment of all lawful compensation to the cable television company for rendering each type of service obtained;
c) Make or maintain a connection or connections, whether physical, electrical, mechanical, acoustical or by other means, tamper with or otherwise interfere with any cables, wires, components, modems, lock boxes, pedestals, or other devices or equipment of the cable television company used for the distribution of cable television service, with the intent or purpose to deprive such company of any or all lawful compensation, and without express authority from the cable television company;
d) Make or maintain any modification or alteration to any device, equipment or apparatus or remove, disconnect or sell any device, equipment or apparatus installed by the cable television company without the authorization of a cable television company for the purpose of intercepting, descrambling, decoding or receiving any program or other service carried by such company which such person is not authorized by such company to receive, or for the purpose of selling any such device, equipment, or apparatus; or
e) Make, manufacture, import into the District of Columbia, assemble, transfer, distribute, promote, sell, lease, lend, offer, own, possess, or possess for sale, advertise or publish for sale or lease any device, equipment or apparatus, or any instructions, information, plan or kit for such device, equipment or apparatus, or for a printed circuit designed in whole or in part to intercept, decode, descramble or otherwise make intelligible any encoded, encrypted, scrambled or other nonstandard signal distributed by a cable television company.”
Other states have similar laws. Although they are hard to detect, service companies have been fighting back by installing devices that detect usage surges and that can monitor the number of televisions or computers attached through individual houses and apartments. The companies are keeping their detection methods confidential so that they can maintain an edge over those who wish to overcome such safeguards.
Monday, June 15, 2009
Monday, June 8, 2009
Consumer Safety & Awareness Part 22
Theft of Services -- Part 1
Traditional Service Theft
Traditionally, “theft of service” meant obtaining a utility without paying for it. Thus if you illegally wired your television into a cable company, tampered with your electric or gas meter, or used a slug in a pay phone, you were subject to both civil and criminal charges. Today, with the Internet and other technology, the term can be expanded.
ComCast, which provides television, telephone, and Internet services, warns users, “Any unauthorized person who intercepts or receives communications provided over a cable system may be penalized under the Cable Communication Policy Act of 1984 [47 C.F.R. 553(c)]. This includes the theft of audio, video, textual data, and any other service. The law applies to manufacturers and distributors of equipment as well as to individuals. Parties found guilty of cable theft are subject to both civil and criminal penalties, which may include substantial fines and/or time in prison.”
Time Warner Cable explains it this way, “Theft of cable services is the reception of any services offered over a cable system without paying for the system. Cable theft is a widespread problem that results in revenue losses to the cable industry totaling several billions of dollars per year. By depriving cable operators of substantial revenue, people who steal cable adversely affect cable companies' ability to provide their customers with high quality products and services.”
New York State Law, as an example, specifically says that, in cases of tampering with gas meters for the purpose of reducing or escaping charges the culprit’s liability, “shall include, but not be limited to, the cost of investigating, repairing and replacing meters and pipes, and the cost of moving a meter and installing it in a secure location.”
Central Hudson Gas & Electric reports, “Our field representatives undergo regular training to recognize and report theft of service, and are active in seeking suspected cases during their daily tasks. Lost or unrecovered revenue can raise the cost of service to the vast majority of honest customers who legally receive and pay for their service.” During 2006, Central Hudson has recovered $160,000 from individuals attempting to steal electricity and natural gas through overt or fraudulent means.”
During the last three years people have been arrested and prosecuted for many types of such actions. Here are a few examples:
a) In Texas, a man illegally connected his mobile home to municipal water. He was fined $10,000.
b) In Florida, a person sitting in a car outside a private house was arrested for tapping into and using the homeowner’s WiFi connection.
c) In the state of Washington, a man parked his van outside a coffee shop to use their WiFi. After several warnings he, too was arrested under the theft of service laws.
d) In October, 2007, the first federal case involving downloading music by Internet without paying for it resulted in a $222,000 fine for a woman in Minnesota. There have been hundreds of civil cases won against people who download music without paying for it.
e) In Europe, people who violate intellectual property laws by Internet downloading can be fined, jailed, or both. It is not unusual for the conviction to include forfeiture of the computer involved and all peripherals.
f) In Japan a man who ran an extension cord from a neighbor’s house to power a rice steamer was arrested
g) In Guyana, South America, over 100 people were arrested in one week for theft of electricity.
h) The Baltimore Sun reports a 32-year-old man was, “arrested and accused of using electricity from a neighbor's house to power his computer. He was powering his computer through an electrical cord plugged into his neighbor's exterior outlet, police said. He was charged with fourth-degree burglary, theft of electrical service and trespassing.”
