The US federal government maintains a website specifically for reporting identity theft and fraud. IdentityTheft.gov, which is maintained by the FTC, is the primary website to use to report identity theft of all kinds, including for mail fraud, credit card fraud, and others.

However, the FTC is unlikely to be able to take immediate action on your behalf. It is recommended that you also file a police report, sign up for a credit monitoring agency, request a fraud alert or credit freeze from credit reporting agencies, and contact your credit card and banks to cancel any active cards and get new cards issued to you.

Credit Bureau Fraud Departments

Government Agencies

Federal Trade Commission
Phone: 877-438-4338

ftc.gov

U.S. Postal Inspection Service

Phone: 1-877-876-2455 (press “4” to report suspected mail fraud)

postalinspectors.uspis.gov/

Social Security Administration

Phone: 800-772-1213

oig.ssa.gov/report

Checks

To report the fraudulent use of your checks:

Check Rite
Phone: 800-766-2748

Chex
Systems
Phone: 800-328-5121

CrossCheck
Phone: 800 552-1900

Equifax-Telecredit
Phone: 800-437-5120

NPC
Phone: 800-526-5380

SCAN
Phone: 800-262-7771

Tele-Check
Phone: 800 366-2425

Identity fraud most commonly targets secure loans, credit cards, payment systems, and other forms of financial services. And some of the junk mail you receive — including credit card offers — will carry some of that information.

Occasionally identity theft is done maliciously in order to disrupt a person’s life and livelihood. Having your private information stolen directly from such as junk mail sitting in your mail can feel like a personal attack. But ultimately, you may never know where the ID thieves got the information.  

It’s likely that you take care of your online accounts and your wallet, but how much attention do you pay to your mailbox? A lot of very sensitive information passes through our mailboxes, sometimes daily. This comprehensive guide will take you through the types of mail you need to watch out for, how identity theft using junk mail can occur and what you can do to stop it.

Here’s a list of common mail types and why you need to act now to secure your identity.

Categories of mail that carry sensitive data

Personal documents: This includes any papers with your social security number (SSN), birth date, or driver’s license number. It also includes information relating to employment or the IRS, or taxes.

Financial documents: Bank statements, letters of offer, or any other official financial correspondence from banks, credit unions and other lending facilities. This includes store cards, new checkbooks, credit card statements, and invoices.  

Junk documents: Companies can purchase your personal contact details from marketing databases and may include this information in solicitation attempts. Common examples include insurance offers, mail order services, and credit card pre-approvals.

Child/minor documents: Any correspondence that identifies your children, their medical information, school information, applications, financial aid forms, or field trip authorizations.

Business documents: Any paperwork that comes to your home address that relates to business dealings. Particularly important if you own a small business using your home as your mailing address, work from home, work as a contractor, or have a mobile business.

Accounts documents: Papers with identifying details that relate to online accounts including usernames, email accounts, subscriptions, bills, accounts, real estate correspondence, magazines, and recurring donation solicitations.

How identity theft happens through the mail

The are a few common ways criminals use stolen personal documents to assume your identity. When you know what criminals are watching for you can take steps to protect yourself and your family.

Banking and credit card invoice theft

If criminals can get hold of your credit card invoice, they can likely use the information to imitate you and add charges to your card including purchases and cash withdrawals. Credit card invoices may include enough information for thieves to call the credit card company and impersonate you. When this happens, criminals commonly redirect statements to a new address or apply for an increased limit without your knowledge. Both of these actions extend the time a person is unaware of the crime.

Outgoing mail theft

Any mail you leave in an unsecured place for the postal service to collect is vulnerable to theft. Along with any personal information you may be sharing with legitimate companies, mailed checks are extremely valuable to thieves. Mailed checks can be intercepted and make you vulnerable in two ways. First, the check can be cashed and the money stolen. Second, that check and any accompanying information like account details can be used to assume your identity at a later stage.

Mailbox theft

While most people don’t think twice about putting sensitive mail into the mailbox, any items you put into the mailbox are vulnerable to attack unless you have a locked mailbox system (common in the US for apartments and townhome developments).

Still, most mailboxes are safe most of the time, but they are sometimes targeted by thieves because of how easy it is to get away with the crime.

One type of mailbox theft is known as “mail fishing”. This method is used by ID thieves to retrieve people’s envelopes out of blue mailboxes on the street.

Mail fishing involves using a trap that is lowered into the mailbox with a piece of string. Thieves can pull out up to 20 letters at a time with this technique. Sometimes the boxes themselves may be vandalized and broken into.  

How to protect yourself against identity theft

There are two main strategies you can use to reduce the chance that your identity will be stolen through junk mail exploitation or theft. The first is to secure your incoming data by managing the documents you do receive. The second is to reduce the amount of vulnerable information being sent to you in the first instance.

Managing sensitive documents and information

• When discarding junk mail, do not tear the documents and dispose of them into insecure garbage collection. Shred vulnerable documents, soak them in water and bleach, or burn them
• Move your finances online and stop paper billing
• Routinely monitor your accounts for unusual activity (you may want to sign up to a credit monitoring service)
• Send sensitive mail directly from the post office rather than a street-side mailbox
• Use a lockable mailbox at home so it can’t be accessed without a key, or install a door slot for mail and request USPS use the slot
• Consider using a PO Box to remove your physical address from your mail for added security

Reducing the inflow of documents that hold sensitive data

Marketing databases are valuable to companies because they hold a staggering amount of personal information about consumers. Companies can target their customers based on a range of recorded characteristics and will personalize offers with as much information as possible to secure a sale. This flow of information is not secure. You will need to take action to stop this.

Where possible, request to only receive digital copies of documents from companies. Also be wary about where you sign-up and submit your information. Some websites discretely sell data they collect from users to third parties, like companies who turn around and use that information to advertise via mail.

Block pre-approval offers from arriving in your mailbox

Credit card companies ask credit bureaus to provide them with the details of people with good credit. The credit card companies then use this information to send pre-approved credit offers in the hope of expanding their business. This is legal and there is no way to prevent the data-sharing, but there is a way to stop credit companies contacting you with pre-approvals, even when you meet their criteria.

Click on the link to go to OptOutPrescreen.com. This website is for US citizens only and entering your information there will block any pre-approvals from occurring for 5 years. Opt-Out Prescreen is a free service offered by the credit rating bureaus (Experian, Equifax, Transunion, Innova).

If you want to permanently remove yourself from consideration you will need to print and fill out a form available on the site (mail it from the post office!).

The website is secure, so you can be confident that your data is safe when entering it. You’ll need to provide as much detail as possible (including your SSN) in order to match your identity to your credit file so the opt-out works.  

It will put a block on your name within 5 business days, but be aware that some offers may have been made before the opt-out application was received. You may get some residual mail before it stops completely. If you prefer to speak with someone directly, call 1-888-5OPTOUT (1-888-567-8688) to arrange the opt-out process.

Block personalized marketing offers from arriving in your mailbox

Reducing the frequency of your personal information being sent via credit card offers will help to reduce your vulnerability to identity theft. There are other steps you should take to reduce this even further.

The Data Marketing and Analytics organization networks with many junk mail providers. The DMA manages a database of customer contact details called the Mail Preference Service (MPS). Marketing companies use this database to target their junk mail to prospective customers. You can remove yourself from this list at any time by completing the form on the DMA Choice website.

You can enter up to 5 names on the form so include common variations of your name or previous names you’ve used. You’ll need to enter credit card details to verify your identity. There’s a $2 processing fee to sign up, but your name and preferences stay in place for 10 years.

If you would like to select which marketing firms can contact you individually, there is an option to receive mail from nominated companies only. If you have canceled all contact or selected too few companies, you can edit your preferences at any time. Be aware that there may be residual mailings for up to 90 days after you remove your details due to campaigns being approved before the cancel date.

