RichClose.com - Avoid Scams and Fraud

Secure your banking and financial logins

With COVID more and more of us have turned to using online tools to handle our banking and financial tasks. These are some tips you should follow:

HTTPS and Multi-factor Authentication

Whenever you are using a web browser like Safari, Chrome, Explorer or Fire fox, make sure the website you are accessing use using a secure connection. The website should be Https not just Http, the “s” stands for secure. You should also setup multi-factor identification. This is a second code sent to you smart phone or using one of the authenticator apps. This adds a second layer of protection for you accounts.

Fraud Notification and Account Alerts

Your financial institutions that issue credit and bank cards should offer the opportunity to turn on notifications should your card be used. For example I turn on fraud notification every time my credit card is used. It’s a simple text that notifies me of the purchase. You can also usually setup balance notifications when your funds are running low.

Use A Strong Password for Logging In

You should do this for all your accounts, but especially for your banking and financial accounts. Make sure it’s long and uses special characters.

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Watch out for tax scams

It's that time of the year again, the scammers want you tax refund so here's a few tips to help you recognize scammers.

Best advice I can give you is to just ignore them. If you don't recognize the number or the person just don't answer the phone, don't return the text and don't respond to the email.

Check the email, if the sender has a @gmail.com or @yahoo.com, they are probably not legit. Most normal companies will have their business email like @apple.com.

Remember the IRS or Government will never send you a text but scammers will. So if you get a text that like Reply Immediately to get your Tax Refund or $1200 Stimulus check. It's not legit and from a scammer so be ware. The link in this text will take you to a fake website where they'll ask for your personal information, social security number, maybe bank accounts, etc. This is called phishing.

If this happens to you, report the website to phishing@IRS.gov.

1099G unemployment fraud. In 2020 there was an unemployment scam. Crooks were using peoples social security numbers to collect unemployment. At the end of the year, you might receive a 1099G for the unemployment benefits paid on behalf of your social security number, but yet you didn't receive any unemployment. Make sure you report this to your state unemployment office and get a corrected 1099G so you don't have to pay taxes on the unemployment that you didn't receive.

Hire only trusted tax preparers. Make sure you hire someone you know or a legitimate tax prep service. Looking on Facebook or Craigslist is a bad idea. You may encounter a scammer who takes more of your refund then they should or charges fees much higher than you should pay.

IRS Impersonations. It never ends, scammers will continue to try and impersonal and pretend they are the IRS. Remember the IRS will never initiate a conversation with you without first sending you a written notice in the mail. Don't reply to texts, emails or phone calls unless you know it's legitimate. If you receive a letter from the IRS, confirm the phone number is correct. Remember scammers have access to many resources today that give them your personal information, this helps them seem credible even though they are not.

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Avoid these cash payment scams

My Mom is forever asking me questions about payment scams she reads about so I thought I would share a few of the latest cash scams you should be cautious. If someone calls or text you looking for money with one of these, I'd be concerned and take some extra time to make sure it's a legitimate request. Remember the IRS or other government agency would never do any of these.

There are many Money Transfer Apps like Zella, Venmo, Apple and even Pay Pal that enable you to easily transfer cash between your account and someone else's. The intent is for you to easily transfer money to someone you know, not a stranger. I frequently use Venmo to send and receive money with my kids. I've also used it for some of my photography clients. If a stranger or scammer contacts you and wants you to transfer money using a money transfer app, I'd avoid it. Typically these services offer now protection and once you transfer you money, it's gone. So stick to money transfers this way with people you know.

Wire Transfers have been around forever. Back in the day Western Union was used to transfer money anywhere in the world. Guess what, scammers love wire transfers. Again once the money leaves your hands and is wired with MoneyGram or Western Unition, there is very little recourse to get it back. So if you one a sweep stakes or someone asks for wired funds, you should probably avoid the temptation.

Another popular tool is Store Gift Cards. A scammer will ask you to go purchase $100's in Store Gift Card from say Home Depot or Target and then call them back with the card number and PIN. Again your money is now gone with now way to retrieve it. So be leery of text or phone calls from what may seem like a legitimate organization if they are looking for card payments.

All the rage these days, Cryptocurrency. Again used by scammers because it's untraceable. Once you buy and transfer Bitcoin or other cryptocurrency and transfer it to the scammer, it's gone forever.

When shopping online or stick with credit cards, they all have fraud prevention and will work to get your funds back into your account. For payments to legitimate government agencies or other payments, also consider using a check. Again there are protected ways to get these funds back should you have made a mistake.

--> Watch out for tax scams