i) In India, seven people were arrested for tapping into other people’s telephone lines to call friends and relatives living in the United States,
To attack the growing problem of cable service theft, the District of Colombia enacted this law: “No person shall:
a) Obtain, intercept or receive, or attempt to obtain, intercept or receive cable television services from a cable television company by device, converter, decoder, trick, artifice, deception or other means with the intent or purpose to deprive such company of an or all lawful compensation for rendering each type of service obtained;
b) Assist or instruct any other person or persons in obtaining, intercepting or receiving, or attempting to obtain, intercept or receive any cable television service, by any means whatsoever, without payment of all lawful compensation to the cable television company for rendering each type of service obtained;
c) Make or maintain a connection or connections, whether physical, electrical, mechanical, acoustical or by other means, tamper with or otherwise interfere with any cables, wires, components, modems, lock boxes, pedestals, or other devices or equipment of the cable television company used for the distribution of cable television service, with the intent or purpose to deprive such company of any or all lawful compensation, and without express authority from the cable television company;
d) Make or maintain any modification or alteration to any device, equipment or apparatus or remove, disconnect or sell any device, equipment or apparatus installed by the cable television company without the authorization of a cable television company for the purpose of intercepting, descrambling, decoding or receiving any program or other service carried by such company which such person is not authorized by such company to receive, or for the purpose of selling any such device, equipment, or apparatus; or
e) Make, manufacture, import into the District of Columbia, assemble, transfer, distribute, promote, sell, lease, lend, offer, own, possess, or possess for sale, advertise or publish for sale or lease any device, equipment or apparatus, or any instructions, information, plan or kit for such device, equipment or apparatus, or for a printed circuit designed in whole or in part to intercept, decode, descramble or otherwise make intelligible any encoded, encrypted, scrambled or other nonstandard signal distributed by a cable television company.”
Other states have similar laws. Although they are hard to detect, service companies have been fighting back by installing devices that detect usage surges and that can monitor the number of televisions or computers attached through individual houses and apartments. The companies are keeping their detection methods confidential so that they can maintain an edge over those who wish to overcome such safeguards.
Traditional Service Theft
Traditionally, “theft of service” meant obtaining a utility without paying for it. Thus if you illegally wired your television into a cable company, tampered with your electric or gas meter, or used a slug in a pay phone, you were subject to both civil and criminal charges. Today, with the Internet and other technology, the term can be expanded.
ComCast, which provides television, telephone, and Internet services, warns users, “Any unauthorized person who intercepts or receives communications provided over a cable system may be penalized under the Cable Communication Policy Act of 1984 [47 C.F.R. 553(c)]. This includes the theft of audio, video, textual data, and any other service. The law applies to manufacturers and distributors of equipment as well as to individuals. Parties found guilty of cable theft are subject to both civil and criminal penalties, which may include substantial fines and/or time in prison.”
Time Warner Cable explains it this way, “Theft of cable services is the reception of any services offered over a cable system without paying for the system. Cable theft is a widespread problem that results in revenue losses to the cable industry totaling several billions of dollars per year. By depriving cable operators of substantial revenue, people who steal cable adversely affect cable companies' ability to provide their customers with high quality products and services.”
New York State Law, as an example, specifically says that, in cases of tampering with gas meters for the purpose of reducing or escaping charges the culprit’s liability, “shall include, but not be limited to, the cost of investigating, repairing and replacing meters and pipes, and the cost of moving a meter and installing it in a secure location.”
Central Hudson Gas & Electric reports, “Our field representatives undergo regular training to recognize and report theft of service, and are active in seeking suspected cases during their daily tasks. Lost or unrecovered revenue can raise the cost of service to the vast majority of honest customers who legally receive and pay for their service.” During 2006, Central Hudson has recovered $160,000 from individuals attempting to steal electricity and natural gas through overt or fraudulent means.”
