Money Matters
Money Matters
Identity Thieves Are Getting Smarter—Are You?
Carmen Million, President of the Better Business Bureau of South Louisiana, shares critical insights on protecting ourselves from financial predators targeting our money through sophisticated scams and identity theft tactics.
• Grandparent scams are resurging with AI voice cloning technology that makes scammers sound like real family members in distress
• The IRS will never call demanding immediate payment or gift cards - they always send official mail correspondence first
• Tax identity theft is increasing, with criminals filing fraudulent returns to steal refunds before legitimate taxpayers file
• When choosing tax preparation services, avoid those promising unusually large refunds or same-day payments through loans
• Vacation scams often feature too-good-to-be-true deals - always verify reservations directly with hotels and cruise lines
• Identity thieves can reconstruct documents torn into pieces, making professional cross-shredding essential
• The BBB hosts a free document shredding event on April 5th at the Baton Rouge Police Department from 9am-12pm
• Anything containing personal information should be properly disposed of, including bank statements, tax documents, and credit card offers
To stay protected, be skeptical of unexpected calls and emails, verify before making payments, choose trusted financial service providers, and stay updated on scams through resources like the BBB Scam Tracker.
Have an idea for a show or a question for Kim? Send us a text message
Welcome to Money Matters, the podcast that focuses on how to use the money you have, make the money you need and save the money you want – brought to you by Neighbors Federal Credit Union.
The information, opinions, and recommendations presented in this Podcast are for general information only and any reliance on the information provided in this Podcast is done at your own risk. This Podcast should not be considered professional advice.
Welcome to Money Matters, the podcast that focuses on how to use the money you have, make the money you need and save the money you want. Now here is your host, ms Kim.
Speaker 2:Chapman, welcome to another edition of Money Matters. You know, one of the most important things we can do with our money is to keep it secure. So what I have done is brought back our resident specialist for keeping us in the know for scams. President of the local BBB of South Louisiana. Miss Carmen Million, that was a mouthful Thank you, Kim, for having me. So you know, every quarter I want to have you come back because the scammers never stop. It's always something. And of course, with tax season, you know, on the horizon, I wanted you to come by and just talk about. You know, what are the latest scams going on? Before we even start talking about tax scams, what do you see popping up right about now?
Speaker 3:Well, you know, there are a couple of things. I just heard one yesterday and I was kind of surprised that it's really on the rise and that's a grandparent scam. And I was kind of surprised that it's really on the rise and that's the grandparent scam and I was kind of surprised that it's coming back again. But you know, that's where they contact people. They call you on the phone and with AI they can, of course, make the voice sound really familiar, and then they tell you that they're a grandchild and they need help. And you know they need your money, they need your personal financial information and that's sad. We see that a lot, but that is apparently another one that's on the uptick and so we want consumers to understand that if they receive a phone call, don't assume that it's their grandchild or somebody they know, especially if they're asking for money. Hang up the phone and call somebody you know that will be able to tell you if this is the truth or not.
Speaker 2:I tell you it's. You know we love technology. It can really make our lives a lot better, but at the same time, it can make it so much worse, it can make it a nightmare, and so, yeah, ai is really making it tough. So, grandparent scam, and maybe, for those that are not aware of it, let's just talk a little bit about exactly what that is.
Speaker 3:You know the grandparent scam has been going around for years. But essentially, you'll get a call and they will call thousands of people and they will say, hey, grandma, this is your grandson. And you know they're expecting you to say oh, is this John? Yeah, grandma, this is John. Look, I need you to help me. I'm in a foreign country. I took a trip. I got in a wreck.
Speaker 3:This is the most popular scenario. I got in a wreck and the girl I hit was pregnant. She's in the hospital. I'm in jail and I need your help. Look, don't tell Mom and Dad, because you know how they are, of course, but if you help me with the money, you know, pay my fine so I can get out of jail and get back home. When I get back home, we'll talk to mom and dad together and we'll pay you back. And then, of course, they may send money. And the most popular thing they ask for now is a gift card, which is really weird. But they do Put money on a gift card and then you give them the number on the gift card and then, of course, they remove every penny.
