I Was Scammed: Updated and Expanded

By Gini Graham Scott PhD

I Was Scammed features an overview of different types of scams, focusing on digital and internet scams. After an introduction to how the scam investigation began after experiencing a scam targeting book authors in The Big Con, the book discusses personality identity fraud, which is the root of so many scams.
        The book describes the growing identity theft problem, the many data breaches that have occurred, the ways scammers use your personal information, how to protect your identity from theft, and how to repair the damage after a scam. Then, the book describes these major types of scams:

Merchant and customer scams

Real estate frauds, including rental scams, moving scams, home improvement and repair scams, and real estate investment scams

Email, phone, and social media scams

Gift card scams

Couponing scams

Phony contest and prize scams

Podcast participation scams

Conference participation scams

Publishing and marketing services scams

The book review scam

Besides describing the scams, the book provides tips on how to avoid becoming a victim, and what to do if you are.

GINI GRAHAM SCOTT, PhD, JD, is a nationally known writer, consultant, speaker, and seminar leader, specializing in business and work relationships, professional and personal development, social trends, popular culture, science, and crime. She has published over 50 books with major publishers. She is the founder of Changemakers Publishing, featuring 150+ books on work, business, psychology, self-help, and social trends. She has worked with dozens of clients on self-help, business books, memoirs, and film scripts.

• Language: English
• Publisher: American Leadership Books
• Release date: Feb 16, 2022
• ISBN: 9798201222833

Gini Graham Scott PhD

Gini Graham Scott is a screenplay writer, executive producer, and TV game show developer, plus a nonfiction writer who has published over 200 books, 50 for traditional publishers and 150 for her own company Changemakers Publishing. She also writes, reviews, and ghostwrites scripts and books for clients. She has written scripts for 20 feature films and has written and executive produced 11 film and TV projects. These include Me, My Dog, and I and Rescue Me, distributed by Random Media,  Driver, distributed by Gravitas Ventures, Deadly Infidelity, distributed by Green Apple,  Death’s Door, a TV series based on a co-written book. At Death’s Door, published by Rowman & Littlefield, The New Age of Aging, distributed by Factory Films, and Reversal distributed by Shami Media Group. Several other films have just been completed or are in production: Courage to Continue and Bad Relationships She has recently developed a TV series The Neanderthals Return, based on a series of books about the Neanderthals coming back into modern society. She has written and produced over 60 short films, including dramas, book and film trailers, TV show pilots, documentaries, and promotional videos.  Her IMDB resume is at http://imdb.me/ginigrahamscott. She is the author of four books on filming, including So You Want to Turn Your Book Into a Film?, The Basic Guide to Pitching, Producing, and Distributing Your Film, and The Basic Guide to Doing Your Own Film Distribution, Finding Funds for Your Film or TV Project.  and The Complete Guide to Distributing an Indie Film. She has been hired to write over two dozen scripts for clients, adapted from their novels, memoirs, or script ideas. She reviews books for their film potential and writes treatments and scripts for three major companies that publish books and promote them for authors. Her scripts include action/adventure scripts, suspense thrillers, psychological character films, and contemporary dramas.  Some recent scripts are the sci-fi suspense thrillers Brain Swap, Dead No More, Deadly Deposit, and Reverse Murder.  Other scripts include the crime action thrillers Rich and Dead and Deadly Affair; and the suspense thriller Bankrupt.

Book preview

I WAS SCAMMED

Updated and Expanded: The Many Scams Today and How to Avoid Becoming a Victim

by Gini Graham Scott, PhD

American Leadership Books

with

Changemakers Publishing

3527 Mt. Diablo Blvd., #273

Lafayette, CA 94549

[phone]

I WAS SCAMMED

Copyright © 2022 by Gini Graham Scott

All rights reserved.  No part of this book may be used or reproduced by any means, graphic, electronic, or mechanical, including photocopying, recording, taping or by any information storage retrieval system without the written permission of the author except in the case of brief quotations embodied in critical articles and reviews.

