Cash-strapped people, including students, other financially disadvantaged and homeless people, are falling victim to a new cell phone scam known as credit muling.

A few weeks back, we wrote about how students were being lured into selling their debit or credit cards to crooks and then reporting them as stolen so they don’t get lumbered with the bill when the cards are used for fraud.

http://www.scambusters.org/studentscam.html

The latest variation uses cell phones as the fraudulent cash generator.

It works because many mobile service providers offer cell phones at substantial discounts to their normal retail price when a customer signs up for a two-year contract.

Victims are paid by the scammers to sign up for several contracts at different stores.

In some cases, the fraudsters will actually drive their victims around to phone stores to sign several contracts.

The crooks, also known as “recruiters,” give them the money to pay for the discounted phones, plus a commission payment for themselves, usually around $100 total, when they hand over the phones.

Victims are told they can cancel the contract within 30 days, which they often can.

But there’s one big drawback: The phone contract can only be cancelled if the customer returns the phone, which, of course, they no longer have.

The end result is that, instead of making a few dollars by taking part in the illicit deal, victims are lumbered with the full replacement cost of the phone plus a handful of two- or three-year phone subscription contracts for which they could find themselves paying several hundred dollars every month.

In most cases, the victims simply cannot pay, which can leave them on the receiving end of debt collection services and a negative listing on their credit records that can take years to clear, if ever.

And of course, because the real crooks used the victims as go-betweens — “mules” in criminal lingo — there’s no way for law enforcement to track them down.

What happens to the phones?

The crooks “unlock” them, which means removing the codes that tie them to individual cell phone service providers and then sell them for much more than their victims paid.

“Unlocked” phones can be worth quite a bit more than “locked” ones because they can be used on just about any service.

And, according to the Federal Trade Commission (FTC), they can even fetch thousands of dollars when sold abroad.

Action: This trick is easy to avoid. There’s no legitimate reason why anyone would want to pay you to take out multiple phone contracts, or even a single contract in your name and then to hand over the phone to them.

So, simply refuse any such “opportunity” that comes your way.

Also, be warned that taking part in this scam could land you in legal as well as financial trouble.

If there’s any suggestion that you knowingly took part in a fraud, you could face criminal charges.

If you are approached by someone who offers you money to take out a wireless phone contract or if you have fallen victim, the FTC wants you to complete an online complaints form to help protect others.

Start here: https://www.ftccomplaintassistant.gov/#crnt&panel1-1

It’s so sad that the people who can least afford to be duped are often the crooks’ favorite target.

A Colorado TV station that first raised the alert on this scam reported one 19-year-old victim as saying: “I thought it was amazing money. I had rent due the next day and I was looking to pay it. I was very desperate.”

The young women said she was “in the hole for about $6,000,” while another victim found he owed phone companies around $2,000.

Always be wary if someone offers you what seems to be an easy way to make money. They could be lining you up as a credit mule for a phone scam or other fraud.

Alert of the Week: Is your email address — and perhaps other personal details — among the 500 million reported to have been stolen earlier this year by Russian hackers? And what should you do if it is?

Well, the bad news, according to the Department of Homeland Security (DHS), is that it’s virtually impossible to know if you’re a victim, so you should change your password on any account that contains any important financial or health information.

And if the account has the potential for extra security through what is known as “two factor authentication” (basically a password plus another code), you should use it.

Learn more about this hack and what you can do about it from the DHS OnGuardOnline website at: http://www.onguardonline.gov/blog/russian-hackers-might-have-your-info-now-what?utm_source=govdelivery

Guam – Improvements are coming to the Guam Police Department’s Crime Lab and with them, a DNA laboratory.

The expansion is made possible though a $5 Million loan from the US Department of Agriculture, which was announced today. It’s also funded with money from the Department of the Interior and other sources.

The renovation and expansion of Guam Community College’s building 100 is included in the project to house the Criminal Justice Program and Cosmetology classes. GCC President Dr Mary Okada says the improvements will enhance the college’s programs and are inline with GCC’s focus on sustainability.

Speaker Judi Won Pat authored the legislation that made the USDA loan possible.
======================
Let’s hope we can solve some fucking crimes now.

What can we do?

Deputy Director Marie Benito says at this rate, it’s becoming a serious concern for the department.

“We’re aware of the identity theft ongoing right now and the growing epidemic of this ID theft,” she said.

She says the reports of identity theft started late last year and didn’t raise any major concern considering they were sporadic, but in the past 10 months it’s grown even worse.

“And what happens is the tax payer would come here and notify us that they got a notice and their checks were levied or their accounts were levied and that payment went directly to IRS and they don’t owe IRS, they don’t file with the IRS,” she said.

A levy is a legal seizure of your property to satisfy a tax debt. KUAM has learned that some have reported having their accounts zeroed out to some getting notices that they owe money from tens to even one hundred thousand dollars to the IRS in areas throughout the US these Guam taxpayers have never even been before.
Benito says over 300 cases have been reported this year and according to the income tax assistance and processing branch up to 30 just today. So who exactly is being targeted?

“Everyone on Guam,” she said. “There’s no special category or military or locals, it’s everyone the island and in fact some (Rev and Tax) staff have been on that list.”

Benito says the department is working with the taxpayer advocate in Hawaii along with the IRS.

“So what I did was reached out to the IRS criminal investigation and they’ve assured me that this is their top priority right now and they have fulltime special agents working in these cases,” she said.

People who have received a notice of levy or believe they have fallen victim to this “epidemic” of identity theft are advised to report it immediately to the income tax assistance and processing branch. From there, Rev & Tax will help you obtain a certification of filing and package all your documents and information- free of charge.

“It’s a service we want to give to our people, our taxpayers because they’re already going through the stress, can you imagine having your check levied and not knowing about it before hand,” she said.

According to IRS.gov, if they do levy your bank account, your bank must hold funds you have on deposit, up to the amount you owe, for 21 days. This holding period allows time to resolve any issues about account ownership.
If you paid bank charges because of a mistake the IRS made when your account was levied, you may be entitled to a reimbursement however you have 30 days to appeal the determination. You can call DRT at 635-1840 or 1841 for more information.

We should add Attorney General Leondardo Rapadas last month established the Identity Theft Task Force of Guam.
===================
People you have to check every bill as soon as you get it or you will be liable for the mischief and loss you incur because of these thieves.

Hafa Adai
Lill