Contact other companies individually

Some companies do not subscribe to the DMA, which means they will not be notified of your desire not to be contacted. Charities commonly share databases of previous donors in order to target requests to those more likely to give. There is no central administrative body that manages opt-out lists for charity databases. In these cases, you must contact each company as the unsolicited mail is received. You may need to call them or contact them via their website. You can also write ‘Return to Sender’ on the envelope and mail it back to them. This should discourage them from sending information to you again.

Credit Monitoring Services

You can add an extra layer of protection by using a credit monitoring service. These services monitor your credit history and alert you to changes, such as an identity thief opening credit in your name. While there are many steps you can take to monitor your own credit, using a paid service can reduce your hassle and time investment and provide extra peace of mind.

Canada

The Canadian Marketing Association offers a Do Not Mail service. The CMA does not hold any consumer information, but it liaises with marketing companies to notify them if you do not want to receive marketing offers in your mailbox. This will not stop all mail but should reduce it significantly, thereby reducing your risk. The website also contains information about identifying fraudulent offers and further privacy protection options in Canada.  

It is illegal for banks and financial institutions to issue credit cards without signed consent from the applicant, so there should not be any risk of unsolicited credit card offers arriving in a Canadian mailbox. If it does, it’s likely to be an attempted identity theft or fraud attempt. You should report the card to a branch and check your credit rating with your chosen bureau.

Charity solicitations may sometimes arrive with some of your personal details completed in order to encourage you to donate more readily. Charities often share and sell contact lists, so you will need to contact each individual charity as you receive the mail to request to be taken off the mailing list. The Do Not Mail service mentioned above also includes some (but not all!) charities.

UK

The Mailing Preference Service (MPS) works with advertising companies to remove your name from marketing lists. Registering with them is free and should take effect immediately, with the exception of any mailings already authorized prior to removal.  

Unsolicited preapproved credit card offers were banned in the UK in 2005. If you receive mailings suggesting otherwise it is likely to be a scam and should be reported to the represented bank or financial institution immediately. If your personal details are included on the mailout, contact a credit bureau to check for fraudulent requests and potential identity theft.

If you’ve registered with the MPS and you’re still receiving unsolicited mail, you can file a complaint online to report the offending organization.

Australia

The Australian Competition & Consumer Commission (ACCC) makes it clear that financial institutions are barred from offering unsolicited credit card offers in Australia. This also applies to other forms of unsolicited mail and advertising for products and services, as well as unauthorized listing of your personal details.

If you have received an unsolicited card from a bank or financial institution, or another form of unauthorized advertising in the mail, contact the ACCC immediately as you may have been targeted for identity theft. Unauthorized mail containing your personal details also leaves you at risk for identity theft due to the theft of junk mail, so filing a complaint is still a worthwhile venture.

Australians can register their details with the Association for Data-Driven Marketing & Advertising (ADMA) to stop most addressed and unsolicited mail. It may take up to 6 weeks to see a reduction in mail due to previously approved campaigns being conducted.  

People who have passed away will have their personal details stored in Australian marketing databases. The Family Bereavement Database allows bereaved family members to delete their loved one’s data from multiple marketing databases. This helps to reduce painful reminders and reduces the likelihood that the deceased person’s details may be stolen and used fraudulently.  

To Shred or Not to Shred. That is the Question.

Can someone legally dig through your trash looking for tasty credit card receipts, account numbers, or your social security number (SSN)? The U.S. Supreme Court implies that the answer is yes. In the decision California vs. Greenwood, they stated that the “expectation of privacy in trash left for collection in an area accessible to the public… is unreasonable.”

In other words, when you throw something in the trash, it is available to anyone willing to overlook the disgusting smells and textures of your trash can or dumpster.

What document shredding should you do?

The easy answer – anything that has a signature, account number, social security number, or medical or legal information (plus credit offers).

The complete answer – see below.

• Address labels from junk mail and magazines
• ATM receipts
• Bank statements
• Birth certificate copies
• Canceled and voided checks
• Credit and charge card bills, carbon copies, summaries and receipts
• Credit reports and histories
• Documents containing maiden name (used by credit card companies for security reasons)
• Documents containing names, addresses, phone numbers or e-mail addresses
• Documents relating to investments
• Documents containing passwords or PIN numbers
• Driver’s licenses or items with a driver’s license number
• Employee pay stubs
• Employment records
• Expired passports and visas
• Unlaminated identification cards (college IDs, state IDs, employee ID badges, military IDs)
• Legal documents
• Investment, stock and property transactions
• Items with a signature (leases, contracts, letters)
• Luggage tags
• Medical and dental records
• Papers with a Social Security number
• Pre-approved credit card applications
• Receipts with checking account numbers
• Report cards
• Resumés or curriculum vitae
• Tax forms
• Transcripts
• Travel itineraries
• Used airline tickets
• Utility bills (telephone, gas, electric, water, cable TV, Internet)

How do I shred documents?

There are a few ways you can go about shredding documents.

1. Use a document shredding service

The first, and perhaps easiest, is simply locate a company that will do documenting shredding for you.

In the US, OfficeMax, Office Depot, and Staples all perform paper shredding services. The cost is usually $1 per pound, which is fairly cheap when you consider how lightweight documents tend to be. Occasionally, you can find coupons that will let you do document shredding at this companies for free.

If you can’t find an OfficeMax, Office Depot, or Staples near you, parcel and mail companies often perform these services as well. FedEx, for example, offers document shredding services for $1.49 per pound. UPS also has a shredding service available, although prices are not listed on its company website.

You may also find locally-owned and independent companies that handle paper shredding for a small fee.

2. Purchase a document shredder

If you plan to do a lot of document shredding yourself, you may want to invest in a simple paper shredder for your home. They can be purchased for a low cost (under $30 for some), but some cost over $200 dollars. The more expensive the document shredder, the faster it shreds and the more documents it can handle at a time. Some also come with features that let you shred special types of documents, or can shred documents that are stapled.

3. Use the pulping method

If you want to have a little fun with your documents, you can use the pulping method. This method involves pouring bleach and water over your documents in a large trash can or container, allowing the chemicals to break down the paper, and then mashing them together into a paste. This method guarantees that nobody can reconstruct your sensitive documents, and you can still dump the resulting mixture in the trash.

Of course, you can always be environmentally friendly and turn those old papers into fuel to heat your home.

4. Burn instead of using document shredding

This is a method we do not recommend. Trash burning is an option, but you will need to check your local laws. Do NOT burn paper in an indoor fireplace, stove, or wood oven. Documents often contain chemicals that can send off toxic fumes.

Does document shredding really work?

Document shredding is a perfectly safe and easy way to ensure your sensitive documents cannot be used for identity theft. However, you will want to make sure you are shredding your documents properly. Improperly shredded documents are easy to piece back together. Instead of using scissors to cut your documents, for example, use the methods we mentioned above to ensure that your information is secure.

Identity theft is usually a crime of convenience; thieves will avoid any theft that requires a lot of effort. Properly shredded documents are difficult to put back together and will be an unlikely target for identity thieves.

Below, we’ll overview how to put a flag on your social security number through your credit bureaus. We’ll also explore what type of credit flags you’ll need, and how to ensure no new accounts are opened in your name.

What are credit fraud alerts or credit flags?

Credit fraud alerts, sometimes known as “credit flags”, are alerts placed with credit reporting agencies. These alerts let those agencies know that you may be at risk of, or are currently experiencing, identity theft or credit fraud. When you issue an Equifax, Transunion, or Experian fraud alert, the reporting agency will do two key things:

• Notify the other credit reporting agencies that there may be fraudulent activity on your accounts
• Inform creditors that they may need to take extra steps before verifying and opening any new accounts in your name

You can place a credit flag or fraud alert with any credit reporting agency for free. You also won’t be charged for the extra steps creditors will take to verify any new accounts.