Speaker 3:The next day you'll get the call from the same grandson saying that, hey, look, the lady died. Now I'm in jail. I need you to talk to my lawyer. I have a lawyer and then they have a foreign-speaking lawyer that gets on. We're going to put him in jail. He's going to go away forever. Blah, blah, blah. And I've had actually the very first time I did a speech in Baton Rouge. A guy lost $15,000 on this. That is not unusual. And the sad thing is is they think they're talking to their grandchild. I have no grandkids, so if they try with me, it's not going to happen. My mother-in-law had eight grandsons. She would have been a really good potential victim. So and we tell people this all the time If the timing is right, if the situation is right, anybody can be a potential victim. So and we tell people this all the time If the timing is right, if the situation is right, anybody can be a potential victim.
Speaker 2:So true.
Speaker 3:So don't assume that you're never going to be a target. It's you have to be your first line of defense.
Speaker 2:Anything in particular somebody should look out for. You know when they get that call. Is it just the fact that it's a you know, an unknown number? Because even now they scramble numbers and they can make it look like a number in your area.
Speaker 3:Well, you know, the first thing is one if you don't recognize the number, don't pick up the phone. Okay, just let them leave a message. If it's important, they will leave you a message. But any time they contact you, whether it's on the phone, whether it's email text, you know whatever. If they're asking for personal information, whether it's personal financial information, if they're asking you just personal questions that seem not correct, you should stop right then Hang up, disconnect and contact. Hang up, disconnect and contact.
Speaker 3:You know, in a lot of cases they'll say they're your bank or they're the IRS or whatever, and they'll ask you for personal information. Give me the last four digits of your social security number. Whatever it is they're asking, don't assume that you're talking to the right agency. Hang up the phone and call the agency from a number that you know is accurate before you give that information. But you have to assume if they ask you for personal financial information, if they ask you to send money, if they ask you for banking information, whatever, assume that it's not kosher. I don't want to say a scam, but most of those are scams.
Speaker 3:They're on the side of caution, exactly, and so investigate before you give any information. Nobody who's going to call you, whether they're telling you you owe taxes or whether they tell you that you owe money. Anything is going to happen overnight. You have time to investigate and that's the other thing. They'll rush you. You have to make the decision now thing. They'll rush you. You have to make the decision now. And a funny not really funny a thing that they tell people is they'll say hey, if you don't make arrangements to pay right now or give me that information right now, we'll have a bench warrant for your arrest. And that you know.
Speaker 3:Fear is a tactic that they use. They want to rush you, they want to put you in a situation, in a corner, where you make a bad decision, but they also want to scare you into making a bad decision. So never let anybody pin you down like that. Take a deep breath, take a step back, hang up, disconnect and then call somebody. Call the Better Business Bureau If it's concerning your banking information. Call your bank. Call somebody that you know and trust and that you have a relationship with. Call your bank.
Speaker 2:Call somebody that you know and trust and that you have a relationship with. So let's talk about the ugly words, those ugly letters, IRS, you know, it's that time of the year and you would think of all the things that a scammer would want to do. Taxes, you know, because the rest of us taxpaying citizens are scared of Uncle Sam. We want to make sure we're paying everything right, dotting our I's, crossing our T's. So what should people be looking out for in terms of tax scams?
Speaker 3:Well, the first thing and this is probably the scariest one to me is, if you, especially if you know you're going to get a refund, you might want to consider filing as early as you possibly can, because the most common scam now with your taxes is that a scammer will get your information and file a return in your name and get the refund. So then when you go to file, irs is telling you no, we already have a claim.
Speaker 3:You've already been paid Exactly, and so what they started doing was the IRS started giving a PIN number, and once you get that PIN number I think they renew it every year. But you use that to protect yourself, and if you've signed up for the PIN number and somebody tries to file in your name and they don't have the PIN, they can't get to it. So that's something to consider. But that's the scariest to me, because you go to file your taxes and then somebody's already done it in your name. The other thing is you get the call. Of course, we've all received this. This is the Internal Revenue Service. We noticed that you didn't pay your taxes in the past and we need you to pay immediately. And the funny thing about that is people fall for it, even though they're asked to give a gift card, and that's. You know you should never, ever. Irs is never going to call you and ask you for money immediately. They're going to send you that big yellow envelope in the mail telling you what you need to do and who you need to contact.
