Scammers use phone, Internet, taxes to victimize consumers

By LA TONYA FRELIX

When Courtney Franklin received a telephone call from someone who said her good citizenship would be rewarded with $300 for six months, she knew something was up.

The person on the other end of the telephone claimed he was with the Social Security Administration. And Franklin's willingness to pay her taxes on time and model citizenship was worth $1,800.

Scams ranging from phone scams to tax refunds are prevalent. Between January and December 2006, Consumer Sentinel, the complaint database developed and maintained by the Federal Trade Commission, received more than 670,000 consumer fraud and identity theft complaints. Consumers reported losses from fraud of more than $1.1 billion.

Consumer Sentinel reported 2,318 complaints costing consumers $3.3 million were reported in 2006 in Mississippi. About 330 prizes/sweepstakes and lotteries made up 14 percent of the scams.

Franklin said she was not willing to become a victim.

"He spoke with an accent and was talking very fast. Everything was phrased like a question," she said adding the first call was a minor annoyance and she hung the phone up.

However, the calls continued and Franklin said the caller asked for her bank routing number. She reported the calls to local authorities and warns other about the scam.

"I tell older people who receive Social Security about it because they might think it's something real if they aren't paying attention," she said.

Bill Moak, president of the Better Business Bureau of Mississippi, said this and other scams are becoming more prevalent.

"People are always calling and saying they will be able to give government grants or claiming to be from Medicare or the Social Security office," he said.

Moak said Franklin's questioning was right on target.

"The best response other than hanging up is to tell them to send you a check and you won't accept deposits directly into your account," he said. "You need to be the one to take control and ask questions. Don't let the person convince you."

To report such scams, Moak said, call the institution represented by the scammer.

"If you've won a sweepstakes or a grant, you will be contacted by someone more credible and can back it up with official correspondence," he said.

Moak also advises residents to be on the lookout for jury duty scams. He said a person receives a call saying they have missed a jury duty summons and an arrest warrant has been issued. To clear the matter, the caller says the resident can pay the fine over the telephone.

"This is a simple scam but results in a lot of victims," he said. "I haven't heard of anyone who has been a victim here but it could happen very easily."

People take a jury summons seriously and will be inclined to comply but Moak said they should check before offering information.

"Call the local circuit clerk but by any means, don't give information over the phone," he said.

Technology such as caller identification lets a person know who's calling before picking up the receiver.

"If you don't recognize the number, don't answer it," Moak said. "Don't pick up the phone if it's from a blocked or private number. Let the answering machine get it."

Scams have even taken to the Internet as online solicitations often crop up in e-mail inboxes.

"In many cases, they are relatively harmless," Moak said. "The e-mails aren't from scam artists but from companies generating business."

The advice remains the same for these solicitations.

"Don't respond to any offers," he said. "You have to be skeptical. That's the best way to keep yourself from being trapped."

Other scams:

"Phishing" e-mails purporting to be from "tax-refundsirs.gov" aimed at tricking taxpayers into revealing personal information that is later used to steal their identities or cause other financial damage.

Cell phone scams where charges for text-messaging services, ring tones and horoscopes are billed to carriers' monthly bills.

Foreclosure-rescue groups who prey on homeowners who have fallen behind on their mortgage. Homeowners are typically offered money and told they can refinance.

The homeowners are so relieved that they sign blank documents or documents they don't understand. The documents, however, turn the home over to the foreclosure group.

Also, people who try to take inflated refunds for the one-time telephone excise tax refund, according to an IRS analysis.