During the last three years people have been arrested and prosecuted for many types of such actions. Here are a few examples:
a) In Texas, a man illegally connected his mobile home to municipal water. He was fined $10,000.
b) In Florida, a person sitting in a car outside a private house was arrested for tapping into and using the homeowner’s WiFi connection.
c) In the state of Washington, a man parked his van outside a coffee shop to use their WiFi. After several warnings he, too was arrested under the theft of service laws.
d) In October, 2007, the first federal case involving downloading music by Internet without paying for it resulted in a $222,000 fine for a woman in Minnesota. There have been hundreds of civil cases won against people who download music without paying for it.
e) In Europe, people who violate intellectual property laws by Internet downloading can be fined, jailed, or both. It is not unusual for the conviction to include forfeiture of the computer involved and all peripherals.
f) In Japan a man who ran an extension cord from a neighbor’s house to power a rice steamer was arrested
g) In Guyana, South America, over 100 people were arrested in one week for theft of electricity.
h) The Baltimore Sun reports a 32-year-old man was, “arrested and accused of using electricity from a neighbor's house to power his computer. He was powering his computer through an electrical cord plugged into his neighbor's exterior outlet, police said. He was charged with fourth-degree burglary, theft of electrical service and trespassing.”
i) In India, seven people were arrested for tapping into other people’s telephone lines to call friends and relatives living in the United States,
To attack the growing problem of cable service theft, the District of Colombia enacted this law: “No person shall:
a) Obtain, intercept or receive, or attempt to obtain, intercept or receive cable television services from a cable television company by device, converter, decoder, trick, artifice, deception or other means with the intent or purpose to deprive such company of an or all lawful compensation for rendering each type of service obtained;
b) Assist or instruct any other person or persons in obtaining, intercepting or receiving, or attempting to obtain, intercept or receive any cable television service, by any means whatsoever, without payment of all lawful compensation to the cable television company for rendering each type of service obtained;
c) Make or maintain a connection or connections, whether physical, electrical, mechanical, acoustical or by other means, tamper with or otherwise interfere with any cables, wires, components, modems, lock boxes, pedestals, or other devices or equipment of the cable television company used for the distribution of cable television service, with the intent or purpose to deprive such company of any or all lawful compensation, and without express authority from the cable television company;
d) Make or maintain any modification or alteration to any device, equipment or apparatus or remove, disconnect or sell any device, equipment or apparatus installed by the cable television company without the authorization of a cable television company for the purpose of intercepting, descrambling, decoding or receiving any program or other service carried by such company which such person is not authorized by such company to receive, or for the purpose of selling any such device, equipment, or apparatus; or
e) Make, manufacture, import into the District of Columbia, assemble, transfer, distribute, promote, sell, lease, lend, offer, own, possess, or possess for sale, advertise or publish for sale or lease any device, equipment or apparatus, or any instructions, information, plan or kit for such device, equipment or apparatus, or for a printed circuit designed in whole or in part to intercept, decode, descramble or otherwise make intelligible any encoded, encrypted, scrambled or other nonstandard signal distributed by a cable television company.”
Other states have similar laws. Although they are hard to detect, service companies have been fighting back by installing devices that detect usage surges and that can monitor the number of televisions or computers attached through individual houses and apartments. The companies are keeping their detection methods confidential so that they can maintain an edge over those who wish to overcome such safeguards.
Thursday, June 4, 2009
Consumer Safety & Awareness Part 21
Advance Fee Check Scams
In an advance fee-checking scheme, you receive money that you either did not expect or more than you expected. In all cases it is something that has to be cashed such as a check, money order, or traveler’s check. Usually it is made out to you, but occasionally it is already signed and you have to cosign it before it can be cashed. The sender wants you to keep part, perhaps a substantial part, of the check and send the rest to him or someone else.
The item is either counterfeit, stolen, or otherwise not usable. It is good enough for the initial deposit, so that you can get the money, but eventually turns out to be bad. You are then out the money you sent, and have to reimburse the bank. In addition, there is almost always bounced check fees as well as paperwork to explain what happened. Usually the banks ask the police to get a statement. On occasion, the person who cashed the check is jailed. As this scam is getting wider recognition, though, that has become a less likely possibility.
Here are a few examples from Internet sources:
A fake check scam visited a woman in Greeneville, TN when she posted her resume at Craigslist. Soon after, a job offer came knocking on her doors. The offer was from a company that described itself as a ‘work at home’ firm. It said she was selected and also had her first assignment ready. It sent her a check for $3,800.35 together with some instructions.
She was asked to cash the check at her local bank; 10% of the money was hers to keep. She was asked to forward the rest to a woman in Knoxville. She was specifically instructed to use the Western Union wire transfer service to send the money.
The young lady became suspicious and decided to dig deeper. She contacted a branch of the bank that seemed to have issued the check. Officials at the bank told her the account against which the check was issued was a fake and did not exist. This meant she would have been scammed of any money she would have sent after cashing the check.
