Fraudsters Now Impersonating Big Name Stores to Trick Shoppers, Online Retailers

Mark Mandell, Esq.

For everyone that read our last post on avoiding the holiday shopping scams and protecting your financial information, I strongly encourage you to read this Detroit Free Press article on the most recent trend for fraudsters: impersonating big name stores like WalMart, Target, Home Depot, and others.

Here is a link to the article: http://www.freep.com/story/money/personal-finance/susan-tompor/2014/12/18/email-holiday-scams-target-irs-susan-tompor/20554361/

If your credit card was compromised during the recent data breaches at those big name retailers, your credit card number has probably changed by now. However, such cyber-attacks have left consumers emails, and potentially phone numbers, susceptible to hackers.

And those emails and phone numbers probably have not changed since the data breaches. (You don’t have to change your email, but changing your password every once and a while can help avoid hacks).

These hackers may already know where you shop, and if you shop online with a work email, they probably can figure out where you work, too. This information allows the scams to sound more legitimate – the Better Business Bureau has even received reports of fraudulent emails sent by scammers impersonating big names like WalMart Target, Home Depot, Costco, and Amazon.

One recent example from last month was the “pizza scam,” in which hackers sent an email under the guise of Pizza Hut asking consumers to take a survey. However, when the “survey” link was clicked, malware was downloaded that wreaks havoc on unsuspecting customers’ computers.

Businesses should be especially careful. If one employee opens up a malicious email or link in a scam email, the whole computer network can be infiltrated with a virus.

One helpful tip to avoid getting bit by one of these viruses is to ignore the “pay now” and/or “you need to act now” emails. If you have purchased something online from a big name like WalMart or Target, they would not be demanding immediate payment via email – especially when you probably already paid at the online checkout.

In the case of receiving “order update” or “shipping update” emails, if you suspect it could be a scam, call the customer service line first – do not open the email. Talk to a real person, find out where your package is and when it will arrive. If it arrives safely, go and delete the potentially fraudulent email without ever opening it.

In today’s world, cyber-attacks are a rather common occurrence. Sometimes the best way to shield yourself is to do nothing at all, i.e. don’t open the emails or click on the links. But especially in the holiday frenzy of buying gifts, and then returning or exchanging them afterwards, the best advice is to slow down, don’t hurriedly click on anything suspicious, and verify that the emails you are receiving are truly legitimate.

That may entail – and this can be rare these days – actually picking up the phone and speaking with the good ole’ customer service reps.

If you feel that you have been a victim of fraud or you have questions, you can contact Attorney Mark Mandell. Or, have you been convicted of retail or return fraud? Arrested for drunk driving after a holiday party? Give Mark Mandell a call and you will get an attorney who knows how to aggressively protect your rights. Call today at (248) 380-0000.

‘Tis the Season of Fraud and Scams

Mark Mandell, Esq.

As families hurriedly finish up their holiday shopping, shoppers should beware of holiday hoaxes and scams – both online and at brick-and-mortar stores.

Shoppers who are not of the “digital native” generation are especially susceptible to online scams as they search for holiday gifts. Internet fraud is now the sixth most prevalent scam against seniors, according to the National Council on Aging (NCOA) and results in millions of dollars lost each year.

I would like to provide some helpful hints for protecting yourself against such fraud, beyond avoiding the “Nigerian Prince” emails.

Perhaps the most important point to note is that, when checking out a purchase online, ensure that the web address begins with “https” – the “s” stands for “secure,” which means it is safer to provide your credit card information. Conversely, “http” – without the “s” – is less secure for making online purchases.

Many reputable retailers will even open a window to a separate secure check-out page.

If you are purchasing items from an online marketplace like Craiglist or eBay, the best practice is to only deal with sellers who provide a phone number. Do not rely solely on email, which could open you up to viruses or fraudulent requests for money.

Other common-sense steps you can take include:

• Do not open emails from senders you do not recognize. If you receive such emails delete them immediately; if you open them on accident, delete them without clicking on any links.
• Be mindful of email lists and/or reward programs that you have signed-up for. If you receive a “holiday greeting card” email from a sender whose list you have not signed up for, then delete those emails.
• Do your homework on charities that solicit donations. Charitable donation drives are often at their peak during the holidays and present a unique opportunity for scammers to prey on people’s disposition toward giving during the holidays.
• Watch out for phony websites. When searching for gifts online, read the website description before clicking on it. Scammers can buy websites with similar sounding names to reputable retailers to try and trick shoppers. (e.g. macys.com is the reputable site for Macy’s. But, macysstore.com could be a scammer website.)

Outside the online world, shoppers should also be mindful of the security of their financial information and data. In the heat of holiday shopping, it is tempting to constantly use your debit card. However, as many reports have shown recently, your information could get hacked.

Using a credit card, which is not linked to your bank account, is a better alternative. It is much easier to simply cancel a hacked credit card than to try and recover additional lost funds from your checking or savings account that is linked to your debit card. Keep in mind, too, that paying in cash, when possible, is the best method of keeping your financial information safe – and to tame your buying habits amid all the deals.

