Tax tip
Consumer Watch’s weekly Tax Tips begins today and will run through April 13. Hopefully, readers find enough encouraging and money savings information to gain some respite from Uncle Sam’s clutches.If filers take advantage of the IRS’s electronic-filing option, their refunds should arrive in about three weeks. If you opt for snail mail,you’re looking at up to six weeks to bank a refund. If you have lots of health-care bills, own a business or take many deductions, it’s wise to hire a professional.
These days, my presentations seem to spotlight more and more scams, particularly with respect to older folks. AARP is alerting consumers to new predators and offers methods to keep them at bay and protect our bank accounts and identities.
1 As if a cancer diagnosis isn't horrific enough, scammers disguised as legitimate organizations have entered the fray. In spring 2015, the Federal Trade Commission busted the Cancer Fund of America, Cancer Support Services, the Breast Cancer Society and - maybe even worse - the Children's Cancer Fund of America. The FTC charged these four biggies with defrauding consumers to the tune of $187 million. Another bizarre incident involved Miss Pennsylvania U.S. International, who won more than a state crown and an armful of flowers. The beauty queen allegedly swindled tens of thousands of dollars from fundraising events after announcing a diagnosis of lymphocytic leukemia; she was arrested last August after an anonymous tip led law enforcement to check out her supposed oncologists and treatments.
As I've always urged, please check any charity's rating at charitynavigator.org. Not only does the site prove an organization's legitimacy, but also shows exactly how much of your donation is applied to the charity itself and how much for "administrative" purposes. Never donate over the phone; even if you're certain the group is legitimate. Ask for snail mail brochures and other written information before giving them a penny.
2 "Chip" cards are on the rise. Engineered by credit card companies to, hopefully, eliminate a lot of the credit card fraud, chip-enabled cards also can be risky. Because no PIN number is required in this country (as it is in Europe, where credit card fraud has sharply declined), crooks continue to steal numbers and make fraudulent charges. Moreover, if a scammer steals the credit card number itself, he still can run up charges to the limit of your account. And even though the card processors no longer store the card data in their systems, way too many merchants haven't caught up to the new process and still require purchasers to swipe rather than use the slot. Scammers, posing as issuers, sends emails to current customers requesting, among other things, that you click on a (malware) link before the new card is sent. They even use the credit card logo and color scheme to look more realistic. No credit card company will email or call to verify personal info before mailing a new card. If you're unsure, call the number on the back of your credit card to see if the company is trying to contact you. (Never call the number supplied by the so-called company.)
3 Even though I periodically suggest new smartphone apps, it's imperative we're aware that counterfeit apps are around, just waiting to dive bomb our passwords and set up devious activities. Last September, fraudsters broke into and compromised Apple's normally secure App store. Although Apple subsequently purged the malicious apps, scammers can invade again. The Geek Squad advises to always read an app's reviews before downloading and only choose those that are proven and popular. Limit an app's access to your location by adjusting your device's privacy settings; this reduces chances that a scammer is spying on you.
4 A Feb. 8 segment of "NBC Nightly News" featured a brand new swindle. Teenage girls in Houston wander around assisted living and/or nursing homes and ask residents for contributions to help sponsor a band trip at the local high school. The innocent elderly open their wallets thinking they are doing a good deed, rather than donating to a scammer. (Mercy, they're starting earlier and earlier.) If a staff member asks who they are, the girls - who have already scouted out nameplates - simply announce "I'm Mary Smith's granddaughter" and stroll down the hall to their next victim. Be certain to give the staff names of the visitors permitted to visit your loved one. Make a production, too, of the fact all visitors must sign in at the registration desk and emphasize no one is to be allowed in if they don't sign the register. (Personally, I want some proof of identity, too.)
5 One of the newest types of online dating scams focuses on faith-based dating sites. These money grabbers lure lonely folks (especially seniors) because they know most of us mistakenly think a Christian site promises honest and above-board folks who're also searching for love and/or companionship. Not necessarily. Big faith-based sites, such as ChristianMingle and BigChurch, among others, are religiously (pun intended) attacked by con artists, and it's crucial for prospective dates to do homework before their first connection.
Spokeo.com, Intelius.com and the like provide researchers the means to check would-be romancers before they con your checking account balances into their own pockets. Be on the alert, however, for a "no results" result - a red flag, for sure. A Google Image search often reveals a profile picture. And for goodness sake, don't ever forget folks who are genuinely looking for love should never ask for money.
To be continued next week
Contact Ellen Phillips at consumerwatch@times freepress.com