Speaker 2:I'm afraid of yellow.
Speaker 3:Exactly. When you get that big yellow envelope, you know you're probably in trouble, there's some questions, but you want to investigate it. Don't just assume that you owe those things. Anytime somebody calls you and tells you that you owe something doesn't mean it's fact. You have a right and you have time to investigate it and always check on it before you agree to make any payments. The other thing is the IRS is never going to call you and I always tell people it's kind of funny.
Speaker 3:Have you ever tried to call the IRS? It's like insane, you can't get to somebody. You're going to call you and I always tell people it's kind of funny. Have you ever tried to call the IRS? It's like insane. You can't get to somebody. You're going to be on hold forever and I promise you, the reason you're on hold is not because they're trying to call hundreds of thousands of people and threaten them. That's not how they work. They're going to send you a letter and, of course, they're going to confiscate your next year taxes if. But you still have time to dispute it. But don't assume that it's the IRS. And, of course, caller ID. You can't trust caller ID and scammers can actually put the IRS phone number and the IRS on your caller ID. So you can't trust that Again, let them leave a message, give you time to investigate and call a number that you know and trust is valid.
Speaker 2:And speaking of leaving a message, I'll tell you, years ago, many, many years ago, I got one of those calls. I was at work and I think what really scared me was that they left a message because when you think about 20 years ago, they didn't have the technology and most scammers it was that one time call. They didn't have the technology to leave voicemails and so they actually left the voicemail message on my voicemail. The agent left a ID number and actually before I could call them back, they called me back and, just like you said, they had the threatening you know, if you don't do anything, we've been sending you notices, and I'm thinking I hadn't gotten any notices and of course, came with yeah, you know, we're going to be sending an agent to pick you up. And all I could picture was them taking me out in handcuffs in front of all my co-workers and I was like, oh my goodness, but of course I still.
Speaker 2:The red flags were going off and I'm trying to hurry up and type in IRS and get the number and put them on hold to call and verify because they are very intimidating. And I think what really threw me way back then was the fact that they actually had a number you could call back. They gave that badge number and this was right about the time that IRS started having to give those badge numbers. So of course they are always keeping up with technology and going above and beyond to make it seem so realistic. So it is very easy. But, like you said, don't answer the phone. Call the IRS directly and if you're lucky to get a person on the phone then you can confirm if they're looking for you. But you say there's a big yellow envelope, right?
Speaker 3:Absolutely and understand that scammers are very intelligent. They know what trigger points to get your attention. They know what to say the badge attention. They know what to say the badge number. How do you determine if the badge number is valid? It sounds so good and they're so intimidating and of course we've talked about AI a little bit. They make it even harder because it really sounds valid, but they can spoof the phone number and make it look like they're actually calling you from the Internal Revenue Service. Don't trust it, don't trust your phone. Hang up and call them directly.
Speaker 2:So what should you do if you think you've been a victim of you know, fraud or scam, especially when we're talking about our taxes?
Speaker 3:Well, the first thing is, if you feel like you've been a victim whether you've had your taxes stolen or you know somebody has called you and gotten information you need to report it to the IRS, of course. And of course, the other thing we have, better Business Bureau has a scam tracker. You go to bbborg backslash scam tracker and you can log it in there. The importance of logging it at the Better Business Bureau is it lets us see the patterns, what's hitting the areas, so that we can do alerts. There's also a government watchdog it's ic3.gov. You can report it there. They also investigate online scams. But the first thing, of course, is to contact the IRS and notify them that you've been a victim so that they can put a halt and help you not continue to be a victim, because once they have your information, it's very hard to stop it.
Speaker 2:So what about somebody that's scamming you and they're posing to be a tax preparer? What are some red flags that you should look for there? Because of course, you know we're talking about somebody that may steal your information out the mail or get it out of a phishing tactic. But if you go to what you think is a legitimate tax preparer, you know what are some of those red flags you should look for.