Another woman was contacted by fraudsters after finding her name at Michigan Talent Bank, an online job site. She was offered a job for performing online work. Since it was an Internet based work, the company said that she would require a computer and an Internet connection at home. However, the company was ready to pay for the computer. It sent her five money orders of $500 each and asked her to cash them at any local bank. Then she was directed to send $2000 from this amount to a vendor who would send the computer to her house after receiving it. She was told that she could keep the remaining $500.
The lady would have been scammed of $2000 if she had sent the money as directed. Some alert employees at her local bank were able to determine immediately that the checks were forged.
There were a couple of things that the lady probably missed and which would have alerted her to the scam early. Firstly, the exercise of asking her to cash company checks and then send some money out of it seems questionable. Why was the company asking her to do it, when it was simpler to do so, on its own? Then, the fact that it was appointing her without conducting an interview should also raise doubts.
If you sell items using online classifieds, beware, this could happen to you too. Two separate incidents from Craven County should alert you to a particular risk involved while selling online by this means.
A woman was trying to sell items on Craigslist for $200 that were sold to a buyer who sent a check for $3,250. This was followed by an e-mail explaining that the check was a mistake as it was posted to the wrong person by the buyer’s accountant. The scammer asked her to accept the check as payment and send back the balance as a return check. Furthermore, he apologized for the trouble and even urged her to help herself to a tip of $50 more for all the hardships.
She did not fall for the scam. In fact she did not even bother depositing the check. She believed the check was made on a common computer printer. She promptly reported the matter to the Sheriff.
The owner of a horse farm in Illinois, placed an ad to sell one of her mares. She then received this curious e-mail (spelling is as in original): “My name is Keth. My client is in terested in buying it. I would like to know the last cost price so that I can proceed further on this, meanwhile my client pay with cashier cheque. Best regards, Mark”
The woman, who’d seen scams before, thought she might play along for fun. Here was her reply. “I’m confused. Is your name Keth or Mark? Anyway, my price on the mare is $1,500. Please let me know if you are interested.”
In no time she received this response. “The price is okay by me, and I want you to know that I have a client who is owing me $6000. I will instruct him to issue you a cheque on my behalf. As soon as the cheque gets to you, I want you to go and cash it immediately and send down my balance through Western Union to my shipping agent. My name is Mark.”
In an attempt to see where Mark was going with his proposal, she wrote him that she would accept only a money order. Mark, who obviously was not a spelling-bee winner, replied. “Thanks for you have instrunct most of my associate about the money order, but they told me they can only pay buy caher chek so don’t worry I will instruct him to issue you 100 percent cather cheque.”
Sure enough, she eventually received a cashier’s check in the amount of $6,000. But she wasn’t naive enough to cash it and forward the proceeds to Mark. First, she called the bank and verified that the check was a counterfeit. Then she sent Mark an e-mail telling him that she’d cashed the check and forwarded the proceeds per his instructions, supplying him with phony Western Union wire transfer information. After Mark made several unsuccessful attempts at collecting his nonexistent funds, she burst his bubble.
“Mark, the check you sent me is no good. You need to get ahold of your client and tell them to have money in the bank next time. I have spent a lot of time with you in this transaction and I would appreciate your still buying the horse.”
It came as no surprise that she never heard from Mark again. In reality Mark wasn’t interested in the horse at all. He simply was trying to get her to cash a phony cashier’s check and send him money.
Microsoft has these seven telltale signs of a scam:
1. You don't know the person who has sent you the message.
2. You are promised untold sums of money for little or no effort on your part.
3. You are asked to provide money up front for questionable activities, a processing fee, or to pay the cost of expediting the process.
4. You are asked to provide your bank account number or other personal financial information, even if the sender offers to deposit money into it.
5. The request contains a sense of urgency.
6. The sender repeatedly requests confidentiality.
7. The sender offers to send you photocopies of government certificates, banking information, or other "evidence" that their activity is legitimate (these are fake).
In an advance fee-checking scheme, you receive money that you either did not expect or more than you expected. In all cases it is something that has to be cashed such as a check, money order, or traveler’s check. Usually it is made out to you, but occasionally it is already signed and you have to cosign it before it can be cashed. The sender wants you to keep part, perhaps a substantial part, of the check and send the rest to him or someone else.
The item is either counterfeit, stolen, or otherwise not usable. It is good enough for the initial deposit, so that you can get the money, but eventually turns out to be bad. You are then out the money you sent, and have to reimburse the bank. In addition, there is almost always bounced check fees as well as paperwork to explain what happened. Usually the banks ask the police to get a statement. On occasion, the person who cashed the check is jailed. As this scam is getting wider recognition, though, that has become a less likely possibility.
