The Internet Crime Complaint Center released alerts relating to fraudulent government-services sites and web defacements almost a month after the victimization of the NCUA and a Montana credit union.
The fake government website alert warns consumers of fraudulent government services websites that mimic legitimate ones. Scam operators lure consumers to these fraudulent websites to steal personal identifiable information (PII) and collect fees for never delivered services, IC3 said.
"From May 2012 to March 2015, the FBI's Internet Crime Complaint Center received complaints regarding criminals hosting fraudulent government services websites in order to acquire Personally Identifiable Information and to collect fraudulent fees from consumers," the alert said.
The volume and loss amounts are minimal to date. However criminals for illicit activities can use the compromised PII data to create fraudulent IDs and passports, apply for fraudulent loans or file fake tax refunds.
The bulletin described how the scheme usually happens: Victims use a search engine to search for government services such as obtaining an employer identification number or social security card replacement. The fraudulent criminal websites appear first in search results, so the victims to click on them. The victim completes the required fraudulently posted forms for the government service and submits the form online, believing he or she is providing PII to government agencies such as the IRS, Social Security Administration or similar agency. Once the forms are completed and submitted, the fraudulent website asks for a fee, usually from $29 to $199.
Instructions next are for the victim to send a birth certificate, driver's license, employee badge or other personal items to a specified address, and wait a few days to several weeks for processing. By the time the victim realizes it is a scam, he or she may have had extra charges billed to credit/debit cards, had a third-party designee added to his or her EIN card and never received the service(s) or documents requested.
Meanwhile, compromised PII data is made available for sale on the black market.
Attempts by victims to follow-up with calls or emails are futile. The FBI recommended that consumers ensure they are communicating or requesting services/merchandise from a legitimate source by verifying the entity. When dealing with government websites, the bureau said, look for the .gov domain instead of a .com domain.
In March, a website resembling the NCUA's official website attempted to convince consumers to provide personal information, according to the NCUA. Emails promoting the website also attempted to persuade individuals to provide personal information, such as Social Security numbers, account numbers and login information.
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Roy Urrico
Roy W. Urrico specializes in articles about financial technology and services for Credit Union Times, as well as ghostwriting, copywriting, and case studies. Also: writer/editor of a semi-annual newsletter for Association for Financial Technology since 1997 and history projects funded by the U.S Interior Department, National Park Service and Warren County (N.Y.).