If you believe you’ve been the victim of identity fraud, you should alert one of the three major credit rating agencies immediately. All agencies will accept fraud alerts as long as you provide the requisite information (Social Security Number and potentially other personally identifying information).

Unfortunately, requesting something like a Transunion or Experian fraud alert is only a partial solution. Credit report flags only “ask” creditors to consider being more cautious when allowing new accounts to be opened in your name. If you’re seriously worried about credit card fraud, it’s best to completely request a credit freeze instead and then sign up for a credit monitoring service.

What is a credit report?

Your credit report is a document that displays information about your credit history. Credit reports will include:

• Current and past addresses
• Current and former places of employment
• Open credit accounts (credit cards, car loans, home loans, student loans etc.)
• Closed credit accounts
• Hard credit inquiries
• Soft credit inquiries
• Collections (usually after a credit account has been left unpaid for too long and gone to a collection agency)
• Public inquiries that may affect credit score (such as bankruptcies and legal judgments)

When you put a credit flag on your credit report, the intention is to protect all of this information from getting misused following an identity theft. When new accounts are opened in your name, they will eventually show up on your credit report.

If you see what looks like fraudulent accounts or inquiries on your account, you should request a fraud alert immediately.

How to put a flag on your social security number or credit report

There are a few ways you can flag your social security number. The primary way to do this is to through a fraud alert, which will put extra protections in place for people trying to access or use your social security number or other private account details associated with your credit.

To get a credit flag or fraud alert placed with any of the three credit bureaus, do the following:

1. Contact one of the three credit reporting agencies (Transunion, Equifax, or Experian). You can call or email, but we recommend you use the online reporting options each service makes available.
2. After a few days, check with the other two credit bureaus to verify that they’ve received the fraud alert as well.
3. Update your information with each credit rating agency to make sure they can contact you in case something comes up or the alert triggers unusual activity.

You can contact the credit reporting agencies using the following information:

As stated earlier, you’ll only need to contact one credit reporting agency. By law, each of the agencies must contact the other agencies after you set up a fraud alert. This makes your life easier, as you’ll only need to do this once.

Types of fraud alerts

Each credit reporting agency will allow you to set up one of three fraud alerts types:

• Initial fraud alert
• Extended fraud alert
• Active military fraud alert

Each fraud alert serves a different purpose. It’s important to decide whether your situation requires any of these options. It is unlikely that you will be able place multiple types of fraud alerts on any one account, so if you’re unsure of which one you need, you may want to contact one of the credit reporting agencies, such as Experian, describe your situation, and allow them to help you decide how best to proceed.

Let’s explore each of these types of alerts in more detail.

Initial fraud alert

An initial fraud alert is a flag on your credit report that tells the other credit reporting agencies to verify information whenever there’s a request to extend credit.

Initial fraud alerts last for only 90 days. If you need a longer-term credit flag, you will need an extended fraud alert.

Extended fraud alert

An extended fraud alert carries all of the benefits of an initial fraud alert, but can last for 7 years.

You can have this fraud alert removed from your credit report at any time. This is a good option if you’ve experienced serious identity theft that may take a longer period of time to resolve.

Active military fraud alert (Active duty alert)

The active duty alert is designed for members of the military who have been stationed overseas for an extended period of time. Deployed service members are can place this type of credit alert on their credit to help reduce the risk of identity theft.

To get an active duty alert on your credit report, you will need to follow the same steps as with getting an initial or extended fraud alert but ask for the active duty alert instead.

Active military fraud alerts last for 1 year until re-instated. However, this fraud alert also removes your name from prescreened credit card marketing offers for 2 years.

Fraud alerts for children and how to check your child’s credit report

Children are among the most common victims of identity theft. Unfortunately, many parents may not realize their children’s information has been stolen and misused until their children become adults and check their credit for the first time. Additionally, many children have their identity stolen and misused by adult family members or friends, making the issue much worse.

If your minor child has a credit report, this is a giant red flag and a good indication of child identity theft!

Simply put, you won’t know whether or not your need to be concerned about child identity theft until your check to determine if your child has a credit report, and examine what information is on it. And even if you don’t find any report, it may be a good idea to create one and then place a credit freeze on that report to prevent misuse in the future.

Minors aged 14-17 can contact any of the credit reporting agencies to check their own credit report. Parents of children under the age of 18 can do this at any time as well.

Here’s how to check your child’s credit report

To check your child’s credit report with Equifax and Experian, do the following:

1. Contact one of the credit reporting agencies and explain that you need to obtain a credit report for a minor child.
2. Provide the required identification: government issued ID, such as a driver’s license;  proof of address; copy if child’s birth certificate and social security card; child’s full name, including middle name and generation (Jr. III, etc.); child’s date of birth; and any previous addresses from the past two years).
3. Mail or fax the required documentation to the credit reporting agency using the mailing addresses found about. Note: for Equifax, add “ – Minor Child” to the company name to ensure faster retrieval to the right department.

To check your child’s credit report with Transunion, do the following:

1. Use Transunion’s Child Identity Theft Inquiry form.
2. If Transunion locates a credit report is open for your child, it will ask for more information to verify your identity. This information can be submitted using the mailing address found above, or via a fax number Transunion if Transunion provides one.

What are the drawbacks of a fraud alert?

Activating a fraud alert will cause problems if you’re used to walking into an electronics store, signing up for their amazing “don’t pay anything later” credit offer, and walking out of the store with a new big-screen TV.

With a fraud alert active, you have to be available at either your work phone or home phone to approve opening the credit account. No big deal. It will just require a short delay in your instant gratification and a call-back to the credit company authorizing the new account.

If you can live with that, putting a fraud alert on your credit will help protect you in some situations.

NOTE: You want to be cautious if you’re just about to apply for a home loan or refinance. Let your broker know that you have a fraud alert in place because you’re trying to protect yourself against fraud.

On the plus side, a fraud alert won’t cause any problems with your current credit card, bank or credit accounts. It’s focused on new credit accounts, not the ones you already have opened.

How to remove a fraud alert on your credit report

If you decide you want to remove a fraud alert on Equifax, Experian, or Transunion credit reports, you’ll need to request removal it in writing.

You’ll have to include your:

• Name
• Social Security Number
• Current and previous addresses
• Date of birth
• Telephone number

You’ll need to send this information to the fraud department of the credit bureaus where the alert has been placed. We also suggest using certified mail or overnight shipping. You want to be able to track a letter that has all that critical data. You could also just wait the 90 days for the alert to expire.

There are two broad types of tax scam that you should be aware of. The first group of scams focuses on filing fraudulent tax returns in your name – a form of identity theft. The second type of scammer is usually someone you trust when it comes to financial or tax-related advice.

Common tax scams methods

Phone scams

You may receive a phone call with a recorded message. The caller will say they are from the IRS and that there is a warrant for your arrest for unpaid taxes. There may be threats of jail time or deportation if the issue isn’t addressed by calling the given phone number and paying the money due. Victims who return the call are tricked into paying money directly to the scammers, and not to the IRS.

Phishing emails

Scammers create convincing emails that look like they are official IRS communications. The email will instruct the recipient to follow a link to a mock-IRS website where personal details will be requested. Criminals might lure in victims with the promise of collecting a tax refund. The stolen information may be used for fraudulent tax filings or other identity theft-based crimes.

Bank deposit scams

Scammers are now testing a new style of theft. The gain your personal details through a phishing scam or purchase the information on the black market. They use the data to file a fraudulent tax return on your behalf and the return is deposited into your bank account. The scammers then call, claiming to be from the IRS and explain that a fraudulent claim has been made in your name. Of course, they demand that the money must be repaid immediately, and offer anonymous, untraceable methods of doing so.