Here are a few examples from Internet sources:
A fake check scam visited a woman in Greeneville, TN when she posted her resume at Craigslist. Soon after, a job offer came knocking on her doors. The offer was from a company that described itself as a ‘work at home’ firm. It said she was selected and also had her first assignment ready. It sent her a check for $3,800.35 together with some instructions.
She was asked to cash the check at her local bank; 10% of the money was hers to keep. She was asked to forward the rest to a woman in Knoxville. She was specifically instructed to use the Western Union wire transfer service to send the money.
The young lady became suspicious and decided to dig deeper. She contacted a branch of the bank that seemed to have issued the check. Officials at the bank told her the account against which the check was issued was a fake and did not exist. This meant she would have been scammed of any money she would have sent after cashing the check.
Another woman was contacted by fraudsters after finding her name at Michigan Talent Bank, an online job site. She was offered a job for performing online work. Since it was an Internet based work, the company said that she would require a computer and an Internet connection at home. However, the company was ready to pay for the computer. It sent her five money orders of $500 each and asked her to cash them at any local bank. Then she was directed to send $2000 from this amount to a vendor who would send the computer to her house after receiving it. She was told that she could keep the remaining $500.
The lady would have been scammed of $2000 if she had sent the money as directed. Some alert employees at her local bank were able to determine immediately that the checks were forged.
There were a couple of things that the lady probably missed and which would have alerted her to the scam early. Firstly, the exercise of asking her to cash company checks and then send some money out of it seems questionable. Why was the company asking her to do it, when it was simpler to do so, on its own? Then, the fact that it was appointing her without conducting an interview should also raise doubts.
If you sell items using online classifieds, beware, this could happen to you too. Two separate incidents from Craven County should alert you to a particular risk involved while selling online by this means.
A woman was trying to sell items on Craigslist for $200 that were sold to a buyer who sent a check for $3,250. This was followed by an e-mail explaining that the check was a mistake as it was posted to the wrong person by the buyer’s accountant. The scammer asked her to accept the check as payment and send back the balance as a return check. Furthermore, he apologized for the trouble and even urged her to help herself to a tip of $50 more for all the hardships.
She did not fall for the scam. In fact she did not even bother depositing the check. She believed the check was made on a common computer printer. She promptly reported the matter to the Sheriff.
The owner of a horse farm in Illinois, placed an ad to sell one of her mares. She then received this curious e-mail (spelling is as in original): “My name is Keth. My client is in terested in buying it. I would like to know the last cost price so that I can proceed further on this, meanwhile my client pay with cashier cheque. Best regards, Mark”
The woman, who’d seen scams before, thought she might play along for fun. Here was her reply. “I’m confused. Is your name Keth or Mark? Anyway, my price on the mare is $1,500. Please let me know if you are interested.”
In no time she received this response. “The price is okay by me, and I want you to know that I have a client who is owing me $6000. I will instruct him to issue you a cheque on my behalf. As soon as the cheque gets to you, I want you to go and cash it immediately and send down my balance through Western Union to my shipping agent. My name is Mark.”
In an attempt to see where Mark was going with his proposal, she wrote him that she would accept only a money order. Mark, who obviously was not a spelling-bee winner, replied. “Thanks for you have instrunct most of my associate about the money order, but they told me they can only pay buy caher chek so don’t worry I will instruct him to issue you 100 percent cather cheque.”
Sure enough, she eventually received a cashier’s check in the amount of $6,000. But she wasn’t naive enough to cash it and forward the proceeds to Mark. First, she called the bank and verified that the check was a counterfeit. Then she sent Mark an e-mail telling him that she’d cashed the check and forwarded the proceeds per his instructions, supplying him with phony Western Union wire transfer information. After Mark made several unsuccessful attempts at collecting his nonexistent funds, she burst his bubble.
“Mark, the check you sent me is no good. You need to get ahold of your client and tell them to have money in the bank next time. I have spent a lot of time with you in this transaction and I would appreciate your still buying the horse.”
It came as no surprise that she never heard from Mark again. In reality Mark wasn’t interested in the horse at all. He simply was trying to get her to cash a phony cashier’s check and send him money.
Microsoft has these seven telltale signs of a scam:
1. You don't know the person who has sent you the message.
2. You are promised untold sums of money for little or no effort on your part.
3. You are asked to provide money up front for questionable activities, a processing fee, or to pay the cost of expediting the process.
4. You are asked to provide your bank account number or other personal financial information, even if the sender offers to deposit money into it.
5. The request contains a sense of urgency.
6. The sender repeatedly requests confidentiality.
7. The sender offers to send you photocopies of government certificates, banking information, or other "evidence" that their activity is legitimate (these are fake).
