Ever heard of the old joke, "Why did the fraudster send an invoice? To bank on your trust!" Well, it’s not so funny when it hits your business for half a million dollars. Scammers are using sophisticated tactics to reroute payments, leaving businesses and individuals in San Jose vulnerable to massive financial losses. Let’s dive into the scams that are making headlines—and how you can protect yourself.
In San Jose, residents and businesses are falling victim to scams that are draining their bank accounts. From business email compromise (BEC) schemes to tech support scams targeting seniors, these fraudsters are getting creative. In one case, a business lost nearly $500,000 after a scammer posed as an employee and rerouted funds to their own account.
How It Works:
- Business Email Compromise (BEC): Scammers hack into a business email account or create a fake one that looks legitimate. They send fake invoices or payment requests, tricking clients or employees into transferring funds directly into the scammer’s account.
- Step 1: Scammer hacks or creates a fake email resembling a trusted contact.
- Step 2: The scammer sends a fraudulent invoice, asking for payment to be sent to a different bank account.
- Step 3: The victim wires the money, thinking it’s legitimate, but the funds go straight to the scammer’s personal account.
- Tech Support Scams: Fraudsters, like in the case of Liqun Fan, convince seniors to pay for bogus services, such as "fixing" a fake virus on their computer. These scams prey on older individuals who may not be familiar with tech issues, scamming them out of thousands of dollars.
Who’s Targeted:
- Businesses: Especially those that regularly deal with invoices and wire transfers, such as small to medium-sized businesses, are prime targets for BEC scams.
- Seniors: Tech support scams often target older adults, convincing them to send money to "fix" non-existent problems.
Real-Life Example:
In one case in San Jose, a business owner lost almost $500,000 after receiving an email from what they thought was an employee. The email instructed them to wire funds to a new account, which turned out to be controlled by a fraudster. Fortunately, law enforcement recovered most of the money, but the suspect, Aleida Torres, remains at large.
In another instance, Liqun Fan was arrested for scamming an elderly victim into sending $1,000 for a fake virus removal. These scams may seem small, but they add up quickly—and they’re happening across the country.
Why You Should Care:
Losing hundreds of thousands of dollars to a scam can devastate a business or individual. Beyond the financial loss, these crimes erode trust and create emotional distress. BEC scams are becoming more sophisticated, and even tech-savvy individuals can be tricked. The consequences of a single click or phone call could impact your business, your savings, and your peace of mind.
How to Protect Yourself:
- Block unsolicited communications: If you receive a random email or phone call asking for personal or financial information, be suspicious and avoid responding.
- Verify before you wire: Always double-check with the supposed sender via a different communication method, like a phone call, before wiring any money to a new account.
- Stay cautious of payment methods: Scammers often request payment via wire transfers, gift cards, or cash by mail. Be wary of anyone asking for payment in these forms.
- Don’t act under pressure: Scammers often create a sense of urgency. Resist the urge to act immediately and take time to verify the situation.
- Involve a trusted third party: If you're unsure about a transaction, ask for advice from a colleague, law enforcement, or a financial professional.
Quick Tips:
- Did you know? Business Email Compromise scams are responsible for billions in losses globally each year. Always verify payment requests, especially those involving large sums.
- Pro Tip: Be on high alert if someone asks for a wire transfer or payment to a new account, especially if the request seems unexpected or urgent.
Have you or someone you know been a victim of a scam? Share your story with us and help others stay informed and protected!
Whether it's a hacked email or a fake tech support call, scammers are becoming more creative. But by staying vigilant and verifying any suspicious requests, you can keep your hard-earned money where it belongs—safely in your account.
Stay safe, stay informed,
Key Terms Explained:
- Business Email Compromise (BEC): A type of cybercrime where fraudsters trick businesses into transferring money by hacking or mimicking legitimate email accounts.
- Wire Transfer: An electronic transfer of funds from one bank account to another. It’s often a preferred method for scammers because it’s hard to reverse.
- Tech Support Scam: A fraud where scammers pose as tech support, convincing victims they have a problem with their computer or device that requires payment to fix.
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