Dishonest tax return preparer

While most tax preparers are honest, there are some who set out to defraud the government in your name. They may ask you to sign a blank return, for example, leaving them free to claim almost anything without your knowledge. Be cautious of tax preparers that don’t ask for receipts or other usual documentation. Also, be wary of schemes that charge a percentage of your return instead of a fixed fee. That style of fee structure can tempt some to inflate claims in order to receive a larger payday.

‘I’m on your side’ tax preparer

The first type of scammer alters your tax filings without your knowledge. The scammer who acts as if they have your interests at heart may encourage you to overstate your income or deductions. They may play fast and loose with business credits or other entitlements. Don’t get swept up in the hype of trying to fool the IRS. If the claims do not truly apply to your situation, you may face consequences long after the tax preparer has taken their inflated cut.

Fraudulent tax preparer

Unsurprisingly there are people out there who pretend to be official tax preparers during the busy filing season. If they are not qualified or registered there is a much higher chance that you could file a fraudulent return. The scammers may also steal your personal details while assisting you with bogus paperwork.

Fraudulent charity worker

In some circumstances donating to a charity can be beneficial when it comes time to file taxes. Scammers know this and will impersonate official charities or create fake ones to con people out of their money.

How to protect yourself against tax scams

Protecting yourself against tax scams can save yourself a lot of hassle and stress. Here are the best ways to be proactive about protecting your identity and your tax activity.

Know how the IRS works

They will never initiate a conversation with you via phone, email, text message or social network. The only way the IRS will contact you is via an old-fashioned letter in the mail. If anyone contacts you claiming to be from the IRS, they are trying to scam you.

Verify repayment requests

If you are contacted by someone claiming to be from the IRS, or anyone demands that you send money to them via wire transfer, contact the IRS through their official channels to verify the request. If they cannot confirm it, the first caller is a scammer.

Verify your tax preparer credentials

Before you share your tax information with a preparer, check they are authorized to file taxes. Use the Tax Preparer Directory to confirm details.

Never sign blank documents

This applies to checks, tax paperwork and any other official documentation. It leaves you open to untold exploitation and misrepresentation.

Verify your chosen charities

Use the Tax Exempt Organization Search to ensure your chosen charities are official. Make donations using checks or electronic transfers to create a record of the transaction. Cash payments are more difficult to prove.

File early

Tax scammers file fraudulent returns as soon as they have adequate information. If you file your true tax paperwork as soon as you can, there is less time for scammers to apply before you.

Have your paperwork ready so when annual documents are released, you can file straight away.

File electronically. If you file electronically, the process if often much faster than if you submit hard copies. Elect to have any refund paid by direct deposit. If you’re unsure, here’s how to file federal taxes.

Stay informed

Protect yourself by staying current with tax scam consumer alerts from the IRS, such as this recent news release. They describe the most recent known attempts to impersonate the IRS and other official bodies in order to facilitate malware dispersal and identity theft.

Signs that you may have been scammed

Watch for these unusual signs that indicate you may be a victim of a tax scam.

• You are asked to pay additional tax, receive a return or have other communications about a tax filing in a year when you did not file a return,
• More than one tax filing was made using your Social Security number,
• IRS record shows you earned income from employers that you do not work for.

If you have been scammed

If you think you are a victim of tax-related fraud, you can take steps to alert the authorities and limit damage to your financial standing and credit score.

You must continue to file your taxes as required, even if a fraudulent claim has been made in your name. A paper-based return may be necessary in these cases.

1. Report the fraud to the Federal Trade Commission.
2. Contact a major credit bureau to have a fraud alert placed on your file. The fraud alert should be applied to all 3 major bureaus.This will stop fraudulent credit applications being approved in your name.       
   1. Equifax, www.Equifax.com, 800-525-6285
   2. Experian, www.Experian.com, 888-397-3742
   3. TransUnion, www.TransUnion.com, 800-680-7289
3. Notify your financial institutions, banks and credit providers about the scam. You may need to close accounts and reset banking passwords.

If your Social Security Number has been compromised and you are concerned that you are a victim of a tax scam or related identity theft, you must take the following action with the IRS:

1. Respond immediately to any paper-based notices or letters from the IRS. (Remember, they will not call or email you about this),
2. Complete IRS Form 14039, Identity Theft Affidavit if you believe someone has used your SSN to file a tax return in your name. Any attempt to file electronically will be rejected if your SSN has already been used. A paper filing will be required instead.

Canada

Canadians are at risk of tax scams. Be aware that some scammers work to promote evasion schemes that may appear legitimate but are not. The Canadian government offers advice on how to spot these scams. If you are concerned that you are a victim of tax fraud in Canada, follow the steps listed by the Anti-Fraud Centre to report the crime to the Canadian Revenue Agency. A list of official charities can help you to make financial decisions about where to donate money safely.

UK

UK citizens are not immune to tax scams. In the last financial year, HMRC reported nearly 15,000 websites for malicious or fraudulent content and received over 770,000 notifications of phishing emails and SMS messages from the public. If you have reason to think you have been scammed, report the crime to Action Fraud at 0300 123 2040 or use its online fraud reporting tool. Use the charity register to verify that charity fundraisers are legitimate before donating.

Australia

The Australian Tax Office provides advice and direction for Australians who suspect they are victims of tax scams. Advice includes reporting any financial loss to the police and to Scamwatch. In Australia, many tax scams focus on aggressive phone calls relating to fake tax debts, and more recently, refund-for-a-fee scams. The Australian Charities and Not-for-profits Commission keeps an updated list of official charities for tax and other purposes.

Credit monitoring services regularly monitor your credit history and notify you when something changes. It will alert you, usually daily or weekly, to changes in your credit – helping you to stop the theft before it gets out of control. This is especially important if an identity thief opens a new account in your name. Alerts are usually sent via email, phone, or text.

New account fraud (opening a new account vs. accessing an existing account) grew 123% in 2015 and victims of new account fraud are three times more likely to take a year or more to discover that their identities were misused compared to other types of fraud. Banks have cracked down on existing account fraud and so new account identity theft is what they’re focusing on.

Now, a credit monitoring service is not for everyone, but if you want to keep a close eye on your credit there are some great services out there. I use a credit monitoring service because I’ve been a victim of fraud in the past and I disagree with groups that say you should look at your credit report only once or twice a year.

CONSIDER THESE FACTS:

According to Javelin Research, 12.7 million Americans fell victim to identity theft in 2015, at an average cost of $5,000 per victim. But two-thirds of victims who discovered the misuse of their personal information within five months incurred no out-of-pocket expenses.

That’s what a credit monitoring service can do for you – it can’t prevent identity theft but it can greatly reduce its impact.

Before starting any service, you should look through our Credit Monitoring FAQ.

Credit Monitoring Service FAQ (Frequently Asked Questions)

Is it safe?

All of these companies are reputable and are owned by publicly-traded major corporations. These companies won’t risk their reputation working with an unethical company. They also use all of the latest encryption, consumer screening and data security technologies to make sure that your information is protected.

Won’t signing up for a credit monitoring service hurt my credit?

No. Consumers have the right to look at their credit report without it affecting their credit or credit score. When you request your credit report it’s called a “consumer pull” and has no affect on your credit. Only when you ask a possible creditor to inquire about your credit can it affect your score. For example, if you go out looking for a new car and you let a dealership request a copy of your credit report, that could affect your credit score because it implies you’re looking to open new lines of credit.

Why do they need all the information on the order form?

They need the information to verify your identity. Advanced security screens make sure that your request is valid and that you are who you say you are.

Once I sign up, will I be alerted if someone tries to open a new credit account?

You will only be alerted to credit inquiries when a potential creditor requests a credit check from the same credit bureau your service is monitoring.

In other words, if you sign up for the Consumerinfo.com, CIC credit monitoring service, the alerts will reflect new credit requests made using Equifax data. If a thief were try to buy a new luxury car at the local Mercedes dealer, and that dealer pulled a credit check from Experian, you would not receive an alert.

