Fraudsters misuse the area code 833 to steal PII

In North America, toll-free phone numbers have one of the area codes 800, 844, 855 and several others, including 833. Fraudsters have seized that last area code to entice would-be victims to divulge personally identifiable information. Also, here’s information on a new COVID-19 scam and a gift-card fraud that purportedly involves your boss.

Carson Wagner received a pop-up screen, supposedly from Microsoft, on his computer that told him a virus was downloading malware, and he must call an 833 area-code telephone number to fix the problem. After he called the number, the recorded message told him to upload personally identifiable information (PII), including his name, address and bank account transfer number, which the fraudster said he’d use to refund money lost from the downloaded malicious malware. Unfortunately, Carson provided the PII. A week later he discovered that his bank account had a zero balance.

This case is fictional, but it represents a common example of an 833 area-code scam. Many individuals and businesses use the 833 area code and others to easily register toll-free numbers. Scammers and spammers will robocall phone numbers and leave voicemails to ensnare targets. But they’ll also insert pop-ups or ads in websites onto devices and computers to lure would-be victims to call the numbers or send emails. Victims are often fooled because they’re curious, and they’ve been conditioned to respond to 800 area-code numbers.

Fraudsters contact victims by gaining their PII from public phone directories or by finding victims on social media sites, including Twitter, Instagram, LinkedIn and Facebook.

Arm yourself against scam calls

According to the Gizmos Gadgets Life website, types of 833 area-code scams range “from spurious smartphone support being offered to computer tech support to bank frauds and financial repayment cons, as well as IRS payments.” (See “What is 833 Area Code Scam? How to Protect Yourself?” Aug. 13, 2020.)

To arm yourself, heed advice from Gizmos Gadgets Life:

Never answer any call that has an 833 area code or call any number that contains that area code.

Turn off the automatic redial option on your phone.

• If you’re worried about missing a legitimate yet important call from an 833 area code, look for the official contact number of the company you thought called you, and call them directly.

If you’ve been victimized, here’s further advice:

• Immediately uninstall software that fraudsters have said you needed to download, and run a software update followed by a virus check to ensure you’ve not missed any malware.
• Change all your passwords and don’t auto-save them.
• If you’ve sent money after you received a phone call from the 833 area code, contact your bank, local media and law enforcement agencies to lodge official complaints. Then secure your accounts against scams and try to reverse transactions to hopefully retrieve your lost money. PayPal also lets you cancel certain transactions if you can present legitimate reasons.
• Update your apps and ensure that your firewall never goes down.
• Don’t give your phone to someone else who could answer calls with an 833 area code.
• Ensure that your devices contain the latest operating system updates to protect against malware and viruses.

New COVID-19 phishing money scam

Fraudsters are impersonating Federal Trade Commission (FTC) Chair Lina Khan in a new phishing scheme email.

The email message says that the FTC will provide COVID-19 relief funds once you send it PII, such as your name, address and date of birth. Of course, the FTC doesn’t send economic stimulus or relief money to individuals. (See “WARNING: Email from FTC Chair Lina M. Khan about Coronavirus money is fake,” by Alvaro Puig, FTC, Aug. 19, 2021.)

Report this phishing email scam, as well as others, to your local media outlets and the FTC at ReportFraud.ftc.gov, and forward it to the Anti-Phishing Working Group at reportphishing@apwg.org. (Also report if scammers contacted you by text message or phone.)

Boss gift-card scam

Fraudsters have generated a variation on the classic gift-card scam. In the guise of bosses, they either hack into employees’ email accounts or send them emails with spoofed addresses. The scammers will ask their purported employees to send gift cards to them to help cover costs for company events with the promise that the employees will be reimbursed. Employees then hand over the gift-card numbers and PINs to the fraudsters pretending to be their boss. (See “Your boss isn’t emailing you about a gift card,” by Ari Lazarus, FTC, Sept. 8, 2021.)

Here’s some advice:

• Don’t pay for anything with a gift card. Gift cards are for gifts, not for payments. If anyone asks you to pay with a gift card, it’s a scam.
• Double check with your supervisor. Call your boss using a known number — not something that was written in the email.
• Take a pause. Can’t reach your manager? Talk to a trusted co-worker or friend. Tell them the situation and see what they would do.

If you fell for this scam, go to the FTC site “What To Do If You Are Scammed.” As always, report this scam at ReportFraud.ftc.gov and contact your local media outlets and law enforcement agencies.

Examples of common phone scams

Here are some common angles phone scammers like to use:

• Imposter scams: A scammer pretends to be someone you trust — a government agency like the Social Security Administration or the IRS, a family member, a love interest, or someone claiming your computer has a problem. The scammer can even have a fake name or number show up on your caller ID to convince you.
• Debt relief and credit repair scams: Scammers will offer to lower your credit card interest rates, fix your credit or get your student loans forgiven if you pay their company a fee first. But you could end up losing your money and ruining your credit.
• Business and investment scams: Callers might promise to help you start your own business and give you business coaching or guarantee big profits from an investment. Don’t take their word for it. Learn about the FTC’s Business Opportunity Rule, and check out investment opportunities with your state securities regulator.
• Charity scams: Scammers like to pose as charities. Scams requesting donations for disaster relief efforts are especially common on the phone. Always check out a charity before you give, and don’t feel pressured to give immediately over the phone before you do.
• Extended car warranties: Scammers find out what kind of car you drive and when you bought it so they can urge you to buy overpriced — or worthless — service contracts.
• ‘Free’ trials: A caller might promise a free trial but then sign you up for products — sometimes lots of products — that you’re billed for every month until you cancel.
• Loan scams: Loan scams include advance fee loan scams, where scammers target people with poor credit histories and guarantee loans or credit cards for an upfront fee. Legitimate lenders don’t make guarantees like that, especially if you have bad credit, no credit or a bankruptcy.
• Prize and lottery scams: In a typical prize scam, the caller will say you’ve won a prize but then say you need to pay taxes, registration fees or shipping charges to get it. But after you pay, you find out there’s no prize.
• Travel scams and timeshare scams: Scammers promise free or low-cost vacations that can end up costing you a lot in hidden costs. And sometimes, after you pay, you find out there’s no vacation. In timeshare resale scams, scammers lie and tell you they’ll sell your timeshare — and may even have a buyer lined up — if you pay them first.

(For more information on phone scams, see “Phone Scams,” U.S. Federal Trade Commission.)

Here to help

Please use information about these scams in your outreach programs and among your family members, friends and co-workers.

As part of my outreach program, please contact me if you have any questions on identity theft or cyber-related issues that you need help with, or if you’d like me to research a scam and possibly include details in future columns or as feature articles.

I don’t have all the answers, but I’ll do my best to help. I might not get back to you immediately, but I’ll reply. Stay tuned!

Robert E. Holtfreter, Ph.D., CFE, is a distinguished professor of accounting and research at a university in the U.S. Northwest. He’s a member of the Accounting Council for the Gerson Lehrman Group, a research consulting organization, and is a member of the White Collar Crime Research Consortium Advisory Council. He’s also on the ACFE’s Advisory Council and the Editorial Advisory Committee. Holtfreter was the recipient of the Hubbard Award for the best Fraud Magazine feature article in 2016. Contact him at doctorh007@gmail.com.