Friday, February 18, 2022

Anatomy of a Scam - A First Person Account





Nothing can be more ego deflating, stomach churning, or profoundly embarrassing than to be a victim of a scam, a con, or a  fraud. While my initial reaction is to be quiet and keep the embarrassing experience to myself, I gave in to an overwhelming compulsion to share it for the benefit of many. Thus, the choice is to open up the anatomy of a scam.

There was good news and there is quite a bit to be learned because, as we all know, the scammers are always a step ahead of everybody.  Even though the shelf life of a scam is short and quick for the most part, the scammers are always thinking of three or more different ways up ahead to further their malfeasance in some other different ways. And fraud is, of course, one of the oldest tricks man had perpetrated over another since Biblical times. 

Until this episode, I believed I had immunity to it because I thought I knew all about it.  I even blogged about, "If It is Too Good to be True .. on September 2, 2019.  My fascination with the story of, "The Man Who Sold the Eiffel Tower (Twice)" and stories of extraordinary con artists and the Academy Award winning movie, "Paper Moon", assured me that I will never fall for any con.  But, never say never, and rest assured it can happen to the best of us, including learned and sophisticated folks who fell for the Bernie Madoff and Elizabeth Holmes of the world.  Count Lustig fooled the most sophisticated business people in Paris when he "successfully" sold the Eiffel Tower, once at least, and would have done it again almost the second time (the first victims were too embarrassed to report it the first time).

I am not embarrassed to write about this little misadventure although I have already stopped asking, "How could I have fallen for it?"  Now, my dear reader, don't be too confident either but at least try to heed this one other teachable moment you may rely on and serve as one more shield toward partial immunity.

Rather than go through another method of narrating the scam, let me just include below, the summarized write up I submitted to my credit card company, after a couple of conversations with them, which resulted in my getting a full but provisional credit, for now, anyway (hoping it will be permanent). It is the good news part I mentioned early on above.  For obvious reasons, I X'ed out the sensitive information.


February 14, 2022       

Cardmember Service

P.O. Box XXXXX

XXXXXXXXXXXX

Case No. XXXXXXXXXX

XXXXXXX:

I would like to provide a full explanation of the above case that is outside of the standard form that I was sent to fill out, sent Feb. 4 which I received today, Feb. 14. To explain best about how the fraud was done, I will detail it via an actual timeline in sequence.

Feb. 2, 2022, 8:25 a.m.:  I received an email, addressing me as an Amazon customer. purportedly advising me that I was debited a purchase of an item, quote:

“ORDER NUMBER:                    DHA2022AM

PRODUCT NAME:                    IPHONE 12 PRO MAX

ORDER DATE:                           2nd February 2022

------------------------------------------------------------------

AMOUNT:                                  752.60 USD

PAYMENT METHOD:              Direct Debit

If you wish to claim a REFUND then kindly Contact our Billing Department as soon as possible

You Can Reach Us On:  +1(855–607–3088)”

I called the number. The lady on the other line informed me that my credit card, via Amazon, was hacked and being misused by people – one in Ohio, one in New Jersey, and China. She knows that there is a CVS nearby and instructed me to go there.  When I got there, I was told that she had just deposited $500 to my Amazon account but that I need to purchase a Target gift card for that amount.

Feb. 2, 2022, 9:23 a.m. I purchased the gift card

A few minutes later, the same lady asked for the gift card no.  I gave it to her because that was one way to “ping” and clear the hack, she said.

I realized then, but only after I already gave her the gift card no. and Pass code, that I was a victim of a scam.  I immediately hung up and turned my phone off completely.

Feb. 2, 2022, 10:14 a.m.  I drove to the nearest Target store to report a possible hack and presented the target gift card I purchased from CVS.

The Target representative swiped the card to check the balance.  The $500 was still there (intact) but she instructed me to call 1-800-XXX-XXXX.  I called the number while still at the store. By the time the Target representative came on the line the gift card balance was zero.  I explained that I was likely a victim of a scam.  He provided me a reference no. XXXXXXXXX

I explained to him that given the short amount of time that had elapsed, I requested that Target can still put a stop to it by intercepting all online orders made on that gift card – Gift Card No. XXXXXXXXX.  My point was that the purchase had to have been via online.  If the purchase was done in person, the card had to be presented.  Furthermore, if the purchase was done miles away from where I was, it was not me making the purchase.

The representative instructed me to get a police report.

Feb. 22, 11:30-12:00 a.m. I called the Sugar Land Police Dept.

Feb. 22   mid-afternoon.  Officer XXXXXXXXXX of the Sugar Land Police Dept. called me back.  I related the whole case to him.  He provided me with a case no. XXXXXXXX

That is what happened.  I did my level best to stop it.  I know too that the Target representative understood the point I made about stopping the orders made on the gift card.

Sincerely,


(Attachment: copies of the Target gift card (back side with the number), CVS receipt, Target Card Balance Inquiry receipt):    All time-stamped

The most crucial part is, of course, after one realizes the fraud is to act quickly and keep as much information, time stamped, if possible.

The thing about is that it was all explained in the most recent issue of Consumer Report Magazine, which we have as a subscriber.  The magazine had been sitting there on the coffee table but I didn't read it until after.

The lesson: (1) Don't get duped in the first place;  (2) Once victimized, act immediately because time is of the essence.  Most scams like this are online, so given a quick action, the scam can be stopped.  Consumer Report recommends it (including a police report).

How did someone like me fall for it?  The are  three different ways we can be induced - all functions of human nature: (1) The "too good to be true" appeals to the softest part of human nature in the mistaken belief that certain things can be had cheaply or with little effort ; (2) Fear that stokes alertness or concern if we don't do something right away to correct a perceived or induced danger (IRS, police and other coercive fraud); (3) Sympathy, kindness, pity that reaches to our human tendency to help total strangers (we give to panhandlers or anyone reaching out online begging for help, contributions, donations, etc).

In my case, it was no. (2).  They had enough information, or at least they knew enough to make me believe in the story they were telling me. A hacked credit card account was something - also serious - we hear so much about.  Fear or sense of alertness can get us into a state of almost near hypnosis that gets to our sense to follow rapid-fired instructions, almost mechanically. Fortunately, I realized just in time, almost as if I woke up from a trance. The police officer who wrote up the report told me that other individuals lost in multiples of what I went through and never got their money back.

What to do?

1. Never respond to unsolicited emails or phone calls about correcting bad orders or IRS or other threats from government or private institutions. Exception: your credit card company may call to verify or alert you to a suspicious transaction.

2. Once you realized you were a victim, act immediately. Write things down and have as much information as possible.  Contact your credit card company or other financial institutions right away. It is not uncommon for the credit institutions and sellers to be already familiar with the issues. They can and will help. I was lucky I had time-stamped documents.

Well, if this wasn't a teachable moment, I don't know what is. I was just fortunate and so I wanted to share this one embarrassingly stressful episode.

(P.S. I did get full credit refund from the credit card company two weeks after this musing.  I can only infer that by acting quickly, Target must have put a stop to shipping the orders made with the gift card. I am one of the few lucky ones.)




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