You would be alerted, however, once the thief buys the Mercedes in your name and it shows up in a new account on your credit report.

This issue highlights the value of the three bureau monitoring product. No matter which bureau is affected, a three bureau monitoring product should generate an alert.

Isn’t everyone entitled to one free credit report annually?

By Federal law, you are entitled to one free credit report per year from each of the credit bureaus.

Learn more about the FACT Act.

Business travelers can use time between flights to catch up on emails, holidaymakers can upload photos, and Netflix helps to pass the time. Have you ever wondered about how safe your information is when you’re using airport wifi? Like in any crowded place, hackers and criminals can steal your personal information through unsecure wifi connections and unencrypted websites.

It’s time to learn how you can protect yourself when using airport wifi.

Some airports have been shown to have more secure networks than others. Even in the most cyber security-aware terminals, it pays to be aware of airport wireless internet threats. Some airlines also offer in-flight wifi. These are often unsecured networks that do not require a password to connect.

They are as vulnerable as free coffee shop wifi, but the isolation of the flight sometimes lulls travelers into thinking they are safe from attack. Treat public wifi connections on the ground and in the air with a healthy dose of caution.

Airport wireless network threats

Scammers work hard to fool tired and distracted airport travelers. They hope that you aren’t looking too closely when you see the list of available networks (also called SSIDs). Here are the most common ways hackers try to steal your information when you connect to airport wifi.

Evil Twin

Watch out for ‘evil twin’ networks. Fake network hotspots are common in high-traffic areas. Hackers name the fake networks with very similar names to authentic connections. Watch out for capitalization, changed numbers and special characters (Airport_WiFi vs airportwifi1). Many providers display the correct network name on posters, walls and even in public bathrooms – take a moment to verify before connecting. If you connect to a hacker’s wifi network, all your data will pass through their hands.

Honeypot

Some scammers launch so-called ‘honeypot’ wifi networks that lure unsuspecting travelers with SSIDs like Free_WiFi or FREE-Internet. It’s much better to take a moment to connect to an official wifi network, even if you must pay for it. Unsecured, ‘free wifi’ will often push your internet activity directly to the scammer’s own laptop.

Most official networks ask you to agree to terms and conditions after you connect but before you can access the internet on your device. If you’re not asked to agree to terms and conditions,  this could be a sign that you’re not actually connected to a genuine airport wifi and could be in danger. If you’re not sure you can ask airport staff for the official wifi SSID or choose not to connect.

Unsecured networks

Even official networks can be dangerous if not properly configured. If a hacker manages to take control of an airport wifi router, they can redirect you to phishing pages or sites containing malware, often using a man-in-the-middle attack like DNS poisoning. Don’t assume that airport wifi is properly secured, because many fall short.

Popups

Be wary of pop up windows that offer to update your software while you are connected to the airport network. This is very likely to be a malware trap. If you accept the update you may be downloading viruses, ransomware or other types of malware. Decline all opportunities to run updates on public wifi networks.

Ways you can protect yourself

There is never any guarantee that your data will remain private when you use the internet. There are ways to make your connections more secure. A little planning before you leave for your trip could save you a lot of hassle later on.

Before you leave for your trip, use your home or company wifi network to make sure your computer is up to date with antivirus and any firewall requirements. This will give your device the best line of defense against known threats.

Use a VPN

Virtual Private Networks create an encrypted ‘tunnel’ that protects all of your data from being read by data sniffers – eavesdroppers. If you travel for business, you may find your work device already deploys one of these. (If they don’t, speak to your IT team about getting one). Private VPNs are available to download online. Some are free or low-cost – read online reviews to see which one is right for you. It won’t take long to familiarize yourself with how VPNs work, and your data will be much safer because of it. Both ExpressVPN and NordVPN score highly on review sites.

Disable print sharing, airdrop and Bluetooth

Some Apple devices make it easy to share files, documents and images using airdrop, a wireless broadcasting connection. If you don’t want to make your information available to other nearby Apple devices, turn it off. Bluetooth is also more secure than it used to be but should also be disconnected where possible to reduce any risks of hacking. Your device might have a setting that treats the wifi as ‘public’ rather than a home network and automatically disable sharing and other network features.

Visit HTTPS websites

Before 2017, many of the top-visited websites did not encrypt their information, which meant anyone with the right tools could ‘sniff’ the data being transmitted across wireless connections. Now, over 70 of the top 100 visited websites are HTTPS secured. If you look at the top left-hand corner of your address bar in this browser, you should see a small closed padlock. This means the website is encrypted. People attempting to read the data you transmit will see the domain name but not the specific page address, nor data you enter or search for. This is often enough privacy for most people. Extra caution may be warranted when the domain name alone indicates interest in a sensitive subject that you may not want made public. The level of privacy each person demands is different, and there are levels of privacy protections available to reflect that.

Avoid entering personal details

Even though HTTPS protocols make most public internet use safer than ever before, it is still wise to act as if hackers are watching you. There are other methods unscrupulous people can use to try and steal your personal data. Never enter banking passwords or credit card details, for example.

Disconnect when possible

Depending on your usage, you may be able to connect to the wifi, get your task done and then disconnect. The less time you spend connected to the network the less risk you expose yourself to.

Use your phone hotspot

If you have a good data plan, you may be able to use your smartphone’s data via a wi-fi hotspot. You avoid using the airport wifi altogether, although you will need to decide how much data you’re willing to burn.

Forget the network when you’re done

When you are finished with the airport wifi and you don’t want to connect again, use your device settings to forget the network. This will stop your device from automatically connecting to the network without your express permission in the future.

Following the tips above can help you stay safe and avoid becoming the prey of hackers during your next stop at the airport.

In order to gain access to their winnings they are required to send a relatively small amount to cover taxes, administrative fees or customs charges. As you may guess, there is no lottery, and the scammers repeat the offer to as many people as they can in order to fleece as much as possible.

Lottery scams are conducted in bulk. Thousands of emails, phone calls and letters are sent out every day. The success rate does not have to be very high for scammers to make money. Do everything you can to protect yourself.

Scam delivery methods

Scammers try many different ways to separate people from their money. Lottery scams come in different varieties which can make them difficult to spot. They are an advanced fee scam, similar to Nigerian Prince scams.

Different tactics are used depending on the target of the scam, and the stories often change depending on the method of contact. Remember scammers are often highly skilled amateur psychologists who specialize in creating relationships and winning trust from victims.

Depending on where you are located in the world, you may receive scams claiming you have won a lottery held in various countries of origin – European, Spanish, British, Canadian, Australian and Jamaican mega lotteries or heritage raffles have all made headlines.

Mail

You receive a letter in the mail that claims you’ve won a significant amount of money in a lottery. Often the winnings are from foreign lotteries based in the UK or Europe. The letter may include a check for your supposed winnings.

Instructions will ask you to deposit the check and immediately wire transfer a relatively small fee to an administrator to pay European taxes or fees. Of course, the check is a fake, but victims may not realize this for days until it is rejected by the bank. The victim has plenty of time to send their own money to the scammers before learning the truth.

Other versions of this fraud include prizes of expensive jewelry or even cars from foreign lotteries. Victims are asked to send enough money to cover customs and import duties before the prize can be sent. Others may be asked to pay a special fee to allow a US citizen to claim winnings from a European lottery.

Email

Email lottery scams also send out congratulatory notes that announce your winnings of a lottery or sweepstakes.

Sometimes these try to mimic legitimate American national or state lotteries, and sometimes they try to look like foreign lotteries. As in the case above, victims are asked to wire money ahead of a major prize being deposited.

