Smoke Detectors, Credit Reports, and Money Stuff

Alright, smoke detectors have little to do with scams, but changing your batteries now will prevent that random screeching that always seems to occur in the middle of a nap. First things first…

Protecting Your Money and Data

I am no computer expert, although a few things jump out if you want to avoid hassles that come with protecting your money and data. Consider having a computer used only for money stuff, only on a safe network. Use a reputable security suite and anti malware program. This computer is never for cute kitty photos from your Facebook friends, unless it is an emergency.

PaZZwurd$!!!! Make them long and difficult to guess, I use a unique one for each account. How do I remember them? I write them down and keep them near my computer like any other dummy. There are some password generation programs that store numbers for you, I can not in good faith venture which are the best. Two-Step authentication has become popular with many firms, if someone (or you) tries to log into your account from a new browser the company will text a code required to enter the site.

Protecting Your Credit and Your Tax Returns

Around the first of every year I get copies of my three credit reports to make sure no one is pretending to be me. They are free at  I request them all at once, shred last years and move on as long as things look normal. Some writers suggest getting one every four months throughout the year just in case something pops up. Seems like a hassle to me, considering a few other things now available. If there are any significant errors, best to send proof correcting the errors certified mail to each of the three reporting agencies. If necessary, involve state and federal attorney generals if errors are not being fixed by the agencies.

The credit freeze makes the most sense of everything out there. If you freeze your credit then at least in theory people can’t open new credit in your name. As a plus your level of junk mail should decrease. On top of the credit freeze a permanent opt out never hurts.

Protecting your tax return from fraudulent filing should be a consideration if you have been a victim of identity theft. Applying for a filing code will offer a layer of protection. This is a unique code the IRS will mail every year that must be included on your tax return. This should prevent a thief from claiming in a refund using your name and Social Security Number.


Some credit card companies and credit unions are now offering a FREE FICO score as part of their service. I would not be paying any shysters for FICO, don’t fall for those scams. Your FICO score should not fluctuate too much from month to month making it a good way to eyeball your credit. A sudden plunge would likely come from lots of new debt and/or unpaid bills being reported on your credit file. If that happens, time to investigate, otherwise one less worry for the month.

Credit Monitoring services seem an expensive overkill if you have taken the steps previously mentioned. I am just some hack banging away on a keyboard, do what you want. What I added for about $30 was a rider on my homeowners policy that provides some coverage for legal fees in the event of ID theft. Still overkill IMO, but it seems every retailer in the world lost a zillion credit files last year so…

One other thought on this front is credit card versus debit card for everyday purchases. Liability is limited either way, but having your bank account drained from fraudulent debit card purchases could suck a lot until the money part of the theft gets sorted out. If you want to use a debit card consider a separate account that is not linked to your bill paying money. Fraudulent purchases are a when, not if, plan accordingly.

Moving on….

Money, it gets stuff done.

Many times elsewhere I mentioned, I do not like people near family money. Being ripped off on a part, for a thing that may be broken, while a bummer will in most cases not wreck your life. Not so when it comes to a life savings. Many people who don’t track scams for sport might be shocked to learn a $100,000,000 ponzi scheme is commonplace these days. A few this year were multiples of that, and don’t kid yourself judgements are meaningless money lost is gone forever.

Check your professionals at both the state and federal level each year. There have been a number of articles recently where broker infractions were not properly communicated between agencies. A broker could be clean at one agency, and dirty as an ashtray at another. This needs to be done every year, people change. When schemes implode there are any number that were run by folks with many years in the money business. Lump attorneys, trust companies and accountants in this process if they have access to your funds. Any whiff of the adviser having money problems or complaints should be all the prompting one needs to move their money rapidly to safety.

Duties must be segregated to keep your nest egg safe. If you are in a situation where the person managing your money controls the reporting, the deposits, and the withdrawals a problem could be brewing. If someone is managing money for you that money needs to be held in a segregated account, preferably with a major firm where you can verify without going through the adviser. When you need to take money out, an entity other than the adviser should be writing the checks.

Its not a bad time to look for unclaimed property because you never know.

Try and avoid confusion about money by having a list everything you own on one sheet of paper. This includes bank accounts, brokerage accounts, retirement plans, and insurance policies. Listed beside each is the beneficiary and contact information necessary if something should happen. Most banks and brokerage accounts allow for TOD beneficiaries. Don’t in my opinion add someone as a joint account holder unless that is really what you want. Like a husband/wife situation where the funds are truly shared. The obvious problems of fraud, lawsuits, and the possible loss of step up in basis are why I would avoid this.

