The Ego, The Market, and The Mania

From the Denver District Attorney’s Office:

Homeowners in the Denver Metro area are receiving solicitation letters from Home Serve, a Florida-based company that offers a warranty plan on residential water service lines. The warranty covers repair costs to water lines in the event of a residential water line leakage or break. According to the company’s literature, homeowners are responsible for water line damage that is located on residential property adjacent to  public areas maintained by the municipal water company. Are such warranties necessary? Only the homeowner can determine the value of such a service and this requires some work on the front end. The following are points to consider before making a decision:

• Know and fully understand what you as a homeowner are responsible for if a water line breaks between your house and common areas maintained by your local water company. City and County of Denver residents can access this information by clicking on the Denver Water website at http:/ /www.denverwater.org/WaterServiceSupport/TroubleshootingRepairs/Leaks/. *Note that Denver Water services most, but not all areas of the Denver Metro area. To determine your local water utility, go to http://www.denverwater.org/AboutUs/ServiceArea/ and click on Service Area Map in the right-hand box.
• Next, review your homeowner’s insurance policy carefully to determine your extent of coverage and to identify coverage gaps. As a precaution, it is always a good idea to sit down with your insurance agent annually, and prior to a catastrophe.
• Home Serve, a Florida-based company, contracts with local plumbers to perform the warrantied work. Check with your local building department to make certain that the service meets local plumbing codes.
• Understand all inclusions and exclusions which are listed in the fine print at the bottom of the Home Serve letter.
• Consider paying by credit card. If a problem arises, charges on your CC can be disputed.
• To access Home Serve’s rating by the Denver/Boulder Better Business Bureau, go to http:// www.denver.bbb.org and click on Check out a Business or Charity.

Denver DA’s Fraud Line: 720-913-9179

From the Denver District Attorney’s Office:

Recent studies indicate that parents are doing a good job of keeping their children safe while online. As parents know, children are especially vulnerable to exposure through chat rooms and social networking sites. By taking advantage of filters and monitoring systems, parents are better able to control their children’s access to unsuitable internet sites. Parents have also gained more confidence at identifying trustworthy sites for downloading age-appropriate music and games. However, without proper education and instruction, children can also fall victim to internet scams and identity theft. Likewise, they run the risk of introducing viruses to the home computer. For adults who spend only a limited amount of time around children – such as grandparents, the following are some safeguards to consider:

• Become knowledgeable of the filters and monitoring software that restricts children’s access to inappropriate internet sites.
• Educate children on ways in which viruses and scams can be introduced online.
• Demand that permission be granted first, before allowing children to download anything over the internet.
• Set ground rules regarding the use of social networking sites. Vigilance is especially important when it comes to protecting the identity of children and other family members. Children should be instructed to never post their personal information such as complete name, birth-date, pictures or address; or that of their friends or family members.

While parents are fairly knowledgeable about ways to keep their children safe when accessing the internet via the computer, they are much less so about controls that are offered for different technologies such wireless, smartphones and other mobile devices. For more information on these resources, go to:
www.connectsafely.org or www.safekids.com

Denver DA’s Fraud Line: 720-913-9179

From the Denver District Attorney’s Office:

Older Coloradans now have easier access to a prevention tool that helps stop the loss of their life savings to fraud or theft. Banks and credit unions have begun to notify customers of a Prior Consent form that, when signed by the account holder in advance of a fraud or theft, allows financial institutions to release their customer’s financial records to appropriate authorities in cases of suspected financial exploitation. Financial exploitation occurs when a person acts or fails to act in a way that causes a substantial loss of money to an elder or at-risk adult. Types of financial exploitation include fraud, theft, and theft by caregivers or family members which is commonly obtained through coercion, intimidation or deceit; or through the misuse/abuse of powers of attorney. Financial institutions are often the first place where questionable financial loss is detected. The ability of banks and credit unions to expedite the release of this information to law enforcement or social services agencies allows for quicker intervention. Most importantly, it enables such agencies to stop the loss of funds in the account(s).

Prior Consent forms require the signature of the account holder prior to an actual event or suspicion of financial exploitation. In this sense, the Prior Consent form serves as a preventative measure for which the account holder must voluntarily agree to sign. By signing a Prior Consent form, the account holder waives his/her confidentiality and privacy rights only for the limited purpose of allowing the bank or credit union to notify law enforcement and social services agencies of the fraud or theft. Without a signed Prior Consent form, financial institutions cannot release customer account information. Once signed, authorization under this consent remains in effect until it is revoked by the account holder.

