By Eric D. Morton
A couple of years ago, I wrote an article warning of scams
that are targeting small and medium businesses. Businesses were being targeted by sophisticated scammers who had investigated the businesses and developed schemes for defrauding them.
Things have gotten worse. There are now more scams. A new scam targets individuals applying for jobs. Scammers post job openings. Individuals apply for the position and are told they have been hired. The purportedly new hires are then told they must buy new or specialized equipment. The new hires do so and then never hear from the company again. An alternate is that the new hires give personal information for payroll purposes, including addresses, social security numbers, and banking information – have their money and identities stolen. The scammers purport to work for actual companies. Those companies are surprised when they are contacted by angry, defrauded individuals.
There are sophisticated scams targeting the elderly such as owners of time shares in Mexico and anyone on social security. Scammers claim to be real estate agents, government officials, customers, clients, etc.
Precautions
(some of these we have listed before but they are worth repeating)
- Government agencies won’t call. The government agencies do not call individuals or businesses. Do not believe anyone who identifies as being from the Internal Revenue Service or Social Security or any other agency. Government entities invariably contact individuals and businesses by mail. NEVER give sensitive information over the telephone.
- Scrutinize mail from a government agency. Many scams involve sending official looking letters or notices to businesses or individuals. Ask an attorney or knowledgeable person if you get an unusual letter or notice. Owners of business entities and trademarks receive bogus notices for useless directories, purported renewal notices and the like.
- Cyber security. Use good anti-virus programs and change passwords frequently. Don’t click on attachments and links in emails even if they appear to be a from a known source unless you were expecting such an email.
- Verify identities. Before paying a bill or sending money to third party, verify the bill, the identity of the party and the method of payment. This is particularly true if you receive an invoice, demand, “official notice”, from a third party. Call the agency or company.
- Verify any change in payment method. This is a common scam. A scammer posing as a vendor or client will request a wire transfer or other change in the payment or transfer of money. Call that person or company and verify.
- Do not provide confidential or personal information. Anyone requesting your personal information or confidential information about your company is trying defraud you.
- Do not panic or act in haste. Scammers frequently rely on fear to induce their victims to quickly and hastily. Nothing needs to be done today. Call an attorney if anyone threatens legal action against you.
- Secure physical property. Lock up offices, vehicles, job sites, equipment yards, etc.
- Educate your employees. Teach them that they must assume they are being watched, electronically and physically.
- Open a Social Security Account Online. A common scam is to assume someone’s identity, open an account online, and apply for social security benefits. If you have Social Security account, you can prevent that. Even if you are young and a long way from apply for benefits, open an account anyway.
- Lock your credit. Contact the three credit reporting agencies and lock your credit. Then, no one can apply for credit in your name or run a credit check on you without the agencies notifying you.
I am sure that more scams will be invented. Be wary and alert. Always remember, if it is too good to be true, it probably isn’t.
Eric D. Morton is the principal attorney at Clear Sky Law Group, P.C. He can be reached at 760-722-6582, 510-556-0367, and emorton@clearskylaw.com