While probate is not a scam, it certainly is not cheap or fast. Nor is a situation where someone becomes incapacitated and needs their affairs handled. Why I feel it important to spell out your wants in detail before something happens. The less people have to do when you can’t, the less likely they are to muck it up. Or the less likely your beneficiaries are to be taken for a ride.

That’s it for now, put the sheet someplace safe and enjoy your year.

The Lure Of Cash Gifting

PublicDomain-Damaged Dollar BillIn the world of Ponzi’s, Scams and Illegal Pyramid Schemes, they never die, they just reinvent themselves.  Cash Gifting is no different. Cash Gifting seems to recycle itself about every two years.

Chain Letters – Cash Gifting Once Upon a Time

Before the advent of the Internet, cash gifting was called the chain letter.  The way this program worked was you were to send a set amount of money to four or five people on your list you were provided, and then you made a new list with the top name removed, and the other names moved up one spot with your name at the bottom.  You instructed those you sent your mailing to do the same.  They in turn did the same and it goes on and on and on.

In each of the letters you received, there was always a statement that this had been checked out by an attorney and the U.S. Postal Office and both said it was perfectly legal.  In the chain mail letter, you were told you were sending your money to each person for a report they had and you were paying to receive this information.  Of course it was a ruse and usually consisted of only one sheet of paper with a few words on it, but that was supposedly making it all legal.  It was all hype as chain letters are illegal.

To participate in these chain letters was expensive as you were told you needed to mail to at least 100 people to get the right number of people who would participate and you would receive your untold thousands of dollars in your mailbox.  So you had the cost of postage, printing your new letter and copying them to send out to all 100.  To be really successful you were encouraged to send out 200-500 letters which would increase the amount of money you would receive into the tens of thousands of dollars.

From Chain Letters To Cash Gifting

Then came the Internet and the Chain Letter program entered into the 21st century.  It changed from chain letter to cash gifting.  By asking people to join your cash gifting program via Email, you were only dealing with people who were truly interested in joining your program.  They had to contact you for the plan details and be signed up under you.  No more huge up front expenses like in the chain letter, and your audience was the world.  While you still had the expense of sending the people on your list their money, at least you were not mailing blind as with the chain letter.

Many of the Cash Gifting programs today are designed to look like anything but a cash gifting program. Others claim you are joining a private club, and only club members can participate in their program. Others just say they are a cash gifting program.  No matter what the title, they all have one thing in common:  They all claim they are legal and the IRS has said so.    They reference Title 26 of the IRS Code that deals with estate cash gifting. Notice I said “estate” cash “gifts.”  So what does this mean?  The IRS says that a couple may “gift” up to $26,000 per year to anyone of their choosing to reduce their estate tax liability.  A single person can “gift” up to $13,000.

The Truth About Title 26 of the IRS Code

But wait a minute you just proved that cash gifting is legal since the IRS allows “gifts” under Title 26 of the Code up to $13,000 for a single person and up to $26,000 to a couple. Right? Actually I did not prove that cash gifting is legal, but I did prove that “gifts” were legal according to the IRS Title 26 of the Code.  You see cash gifting has nothing to do with estate “gifts.”  NOTHING.

What the Cash Gifters do not tell you is that under Title 26 of the Estate “Gifts” section, there is a sentence they omit from their spiel, and it is this:  “You must have ABSOLUTELY NO EXPECTATION OR RECEIVING ANYTHING IN RETURN FOR YOUR GIFT.” (emphasis mine).  That means you cannot receive something back for giving your “gift” or it is null and void and not a tax deduction. In a cash gifting program the only reason why you are giving is to receive a cash gift in return for your cash gift.  Let’s be real, otherwise you would not participate.  There are many more things the cash gifters will tell you trying to convince you their program is legal, but there is no way I can cover them all in this piece.  In my book: Robbing You With A Keyboard Instead Of A Gun – Cyber Crime How They Do It, I devote an entire chapter to Cash Gifting where I go into all the technical, statements, and the issues of Cash Gifting; and why it is illegal.

Are You Prepared To Go To Jail?

You need to know that people have gone to prison for running and participating in these illegal cash gifting pyramid schemes.   But all you really have to know is this:  Cash Gifting is illegal in all 50 states and the FTC (Federal Trade Commission), as well as in almost every country in the world.  So don’t take my word for it.  You can go to the FTC website ( and type in cash gifting and you can read what the FTC says about it, or for that matter do the same for your state Attorney General. If you have any questions you would like to ask me, just contact me at Eagle Research Associates here.

