“Anyone can be a victim of fraud”
That was one of many points that Al Perales, investigator with the Iowa Attorney General’s Consumer Protection Division, drove home last Thursday as he talked to citizens at the Osceola United Methodist Church. Perales was there on the invitation of Osceola’s three banks - American State Bank, First Interstate Bank and First National Bank - to teach consumers about common scams, and provide tips on how to spot and avoid them.
“Each of our individual banks work with fraud, scams almost daily. It’s become a big part of our job,” said Amy Lampe, market president at First National Bank before the start of the presentation.
Scam stories
Throughout his long presentation, Perales shared a number of stories about Iowans who he has worked with either following or during their involvement in scams:
-An older woman in DeWitt, who was told she had won $50 million and a Mercedes-Benz. She lost $50,000 trying to claim her “prize.” She had attended one of Perales’ seminars, and he called the number she had been given by the scammers in front of her and the other attendees. When the woman passed, her daughter contacted Perales to tell him that her mother had still been sending money to the scammers.
-A grandfather in Grinnell, who gave $8,000 in cash to a scammer who came to his door after receiving a call from his “grandson” that he was in trouble and needed cash.
-A woman in Oelwein was the victim of a romance scam that cost her $1 million.
-A widow lost $120,000 in a romance scam.
-A man in Mason City was told he’d won a sweepstakes, and needed to send $8,500 in cash to claim his prize. He then was told he needed to send more money for taxes, then more money. He sent the scammers $160,000 within two months of initial contact.
-A woman in Delmar had received a phone call claiming to be Amazon thanking her for her purchase of an iPhone. She hung up, but then received a text about it, so called the number thinking it was Amazon. Before long, she’d been transferred to what she was told was the DEA who informed her that her identity had been compromised and used in drug schemes. She was told that in order to protect her savings - about $20,000 - she needed to send it in cash to an address in California for safe-keeping.
“These scams are strong, they’re evil, they affect people. Not only their financial accounts, [but] their soul, their minds, their spirit,” said Perales.
In the case of the woman in Delmar, she called Perales the day after mailing her money to say she thought she’d been scammed. Perales contacted the UPS store that she’d used, and they were able to stop the package from reaching its destination and got her money back. But situations like those where the money can be recovered are far from the norm.
Anatomy of a scam
Perales explained that scammers will create a situation that seems so real and “right” that it gets your guard down, and that is what the scammers are counting on, gaining the victim’s trust. An acronym that he encourages people to use to help determine if something is a scam is called TIP and stands for Threat, Immediacy and Payment.
A scammer wants to introduce a threat into your life - such as your identity being stolen - and that can come in a variety of forms such as a phone call, text, email, in the mail or even someone at your door. After the threat is the sense of urgency or immediacy to address the situation - you must act now to save your identity. Then there is the payment, as money is always involved in a scam - pay a certain amount of money right now to save your identity from further harm.
“It’s nothing but smoke and mirrors, but they’re magicians and make it feel real,” said Perales.
If you think something sounds off, slow down and think about what you’re being told. The scammers bank on the person acting right away on the information they’re given with little questioning. However, there are always holes in the scenario, you just have to find it by asking questions.
Scammers will try to find a common ground with the victim, such as sports, patriotism, religion or hobbies and use that to their advantage, oftentimes using that against the victim. In the case of the above widow, the scammer used their “common ground” of religion against the woman, guilting her with it when she was reluctant to send money.
Scammers use robocall machines that will take the common local prefix and then random numbers for the rest. It can also assign a name to the number to make it look real on your caller ID. Perales said that with AI technology, scammers can now use the voices of family members when making scam phone calls.
Why Iowans, and what scams
When it comes to why Perales believes that scammers are targeting Iowans, specifically older Iowans, the biggest reason is money. He said that scammers are banking on most Iowans having a nest egg of some sort, and they want to get to it. The second is that Iowans are known for being “Iowa nice,” and wanting to help others when they get that call that someone is in trouble. The third reason is that oftentimes, older individuals are lonely so the scammers will prey on that loneliness.
In Iowa, common scams Perales is seeing currently are:
Amazon scam. Scammers will contact you to say you bought something and need to pay for it, with a realistic looking bill.
Facebook grant scam. The scammers hack someone’s Facebook profile and message friends claiming to have been approved for a grant, and that you could be, too.
Electricity scam. There is a problem with your electricity or account, and you need to pay right now to resolve it.
Romance scam. Scamming by way of emotions.
IRS scam. Something is wrong with your taxes, and you need to pay now to rectify it.
Jury duty scam. A call that you were scheduled for jury duty and failed to show, and you need to pay to avoid arrest.
Ten tips
In addition to TIP, Perales offered ten tips to protect yourself from a scam:
• Don’t answer the phone if you don’t recognize the number. Let it go to voicemail. “It’s okay not to be ‘Iowa nice,’” said Perales.
• Never give out personal information, such as birth date, social security number or passwords.
• Never pay with gift cards. Gift cards are not a standard form of currency.
• Resist pressure to act quickly or in secret. Scammers rely on urgency to force you into a rash decision.
• Don’t rely on caller ID or believe official sounding names and titles. Scammers can spoof names and phone numbers.
• Never pay for a prize. “If you have to pay, it’s not a prize,” said Perales.
• Deal locally and face to face. If buying something online, make sure to see it in person first.
• Go through bank and credit card statements each month.
• Always double-check. Research online to verify legitimacy.
• Remember Al’s Big Three: “If you are ever in a situation where they’re asking for money, and they’re asking for money right now, and there’s fear, excitement or pulling of your heart strings, it’s a scam.”
There are apps you can download to your smartphone, like NoMoRobo that will screen robocalls. There is a monthly charge, but Perales said everyone he has talked to has said it is well worth it.
How to get help
If you think you’ve been a victim of or suspect a scam, contact the Iowa Attorney General’s Office at 515-281-5926 or toll free at 888-777-4590. Complaints can also be filed online at www.iowaattorneygeneral.gov.
Locally, the staff at Solutions! can help navigate situations where a person has been told something is wrong with their computer and it needs updated.
Members of both the Osceola Police Department and Clarke County Sheriff’s Department were in attendance, and said to give them a call first, before you send any money to someone.
The local banks are here to help, too.
“This is one of the reasons why all of the banks have to ask additional questions…We really don’t want to get into your business but we want to protect you. When we ask those questions, please help us so we make sure we’re doing our part to fight this as well,” said Angie Williams with First Interstate Bank.
To learn about other types of scams, visit https://iowafraudfighters.gov/.