EverSafe Scam Watch
Protecting Your Financial Health
Millions from a Dead Relative You Didn’t Know? Toss That Letter Away
If you get a letter from a law firm or asset management firm about inheriting millions from someone who shares your last name, be very wary. If you answer, you’re most likely going to lose money, personal data – or both.
The letters, which are a type of inheritance scam, have proliferated lately, according to news reports and the Federal Trade Commission. The scammers typically want you to respond fast and keep the transaction secret.
“It might be tempting to reply, just to see if you really can get some of the money. But that’s where the scam kicks in. If you contact them, they’ll try to get your personal and financial information, like your Social Security or bank account numbers, your money – or all of the above,” the FTC writes in its July Consumer Alert.
One letter, obtained by Scam Watch, was postmarked in Canada, though it supposedly came from an investment advisor in Belgium. The scammer writes that if you partner with him, he’ll split $9.7 million euros with you in a “risk free” transaction that requires your utmost discretion since “we are not quite sure if you’re really related.” All you have to do is answer the letter via email and follow the instructions that follow. “If this business proposition offends your moral values, do accept my apology,” the scammer writes.
If you get one of these letters, the FTC advises that you ignore it. While it is possible that a distant relative may have left you a windfall, such notifications should come from a legitimate law firm or the probate court. They will not ask you to keep it secret, pay upfront fees, or claim half the money. If you think the letter may be genuine, you should independently confirm the source’s address and phone number and make sure the writer is trustworthy. The likelihood that it is legitimate is very small,
The FTC also suggests you alert friends and family, since they may not realize these types of letters are scams. According to a survey by Visa, about 15 percent of Americans have been targeted by inheritance scams.
The Financial Warning May be a Trick
Scammers are telling potential victims that they have spotted fraud in their bank accounts, the FTC reports. The thieves then offer to help but are really seeking data from their targets, such as the highly confidential verification codes that investment firms text to account holders. People who turn over these codes risk losing their savings.
In a recent internet posting, the FTC offers three recommendations to protect the public from these fraudulent financial warnings:
- Never move or transfer your money in response to a telephone request from someone you do not know. “Someone who says you have to move your money to protect it is a scammer. Period,” according to the FTC.
- Never share a verification code. Banks and retirement and investment companies send you these codes so you can prove who you are. If a scammer gets it, they can pretend to be you and take your cash.
- Confirm any financial requests that raise doubts. Call your bank or investment firm if you have questions. And make sure to use the actual phone number (check the official website) and not a number that the scammer suggests you use.
Anyone who receives a warning like this should inform their bank and law enforcement, officials advise. In addition, individuals are encouraged to report fraud to the FTC by going to: ReportFraud.ftc.gov.
IRS Delays Add Insult to Injury for Identity Theft Victims
The Internal Revenue Service is taking almost two years to resolve and process tax refunds for hundreds of thousands of identity theft victims. And that’s an “unconscionable” length of time, according to a report to Congress from the National Taxpayer Advocate.
Many of the cases under review stem from pandemic relief funds, including economic impact and childcare tax credits. Crooks tried to take advantage of the chaotic pandemic period by stealing personal information and filing false tax returns to claim the money.
The report said there were about 500,000 tax-related identity-theft cases backlogged in the IRS system, including about 93,000 from the 2024 filing season. “The IRS must prioritize assistance for these victims and address their problems quickly,” the advocate said, highlighting that many of the victims were low-income and needed the money for daily expenses.
The New York Times noted that identity theft has plagued the IRS for years. One problem is the “laborious process” the agency has established for victims. They must file a paper return, complete an identity theft affidavit, and then wait for an investigation to be complete before they get their refunds, which is taking about 22 months.
“Victims of identity theft are already experiencing a tremendous amount of stress. The IRS’s long processing times for resolving these issues not only increases the anxiety but also deprives families of funds they may need to meet their living expenses,” the National Taxpayer Advocate wrote in June.
Scammers Profiting on Costly Medical Equipment
In an ongoing search for fraud, Medicare’s Office of Inspector General is looking at improper billings for durable medical equipment – a $7 billion annual expense in traditional Medicare alone.
Earlier this year, Scam Watch reported that the government was investigating $2 billion in fraudulent Medicare claims for catheters. Catheters are just one example of durable medical equipment, a vast industry that also includes wheel chairs, surgical items, prosthetics, tubes, splints, braces, crutches, blood testing strips and other supplies that patients use repeatedly over time.
These scams can take various forms, harming patients and taxpayers. Criminals may bill the government under a patient’s name for a service never received. Such fraud can endanger people’s health by leading to wrongful treatment and errors in their medical records.
“Although no precise measure of health care fraud exists, those who exploit federal health care programs can cost taxpayers billions of dollars while putting beneficiaries’ health and welfare at risk,” Medicare has reported. “The impact of these losses and risks magnifies as Medicare continues to serve a growing number of beneficiaries.”
In a March email, Medicare urged beneficiaries to protect themselves from health care fraud. Among the steps:
- Keep your Medicare number confidential, only sharing it with doctors and others you trust.
- Make sure to read the financial summaries you get from Medicare. If an expense looks inappropriate, make sure it’s legitimate.
- Protect your Medicare card, because it includes details that scammers may use for identity theft.