TABLE OF CONTENTS

INTRODUCTION

How It All Began

Discovering a World of Scams

The Major Scams and Stories of Victims in this Book

PART I: PERSONAL IDENTITY FRAUD

CHAPTER 1: LOSING YOUR PERSONAL IDENTITY

The Growing Identity Theft Problem

How the Scammers Acquire Your Personal Data

Summing Up

CHAPTER 2: THE MANY DATA BREACHES THAT STEAL YOUR PERSONAL INFORMATION

The Pervasiveness of Data Breaches

Some of the Biggest Breaches in 2021

Some of the Biggest Breaches in 2020

CHAPTER 3: HOW THE SCAMMERS USE YOUR PERSONAL INFORMATION

Credit Card Fraud

Bank or Finance Fraud

Government Documents Fraud

Obtaining Products and Services in Your Name

Gaining Other Benefits by Claiming to Be You

Engaging in Criminal Activity in Your Name

Convincing You to Send Money or Take Other Actions Because They Know Who You Are

Accessing Your Email or Social Media Accounts to Find Out More Sensitive Information or Scam Others

Summing Up

CHAPTER 4: WHAT YOU CAN DO TO PROTECT YOUR INFORMATION

Some Ways to Prevent Identity Theft

Summing Up

CHAPTER 5: HOW TO REPAIR THE DAMAGE AFTER A SCAM

How to Learn If Your Identity Was Stolen

How to Stop or Reduce the Damage

PART II: THE MANY DIFFERENT WAYS YOU CAN GET SCAMMED

INTRODUCTION TO PART II

CHAPTER 6: MERCHANT AND CUSTOMER SCAMS

How Buyers Can Scam Sellers

Using the Chargeback as a Weapon

Why Merchants and Service Providers Can Often Become Victims of Fraud

The Prevalence of Online Fraud

Why It’s Easy for Fraudsters to Obtain Stolen Credit Cards

Why It’s So Difficult to Investigate and Prosecute an Online Fraud

Why Merchants and Service Providers Have Become an Ideal Target for Online Scams

How the Payment and Chargeback Process Works

The Major Players in a Transaction

How an Online Transaction Works

Dealing with Fraudulent Chargebacks

The Reasons for a Chargeback Dispute

Deciding What to Do about a Friendly Fraud Chargeback

When a Win Is More Likely Against a Scam Company

How to Deal with a Fraudulent Chargeback

Merchant Account Scams

Hidden-Fee Scams

Merchant Fraud Scams

Identity Theft

Gateway Hacking

What Happens to Victims of These Scams?

Phony Merchant Scams

Summing Up

CHAPTER 7: WHEN REAL ESTATE ISN’T REAL

Some Examples of Scam Victims

Rick’s Story

Alice’s Story

Henry and Sarah’s Story

The Many Real Estate Scams

Rental Scams

Foreclosure Relief Scams

Moving Scams

Loan Flipping

The Bait and Switch Mortgage

Home Title or Deed Theft

Home Inspection Scams

Wire Transfer Scams

Home Improvement and Repair Scams

Real Estate Investment Scams

Real Estate Investment Seminar Scams

Online Property Investment Scams

Phony Broker Scams

Real Estate Ponzi Scams

Property Investment Club Scams

Property Condition Scams

And Still More Investment Scams

How to Avoid Becoming an Investment Scam Victim

CHAPTER 8: EMAIL, PHONE, AND SOCIAL MEDIA SCAMS

An Example of a Victim Who Became a Hostage

The Great Opportunity Scams

Examples of an Inheritance Scam

Examples of a Dying Benefactor Scam

Examples of a Business Opportunity

Examples of an Investment Opportunity Scam

Examples of a Consignment Scam

Examples of a Scam for Dealing with Scams

Examples of the Funds Due to You Scam

Example of Winning a Lottery Scam

Example of a News for You Scam

Example of Help with a Government Payment

Examples of Seeking a Friend or Personal Relationship

The Loss and Danger Scams

Examples of the Order You Didn’t Make Scam

Examples of an Account Suspended or Restricted Scam

Example of an Unauthorized Credit/Debit Card Use Scam

Example of an Unauthorized Access or Email Update Scam

Examples of Problems with Your Email Scams

Example of a Cyberattack Scam

The Pervasiveness of Email Scams

The Most Common Email Scams

How to Recognize and Avoid These Scams

Phone Call and Social Media Scams

Phone Scams

Social Media Scams

PART III: EVEN MORE SCAMS TO BEWARE OF

CHAPTER 9: GIFT CARD SCAMS

Some Examples of Scam Victims

How and Why These Scams Work

Major Ploys to Get You to Buy a Card

How to Avoid Becoming a Gift Card Scam Victim

What to Do If You or Someone You Know Becomes a Victim or Doesn’t Fall for a Scam