Here’s to wishing everyone a safe and happy fraud-free holiday season!

If you feel that you have been a victim of fraud or you have questions, you can contact Attorney Mark Mandell. Or, have you been convicted of retail or return fraud? Arrested for drunk driving after a holiday party? Give Mark Mandell a call and you will get an attorney who knows how to aggressively protect your rights. Call today at (248) 380-0000.

Michigan SOS Plans to Use Better Technology in Effort to Stamp Out Fraud

Mark Mandell, Esq.

Michigan’s Secretary of State Ruth Johnson recently announced new plans to combat scammers who take advantage of vulnerable citizens by selling fake insurance. Johnson is looking to utilize cutting-edge technology and expand best practices in a move that is a part of ongoing efforts to stamp out auto insurance fraud.
The details of the plan include:

• A comprehensive review of her department's processes, technology and structure to determine how best to detect and deter fraud.
• Data analysis to identify signs in transactions that may indicate fraud.
• Expanding the verification of the thousands of insurance certificates the department receives from customers daily.
• An upgrade in case management software to give department investigators the best tools for tracking down fraudulent activity.
• A roundtable discussion with business leaders about fraud to seek their advice and ensure the department is following best practices.

The Secretary of State’s office is looking to use data analysis to compare elements of transactions with those of previous fraudulent ones. Similarities between one transaction and past fraudulent transactions can flagged and then alert the office that a fraud investigation may be needed.

The department has received funding to add staff to a new unit that will verify the validity of the 10,000 to 20,000 insurance certificates that come in through the mail each day from customers renewing their vehicle registration, in addition to the reviews already being done in Secretary of State offices. Plans are also in place to upgrade its case management software so department investigators are best equipped for tracking down fraud.

Some of these new initiatives are the result of recent recommendations from a task force aimed at the fight against auto insurance fraud. To read more on this task force, check out my past post on the Secretary of State’s efforts: http://michiganfraudlawyer.blogspot.com/2014/10/mi-secretary-of-state-looking-to-crack.html

It is refreshing to see follow-through from the Secretary of State on this issue, which affects so many Michiganders. Recent data shows that a whopping 16% of documents filed by motorists from 2013-2014 were fake. The outreach to the business community is also a critical point in the effort to keep the department at the forefront of protecting Michigan consumers from fraud.

If you feel like you are a victim of insurance fraud, contact experienced Attorney Mark Mandell with Fausone Bohn, LLP, at (248) 380-0000. Mark has over a decade of experience fighting for his clients’ rights.

Police Patrols will be Watching for Drunk Drivers on Thanksgiving Holiday

Mark Mandell, Esq.

As another holiday approaches with Thanksgiving, police officers across the state will be keeping a closer eye out for drunk drivers, especially on Michigan’s highways. Between football and the copious amount of food eaten on Thanksgiving, there are also copious amounts of alcohol consumed on this holiday in particular.

As you always hear about tragic accidents happening around this time of year, the message of not drinking and driving is worth repeating. Throw in the worsening road conditions as winter approaches, and alcohol and driving can be a particularly deadly combination.

Not only is drunk driving extremely dangerous, but there are hefty consequences associated with drunk driving. A person is considered “over the limit” if they are operating a vehicle with a BAC of .08 or greater. There are enhanced penalties for “Super Drunk Driving” if an individual’s BAC is 0.17 or higher.

The severity of the penalties depends on what number offense it is and the level of intoxication. The penalties include the following:

• If BAC is below .17 and it is a first offense the penalties includes up to a $500 fine and Up to 93 days in jail; 
• If BAC is above .17 and it is a first offense the penalties includes up to a $700 fine and 180 days in jail;
• If it is a second offense within 7 years the penalties include one or more of the following: a $200 to $1000 fine and/or 5 days to 1 year in jail;
• If it is a third offense within a lifetime the offense is considered a felony and the penalties include one or more of the following: a $500 to $5000 fine, 1 to 5 years imprisonment and/or probation with 30 days to 1 year in jail;
• Additionally, convicted drunk drivers are subject to a $1,000 penalty for two consecutive years under the Driver Responsibility Act, for a total of $2,000 in additional costs.

There are a number of safer alternatives to drunk driving. Safer alternatives include: designating a sober driver; calling a friend; taking a cab; walking or staying over the night at a family or friend’s home.

If you are facing drunk driving charges, or have questions regarding the law, contact experienced criminal defense attorney Mark Mandell at 888-674-1189 or online at www.MichiganFraudLawyer.com.

Veteran Charities – Not All Exist to Benefit Veterans

Matt Worley, Esq.

There are around 1.6 million non-profit organizations in this country.  Of those, upwards of 65,000 include the word “veterans” in their title.  With so many seeking donations, it is more important than ever to be confident that when you give to a veteran charity your donation will actually be used to help our veterans.

Many people assume that if an organization has been granted 501(c)(3) status by the IRS, it went through a stringent application and review process and must therefore be legitimate.  However, the truth is that there is minimal oversight of the process of creating a non-profit organization.  In fact, the IRS recently simplified the application for 501(c)(3) tax exemption from 12 pages (plus schedules) down to only 3 pages.