Email conversations with scammers have a higher risk profile than receiving letters in the mail, as the ability to build relationships online is much faster. Scammers can quickly escalate to asking for personal information like scanned images of a person’s passport or driver’s license to supposedly verify their identity as the winner. In such a case, they steal the victim’s identity as well as their money.

Phone

Scammers love to use the phone to make direct contact with potential victims. Lottery scammers have been known to target lonely or elderly people as they can be vulnerable to this type of manipulation.

The longer a scammer can stay on the line, the more likely the person is to trust them. On the phone, scammers claim to call from customs or the IRS. They describe the winnings held on the victim’s behalf, and once appropriate taxes are paid, they can release the cash prize.

Sometimes the scammers pretend to be lawyers representing the lottery company and arrange for cash to be sent as administration fees. In some cases, Americans are targeted by syndicated gangs of scammers that originate in Jamaica.

Phone lottery scams are sometimes referred to as Jamaican lottery scams because of this. Look out for Caller ID displays that begin with an 876-area code, but be aware that scammers can disguise their area code, too.

SMS – text message

Lottery scammers try every avenue, including text messages. They are often contain vague messages of congratulations, an impressive dollar amount of winnings and a link or email address to contact. Text messages are brief but can be dangerous because those active links and email addresses can make engagement (and entrapment) one click away.

The links can open pathways for malware and spyware to be loaded onto devices, too. Smaller screens on phones and devices can make fraudulent websites more difficult to spot.

In person

Perhaps the most brazen attempt at lottery scam is the in-person attempt. This style of scamming preys on the good will of people.

Vulnerable populations such as the elderly are often targeted. A scammer will pose as an illegal immigrant. They will claim to have a winning lottery ticket, but that only citizens can claim it. If the victim will hand over cash or jewelry as collateral, they are sent to claim the winnings on the scammer’s behalf in exchange for a portion of the winnings.

Sometimes scammers work in teams to provide a willing helper to convince the victim it’s a good idea. Of course, the ticket is not a winner, and the scammers quickly leave with the money or jewelry in hand.

Lottery scam escalation tactics

No matter how you are contacted, scammers have a plan to engage with you and build your trust. Watch out for the following escalation tactics. Scammers will do anything to take more money from victims, especially if they have been successful once already.

If a victim has sent money once, scammers will work hard to convince them to send more. Like other advance fee scams, the story will continue to change as unexpected fees, increased taxes and even bribes are presented as barriers to accessing the lottery winnings. Often significant amounts of money can be lost while chasing the larger amount.

After a time, more elaborate scams will move to a second phase. This often happens when victims begin to resist sending more money. They may receive a call from someone claiming to be from the IRS, the police, or a private investigator. They will announce to the victim that they have been scammed, but the authorities are now on the case. The caller will offer to recover the stolen funds for the victim, if they would just pay a finder’s fee upfront. It’s incredible, but it works.

Some scammers are ambitious and aren’t happy to limit their crimes to cash fraud. They will ask the victim to send through copies of their passport, driver’s license, social security number and other personal details in order to verify their identity as the winner of the lottery. These requests may be presented along with official looking forms to complete. Such information is used for identity theft.

Be aware that some scammers compile databases of scammed individuals. If a person has been defrauded once, other scammers may try to target them with a different story. If you or someone you know has been scammed recently, be very alert to any new offers or contacts.

How to avoid being duped by lottery scams

Scammers like to make their scams cost efficient, and they also make mistakes. These two facts help everyone to identify lottery scam attempts. Here are clues to look out for and questions to ask yourself if you are contacted by someone claiming to have your prize winnings.

• Did you enter any international lotteries? It’s impossible to enter without purchasing a ticket in person, in the country of the lottery.
• Are there spelling errors or strange phrases in the letter? Some scams originate in countries where English isn’t a native language.
• Does your letter have a bulk rate marking on the envelope? Scammers bulk post to save money, but there are never bulk lottery winners.
• Is the letter or email addressed to you specifically? If there’s no name on it, it’s probably mass-produced.
• Does the phone call incoming number start with 876? It’s likely a Jamaican lottery scammer.
• Do they ask you not to tell anyone about the winnings, or to lie about funds being sent?
• Do they ask you to pay by wire transfer or with iTunes gift cards? These transfer methods are insecure, unofficial and untraceable. No honest organization would use them to charge fees.

No matter how good the story sounds, or how large the sum of money is, do not send money. Do not give your personal information to anyone claiming to be from a lottery commission.

Here’s one last bit of advice: Have you ever bought a real lottery ticket? Did the cashier ever ask for your name or contact details? Most lottery tickets are purchased anonymously. If you did win, how could the lottery administrators contact you? They can’t. That’s why you see news reports about unclaimed lottery prizes. If you are ever contacted about winning a lottery, think very carefully about this point.

Legitimate lotteries exist

Of course, legitimate lotteries do exist. In the USA, official lotteries are conducted in 45 US states along with Puerto Rico, the District of Columbia and the US Virgin Islands. They are managed by each state or jurisdiction.

Some states combine their lotteries to enlarge the purchasing footprint and the potential prize pool. The largest of these function almost as national lotteries, although there are no official lotteries conducted or administered federally. It is illegal to enter a lottery in a foreign country unless you are physically present to purchase the ticket. They may not be bought online.

What to do if you receive a lottery scam attempt

If you get a lottery scam contact, delete or destroy it straight away. Scammers cannot steal from you if they can’t engage with you. Use the appropriate contact details below to report attempted scams.

Have you been scammed?

If you think you or someone you know is a victim of a lottery scam, there are ways you can report it to authorities. It is very unlikely that you will be able to recover any funds sent. Stop sending money as soon as you realize you are being scammed.

Report the crime to https://www.usa.gov/stop-scams-frauds. This website offers specific advice on where to report scam lottery attempts. The reporting mechanism varies depending on which method the scammers used.

Mail fraud: US Postal Inspection Service

Telephone fraud: FCC Consumer Complaints Center

Email fraud: Internet Crime Complaint Center (IC3)

If you think the scam originated outside the United States, report it to the appropriate agency above and also to: ecommerce.gov.

Canada

There are many news reports of Canadians being scammed out of thousands of dollars through lottery scams. If you think you have received a lottery scam attempt, contact the Office of Consumer Affairs. If you have sent money in order to claim lottery winnings, you have been scammed and need to report the crime to your local RCMP detachment. Keep all documentation and communications as evidence to help them locate the scammers or help others avoid the same happening to them.

UK

UK citizens are not immune to lottery scams. If you think you have been scammed, report any financial losses to police immediately. You can also lodge a report with Action Fraud and the National Trading Standards eCrime team.

Australia

If you are in Australia and you have lost money to lottery scams, report the crime to your local police station or call 131 444. Scamwatch is a government organization that offers comprehensive advice for Australian victims of fraud including lottery scams. The information on the Scamwatch page will direct you to reporting resources and how to protect your identity if personal documents were handed over during the scam.

While analog scams do continue to occur, the majority of fraud attempts now occur online. We all think we are immune to the efforts of scammers but that’s simply not the case. Humans are naturally inclined to trust and assume good things will come to them, and sometimes lose their sense of judgement when it comes to emotional pleas and money. What’s worse is knowing that many people continue to give money away even after they realize the situation is fraudulent.

Here are some of the most common scams that are operating today. If you’re aware of what scams can look like, you’re more likely to avoid falling for them.

See also: How to place a fraud alert

Phishing Scams

Scammers create emails that mimic ones from well-known companies and brands, such as Amazon, eBay and PayPal. They encourage recipients to click links within the email to verify details or claim prize winnings. Unfortunately, the emails lead to websites that are designed to steal personal information or may download malware onto a victim’s computer.

