Scammers Seek to Exploit the War in Iran
Always alert for ways to grab people’s attention, scammers are devising an array of tactics that link their frauds to the war in Iran. Fraudsters who masquerade as bank personnel or government officials call or text individuals claiming their financial accounts are linked to Iran-related charges.
Phony romantic suitors and needy charities have also adapted schemes to highlight military conflict in the Middle East, the Federal Trade Communication (FTC) has warned.
The scams share common goals of capturing people’s personal data for identity theft or prompting victims to make payments that they will likely lose forever. Stress, safety concerns, and general uncertainty surrounding a war can prompt consumers to let their guard down and enable such schemes to succeed.
In a March 24 Consumer Alert, FTC officials warned the public to watch out for:
- Purported charges from Iran – charges that do not actually exist. In this scheme, scammers call victims and tell them that their accounts show fraudulent charges from inside Iran. But the charges never occurred. Scammers pretend they are from a bank or the US government and offer to protect these customers – if they provide their banking information. The scammers’ warning is a lie, however, and those who cooperate with them can pay a heavy price.
- Romance scams from scammers who pretend to be soldiers. As in other romance scams, fraudsters begin to communicate with their victims online, gaining trust, and pretending to build a romantic bond. They then declare they have been deployed to Iran and have an urgent need of cash, such as for a medical emergency. The sudden request for money reveals that this is a romance scam.
- Charitable requests that are linked to the conflict. Charity scammers always seek ways to manipulate well-meaning consumers, and wartime provides an ideal opportunity. Fraudsters request money that they claim will go to people displaced or otherwise harmed by the war. Such requests typically seek payment in cash, gift cards, or wire transfers – all of which may be impossible to recover. By clicking on ftc.gov/charity you can learn more about whether a charitable request is legitimate and what to watch out for.
In addition, cybersecurity experts said that scammers are finding ways to profit from travel disruptions in the recent wartime environment. They are exploiting Middle East travel disruptions caused by the war, with phony airline offers on X (formerly Twitter) and texts targeting stranded passengers who share personal data in their effort to apply for travel refunds. Scammers use AI-powered, official-looking, imposter accounts – particularly mimicking Emirates and Qatar Airways – to steal booking details and financial information.
Be careful about responding to any unexpected request for information that is linked to the war in Iran. If you believe you have sent money or provided personal financial information to a scammer, you are advised to notify FTC officials at: ReportFraud.ftc.gov.
Prescription Drug Fraud Lands Texas Surgeon Behind Bars
Fraudsters who repeat their crimes over and over sometimes end up with whopping profits – until they get caught. The latest example comes from a doctor based in northern Texas who has been sentenced to more than eight years in prison in a scheme that defrauded taxpayers out of $145 million in phony drug prescriptions.
In the complex scheme, an orthopedic surgeon named Michael Taba took bribes and kickbacks from pharmacy owners in Fort Worth and Arlington, Texas in return for prescribing unnecessary compound creams for injured federal workers. The fraudsters then billed a Department of Labor disability program up to $16,000 for the prescription.
The medications, which were mixed by untrained teenagers in the back rooms of drug stores, caused painful rashes on some of the patients who received them, according to testimony at the trial.
The sentencing of Taba, 61, culminated in a broad federal investigation that involved the US Postal Service, Veterans Administration, Department of Labor and the Internal Revenue Service.
“Today’s sentence is the result of years of tireless efforts by our prosecutors and agency partners who investigated this complex fraud scheme and brought to justice the defendants responsible for stealing tens of millions of dollars from the American people,” Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division said in a statement. “It serves as a reminder that medical professionals who violate the trust society places in them, their oath, the law, and harm Americans for personal enrichment will be investigated and prosecuted.”
The fraudulent billings were made between May 2014 and March 2017. A jury convicted Taba of multiple counts of health care fraud in 2023. He was sentenced to 102 months in prison earlier this year.
“When people are willing to tear down trust in our nation’s medical system to pilfer money, federal law enforcement stepped in to force them to step out,” said Acting Special Agent in Charge Rodrick Benton of the IRS Criminal Investigation’s Houston Field Office.