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How Romance Scams Steal Your Money While Crushing Your Heart

Knife Through The HeartFor me it started many years ago with a personal ad I took out.  A picture showed up that seemed way out of my league.  Out of curiosity I searched the web and found the photo  belonged to a Russian model.  Fast forward 15 years, a lady on Facebook asked “does anyone know this guy” on one of the many scam prevention pages that now populate the web.  Thanks to Google Images to be discussed later, searching a picture is now as simple as clicking a mouse.  I found the photo, another model.  I knew it was a scam, but of what kind?

I started writing about it, blogging as the kids call it.  Not really knowing what direction the endeavor would take, or just how pervasive the scam is.  An eye opener to be sure, even for a skeptic like me.  In this article I hope to explore the nature of the scam, the various stories you will hear, and how to avoid becoming a victim.

The Set-Up

The “set-up” is as easy as creating a profile on a dating site.  There are numerous free sites, but even the paid sites are full of fake profiles.  This extends to social networking sites like Facebook and Linkedin.  A crafty scammer will often set up multiple profiles on multiple pages, this gives the illusion they are a real person.  The bigger the scam, the more social proof you will likely find.  This may include web sites, attorneys, shipping companies, diplomats, law enforcement.  You name it, they can fake it.

A lot of people often ask, “how does one fall for something like this”?  Simple in my opinion, almost all of us now have online relationships of one form or another.  Chat rooms, social sites, sports blogs, industry groups, and the list builds.  Certainly in my case as someone who works from home, I have more people I connect with online than I do in person.  People looking for love are an easy target.  Victims are often older, religious, lonely, and are shocked to find someone online with so much in common.  But there is a hook, always a hook.

The Approach

A scammer will likely approach you male or female, I have fake profiles of both.  On the male profile, I could probably count on one hand the number of real approaches I have had.  On the female profile, a rich older widow I get multiples of messages over the former.  Both profiles are older, I have tried with younger pictures and never get the traffic.  Scammers know who to target, and who is likely to have money.  Just as they will know what to say to win your heart, after all, they are giving the same spiel to 50 other people at the same time.

Distance is almost always going to be between you.  The whole ruse relies on falling in love without ever meeting.  The easiest way to accomplish this is to pretend to be a deployed soldier, an oil rig worker, a diamond trader in Africa, or living in a refugee camp.  Use your imagination, but if they aren’t face to face, that is the first red flag.  They may claim to be coming to visit, complete with reservations, passports, requests from a senior officers, you name it. The visit will never happen, emergencies will pop up, and the only solution will be to wire cash.  More on that later.

Moving The Scam Forward

Scammers want to get you off the dating sites and onto chat, Skype, the phone, or email as quick as possible.  This is nothing more than time management on the scammers part.  A good scammer will have multiple chats going at any one time.

The basic set up is they steal webcam footage, say from a chat room and use those images to fool a victim that they are chatting with a live person.  There are commercial applications such as the one shown in the video below.

Editors Note: The author of this article showed me the CamDecoy System (which is no longer for sale) which was marketed towards private investigators, intelligence agencies, and people wanting to run a private cam show business. However, the following CamDecoy sales video shows how easy it can be for scammers to use the same technology to lure unsuspecting victims:

The easiest protection is to ask the person to do something unexpected.  If they are able to fulfill that request, most scammers will feign falling in love very quickly.  They will concoct stories such as being widowed, a single parent, very religious, fighting a terrible disease or traumatic life situation.  This is all done to elicit a caring response, and to build quick rapport.  Some thieves are very skilled and may take months to build up to a big score, sending flowers, gifts and being very attentive all the time.

The set up done, we have just connected with someone online who can’t meet in person, has one or more plights, and seems to be a match made in Heaven.

Spoiler alert, if you are asked to send goods like a laptop, I-phone, gift cards, money in any manner, for any reason, and/or to receive and reship goods, YOU ARE BEING SCAMMED. Period end of story. But but but, I know I have heard it all…

Scams are simple in their goal, come up with a reason for you to part with your money.  Most people aren’t stupid, so there has to be an incentive or a hook.  What might you hear from a scammer?  The most common version is what is called the 419 scam.  There is a sum of money that is in the scammers possession.  BUT a catch, they need YOUR help to move it from point A to point B.  Of course for your assistance you will be richly rewarded.  It may be someone pretending to be a soldier who has a Trunk Box full of gold they want to ship back home.  A diamond trader looking to ship precious gems to your doorstep.  An oil worker who needs a part to complete his contract, or a simple refugee with nowhere to turn. The stories are just on the other side of possible, and will always require cash be sent on your part.  After that, more cash, and after that, more cash.  The excuses and snags will never end.