Speaker 3:Well, first of all, I'm going to tell you this If you're considering hiring somebody to do your taxes, you need to investigate that person before you give them all your personal information. You can start with BBBorg. You can also look at their industry licensing information. But you want to do your homework. Ask them for references. The other thing you want to make sure is if they make promises like oh, I can get you the biggest refund, I can get you more money.
Speaker 2:And that's what we're listening for.
Speaker 3:right, right Well yeah and it sounds good, but you want to be cautious If it sounds too good to be true, if it sounds like it's too much, like you want to make sure when they do your taxes, hire is going to be around, because if you get audited by the IRS, you want somebody to back you up.
Speaker 2:The person and if they're not?
Speaker 3:there, then you're on your own and you don't know what they did or what they sent. So you want to make sure you investigate that company. Also, if they tell you I love the ads that, oh, we can get your money the same day you fall, well people have to understand what that really means. If you fall and you get a refund, it's not really coming from the Internal Revenue.
Speaker 2:Service Right, because they're not even processing that information that quickly.
Speaker 3:Exactly what they're doing is you're essentially getting a loan on your own money that you so. I know you may be desperate. I know you may need the money, but you have to take into consideration what you're going to lose if you take advantage of their nice offer. But you want to make sure you investigate. If they start asking you questions that make you feel uncomfortable, then just stop it. But remember that you're giving them your full personal financial identity. You have to be cautious. If it sounds too good to be true and I always tell people it sounds stupid. But if you have that little funny feeling in your stomach when you're dealing with somebody, when you're talking with them over the phone or you're meeting with them, listen to it. It's never going to steer you wrong. But investigate, investigate, investigate. If you're not sure how to do that, contact the Better Business Bureau or a financial advisor, a bank or a credit union that you trust and get some advice from them. But don't just assume that because they say that they're tax prepared, that they're honest and valid.
Speaker 2:Yeah, you drove down the street and you saw a sign that says Kim's tax preparation and you stop by and I tell you, doing taxes probably has seems to be one of the most vulnerable circumstances you could get in, because not only are you giving them your social security number, the social security number of your family members, your banking information, your employment information so, yeah, definitely be very cautious out there in terms of doing taxes. But on the flip side, hey, when we get those refunds, what do we want to do? We want to go on vacation. So I'm going to segue and let's talk about it, because, you know, right after taxes, you know it's spring, summer's on the horizon, people are going to be planning for vacations, but you know the scammers don't stop. I mean, it's I guess it's a 24 hour a day, 12 month a year job, and that they're always looking to see how they can beat somebody of their money. So what have you seen, or what are the common scams that are going on in terms of people planning vacations?
Speaker 3:Well, of course you know we see all the commercial commercials, all the ads, the pop-ups that tell you you can get this great vacation and you can save all this money, it's all inclusive or whatever the case may be. You know you're going to hear a common theme here. Do your homework, investigate. If the offer sounds too good to be true it generally is. You also want to make sure if it's one of these things that tell you that you can get a vacation for a low, low price and you know whatever. You want to find out what companies they're dealing with, what hotels, what if it's a cruise, what cruise lines they're dealing with. Check with those agencies to make sure that they do.
Speaker 3:They are involved in these other company, with these other companies. If they have relationships with them, go to the Better Business Bureau. Investigate that company before you agree to it. And the most important thing that you want to remember is to consider travel insurance. I know it sounds like, oh, one more thing of insurance, but if you have to cancel, if you have an emergency in your family or if there's a weather disaster or whatever, you have to cancel, you want to make sure you get your money back. So that's something to consider. It's not for everybody, but it's something to consider.
Speaker 2:OK, definitely, that's a really, really good tip. I will definitely tell you the calls. You know I get calls all the time. Oh, you know, we have you for a special vacation three nights, four nights. You know, hilton Grand Vacation. Some of those calls are legitimate. Some of those are scams. I'd love to take advantage of all the ones that are legitimate, but what are some red flags? What should we be looking for when we get those calls for those vacation packages?