With almost no ongoing oversight, many of these groups use only a very small portion of donation money to fund products and services for veterans.  Worse still, there are fraudulent organizations that are used only to line the pockets of their creators.

For example, the United States Navy Veterans Association (USNVA) was a registered 501(c)(3) charity.  It had many markings of a legitimate non-profit – a quality website, supposedly in operation since 1927 and dozens of purported chapters across the country with thousands of members nationwide.  In reality, USNVA was run by one man out of his duplex in Florida.  This sham charity bilked donors out of nearly $100 million over a seven-year period.  The ringleader was arrested in 2012 and sentenced to 28 years in prison and $6 million in fines, but sadly most of these donations will never be recovered.

Fortunately, there are resources available to assist potential donors in verifying the legitimacy of a charity before donating.  First off, the charity’s website can provide a first step – most legitimate charities post their financial statements and annual reports on their website so that the public may view them.  Additionally, www.guidestar.org is a non-profit that provides detailed information about 501(c)(3) registered charities.  Further, legitimate charities should be completely transparent.  If an organization is not forthcoming about providing financial/audit statements, copies of their conflict of interest policy, or information about the board of directors and employees, there is cause for concern.

If you have questions about the authenticity of a veteran charity, or believe that you have been taken advantage of by a fraudulent charity, contact the experienced attorneys at Fausone Bohn, LLP.  We can provide you the sound legal advice that you need.  You can reach us at (248) 380-0000 or online at www.fb-firm.com.

MI Secretary of State Looking to Crack Down on Insurance Fraud

Mark Mandell, Esq.

Michigan Secretary of State (SOS), Ruth Johnson, convened a 56 member task force dedicated to addressing insurance fraud in the state. The task force and the SOS recently announced their 17 recommendations.

The recommendations come amid the announcement that the SOS uncovered that a whopping 16% of the documents filed by motorists from 2013-2014 were fake. And you need proof of insurance to receive a license plate in Michigan.

With 16% of documents being fake, one has to ask how that number got so high.

Pete Kuhnmuench, executive director of the Insurance Institute of Michigan, said he believes the high cost of insurance is driving the search for phony insurance coverage. He recommended a $3 fee to ramp up enforcement efforts against fraud. The SOS task force, however, did not address that.  

Secretary of State Johnson claims the problem is costing Michigan motorists around $220 million per year – which she says is a conservative figure. That's because if a driver with fake insurance coverage gets in an accident, the other drive must pick up the tab for those with no coverage.

Johnson said all sort of crooks are in the insurance fraud game, including a lady working out of a church netting some $30,000 a month to the sophisticated Internet fraud artists who produce documents that look real but are not.

The state police, local prosecutors and the state insurance director are all in on fighting back and the SOS has reported that some reforms have already cut the bogus percentage in half.

The task force’s recommendations also include: streamlining prosecution of offenders, assisting law enforcement in verifying insurance during traffic stops, cracking down on unlicensed insurance agents, and establishing a new “fraud commission.”

If you feel like you are a victim of insurance fraud, contact experienced Attorney Mark Mandell with Fausone Bohn, LLP, at (248) 380-0000. Mark has over a decade of experience fighting for his clients’ rights. 

The End is in Sight for Michigan Driver Responsibility Fees

Matt Worley, Esq.

In Michigan, many drivers feel the weight of Driver Responsibility Fees on their shoulders.

These fees are assessed by the State of Michigan to drivers who are found guilty of certain traffic misdemeanors.  These fees are assessed in addition to any fines and costs that were assessed in the district court.  The responsibility fees were created in 2003 at a time when the state was in dire financial straits as a way to generate cash flow.

Part of what makes the responsibility fees unique is the sheer size of the fee assessed.  For example, if a person pleads guilty or is found guilty of driving on a suspended license, that person is assessed $1,000 in responsibility fees – paid out over two years.  Similarly, if a person is convicted of operating while intoxicated, they are assessed a total fee of $2,000.  Other common offenses that have responsibility fees include reckless driving, leaving the scene of an accident, and various drunk/drugged driving offenses.

The problem with these responsibility fees is that they are so large they often send the state’s poorest people in a downward financial spiral that, for many, is nearly impossible to escape from.  The responsibility fees have been called a “tax on the poorest people in the state.”

House Bill 5414, introduced by Representative Joe Haveman, aims to phase out the responsibility fees.  Under the plan, the fees will be virtually eliminated by 2018.  The bill has passed the House and Senate and is expected to be signed by Gov. Rick Snyder in the near future.

The question remains, however, what will replace the nearly $100 million in annual revenue generated from the responsibility fees?

If you would like to know more about Michigan’s driver responsibility fees, or have other questions, contact the legal experts at Fausone Bohn, LLP.  Our team of lawyers consists of current and former prosecutors knowledgeable in both civil and criminal law.  You can reach Matthew Worley at (248) 380-0000 or online at www.fb-firm.com.