Tuesday, May 26, 2009
Consumer Safety & Awareness Part 20
(Continued from last week)
Examples of Advance Fee Scams (part 2)
Here is an actual example of such scam as reported on 914Legal.org.
“Last month, hundreds of internet users from places right across the US were done in by a scam perpetrated by a company calling itself The Fairway Lending Group. The company gave a false address and claimed to be operating out of 1699, Wall St., Mt. Prospect. It was careful to leave out local residents. The scam would have blown apart if any of the locals had found out that it was not occupying the said premises.
The company was especially targeting those with a poor credit rating. It offered a loan that was actually a scam molded on the advance fee type of scams.
The scam started when people responded to mails from the company that promised them easy loans. They were then asked for their bank account details presumably for processing of the loan request. The victims were next asked to make a payment as collateral for the loan. They were asked to make the payments through Western Union money transfer. The amount people paid ranged from $900 to $5000.
Users should have been warned when asked to pay any amount upfront before receiving a loan. Such loan schemes are actually banned in the US and in Canada. Any such loan offer would be illegal if offered in the first place.
Apart from money lost, the victims in this case, might also be exposed to identity theft, having revealed their bank account details to the fraudsters. The thing for them to do would be to either close the account or to give instruction to the bank if possible to temporarily suspend it.
As of now, there is no trace of the company. Local authorities claim to have no clue about their whereabouts. Being an Internet based scam, the fraudsters found it easy to hoodwink the police by covering their tracks.
Seeing an increase in scams, the Federal Deposit Insurance Corporation provides warning signs that may indicate a loan offer is not legitimate:
The loan approval is "guaranteed." Lenders do not typically guarantee loans before analyzing the applicant's financial condition, credit history and ability to repay.
The loan applicant is required to pay upfront fees to a third party or individual. Loan fees are normally paid to a business after the loan has been approved.
The lender or loan processor may be located outside of the United States.
Fees are requested using a retail wire transfer system. A password is sometimes used by the overseas receiver to pick up the funds in an attempt to hide the true identity of the criminals and make funds more difficult to trace.
Occasionally you have no idea you are paying anything. Ads may include phone numbers that generate telephone fees added to your phone bill. Some online sites require downloads that include a virus. It switches your Internet Service provider from what you are using to theirs, usually located overseas with huge fees.
Growing in popularity are death threat reports. Someone has hired a “hit” on you and the person who accepted the contract will not follow through if you pay him.
People outside the United States have to be aware of scams stating that the company can get people into this country. They provide employment offers in the US, targeted to people specifically living in India, although other places may be involved. These jobs have come from a variety of sources, but are usually traced or linked to a company based in the United States, that are information technology consultants, contractors or simply a specialist employment agency. These companies have clearly stated that they will "assist" or even outright claimed that they will "obtain" the necessary working permit visas on behalf of the proposed employee. Of cause, upfront fees are needed.
In some cases, the scammers ask that the person come to the foreign country directly to handle the transaction in person. The US Department of States warns: Over the past 3 years, 15 foreign businessmen (one American) have been murdered in Nigeria in AFF scams. Since September 1995, at least eight Americans have been held against their will by these criminals in Lagos that have come to the attention of the U.S. Embassy. In 1996 the U.S. Embassy helped repatriate ten Americans who came to Lagos looking for their “pot of gold.”
Examples of Advance Fee Scams (part 2)
Here is an actual example of such scam as reported on 914Legal.org.
“Last month, hundreds of internet users from places right across the US were done in by a scam perpetrated by a company calling itself The Fairway Lending Group. The company gave a false address and claimed to be operating out of 1699, Wall St., Mt. Prospect. It was careful to leave out local residents. The scam would have blown apart if any of the locals had found out that it was not occupying the said premises.
The company was especially targeting those with a poor credit rating. It offered a loan that was actually a scam molded on the advance fee type of scams.
The scam started when people responded to mails from the company that promised them easy loans. They were then asked for their bank account details presumably for processing of the loan request. The victims were next asked to make a payment as collateral for the loan. They were asked to make the payments through Western Union money transfer. The amount people paid ranged from $900 to $5000.
Users should have been warned when asked to pay any amount upfront before receiving a loan. Such loan schemes are actually banned in the US and in Canada. Any such loan offer would be illegal if offered in the first place.
Apart from money lost, the victims in this case, might also be exposed to identity theft, having revealed their bank account details to the fraudsters. The thing for them to do would be to either close the account or to give instruction to the bank if possible to temporarily suspend it.