CHAPTER 10: THE GROWING COUPONING SCAM

Featuring the Scam in the Queenpins Movie

The Real Scam that Inspired the Movie

Still Other Couponing Scams

Recognizing Different Couponing Scams

What’s Legal and What Isn’t

The Various Types of Coupon Scams

The Manufacturers Affected by the Coupon Scams

How to Avoid Becoming a Victim of a Coupon Scam

How to Report Coupon Scams to the Authorities

CHAPTER 11: PHONY CONTEST AND PRIZE SCAMS

An Example of a Contest Scam Victim

How the Contest Scam Works

How to Avoid Being Scammed

CHAPTER 12: PODCAST PARTICIPATION SCAMS

My Experience of a Podcast Scam

Investigating and Recognizing a Podcast Scam

CHAPTER 13: CONFERENCE PARTICIPATION SCAMS

The Bogus or Predatory Conference Scam

How to Recognize Predatory Conferences

CHAPTER 14: PUBLISHING AND MARKETING SERVICES SCAMS

14 Signs of a Marketing or Publishing Scam

An Update on a Book-to-Film Scam

CHAPTER 15: THE BOOK REVIEW SCAM

The Threat of Getting Bad Reviews

Some Book Review Victims

How to Protect Yourself from the Book Review Scammers

ABOUT THE AUTHOR

OTHER BOOKS ON SCAMS, CRIME, AND SOCIAL ISSUES BY GINI GRAHAM SCOTT

CONTACT INFORMATION

INTRODUCTION

How It All Began

I began investigating scams about two years ago when I got caught up in two scams.

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In one case, I was working as a ghostwriter writing book to film reviews and the materials authors needed to present to a legitimate TV/film executive or producer to consider turning their book or script into a film, such as scripts, loglines, synopses, and show bibles. However, in speaking to one author, I discovered that one company had created a scam with imposter executives and producers for a real company to get the authors to pay them to write more and more, but then the material went nowhere. The scammers created a phony marketing campaign for them, too, and then the scammers disappeared.

In the other case, I was the victim due to writing materials for a client I obtained through a ghostwriting service.  But after I had written about half the client’s proposal and he had paid me through the service, he filed a fraudulent chargeback through his bank. Then he stopped communicating and disappeared.  In such cases, the banks normally support their clients, who can readily get away with what’s called a friendly fraud chargeback scam, though there is nothing friendly about it.  The result was that the payment platform this ghostwriting service used initially subjected any further payments to me to a 90-day hold for 35% of the funds. Then, it cancelled my account, restored it for a few months, and cancelled it again, before I finally convinced the platform to restore my account, since this was a fraudulent claim by a client who disappeared.

After those experiences, I began investigating to learn more about those scams, and soon I found many more scams targeting writers, and I discovered over 200 merchants who complained that their accounts were unfairly terminated by this same payment platform due to their friendly fraud chargebacks.

Discovering a World of Scams

Then, as I continued to investigate, the universe of scams exploded like a star in the galaxy.  It seemed like there were a number of a scams in virtually every industry, as devious schemers found different ways to cheat consumers, merchants, producers, service providers, and anyone else connected to that industry. And for the most part, the police, FBI, and other law enforcement agencies would simply take a report should a victim contact them, because the world of scams was too large, with millions of victims losing billions of dollars. And the scammers were very elusive, and often in other states or countries. So for the most part law enforcement would just pay attention if enough victims reported being victimized by a scam, if the media raised awareness about that scam, or an especially powerful person became a victim.

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An especially powerful image of this world of scams appeared in Bloomberg Businessweek’s July 5, 2021 edition.  It illustrated the frauds reported by the Federal Trade Commissions Sentinel database, which indicated that there were 4.8 million fraud reports in the U.S. alone, an increase of 43% from 2019, representing many billions of dollars lost to fraudsters each year.  What was especially amazing about this chart is that it listed virtually every industry, as reflected in the graphic below, which an artist designed for me.

There were retail, health-care, tax, and business opportunity frauds; work-at-home, travel, networking, and fake check scams. Just about anywhere you might look in any industry or any activity in everyday life, there would be scam. 

Perhaps a key reason for so many scams is the growing influence of an online economy, even before the pandemic led to lockdowns. As a result, more and more business was conducted between buyers and sellers, customers and merchants, and clients and service providers, who didn’t meet each other face to face.  Instead, they dealt over computers, phones, and emails, so it was easy for individuals to create whatever persona they wanted, and they could connect from anywhere, while pretending to be someplace else if they wished to deceive someone.