Many older adults will never have to worry about significant losses to fraud or theft. However, with the incidence of financial exploitation on the increase, it is anticipated that such authorization will save older Coloradans millions of dollars. For more information regarding the Prior Consent form, Customers are urged to contact their bank or credit union.

Denver DA’s Fraud Line: 720-913-9179

From the Denver District Attorney’s Office:

As we know, awareness is an important first step toward reducing your exposure to frauds and scams.  This list includes warning signs to look for, as well as safeguards to consider:

ID Theft: All personal and financial information such as credit cards, checks and ID’s containing Social Security numbers should be kept in a travel pouch when out and about. Never leave your purse or billfold in your car. Shred all financial documents you wish to discard, and mail bills directly from the post office. Never give out personal or financial information over the phone or through email, unless YOU initiate the contact.

Investment Fraud: Be wary of claims of “guaranteed”, or “high” rates of return, and thoroughly check out all offers. Don’t be rushed into a decision. Make certain the security you’re interested in is registered, and the license of your financial advisor is up to date. Carefully review your financial statements and look for signs of unauthorized or excessive trading.

Sweepstakes, Lottery Scams: Chance winnings don’t just happen – you must “pay to play” a lottery by purchasing a ticket in advance. Likewise, you must enter a sweepstakes in order to win. Beware of any email or call claiming you have won, but must first wire money to cover taxes and fees. The latter is illegal in Colorado.

Door-to-Door Fraud: Never do business with door-to-door contractors who use high pressure, or scare tactics to close a deal. Beware of bargain-price offers on “left-over materials” and don’t let strangers into your home, no matter who they claim to be. City inspectors do not go door-todoor, and reputable businesses have no need to. Always get three bids when considering home improvement work.

Caregiver Fraud: If you, or a loved one receives care from a caregiver, stranger, or family member, or if you have a representative payee, power of attorney or other advisor who manages your finances, insist on receiving copies of all financial statements. No matter how much you know, love or trust a person, never sign documents you have not read or do not understand.

Denver DA’s Fraud Line: 720-913-9179

From the Denver District Attorney’s Office:

The Denver area is receiving a rash of phone calls from so-called ‘debt collectors’. In fact, they are con artists alleging that the person owes money on a past debt. They claim to represent a bank or other business, and will harass the victim by continuously calling back. These callers are specifically targeting older persons and are using scare tactics such as the loss of the home, or jail time if the individual doesn’t immediately pay up. There have also been reports of debt collection scams over the Internet –most likely the result of on-line accounts that have been hacked.

Tips on how to protect yourself:

• Never accept any claim from any source without written verification of the debt. Any form received through email is not written verification! By law, a debt collector must mail you a written validation notice within five days of contacting you by phone.
• Never give out personal or financial information to anyone who calls or emails, unless you initiate the contact.
• To eliminate any uncertainty even if you believe the call or email is a scam, call the business in question to check the status of your account. Chances are it is not a company with whom you do business. Also, never trust any telephone number given to you by the caller. Instead, call the customer or accounts department numbers off of a current invoice, or look the number up.
• Qwest customers with land-line phones can report these calls at 1-800-582-0655.
• Even if the debt collection is legitimate, collectors are not allowed to engage in harassing behaviors. See the Colorado Attorney General’s Office website www.ago.state.co.us/CADC/BrochureEnglish.cfm.html for more information.

Denver DA’s Fraud Line: 720-913-9179

From the Denver District Attorney’s Office:

Shredding important documents is one of the most effective ways of insuring that financial information doesn’t end up in the wrong hands. The following is a simple record retention guide that may help to eliminate some of the confusion over how long financial information should be retained (Source: www.bankrate.com):

45 Days
Credit card receipts: Receipts that match up with monthly statements can be shredded, but statements should be kept for seven years if used as documentation on tax returns (see Tax Returns, below):

One Year – Permanently

• Paycheck Stubs: Reconcile paycheck stubs with the W2 form. If there are no errors, pay stubs can be destroyed.
• Bills: Bills can be shredded once canceled checks are returned. For large purchases, bills should be retained indefinitely for replacement value in the event of loss or damage.
• Bank Records: Minor bank records can be shredded after a year, unless used to document deductible tax expenses, such as mortgage payments, or business expenses.
• Retirement and Savings Plan Statements: Quarterly statements from retirement or savings plans should be reconciled with the annual statements, and then can be shredded if there are no discrepancies. Annual statements should be retained permanently.

