Daily Money - Issue #62: It's scammer time
Hi y’all —
Remember 2018’s summer of scam? It was only two years ago, though it feels like a century since time doesn't exist anymore.
In case you forgot, the summer of scam was a nuts news cycle where a new hoax was exposed every couple of weeks. Socialite Anna Delvey got outed as a fake heiress. Fyre Festival founder Billy McFarland pled guilty to fraud. Theranos’ Elizabeth Holmes got indicted… the list goes on.
And yet it doesn’t even compare to 2020.
This has been a record-breakingly bad year for everyone except America’s scammers, who have taken advantage of the chaos to con people out of their money. As of Sept. 22,
the Federal Trade Commission had received some 100,000 reports of coronavirus and stimulus-related fraud. The total loss exceeds $145 million, and that’s just from the cases that have been reported. It’s safe to assume there are thousands of victims who are too busy, too embarrassed or — yikes — too unaware to formally complain about losing their money in a pandemic scam.
I don’t have much money to begin with, so I certainly can’t afford to lose any of it. I’ve got to keep myself safe. So:
What’s going on, and how can I protect myself from the bad guys?
I checked in with Richard Bird, chief customer information officer at security software company Ping Identity. He told me the coronavirus outbreak is fertile for fraudulent activity in part because of the mismanagement of personal data over the past decade. All those website breaches add up: Hackers now have a ton of stolen info they can use to target everything from unemployment to small business loans.
As a result, “the breadth and scale of exploits and crimes being executed in the digital realm during the pandemic is staggering,” Bird says.
There are tons of examples. In February, the World Health Organization
found that scammers were emailing people to ask for online donations but actually installing malware. In March, nearly 700 websites with stimulus check keywords
popped up within days of Congress approving the CARES Act. In April, Google said it
encountered “18 million daily malware and phishing emails related to COVID-19” — on top of “more than 240 million COVID-related daily spam messages” — in a single week.
I could keep going, but I think you get the idea.
The fact that so much work has gone remote is contributing to the success rate of these schemes, said Edward Bishop, the chief technology officer at email security firm Tessian.
“What we’re seeing is attackers trying to take advantage of the chaos and uncertainty of current times,” he adds. “[You] used to sit next to a colleague and could lean over and say, ‘Hey, did you send me this invoice?’ This relationship now is distant — and maybe even in a different time zone.”
Basically, fraudsters know I’m stressed and distracted and taking conference calls at my kitchen table. They’re making the most of the fact that my guard is down.
Whereas usually I would disregard a funky-looking
email saying “you have been recorded as leaving your home on 3 occasions yesterday” so “a fine of $59 has been added to your account,” I might reply now because my mind is elsewhere. Whereas normally I would immediately delete a
WhatsApp message offering a discounted Netflix subscription, I might click through because I’m worrying about my family’s health.
Robocalls in particular are flourishing during the pandemic. One popular robocall references how President Donald Trump waived interest on student loans — a real thing — but then pivots into asking me to call back and give them my personal info. Others offer free coronavirus
tests, hawk faux cures, promote HVAC cleaning services and impersonate contact tracers. Landlines and seniors are especially at risk.
OK, so there’s some scary stuff out there. But how do I avoid it?
Bill Versen, the chief product officer at
Transaction Network Services, said I should…
- Stay on top of the latest scams. The government keeps track of recent COVID-19 scams here and here.
- Ask my phone carrier what robocall detection apps it provides.
- Not answer calls from numbers I don’t recognize. Legit callers will leave a voicemail.
- Avoid clicking on links from unknown numbers that text me.
- Be diligent — and never give out personal information like my credit card number or SSN over the phone.
(but please don't tell me you scrolled past all of my hard work)
2020 is no joke when it comes to scams. Fraudsters are using the pandemic and all it involves — my distracted nature, my WFH routine, my financial desperation — to steal my cash. I need to be way more careful than normal online.
“It’s actually really sad that people are taking advantage of a pandemic, but that’s what bad actors do,” Versen says. “They find current events and use that to their benefit to defraud.”
via GIPHY
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check out this crazy celebrity purchase
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via Instagram
You’re not alone — Shark Tank investor Barbara Corcoran can’t stop stress-eating in quarantine, either. She recently confessed to snacking on $4 bags of Pipcorn, which as far as I can tell are basically fancy Fritos. The whole-grain corn chips come in several flavors, but Corcoran says that “Lime Zest, in my opinion, is the best.” In the same interview, she also extolled the virtues of white wine… and for that reason, I’m in.
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five things I'm loving online right now
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1 | I love seeing everyone’s creative iOS14 home screens. From Renaissance art to vintage Macintosh, Hogwarts houses to Dirtbag Shia, the aesthetics are gorgeous. BRB while I design my own. |
2 | The only thing this catalogue of IKEA catalogues is missing is meatballs. |
3 | It has come to my attention that Hugh Grant loves Pret A Manger, which is funny and adorable and inspired me to rewatch the fabulous press conference scene in Notting Hill. Excuse me, there’s something in my eye. |
4 | Want to read some good news for a change? Check out my recent feature story about Amazon gifting groups on Facebook, where thousands of strangers gather daily to send each other presents through the mail. It’s a heartwarming and fascinating look into an intricate internet subculture. “There are times where I sit and look at my phone and I’m like, ‘Wow,’” as one source said. “If you’d told me there were this many nice people in the world, I’d have told you you were crazy.” |
5 | Arby’s. Charcuterie. Board. |
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send me cute pictures of your pets, please
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CREDIT: TAMI REN
Meet Kenda and Obi, a New York-based pair who are constantly on the lookout for fur-audsters.
That's all, folks.
See you next week.
Julia
P.S. Have you encountered any coronavirus scams? What’s your latest quarantine snack obsession? Do you have a favorite Hugh Grant movie? Write to me at
julia.glum@money.com or @SuperJulia. Bye now!
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