You can watch out for some tell-tale signs of phishing emails. They may have one or more of the following characteristics:

• The email isn’t addressed to you, or the name space is left blank,
• There are spelling or grammar errors,
• You are notified you’ve won a competition you didn’t enter,
• The sending email address doesn’t match the company name,
• The branding, images or colors in the email do not match the real company website,
• The email claims to be from a friend who is stuck overseas and needs money sent,
• You receive a delivery notice when you are not expecting a parcel.

If you think you have opened a phishing email, delete it straight away without clicking on any links or attachments.

Extortion

Online extortion is a common scam, often taking the form of a threat against an individual or company that can be avoided in exchange for money.

Ransomware, where hackers hijack your computer files and encrypt them, is one form of extortion. The file owner has to pay a Ransom to have the file decrypted.

Sextortion threatens to release intimate photos of videos unless a fee is paid, while hitman extortion threats claim they are a hitman who has been hired to hurt or even kill you. The email then claims this can be avoided in exchange for your money.

Terrorist and bomb threats are similar to the hitman scam, and threaten your life and that of others unless you pay them.

A Distributed Denial of Service (DDoS) attack can block whole websites or internet services by flooding them with fake traffic requests. DDoS attacks are usually aimed at business owners for whom an interruption in service is very damaging. Businesses must pay a ransom to stop the attack.

Social media scams

Social media is a massive part of personal and even business life today and a natural environment for scammers to operate in.  

Fake ads can claim to let you see who has viewed your profile, but instead you’ll be asked to download software and hand over access to your account and personal details. Fake celebrity news can act as clickbait and victims are required to enter personal details to access the article.

Other traps on social media can include impersonation scams where fraudsters create an exact replica of your public profile, connecting to your friend and family network and making requests posing as you.

Travel scams

As the number of people buying travel tickets or holiday packages online has opened the door for scammers setting up fake travel sites selling vacations and tickets that simply do not exist.

Travel is an expensive purchase with a large deposit upfront, so victims can lose huge sums of money.

Look out for free or discounted vacations that seem too good to be true, if you’re told you have won a vacation, beware being asked to pay a fee or provide credit card details.  

Tax scams

Tax scams often take the form of emails claiming you have overpaid your tax bill and are due a refund.  The tax refund is just one of a number of tax based scams.

Also keep in mind fake audits where you are contacted by someone claiming to be from the IRS, and an error has been spotted in your tax payment records. Demands for an immediate payment and threats of additional fees or a jail sentence are used to cause panic, so always take your time to make sure the email and contact is genuine.

Cryptocurrency scams

Cryptocurrency is a growing and very popular market for investors and is often targeted by scammers. Fake coin exchanges are one problem, and with so many exchanges popping up all the time it’s hard to know which ones are legitimate.

Coin exchanges have also been hacked including the Coincheck incident to the sum of $500 million.

Beware of relatively new or unheard of coins with a surge in value. ICO (initial coin offering) scammers organize mass investment, encouraging others to buy in. When the value increases further, the first investors cash out for profit leaving new investors with a worthless cryptocurrency.

Holiday Electronic Greeting Cards

Electronic greeting cards, or ecards, are sent via email, commonly around major holidays like Mother’s Day, Valentine’s Day and Christmas. The cards are often thoughtful or funny and include animations along with a personalized message from the sender. They can be a convenient way to send greetings to friends and family during the busy holiday season.

Unfortunately, the popularity of ecards has made them a target for scammers. It’s common for ecards to require the receiver to click through to a website to view the card. Scammers take advantage of this by creating fake ecards and directing victims to visit websites that download viruses and malware onto personal computers.

How can you tell if your ecard is from a friend or a fraud? Look for these clues and if in doubt, delete! Contact your friends directly to ask if they sent you an ecard if you are not sure of its authenticity. It’s possible that your friend’s email was hacked and used to send out virus-filled ecard emails.

• The email doesn’t use your name (hello friend!),
• The email doesn’t use a sender’s name you recognize, or uses unbelievable or generic names,
• There are spelling errors,
• The sending email address or the website they ask you to visit looks unusual, misspelled or unrelated to the card company’s name,
• The details are incorrect, such as claiming you’ve sent a card rather than receiving one.

Nigerian Email Scam

Nigerian Prince scams, also known as 419 scams, are very common. Originally sent via letters and faxes, they are now sent to countless email inboxes every day. Here’s the premise: a lawyer or political official from a war-torn country reaches out and explains that there is a large sum of money trapped in an account (or maybe, a wealthy relative has died but they can’t pay the lawyers to access the inheritance). In any case, they ask the recipient to send a smaller amount so that the account can be accessed by the rightful owners. In return for the kindness, they will gladly share a large portion of the funds to say thank you.

It’s the best example of the adage, ‘if something sounds too good to be true, it probably is’.

If a scammer successfully convinces a victim to send money, they will latch on and start spinning a story about unexpected fees, bribes and other costs that need to be paid. Each time they promise it will be the last payment before the lottery-sized benefit is accessible to share. They don’t stop asking until the victim finally stops sending money.

It is almost impossible to recover the stolen funds, even if the crime is reported. This is because funds are usually sent through untraceable wire transfer services and more recently, cryptocurrencies. The lack of paper trail means the money is not able to be recovered.

This is a type of scam called advance fee fraud. Any letter or email that asks the recipient to send a small amount of money in order to receive a much larger sum is almost certainly fraudulent.

If you find a Nigerian scam email in your inbox, delete it straight away. Don’t risk entering into an exchange with them as often the scammers are experts in scam psychology and can quickly draw well-meaning people into becoming victims of fraud.

Internet Auction Fraud

Internet auction fraud is a difficult type of scam to avoid because there are so few warning signs for customers. Using online auction sites such as eBay involves a level of trust as buyers must pay for goods that they have not seen in person.

Scammers work auction sites by creating fake listings for items that do not exist. When victims pay for the item, it is never sent. It can be very difficult to recover the funds as scammers can open and close new accounts quickly. A less severe type of internet auction fraud involves sending items that are not as described in the listing, for example, the item could be of a lower quality, have undisclosed damage or be a picture of the item rather than the item itself.

Protect yourself on online auction sites by doing the following:

• Use a credit card for purchases, as there is often additional financial protection offered by lenders,
• Clarify payment methods and ensure it’s traceable (don’t pay with wire transfers),
• Never give out your social security number or private details to a seller,
• Read buyer feedback on the account before purchasing,
• Use a search engine to research the company name before buying,
• Check with the auction-hosting website to see how fraud cases are dealt with,
• Never communicate with merchants outside of the auction site’s chat and messaging system, such as through email or text message.

Phony Identity Theft Protection or Credit Repair Scams

These scams typically occur over the telephone. Both identity theft protection and credit repair scams have roots in honest business models, but are often hijacked to steal sensitive information and money from trusting victims.

Identity theft protection scams prey on people who are aware of the dangers of identity theft. They offer a service that claims to prevent it from happening, often for a fee. The caller will ask the victim to confirm sensitive details such as their Social Security number, driver’s license number, and mother’s maiden name. These details will be collected and used to perpetrate the exact crime that was meant to be prevented.

Credit repair scams are targeted at vulnerable people with poor credit history. They offer to increase a person’s credit rating by a specific number of points or claim to be able to remove negative history from the report. Scammers will demand an up-front payment to facilitate this supposed credit repair, and sometimes will also ask for personal data like above.

True credit repair organizations are governed by federal law and are prohibited from charging any fees until the service is delivered. Up-front charges of any kind are illegal. Be aware if a caller tries to convince you to lie to a federal agency in order to secure new identity documents or loans, you may be committing fraud yourself.

“You’ve Won a Prize!” Lottery Scam

Similar to the Nigerian scam, lottery scam emails offer a financial solution that is too good to be true. An email may arrive claiming that you have won a significant amount of money or prizes in a lottery or sweepstakes. These lotteries are sometimes based in Europe and offered in euros, to make the offer even more exciting and tempting. In order to claim your prize, you must supply identity verification information such as your social security number, birth date and bank details.