Speaker 3:Well, first of all, again, you want to make sure if the offer sounds valid. If the offer they're giving you is too good to be true, then you know it probably is. Is it connected with something else? Are there conditions, like do you have to listen to a timeshare? Okay, what does that entail? What are the restrictions? Are there any other fees that they're not telling you about? You want to make sure you ask all of those questions. Whatever offer they're giving you, you want to make sure that they can submit it to you in writing so that you can investigate it first. But again, the main thing, and of course, if they ask for a substantial amount of money up front, those are all warning signs. If they ask you to pay with a gift card, which is the theme now, you know those are warning signs. But if the main thing is is if it sounds too good to be true, it generally is Investigate before you invest.
Speaker 2:Is there any aspect of booking travel, whether it be the hotel, the airline or even just the destination, in terms of you know if it's Disney that you see more scams prevalent than others?
Speaker 3:Well, I mean, the biggest thing is that is where people book and then they get to a hotel that they think may be valid and it's not in the best neighborhood, it's sketchy. There are some cases where people get to their destination and there are no reservations made for them. So you want to make sure that you take a moment and, once you get into it, even before you leave, call and confirm those reservations. Call and confirm that they're in your name and what the cancellation fees are, what the cancellation rules are. You want to make sure that you be your first line of defense. You have to make sure, even though somebody else planned it for you, you still have the opportunity and actually the responsibility to check on it before you get involved.
Speaker 3:You want to make sure you know where it's located, if it confirmed your reservation, what are the aspects, how do you get to the hotel, how do you get to the cruise or whatever, and what's required. But the main thing is you don't want to get there and be in a sketchy place, but then, on the other hand, you don't want to get to a nice place and then realize that there are additional fees. So you want to make sure you call and confirm what all the requirements are, what are expected, and if you can get it in writing beforehand, you're better off. But you don't want to get to a destination and there be no reservation, absolutely.
Speaker 2:And you've paid all the money that can really really ruin a vacation. So we can be vulnerable, of course, even today, with all the paperwork and documents that we have laying around our house, even today, with all the paperwork and documents that we have laying around our house, I mean we could be sometimes our own worst enemies, in that we get things in the mail and you know I try and tear it up, but I'm thinking to myself am I really doing myself a favor by actually opening up for that criminal versus leaving it sealed, because then maybe you know they're breaking a mail law? So let's talk about shredding, how important that is, and then tell us a little bit about an event that can help individuals that have some documents out there that they want to be able to get rid of, but they're afraid to just stick it in their trash can.
Speaker 3:Yeah, let me start with. I think I have some statistics here. Let's see. Okay, okay, yeah, okay. So this is what I wanted to share.
Speaker 3:It's very, very important that you properly dispose of any information, any paperwork that you have that has your personal financial information 1,942,000 cases of ID theft just reported to the FTC through the first three quarters in 2024. So that's not the total, and those are just the people that actually called to report a scam. A lot of people don't report it because they're embarrassed. It's very, very important. Dumpster divers is a real thing. People will dig through your trash. They will get your information. Even if you've torn it in a couple of pieces, they can piece it together If you think about it. It may take them a couple of hours to put your information together, but it is going to be worth their time because they can get so much information and so much money before you even realize it.
Speaker 3:So you again, you have to be your first line of defense. That's my favorite saying Always shred it properly and it's always best to cross-shred it. That way they can't piece it together. So you want to make sure you dispose of it properly and don't just leave your personal financial information laying around your house. Just leave your personal financial information laying around your house Because unfortunately, we find that the perpetrators of identity theft and most often are people you know which is scary, but it is they will take that information. Because what do you need to steal somebody's identity? You need their social security number, you need their bank account information, they need your mother's maiden name, you need your birth date. You know, those things are easy, and so leaving that information to somebody who passes through your house is not the best way to protect yourself. So keep your personal information locked up and when you're going to dispose it, make sure you properly shred it.
Speaker 2:Okay, so tell us about the shred event.
Speaker 3:We have a shredding event that we do every April and I'll tell you when I got here in Baton Rouge in 2018, we were doing a shredding event there at a different location, and we were getting about 125 vehicles going through in four hours. Getting about 125 vehicles going through in four hours. And just to tell you, right now we get between 600 and 800 in three hours. And what the event is? Essentially, it's held at the Baton Rouge Police Department parking lot On airline On airline and this year we're going to have it on April 5th and it's going to be from 9 to 12. And what we do is we have a professional shredder on site.