Seven Years
Tax Returns: Tax returns should be kept for seven years. If the IRS suspects gross under-reporting on a return, they have six years from the time a return has been filed to conduct an audit. If you suspect you have reported in error and wish to amend a report, or if the IRS detects a mistake, they have three years to audit your return. Receipts that accompany a return must also be kept, such as canceled checks and receipts for alimony payments, charitable contributions, retirement plan contributions/statements.

Denver DA’s Fraud Line: 720-913-9179

From the Denver District Attorney’s Office:

Like the daffodils that come up in the spring, so too, do “Travelers” – con artists who roll in to town in shiny new pick-up trucks, and peddle door-to-door. They offer fabulous “home improvement” offers, claiming to have “left over” asphalt or roofing materials, and can do the job at a bargain price.  The catch is that you must deal now!

Travelers, (and those who copy them) usually look for older, more established neighborhoods, or houses in need of repair.  They actively target older victims, often canvassing residential areas looking for elders working out in their yards.  In exchange for the money, they will perform shoddy or deceptive work; or often, no work at all.  Bogus landscape and tree-trimming “companies” also make an appearance about this time of year. Similar to home-improvement cons, other unscrupulous peddlers who solicit door-to-door include magazine sellers, or groups purporting to be legitimate charities.  Children can also be part of a charitable scam.  Alert neighbors in Denver recently reported youth going door-to-door collecting money for the “troops overseas”.

Door-to-door con artists are seldom violent.  All the same, it’s best to keep your garage and other doors locked when working outside.  If inside your house, make sure the screen doors are locked before answering the door.  Let your neighbors know when you spot questionable solicitors in the vicinity, and call the police.  Left unchecked, Travelers who have had have earlier success in one neighborhood have been known to return there the following year.

The best advice is to NOT DO BUSINESS WITH DOOR-TO-DOOR SOLICITORS AT ALL!   Reputable companies have no need to conduct business door-to-door. In the case of a major home-improvement, it’s always a good idea to get several bids.  For information on selecting a contractor, charity or preparing bids, contact the Denver/Boulder Better Business Bureau at www.denverbbb.org

Denver DA’s Fraud Line: 720-913-9179

From the Denver District Attorney’s Office:

Economic uncertainty influences our behavior, particularly how we spend, save and borrow. As tax season draws to a close, now might be the time to run a check on your credit “health”. Here are some safeguards to consider if you’ve gotten off track with good credit practices, or simply want to keep your credit in good standing:

Guard against identity theft. ID theft can destroy credit, so prevention is the key. Limit other’s access to information such as credit cards, checks, bank accounts (PIN and passwords) and Social Security number. Keep financial information safely locked up, and check monthly credit card/bank statements for any unauthorized expenditures. Immediately report anything suspicious to the credit card company or bank.

Run credit checks three times a year. This is a free, once-a-year service provided by each of the three reporting agencies. Take advantage of this service by running a credit report through a different reporting agency every four months:

• Equifax (www.equifax.com) or 1-800-685-1111
• Experian (www.experian.com) or 1-888-397-3742
• Trans Union (www.transunion.com) or 1-888-4213

Keep credit card statements for seven years. Once receipts are checked against monthly credit card statements, receipts can be shredded. Statements should be saved for seven years.

Consider a debt-restructuring plan if you fall behind on payments. Immediately call your creditors to negotiate a workable re-payment plan. Note that it is illegal for credit repair companies to charge an up-front fee for their service. NO service can repair bad credit. This takes time to rebuild, starting with paying bills on time. Consumer Credit Counseling Service is one agency that provides this service for free (303-750-2228).

For information from the Colorado Attorney General’s Office on credit reports, click here:

www.coloradoattorneygeneral.gov/departments/consumer_protection/uccc_cab/uccc/credit_reports

Denver DA’s Fraud Line: 720-913-9179

From the Denver District Attorney’s Office:

The Denver District Attorney’s Office is alerting people that bolder, and more elaborate lottery scams are being perpetrated over the telephone. Last month, an elderly couple in Denver fell victim to just such a scam. The couple was called repeatedly over the course of a week and instructed to wire money for ‘incidental fees’ before their winning check of $3.5 million could be released. The couple wired tens of thousands of dollars before realizing it was a scam. The Denver District Attorney’s Office alerted the victims bank, which was able to issue ‘stop-payments’ on some of the checks, but the victims lost $23,000 that will never be recovered.

And the scam didn’t end there! Realizing authorities were on to his scam, the con artist contacted his victims, this time posing as an “investigator” with the Federal Trade Commission. He tried, unsuccessfully, to swindle the couple out of more money, claiming the ‘suspect’ could not be prosecuted unless they contributed funds.