Of course, there is no lottery and you haven’t won anything. Victims are often dazzled by the amount of money on offer and are too quick to claim before verifying the email.

How can you know if a lottery email is a fake?

• The email is not addressed to you personally,
• The lottery name cannot be found on search engines,
• It requests upfront payment to unlock the winnings,
• The email asks for personal information to verify the winner,
• You did not enter a lottery, competition, draw or sweepstakes.

“Make Millions Stuffing Envelopes!” Scam

Stuffing envelope scams are part of a broader family of work-at-home scams. No matter the details, they all offer people a chance to earn a lot of money while staying at home. These scams often target vulnerable individuals who cannot undertake traditional working roles outside of the home.

Envelope stuffing scams ask participants to send in a fee to purchase start up materials, pay registration costs or a security deposit. Most people do not receive anything from the callers from that point on, and the money is lost. The few people that are contacted again will be sent a pile of work to be completed and returned to the company. Invariably the work is deemed inadequate and will not be paid for.

Envelope stuffing scams and similar offers often have an added level of fraud built in. Sometimes victims are encouraged to bring other people into the scam, by being offered a reward or finder’s fee for every new sign-up. Unsurprisingly, the finder’s fee is usually taken from the registration costs of the newest victim, while the orchestrators continue to take the rest of the money without hesitation. This type of additional scheming is closely related to pyramid scams.

What Else Can You Do?

Scammers are always finding new ways to separate honest people from their money. It’s tiresome to always be on the lookout for scams and fraud but the consequences of identity theft can be wide-ranging and very damaging. It’s worth casting a suspicious eye over any unusual email or phone call.

Adopt a “need to know” approach to your personal data. Certain companies such as banks will have your personal records on file. They may ask for certain private details in order to verify they are speaking with the rightful account holder. Do not give out your details to a person that cannot themselves verify they are who they say they are.

Reduce the amount of information included in email signatures, on personal checks and on social media profiles. When your personal information is shared publicly it becomes much easier to scammers to impersonate you and steal your identity.

Always be suspicious of emails that come from unknown senders. Any email that asks for money in exchange for more money at a later date should not be trusted. Don’t click on any links – delete it straight away.

Never hesitate to verify information or requests. If you receive an email, call the company or visit the official website to confirm. Reach out to the Better Business Bureau to help distinguish between authentic companies and fraudulent scammers.

For more information on what to do if you think you’ve found a scam, and what to do if you’re a victim of fraud, please visit our article on How report a scam.  

Millions of Americans are at risk of identity theft thanks to the wide availability of personal information online and breaches that make Social Security numbers available for bulk purchase on the black market. If you notice unauthorized activity on your personal accounts, there are steps you can take to prevent further losses. But what happens when an identity is stolen after a person has passed away? Often, no one notices due to the natural grieving process and the sometimes overwhelming responsibilities that come with settling a person’s estate.

Unfortunately, posthumous identity theft is a real problem, affecting nearly 800 000 estates every year. It’s important to know how to protect the estate of your loved ones so their data is not exploited by criminals.

How Do Criminals Find the Information?

Criminals are often well-organized and work diligently to identify potential targets for posthumous identity theft. Massive security breaches like the 2017 Equifax hack have released plenty of personal details to the black market.

Databases of details such as full names, birthdates and addresses exist online for purchase. It’s possible that only small amounts of additional detail are required for identities to be stolen. People who have passed away make tempting targets as the theft can go unnoticed for a long time.

The next section outlines how you can reduce the amount of personal information available in the public domain for criminals to scavenge. Prior to the invention of the internet, criminals were known to crawl through trash cans to steal documents with personal details listed. This is still a concern when grieving relatives are required to clean a deceased relative’s home, and any documents that need to be discarded should first be shredded or destroyed before disposal.

With enough personal information in hand, thieves can use the deceased’s identity to open new accounts and lines of credit, take over existing accounts, and/or collect benefits in the victim’s name.

How to limit personal information in the public sphere

Losing a loved one is very difficult, and often emotions can be overwhelming. Unfortunately, it’s critical that one family member is made responsible for managing the estate of the deceased family member. This may be the nominated executor of the estate. Here is a list of things that should be taken care of promptly. Some of these actions can only be undertaken after an official death certificate is secured, so make it a priority to have the paperwork completed. This is often conducted by the funeral director, but may be produced by a health service such as a hospital if the family member passed away in care.

• Create a list of known bank accounts, credit cards, financial involvements and insurance policies. Get in contact with each provider and close or cancel the accounts,
• Cancel the person’s driver’s licence, passport and any other identity-related licences or permits,
• Send a copy of the death certificate to the IRS to notify them of the death to avoid tax fraud. Send the paperwork to the campus the person would normally file their taxes,
• Contact the three credit bureaus (addresses are listed at the bottom of this list) and ask them to put a note on the file to say the person is deceased. This will happen on its own when the Social Security Administration add the deceased’s Social Security number to the ‘Death Master List’, but it can take up to six months. It’s better to act immediately,
• If you have access to them, edit any social media accounts to remove personal information, or delete them. Some networks allow people to ‘memorialize’ the accounts so they cannot be altered but accessed by previous contacts.

There are also physical things you can take care of.

• Secure the person’s wallet as soon as you’re able. It’s not unheard of for identity documents to be stolen by unscrupulous support staff,
• Host the wake in a location anywhere except the person’s home. Some thieves target wakes to steal valuable items and documents while the families are distracted,
• Ask the post office to hold the mail if the person lived alone or in supervised care. This prevents sensitive information from sitting in an unsecured mailbox,
• Restrict the information you include in any public obituaries. Omit details such as their maiden name, birthdate and full address so the public can’t use the information to their own ends,
• As mentioned above, shred and destroy any documents that contain personal details and Social Security number. Do not throw them out without first making them unusable by thieves.

Credit bureau details

You will need to contact each credit bureau individually to place a ‘deceased alert’ on their credit file. This should stop all lenders from issuing new loans in your loved one’s name. Use secured or registered mail to post a certified copy of the death certificate, and a letter including the person’s full name, any past names including previous married and maiden names, Social Security number, dates of birth and death, and last 5 years of addresses.

• Equifax, PO Box 740241, Atlanta, GA 30374
• Experian, PO Box 4500, Allen, TX 75013
• TransUnion, PO Box 2000, Chester, PA 19016.

See also: How to place a fraud alert

Canada

Canadians can protect their loved one’s estate from posthumous identity theft by following the above mentioned advice regarding securing their personal details. The Government of Canada provides a comprehensive website that lists the appropriate agencies to contact, including credit bureaus and the Canada Revenue Agency.

UK

Along with taking the precautions outlined above, British people can use the government’s Tell Us Once service to notify multiple government departments of a death. This will cancel the person’s passport, driver’s licence and social benefits, and remove them from the electoral roll, along with notifying other relevant departments. Contact credit bureau Experian by phone 0344 481 8000 or online at www.experian.co.uk

Contact Equifax online at https://www.equifax.co.uk/Contact-us/Contact_Us_Personal_Solutions.html

or by post at

Equifax Ltd

Customer Service Centre

PO Box 10036

Leicester

LE3 4FS

Australia

Australians should use the advice listed above to proactively protect against posthumous identity theft. The Australian government offers a comprehensive guide regarding who to contact, and includes options to notify the government of the death. This will secure the deceased person’s government details including Centrelink, child support and medicare. The Australian Tax Office will need to be notified separately.

Credit bureaus will need to be contacted individually to have a ‘death note’ attached to the file.

Equifax (formally Veda): https://www.equifax.com.au/ 1300 762 207

Experian: www.experian.com.au/ 1300 783 684

Illion (formally Dun & Bradstreet): https://www.checkyourcredit.com.au/  1300 734 806