Fraud Prevention

Examples of Common Email Scams

Inheritance Scam

This scam has been used for decades and has migrated from mail to faxes to email. The email will often start off with an introduction indicating that a government official (or some other person that would appear to have significant wealth) has died and left a large amount of money that is available to be transferred. The message then encourages the recipient to respond or unknowingly participate in the scam in order to receive some type of inheritance money or share of the funds. Over time, the sender may ask for funds to be sent to them to cover taxes, international fees or legal fees under the guise that the recipient will be reimbursed once the funds are transferred.

There is no deceased official or long-lost relative and no funds or inheritance exist.. The scam entices victims with the promise of large payoff. Over the years, the deceased individual has been described as a minister of mining or natural resources, successful business owners and even royalty. The locations for these types of scams have also changed over time.

Lottery Scams

This scam appeals to the excitement of lottery winnings. An email will arrive notifying the recipient that they have won a lottery. The email may even mention a legitimate lottery organization, but just because the email includes that name does not mean that the email is from the organization. There is usually a request to keep the winnings a secret. The email will advise that a claims agent (or some other official sounding person) be contacted to arrange for payment. Once those conversations start (usually over the phone), there isa request for funds (or payment) to cover taxes, legal fees or other processing costs in order to receive the so-called ‘winnings’ or lottery amount

Take note of the following red flags:

• Unless you have purchased a lottery ticket, you are not going to win.
• Any taxes on lottery winnings are withheld from the payments and not paid up front.
• The taxes are not paid through P2P payment methods (like Venmo, Zelle, Cash App, etc.) or through gift cards
• Legitimate lottery organizations do not charge fees.
• Beware of emails that originate from free email accounts like Yahoo, Hotmail, Gmail, MSN as fraudsters pose as legitimate organizations through personal email providers.

Refund Scams

These schemes can take on many different forms, but usually involve an email or text message indicating that the recipient has a refund due but all that needs to be provided is information to speed up the processing of the refund. The scam artists or fraudsters may claim to represent the IRS, state tax officials, government agencies, or even stores where you may have purchased something.

The email directs the recipient to a website that may look legitimate but is a fake or spoofed site. Once there, the person will be requested to provide various personal information such as Social Security number, credit card number or account information so the ‘refund’ can be deposited.

Providing this information is dangerous. Once in the hands of a fraudster, it can lead to credit card fraud, unauthorized access to your financial accounts or even identity theft.

The IRS and most state taxing authorities do not use email to correspond with you about refunds. Commercial establishments may use email, but you should be very wary of emails like this as they are usually done automatically or through registered email addresses. If you are unsure, contact the establishment by phone to make sure the request for information is legitimate.

Financial Account Confirmation Scams

Emails that request sensitive information are often called phishing emails. They often take the form of a message from a financial institution asking for the recipient to provide their account information due to a computer error, as part of a system upgrade or even as part of an enhanced Internet security initiative.

The recipient is usually directed to a website that may look real, but is not. The information requested may include account numbers, usernames, access codes and passwords (or even authentication text message codes). All of this information is dangerous in the hands of fraudsters.

Financial institutions will never ask for this type of information.  If you receive this type of phishing email, contact your financial institution directly.