The mule is a slight twist on the above, and may add some credibility to the scam.  Please send the money to my “sister”.  Or I am going to have a laptop sent to your house, can you send it to me at my base..  Scammers will use those blinded by love to traffic in stolen goods or to perpetrate their scam.  Again, the stories will always be plausible, but always a scam.

A slight twist on the above is the travel scam.  Your new online romance is dying to come see you.  They will produce all sorts of travel documents, all fake of course.  Or they may ask you to buy a passport, plane ticket, pay embassy fees, on in the case of soldiers all sorts of travel expenses.  It should be noted, this stuff is all fake.  With the fake soldiers, they will come up with all sorts of fees for leave.  NONE of this is real.  Or the other version is a sudden accident, theft, or incarceration.  Your love is on their way, but right in the middle of a transfer they are detained.  In one case a victim was called from a “hospital” saying their new love was in a serious accident.  Any and all solutions will involve wiring cash, and the requests will never end.

The last for this section is outright blackmail,  This one is pretty simple, the scammer gets you to take off your clothes and records the web chat.  Not that their can’t be other versions, this is the fastest.  Soon after your new love will contact you and threaten to share the photos with the world if you don’t pay up.

To recap The Set-Up and The Hook: You meet someone who seems like the perfect catch.  The relationship builds, but never in person.  They need your help to accomplish a task, the only solution is to send money or goods.  Rinse and repeat for as long as they can.  So NEVER SEND MONEY OR THINGS, and keep it PG until you know who is really on the other end of that connection.

Sussing out Scammers

The Internet has made it easier than ever to both scam, and to protect yourself from scams.  Demand photos, and if you want to be fussy current photos.  Then use Google image search , or TinEye to see if the images show up in other places on the web.  It really can be that simple.  Scammers will steal whole sets of photos that have been posted on social networking sites and use them as their own.  There are now plenty of sites that catalog these stolen photos, along with letters, emails, fake documents and in some cases pictures of the real scammer.  Side note, don’t let the scammer tell you that HE/SHE is the real person.  Oh and for the guys, there are quite a few profiles that have been stolen from models of all stripes.  If she is really hot, or the pictures look professional there you go.  I have received model quality photos from girls pretending to be in a refugee camp.

The Internet has made it easier than ever to both scam, and to protect yourself from scams. Demand photos, and if you want to be fussy current photos. Then use Google image search or the Tineye reverse image search engine to see if the images show up in other places on the web. It really can be that simple.

If the picture does not yield any hits, Google the email, Skype, phone number, and the text of their letters.  Google it all, and you will be surprised how often the email or text can be traced to multiple scams.  Pay attention to the writing, spelling errors, and phrases you would not expect a citizen to use.  I am John Jerry by name, notice two forenames.  I am from United State.  Expect the use of cute nicknames, dear, baby, my love.  If you are dealing with 50 lovers, hard to remember their names, so pet names are a must.

Be wary of free email services.  The only official email address for all branches of the US Military is (.MIL)  SGT-so& is not a military address. is not the FBI. is not a diplomat.  Free email is fine when getting to know someone, but at some point a true suitor should provide you with their primary address.

Fake documents, fake shippers, and other general fakes.  Expect all order of fake documents to come your way as part of this con.  Expect to have contact with multiple people.  Google these as well.  Don’t assume just because it is the name of a real attorney or a real shipping company that you are dealing with anything but a scammer.  Often they will use a real name, but a free email address.  Phone numbers, locations, and voices can be spoofed. Checking an IP address on emails is a possible step in spotting a fraud.  Information on doing this is easy enough to find with Google.  Use your head as well, how often do diplomats show up in your life?  And most importantly is money involved?

After The Scam

Not only do Romance Scams take a financial toll, they take an emotional toll.  If you need it seek professional help.  For many the emotion is the same as losing any loved one.  I am unqualified in this area, only to say their are some support groups on line and others who were scammed now write blogs about it.  You are not alone, but impossible for me to say what is best.

DON”T contact the person in the photo.  They know, trust me they know and are every bit the victim of this scam that you are.  The have real families, real children and real lives away from the world the scammer created.  Let them be, PLEASE!

The Reload, YOUR SCAMMER HAS BEEN ARRESTED says .  No he hasn’t, this is part of the scam called the reload.  These scammers will claim they can get your money back, or punish your scammer.  It may even be the same person you were dealing with all along.  As with the original scam you will be asked to send money.

Report your scammer…


Further reading and tips..

Sweetheart Scammer or did this really hot person pick me above all others?

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