Major Crime Schemes
Cybercriminals use technology to steal money, personal information and intellectual property. They also use technology to create and spread malicious software, to disrupt and deny computer services, to stalk, harass and bully, and to further criminal activity such as identity theft and child pornography.
In Hawai‘i, the No. 1 reported misuse of technology involves the use of a computer to further a fraud or scheme.
Wiring Money Scams
Stranded Traveler Scams:
You receive an e-mail from a friend or relative who claims to be stranded in another state or country, perhaps because his wallet was stolen or because he’s been arrested. You’re asked to wire money. The problem: Your friend or relative’s e-mail account has been hacked and the e-mail was sent by the hacker. Don’t wire money. Check the story out with other friends or family members, or reply to the e-mail asking for information that a stranger couldn’t possibly answer.
Overpayment Scams:
Someone sends you a cashier’s check or personal check to pay for something that you’ve listed for sale. The buyer (or a third person) comes up with a reason to write the check for more than the purchase price. You’re asked to wire back the difference. When you deposit the check at your bank, everything seems fine. The problem: It may take a few days to route the check to the issuing bank, but when it arrives, they will promptly notify you that the check is a counterfeit. If you’ve already wired money to the buyer, in all likelihood, your bank will hold you accountable for that money. Don’t wire money.
Romance Scams:
You meet someone online, usually on a dating or social networking website. You exchange e-mail messages, and perhaps even talk on the phone or trade pictures. Within a matter of days, the scammer will profess his love for you. He’ll send you poems and love letters, and even bring up the subject of marriage. The point: To draw you in and take advantage of your dream of finding true love. Once you’re on the hook, however, the scammer will invent a reason to request money. The scammer will ask you to wire money because, for example, he needs money for a passport or airline tickets, or he needs to pay a bribe in order to leave the country, or he needs money for a family member’s urgent medical treatment, or he needs money to pay his cell phone bill in order to keep talking with you, or he needs money to temporarily “hold him over” until he gets paid or receives an inheritance. Regardless of the reason, the scammer will create a sense of urgency and at the same time profess his love for you. He may even promise to pay the money back. If you wire money, it will be lost forever and the person you thought you knew so well will be lost with it. Don’t wire money.
Online Purchase Scams:
You buy something online, for example via an online auction or a classified ad website. The seller insists that the only form of payment that’s acceptable is a wire transfer. Don’t wire money. You should attempt to pay for the item using a credit card, but only through a trusted third-party escrow service or a trusted online payment system. If you use your credit card through a third-party escrow service or an online payment system, your transaction will be protected by the Fair Credit Billing Act. Don’t give your credit card account information directly to a seller who is advertising on an online auction or a classified ad website. Remember: Insisting on a wire transfer is a red flag for fraud. Credit card scams are more prevalent than one would like to imagine which is why we should all learn to avoid scams like these.
Rental Scams:
You come across a great deal on a home or vacation rental. You’re asked to wire money for an application fee, security deposit or first month’s rent. The problem: The scam artist hijacked the rental listing and changed the contact information and listed the altered ad on another website. Or, the listing is just made up for a place that isn’t for rent or doesn’t exist. Or, the scam could be reversed and pulled on a landlord. The potential renter may send you a check to cover the security deposit and first month’s rent, and before you discover that the check is a counterfeit, the renter cancels the lease and asks you to wire the money back. In either scenario. Even if it’s a trusted company it’s still wise to make sure you don’t wire money for any reason such as renters insurance as another example. Don’t wire money.
Advanced Fee Scams:
You’re told that you’ve just won the lottery or sweepstakes. All you have to do to claim your prize is to wire money for “taxes” and “fees”. Or, you’re told that, regardless of your credit history, you’re guaranteed to receive a loan or credit card. After you submit your application, you’re told that all you have to do is wire money for “a processing fee”. Don’t wire money. If you’re asked to wire money to receive something in return, you’re dealing with a scam artist.
Internet Fraud
Non-Delivery of Merchandise:
You buy something from an online auction or classified ad website. Despite repeated requests, you never receive your item. Non-delivery of merchandise has consistently ranked as one of the top five reported scams on the Internet. You can lower the risk of becoming a victim by dealing only with reputable sellers who have reliable customer feedback. Get the seller’s name and contact information before you send money. Use the Internet to “check out” the seller and his business. Be extremely cautious when dealing with sellers located outside the United States. And, if the seller insists that you wire money for the purchase, don’t do it. Instead, use a safe and secure way to send the money.
Nigerian Money Offers:
You receive an e-mail notifying you that help is needed to move millions of dollars out of a foreign country. You’re asked to provide your bank account number so the money can be transferred into your account. In exchange for your help, you’ll receive a small percentage of the money. In actuality, the scammer is after your bank account number and will use it to drain your account. NEVER give out your personal information over the Internet UNLESS you initiate the contact and you trust the person or entity that you’re dealing with. If someone else contacts you and asks you to send them your personal information, don’t do it – no matter how official the e-mail or supporting documents look, and no matter how enticing the offer.
Work-At-Home Scams:
You receive an e-mail (or you see an ad in the newspaper or find a business card in a public place) that describes an opportunity to make a lot of money while working from home. All you have to do is pay a fee for supplies, training or other start-up costs. If the opportunity involves “envelope stuffing,” you won’t make any money unless you recruit new victims like yourself, in which case you and original perpetrator may face criminal prosecution. If the opportunity involves assembling crafts or other products, you won’t make any money because the company will tell you that your work is “sub-standard.” Unfortunately, your work will never be good enough to get paid. If the opportunity involves processing rebates, billing claims or conducting online searches, you won’t receive any money because there were no legitimate rebates or bills to process, there were no Internet searches to conduct, and the materials and training that you paid for are completely useless. Some of these scams are perpetrated for the sole purpose of getting you to disclose your personal information, typically your bank or credit card account number, which the scam artist will use to steal from you. A work-at-home opportunity that requires an up-front payment is almost always a scam.
Investment Scams:
You receive an e-mail promoting an investment opportunity. You’re told that the investment will yield high returns at little or no risk. The promoter will send you impressive, but phony statistics, or claim to have inside information, or he’ll misrepresent the details of the investment or claim that it is a “one-time, unique offer”, or he’ll “guarantee” your investment or even buy it back if you’re not completely satisfied. The promoter will almost always rush you into a decision and insist that you send money now. No matter how good the opportunity sounds or how fancy the e-mail looks, do not respond; just delete the e-mail. If you wire investment money in response to an unsolicited e-mail, it will probably be lost forever. If you are looking to invest money or cryptocurrency, you’re going to be better off doing your own research into the best ways to do so.
In addition to these schemes, con artists use a variety of techniques to steal your personal information. To read more about how criminals use technology to commit Identity Theft, please visit our Identity Theft webpage.
