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.