Speaker 3:We have the police department who actually works our traffic detail, because we've blocked airline a couple of times. So it goes very fast. It's very organized, but essentially you drive through this line. We have a group of people that will unload up to three boxes or three bags. People always ask us what the size is. As long as we can pick it up, that's the right size. We will take the boxes and bags and we will place the information into a dumpster on site and as soon as that dumpster is full, the shredder starts shredding it on site, and as soon as that dumpster's full, the shredder starts shredding it on site. And so the purpose of the event is to teach people how to properly dispose of their personal financial information, and we have the attorney general's offices actually working with us this year. We have several sponsors, but the police department and the shredding company are the ones that are the most important pieces of it, because they are going to make sure that your information is properly shredded, that nobody can steal your identity from that information.
Speaker 2:Okay, so April 5th Airline Highway 9 to 12.
Speaker 3:You can drive through Highway 9 to 12. You can drive through. You know people say that it's been the easiest drive-thru they've ever had because we have it well organized. You drive through, you don't get out of your vehicle. We literally unload it for you and shred it on the spot. We have two, actually we have the shredding company has two shredding trucks going at the same time, so we're shredding it on the spot. When we leave that location at noon it is all shredded and so people do not have to worry about their information. And then we'll also be giving out information to each person that goes through on how to properly shred their documents on their own. We also give them information on the shredder so that they can use that shredder. But we also provide them with information.
Speaker 3:And it's so important how long to keep your documents, because we have people that have documents for centuries. You know it's like you need to stop this. You can't keep personal financial information in your attic forever. One, it's a fire hazard. But two, you know so many years. I think seven years is like the maximum, except for certain things. And we have all of that documented. We give that out to each person who goes through All right, so definitely bank information.
Speaker 2:I would imagine the solicitation from all the banks that offer you credit cards. What are some other documents that you would recommend people shredding? Solicitation from all the banks that offer your credit cards. What are some other documents that you would recommend people shredding?
Speaker 3:Anything that has your personal financial information, social security number, anything that you don't want to get into the wrong hands. You need to bring, and it can have staples, it can have paperclips all of that It'll shred it. Just make sure you go through the paperwork before you bring it. Make sure it's not wet and it can't be in binders or anything like that. But they will shred it. But just make sure that. Oh, bank statements, oh checks you know people don't really use checks anymore like they used to. All of that information. And we do get a lot of people that are cleaning out their attic from a deceased elderly family member. We get a lot of those you don't want, even though they passed away. That doesn't mean their identity can't be stolen, but you want to make sure you dispose of that properly. So bring it in. We will shred it on the spot and we'll give you some information to help you make wise decisions in the future.
Speaker 2:All right, tell us that time and location one more time.
Speaker 3:It is April 5th, it's a Saturday morning, it's from 9 to 12. It's at the Baton Rouge Police Department. On Airline. You do not have to get out of your vehicle. We will accept up to three boxes or three bags per vehicle. And also one other thing we're going to have the food bank out there, so we don't take money for this event. It's a free event. But if you'd like to bring canned goods or donate to the food shelter, they'll be out there as well.
Speaker 2:Awesome, awesome. Well, as we know, crime will never go away, so we'll keep having you come back, definitely to keep our listeners in the know, to know what scams and red flags to watch out for. So thank you, carmen to watch out for.
Speaker 3:So thank you, carmen, and until next time.
Speaker 1:Thank you, kim, I appreciate it. It's time for Blueprint Building Blocks Small changes that lead to big financial wins.
Speaker 2:Let's stack up for success. Be skeptical of unexpected calls and emails. The IRS won't call or email asking for immediate payments. If you receive one of those calls, hang up and report it. Verify before you pay. If someone contacts you claiming you owe them money, always verify through official channels before making any payment. Choose a trusted tax preparer. Check credentials and look for reviews before handing over your personal financial information and then stay updated on scams. Check with the BBB scam tracker and sign up for alerts to stay ahead of fraudsters.
Speaker 1:That's a wrap on today's Blueprint Building Blocks. Stay on track with your financial journey. Subscribe to the Money Matters podcast and visit neighborsfcuorg slash financial wellness for more tools to help you build a strong financial future.