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In short, this new high-tech world created the perfect conditions for scams of all kinds to emerge with fraudsters coming up with more and more creative arrangements. Then, as one fraud was exposed, the fraudster could easily move on to another fraud by using a different name or creating another company using a new approach.  And the technology of the internet made it easy to set up a company website to provide a convincing presence with an address in a headquarters building or postal outlet that could be in any city in any country.

The Major Scams and Stories of Victims in this Book

Given this vast universe of scams, it is impossible to provide a comprehensive look at all of the scams in this universe.  Accordingly, I Was Scammed is designed to look at some of the biggest scams and at the effects of these scams on the victims.

To this end, the book describes how these scams work and how to avoid becoming a victim.  It discusses how to report a scam and possibly gain compensation.  Also, it features the stories of some of the victims, discussing how they got caught up in the scam, how it affected them, and what they lost. 

In featuring these stories, I have created composites drawn from the experiences of a number of victims in order to protect the name and identity of individual victims. I have included the real names of the scam individuals and companies where they have become a subject of public record, but otherwise I have used pseudonyms to avoid being subject to litigation by them—which is another kind of scam: filing suits in order to get compensation from the victims who cannot afford the cost of such litigation. 

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Following are the main scams to be featured.  Each chapter will describe how the scam works and the stories of some of the victims of each scam and what happened as a result.

Personal identity theft scams,

Scams against merchants by customers, clients, and payment systems,

House sale and rental scams with ghost properties,

Phony law enforcement and government agency scams to pay money to avoid going to jail or losing a license

Phony romance and friend scams,

Phony family member or relative in trouble scams.

Phony tech support, website creation, and other online service scams,

Phony health care products and services scams,

Counterfeit product scams,

Elder abuse scams,

Phony publicity and marketing scams.

And more.

The final chapters of the book deal with what to look for in a scam offer; how to assess the individual or company making the offer; and how to avoid being scammed yourself.

PART I: PERSONAL IDENTITY FRAUD

CHAPTER 1: LOSING YOUR PERSONAL IDENTITY

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Many scams occur because scammers are trying to get you to share your personal identity or because they are using your personal identity to scam you or scam others. 

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Unfortunately, the scammers have become expert and creative at what they do, especially in disguising their identity when they contact you. They can easily seem to call you or email you from any phone number or email address they choose, and they can create websites that look like the real thing for a big company.  Thus, it can often be hard to determine if a scammer is contacting you or if a communication is coming from a legitimate person or company.

However, there are ways to protect your personal identity from being stolen or used by the scammers, and ways to tell when a scammer is likely to be using a phony identity to scam you.  Plus there are steps you can take if you discover that your identity has been stolen.

Accordingly, I want to start this book by discussing how the scammers are stealing personal identities and using stolen identities in other scams that can end up hurting you, too.

The Growing Identity Theft Problem

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Identity theft is a huge problem, because of the vast number of victims, which has increased as more and more business and communication is conducted online, especially due to the pandemic.  The scammers use all kinds of techniques to get your information directly from you through personal phone calls, texts, and emails; through thefts from your mail or wallet; and through skimming devices when you make a purchase at a store or gas station. But the biggest identity threat is the data breaches of major companies, which reveal the personal information of millions of people at one shot. Then, once the thieves have this data, they share it on a vast black market for stolen data, which has become its own industry—the buying and selling of personal data, including credit card information. And the losses that result are HUGE!

For example, in 2019, 13 million consumers were victims and lost $3.5 billion in out-of-pocket costs, according to the consulting firm Javelin Strategy & Research, cited in report on Experian.[1]  Another survey reported by Allstate Insurance indicated that the millions of Americans victimized by identity theft has increased about 16% each year.[2]

The potential for theft is even greater from the data breaches. In one case, hackers stole the private Social Security information of nearly 80% of working Americans, and other data breaches of private companies and government agencies have affected billions of individuals.  These big data dumps don’t mean that your personal information will actually be used, but some reports suggest that the data of at least 1 in 10 Americans has been used to scam them or others.

Unfortunately, once your personal identity information is stolen and used, it can cost hundreds of dollars, and victims can spend many days repairing their good name and credit record.  Otherwise, with a damaged record, you can experience numerous difficulties from losing out on job opportunities to being unable to get loans for housing or cars because of negative information on your credit report.  Some victims may even get arrested, if a thief commits a crime in their name.

For example, Thomas was a typical victim, who wasn’t aware that his personal identity was stolen until he discovered charges he hadn’t made on his credit card. Then, he found he couldn’t get a loan to buy a car, because the scammer had gotten other credit cards in his name and had racked up so many disputed bills that his credit was downgraded. Once he realized what happened, it took him over 40 hours to report the fraud to his credit card company, bank, and credit reporting agencies to fix the problem. 