Warning signs:

• Be suspicious of any notification that you have won a lottery, especially if you haven’t paid to play. In order to win, you must first purchase a ticket. Winners contact the gaming agent, and use their ticket as verification that they have won.
• It is illegal in Colorado to collect “fees” on any lottery winnings.
• Any solicitation that asks to wire money should be a red flag. Once the money is sent and picked up on the other end, it cannot be tracked.
• It is illegal in the United States to play foreign lotteries! Many scams originate out of Nigeria. Take this into consideration if the caller has a foreign accent.

Denver DA’s Fraud Line: 720-913-9179

From the Denver District Attorney’s Office:

Be careful of what you post on social networking websites.  The popularity of sites such as Facebook or Myspace is also becoming the primary data source for fraudsters.  Although these sites are resourceful ways of keeping friends and family informed, much of what is posted reveals the kind of information criminals are looking for in order to carry out more sophisticated and personal scams.  Details one should be wary about posting include names and birthdates of family members, marital status, hobbies, hangouts, addresses, who’s on vacation or on a military tour, etc.  Vigilance is especially important when it comes to protecting the identity of children.   Cyber-scams cover all age ranges, cross all social spectrums, and are often up-dated versions of scams that have been around for a long time.  The following are examples of common frauds perpetrated on-line or over the phone based on information obtained through social networking sites:

Grandma Scam:  An older person gets a frantic call, presumably from a “grandchild” who claims to have been a victim of a crime or an accident, typically in Canada, or overseas.  They need money wired immediately to get out of a jam.  Posing as the grandchild, the con artist will give plausible reasons as to why the parents must not be told.  These scams are often elaborate -  another voice, perhaps a “police officer” or “bail bondsman” may get on the line, will ask the grandparent to verify personal information about the grandchild, then will give instructions on where and how the money is to be wired.  Panicked grandparents comply, often wiring several thousands of dollars.

One variation of the ‘grandma scam’ is the call from a “grandchild” in the military who wrapped up a tour of duty early and wants to “surprise” the parents by returning home.  The “problem” is there’s no money to do so. Delighted to be “in on the scheme”, the grandparents wire the amount that is requested to get the grandchild back home.

Friend in Distress:  Yet another and very similar ploy is the “friend in distress”.  In this scam, a participant of a social networking site receives a message from a site host “friend” professing to be overseas, and in a terrible mess.  They appeal to their network friend(s) to wire them money to get back home. Unbeknownst to the network site host, their website has been hacked and taken over by fraudsters who are carrying out the scam.

Romance or “Sweetheart” Scams:   Predators browse social networking sites to seek out on-line “romances”.   To lure victims, they post eye-catching, but bogus photographs of themselves.  Unlike other on-line frauds, sweetheart scams develop slowly and are relatively long-term.  Suddenly, the “suitor” is faced with an awful dilemma and needs cash.  Perhaps it’s a sick child, a terrible accident, or a false imprisonment.  Sound familiar?    The victim is asked to wire money, or to cash a money order and to send back the cash.  A couple of distinguishing characteristics of the sweetheart scam is the suitor’s poor use of English grammar, and frequent, overused expressions of love.  Many sweetheart scams originate in  Nigeria or Angola, and involve third-party accomplices’ in another country, typically England or Canada.

DON’T BECOME A VICTIM!

• Be careful when posting personal information.  Keep in mind that prisoners often peruse social networking sites, and can perpetrate a scam from jail.
• Never share detailed information about upcoming trips, military tours of friends or family members, birth dates, addresses, etc.
• Be mindful that photos might reveal too much background information, such as street names or license plates.
• Don’t post the full names of children or their friends.
• Always call a grandchild, friend, parents, etc. to verify that they are in fact, safe.
• Don’t click on any link or respond to any hyperlink on a networking site.  Often, this is how malware or viruses are introduced.  Promptly delete!
• Change passwords often, and establish separate passwords for individual sites.
• Check privacy settings on network sites and give careful thought about the personal information others can access.
• Keep virus protection software programs updated regularly.
• A WORD ABOUT WIRE TRANSFERS . . .    It’s the preferred method used by criminals because money sent over a wire is difficult to trace.

Scams that play on emotions not only result in the loss of substantial money, but are particularly devastating to victims. The inability to stop,or to prove such crimes are all the more reason to take special precautions when sharing personal information with others on-line.

Denver DA’s Fraud Line: 720-913-9179