Fraud in the News

Equifax breach breeding new scams

The recent data breach at the credit reporting company Equifax has been dominating news cycles. According to the Sept. 14 USA Today article, Equifax data breach: Feds start investigation, by Roger Yu and Kevin McCoy, Americans are facing one of the largest personal data hacks in U.S. history. Hackers gained access to personally identifiable information (PII) of nearly 143 million consumers. The data includes not only credit card numbers but Social Security numbers and birthdates. Equifax claimed to discover the intrusion on July 29, but its impact might remain unknown for years.

If this blow to consumers isn’t bad enough, additional scams are popping up. The Federal Trade Commission (FTC) warned in a Sept. 14 release that new scammers are posing as Equifax representatives asking consumers to verify information that might be compromised. (See Equifax isn’t calling, by Lisa Weintraub Schifferle.) Equifax is providing free credit monitoring services, but the company won’t call you. The FTC advises consumers never to give PII to anyone calling out of the blue. Don’t rely on possibly deceptive caller ID for confirmation. And if you receive an automated robocall, don’t press “1” or other numbers to talk to a live person. This can lead to further robocalls or scammers who now have your number.

If you receive what you think is a fraudulent phone call, report it to the FTC.

Pet meds manufacturer: a ticking time bomb

If you’ve purchased flea and tick medication in the last 15 years, buyer beware. According to the Sept. 17 Houston Chronicle article, Another pleads guilty in pet medication scam, by Gabrielle Banks, a national investigation into counterfeit pet medication led to seven guilty pleas in federal court.

According to the article, vendors were packaging non-regulated, smuggled flea and tick medication under popular names like Advantix and Frontline and selling the fake products mostly online, but also to some big brand-name companies. The medicine was smuggled from overseas and not regulated by the U.S. government, which must inspect any pet medication or pesticide sold.

The U.S. Department of Homeland Security spent five years investigating the illegal operation and seized $35 million in pet products of unknown origin and packaged with fake labels. Officials warn consumers to closely examine any flea or tick medication purchased for questionable packaging that might indicate counterfeit products.

Disaster fraud: adding salt to the wound

In the wake of Hurricanes Harvey and Irma, disaster fraud complaints are inundating the National Center for Disaster Fraud, and federal officials say they expect it to get much worse, according to Complaints pouring into National Center for Disaster Fraud, by Mary Kay Mallonee, CNN, Sept. 14.

According to the article, the center had received more than 400 complaints. Many of them include allegations of people trying to defraud the Federal Emergency Management Agency (FEMA). Fraudsters are also allegedly impersonating FEMA officials and asking hurricane victims for personally identifying information and money to receive FEMA funds.

The article says that complaints also involve charity fraud, suspicious ads for house inspectors and threats of disconnection of services. For more information about disaster fraud see this ACFE Insights post.