As of now, there is no trace of the company. Local authorities claim to have no clue about their whereabouts. Being an Internet based scam, the fraudsters found it easy to hoodwink the police by covering their tracks.
Seeing an increase in scams, the Federal Deposit Insurance Corporation provides warning signs that may indicate a loan offer is not legitimate:
The loan approval is "guaranteed." Lenders do not typically guarantee loans before analyzing the applicant's financial condition, credit history and ability to repay.
The loan applicant is required to pay upfront fees to a third party or individual. Loan fees are normally paid to a business after the loan has been approved.
The lender or loan processor may be located outside of the United States.
Fees are requested using a retail wire transfer system. A password is sometimes used by the overseas receiver to pick up the funds in an attempt to hide the true identity of the criminals and make funds more difficult to trace.
Occasionally you have no idea you are paying anything. Ads may include phone numbers that generate telephone fees added to your phone bill. Some online sites require downloads that include a virus. It switches your Internet Service provider from what you are using to theirs, usually located overseas with huge fees.
Growing in popularity are death threat reports. Someone has hired a “hit” on you and the person who accepted the contract will not follow through if you pay him.
People outside the United States have to be aware of scams stating that the company can get people into this country. They provide employment offers in the US, targeted to people specifically living in India, although other places may be involved. These jobs have come from a variety of sources, but are usually traced or linked to a company based in the United States, that are information technology consultants, contractors or simply a specialist employment agency. These companies have clearly stated that they will "assist" or even outright claimed that they will "obtain" the necessary working permit visas on behalf of the proposed employee. Of cause, upfront fees are needed.
In some cases, the scammers ask that the person come to the foreign country directly to handle the transaction in person. The US Department of States warns: Over the past 3 years, 15 foreign businessmen (one American) have been murdered in Nigeria in AFF scams. Since September 1995, at least eight Americans have been held against their will by these criminals in Lagos that have come to the attention of the U.S. Embassy. In 1996 the U.S. Embassy helped repatriate ten Americans who came to Lagos looking for their “pot of gold.”
Saturday, May 9, 2009
Consumer Safety & Awareness Part 19
Examples of Advance Fee Scams
In order to recognize the many varieties and ever changing advance fee scams, one needs to study many examples. Con artists spend considerable time creating new, innovative schemes to trick us. They mask their techniques and hide their intent carefully.
In the previous section we looked at the typical Nigerian 419 scams that included promising something for a fee paid in advance, an inheritance, found money, stolen goods, ATM cards, and traveler checks. Other 419 scams, all requiring you to pay for something in advance and usually involve a wealthy investor who wants to invest in a large sum of money in a foreign country, but can't attend to the business personally. Wouldn't you care to do them the favor of overseeing the investment?
A fortunate person has gotten a large quantity of a commodity, oil, gold, or diamonds for example, but cannot move them from their storage facility without the help of a foreign investor. If you would only pay some fee, bribes, or other expense, he will let you keep a very generous percentage of the commodities' market value once they have been sold.
A business places a relatively small legitimate order from your company, usually under $1,000 worth of goods. Thereafter, another order is placed, for a slightly larger amount, again, paid in full. Suddenly, an urgent order and much larger is placed, but this one needs to be air freighted on the double! Your trade partner has just received a lucrative contract, and if this shipment arrives on time, it means many more large orders in the near future. Don't worry about waiting until the bank draft clears, after all, the order is from a trustworthy company that has always made payments before.
You receive an e-mail from a U.S. Special Forces commando who has found millions in drug money while conducting a covert mission against the Taliban. The "commando" says he has stashed the cash in luggage, but wants to keep it in someone else's bank account "for safekeeping."
The National Fraud Information Center reports a scam artist who used dating websites, including sites for gays. She pretended to be the daughter of a slain African gold mine executive seeking a long-term relationship with a special someone. Phony Web sites, which look quite realistic, may contain plenty of investor information, often copied from the sites of legitimate regulators. The sites are one of the many ploys used in advance fee scams that try to get investors to send money in advance of any service rendered. These fake sites often use "cookies" to track visitors and gather information.
Taking advantage of recent health scares, one advance fee ploy involves the discovery of a vaccine or other preventatives that can not only save millions of lives but will also generate considerable money. The inventor needs financial support to distribute, market, or manufacture his cure. A twist on this one is the sale of stock in such a company. Stock is not sold by e-mail. If you are actively advertising real estate for sale, you may receive an offer to purchase your property from a foreign concern. The catch: You are required to pay up-front fees to a “special broker.” Once paid, you cannot locate this special broker to consummate the purchase.