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But what happened? How did Thomas lose his personal information to the scammers who wreaked such havoc on his life? As he thought back to what might have happened several weeks before, he considered several possibilities. Maybe the theft had occurred when he was at a table in a restaurant for a family dinner and the waiter took his card to the front to charge it.  Perhaps the waiter or someone at the restaurant had take information from his card.  Maybe the theft happened when he filled up his car with gas and he used his credit card in the machine to charge his purchase.  Possibly a device on the machine had copied data from his card.  Or maybe the theft happened at the ATM when he put his card in to get cash—perhaps a camera overhead recorded information or maybe the identity thief was that man that patiently stood behind him while he made a withdrawal.  Or possibly the problem was one of the many purchases he made online. 

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Thomas thought he entered his credit card information into a legitimate site, but maybe one of the small boutique shops he bought some gifts from was a front for getting his information.  Or perhaps the monthly bills he didn’t get in his mailbox could have been taken. When he asked the companies to send the bills again, he hadn’t thought that the mail could have been stolen.  He just thought it might have gotten lost in a snowstorm.  Or maybe his information got taken when there was a data breach of one of the big stores where he once bought equipment many years ago.  Maybe his information was in one of the millions of accounts that got compromised in the breach.

In the end, Thomas had no idea of how his personal identity might have gotten stolen—just a list of several dozen possibilities, and there could be even more. Unfortunately, that’s the way it is.  There are so many ways that scammers can find out your personal identity these days, and you don’t even know they have it until they use it in one of the many ways that scammers can obtain your personal data. 

So how many ways are there? Here are the major ways in which the scammers can obtain your information and later use it in various ways to scam you and others, usually to get money. Then, I’ll discuss what you can do about it.

How the Scammers Acquire Your Personal Data

There are dozens of ways that scammers can steal your personal identity information. As they do, they can combine information obtained from one source with other sources of information to build a comprehensive database about you which they can use to access your various accounts. 

You can’t do anything to stop the steal if your information is obtained in a data breach, though you can be extra vigilant to check your credit and bank account information to see if there are charges or withdrawals you didn’t make. Or if you think your identity information is at risk, you can place a fraud alert on your credit card or bank account or change your accounts. In addition, you can protect yourself by knowing the other ways that scammers may try to acquire your data from you. Or if that happens, you can take a number of protective measures after the fact.

What are the many ways that scammers can steal your data? While some techniques involve old-fashioned physical methods, the vast majority of scammers use phone, email, social media, or online ads to get you to share your information.

Theft with a Personal Touch

These old-fashioned physical methods include the following:

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Dumpster Diving.  The thieves simply look through your trash for bills or other documents with your personal information. This is a more limited strategy, because of the time it takes to find anything useful compared to other methods. However, the way to protect against this is with a good old-fashioned shredder, so the thieves can’t find your personal information in the trash.

Old-Fashioned Stealing.  The thieves steal wallets or purses if you aren’t paying attention or have put them down on a counter.  They might also steal documents, bags, or anything else with your information from your car.  The protection here is to be careful about where you put your wallet or purse and avoid leaving anything in your car with your personal information.  Keep your glove compartment locked, too.

Skimming.  The thieves install a skimming device, so when you get gas, go to an ATM, or use a store’s credit card processor, they get a copy of the credit card you used.  The way to avoid being skimmed is to notice anything unusual about the equipment, such as an odd bulge in a processor or a camera taking a photo at an ATM.  Another strategy is to use a prepaid card with a limited amount of money rather than exposing a credit card with all your available credit.

Shoulder Surfing.  This happens when criminals stand behind you or watch you from a nearby location, when you enter your phone number, credit card, or zip code in an ATM, gas station pump, or other equipment to place an order.  Or if you use a telephone, they might listen in as you give someone your credit card or other personal information.  To avoid such surfers, make sure that no one nearby is watching you or listening in as you punch in or call in your personal information. Alternatively, cover your hand as you punch in any information or speak in a low voice so you can’t be heard.

Mailbox Theft.  This type of theft typically occurs on the days when you are likely to receive bank or credit card statements or monthly bills that might have your account information. Thieves go through a neighborhood looking for easy to access mailboxes, pull out anything that looks official, and they obtain your personal information from that.  Or sometimes, after intercepting your mail, the thieves may redirect it to another location, or they can change your mailing address at the post office or with the companies sending you monthly statements and bills. Then, you don’t get these mailings