Almost all of these schemes have five common features – something of great value exists, there is a pressing time issue, it comes from out of the country, assistance is needed, you can not tell anyone else, and advanced payment is required to free up the item of value. Until 2007, more than 50% of these originated in Nigeria, but now they can come from anywhere. In many cases similar versions even have local, United States or Canada, origins.
Many domestic advance fee scams are financial in nature and prey on people with poor credit history or current money flow problems such as late payment of mortgages or loans. They promise low cost loans, debt consolidation, improved credit scores, or other solutions to financial problems. All of them require a fee for processing, credit evaluation, good faith, or other improbable reason.
Occasionally, yet growing more common, the scammers do not ask for any money at all, but need information to verify your credibility. These are identity theft scams. Never send anyone your bank or investment numbers, or even let others know where you invest. Your social security number must be sacred – only medical and valid insurance people need this. If you have an investment that produces dividends or interest, the company needs your social security number for their IRS reports, but deal only with such institutions in person.
(To be continued next week)
In order to recognize the many varieties and ever changing advance fee scams, one needs to study many examples. Con artists spend considerable time creating new, innovative schemes to trick us. They mask their techniques and hide their intent carefully.
In the previous section we looked at the typical Nigerian 419 scams that included promising something for a fee paid in advance, an inheritance, found money, stolen goods, ATM cards, and traveler checks. Other 419 scams, all requiring you to pay for something in advance and usually involve a wealthy investor who wants to invest in a large sum of money in a foreign country, but can't attend to the business personally. Wouldn't you care to do them the favor of overseeing the investment?
A fortunate person has gotten a large quantity of a commodity, oil, gold, or diamonds for example, but cannot move them from their storage facility without the help of a foreign investor. If you would only pay some fee, bribes, or other expense, he will let you keep a very generous percentage of the commodities' market value once they have been sold.
A business places a relatively small legitimate order from your company, usually under $1,000 worth of goods. Thereafter, another order is placed, for a slightly larger amount, again, paid in full. Suddenly, an urgent order and much larger is placed, but this one needs to be air freighted on the double! Your trade partner has just received a lucrative contract, and if this shipment arrives on time, it means many more large orders in the near future. Don't worry about waiting until the bank draft clears, after all, the order is from a trustworthy company that has always made payments before.
You receive an e-mail from a U.S. Special Forces commando who has found millions in drug money while conducting a covert mission against the Taliban. The "commando" says he has stashed the cash in luggage, but wants to keep it in someone else's bank account "for safekeeping."
The National Fraud Information Center reports a scam artist who used dating websites, including sites for gays. She pretended to be the daughter of a slain African gold mine executive seeking a long-term relationship with a special someone. Phony Web sites, which look quite realistic, may contain plenty of investor information, often copied from the sites of legitimate regulators. The sites are one of the many ploys used in advance fee scams that try to get investors to send money in advance of any service rendered. These fake sites often use "cookies" to track visitors and gather information.
Taking advantage of recent health scares, one advance fee ploy involves the discovery of a vaccine or other preventatives that can not only save millions of lives but will also generate considerable money. The inventor needs financial support to distribute, market, or manufacture his cure. A twist on this one is the sale of stock in such a company. Stock is not sold by e-mail. If you are actively advertising real estate for sale, you may receive an offer to purchase your property from a foreign concern. The catch: You are required to pay up-front fees to a “special broker.” Once paid, you cannot locate this special broker to consummate the purchase.
Almost all of these schemes have five common features – something of great value exists, there is a pressing time issue, it comes from out of the country, assistance is needed, you can not tell anyone else, and advanced payment is required to free up the item of value. Until 2007, more than 50% of these originated in Nigeria, but now they can come from anywhere. In many cases similar versions even have local, United States or Canada, origins.
Many domestic advance fee scams are financial in nature and prey on people with poor credit history or current money flow problems such as late payment of mortgages or loans. They promise low cost loans, debt consolidation, improved credit scores, or other solutions to financial problems. All of them require a fee for processing, credit evaluation, good faith, or other improbable reason.
Occasionally, yet growing more common, the scammers do not ask for any money at all, but need information to verify your credibility. These are identity theft scams. Never send anyone your bank or investment numbers, or even let others know where you invest. Your social security number must be sacred – only medical and valid insurance people need this. If you have an investment that produces dividends or interest, the company needs your social security number for their IRS reports, but deal only with such institutions in person.
(To be continued next week)
Subscribe to:
Posts (Atom)