Author: Paul Bergman

In times of financial strain, especially with rising healthcare costs, many seek affordable health insurance options. Unfortunately, scammers exploit this vulnerability by offering fraudulent discount health insurance plans. The FBI has issued a public service announcement warning consumers about these deceptive schemes. Here’s what you need to know to protect yourself. This is a summary of the FBI – Public Service Announcement.

Understanding the Scam

These scams typically involve unsolicited calls, texts, or emails offering low-cost health insurance plans. The offers often come with high-pressure tactics, urging immediate action to secure a “limited-time” deal. Victims are promised comprehensive coverage at reduced rates but later discover that the plans provide little to no actual insurance benefits.​

Real-Life Examples

• Pennsylvania Couple: Enticed by a discounted plan, they signed up quickly. After medical visits, they learned their plan didn’t cover any expenses, leaving them with substantial bills.​
• Texas Senior: Responded to an ad offering aid for essentials. He was told to enroll in a dental plan to receive the aid. Attempts to cancel the policy were ignored, leading to unauthorized charges.​
• Maryland Resident: Paid upfront for a plan promising extensive coverage. After emergency surgery, he discovered the hospital didn’t accept his insurance, resulting in a $7,000 bill.​

Protecting Yourself

To avoid falling victim to such scams:

• Verify Legitimacy: Ensure the insurance company is licensed in your state. Check with your state’s insurance commissioner or the Better Business Bureau.​
• Consult Providers: Confirm that your healthcare providers accept the insurance plan before enrolling.​
• Demand Documentation: Legitimate plans provide detailed policy documents. Review them thoroughly before making any payments.
• Avoid Upfront Payments: Be cautious of plans requiring large upfront fees or pressuring you to make immediate decisions.​
• Research Offers: If a deal sounds too good to be true, it probably is. Take time to research and compare plans.​

Warning Signs

???? High-Pressure Sales Tactics

• You’re told to act immediately or you’ll lose the offer.
• The representative discourages you from reviewing documentation or asking questions.

???? Vague or Misleading Information

• The plan is described as “not technically insurance” but promises “full coverage.”
• They avoid giving detailed policy information or use vague language like “unlimited benefits.”

???? Upfront Payment Requests

• You’re asked to pay high upfront fees or provide your bank account/credit card before seeing policy documents.

???? Limited or No Written Documentation

• You don’t receive a formal policy or are only sent a generic brochure or a brief summary.
• They refuse to send written confirmation until after payment.

???? Not Licensed or Registered

• The company is not listed with your state’s department of insurance.
• They can’t provide a valid license number or direct you to a physical office location.

???? Too Good to Be True Offers

• Extremely low monthly rates or “limited time only” discounts that seem unrealistic.
• Claims to cover everything without exclusions, limits, or deductibles.

???? Suspicious Contact Methods

• Unsolicited calls, texts, emails, or social media ads—especially if they’re from generic names like “Health Services” or “Benefits Center.”

???? Difficulty Canceling or Reaching the Company

• Once you’ve paid, it’s hard to get a real person on the phone, or canceling the policy is nearly impossible.

Reporting Fraud

If you suspect you’ve been targeted or have fallen victim to a health insurance scam:

• Report to the FBI: Visit the Internet Crime Complaint Center at www.ic3.gov to file a report. Provide as much information as possible about the fraudulent company.​
• Contact Medicare: For issues related to Medicare, reach out at www.Medicare.gov or call 1-800-MEDICARE (1-800-633-4227).​

In our free society, scams like this are easy to deploy. Stay vigilant and informed to protect yourself and your loved ones from these deceptive practices.

AI-Powered Payment Fraud Is Now—and Online Financial Services Must Act Now

Online financial services companies—mobile banking apps, digital payments platforms, and online lenders, to name a few—are changing how we manage cash. But where there’s innovation, there’s risk. There’s a new breed of cyber attacks coming down the pike, and they’re powered by something otherworldly advanced: artificial intelligence.

What’s Happening?
Cyberthieves today are no longer just using simple bots to commit fraud. They’re using programs with AI capabilities to pretend to be humans—bending traditional security tests like CAPTCHAs and even creating counterfeit but realistic identities. These types of bots would cycle through stolen passwords at remarkable speed, take over user accounts, and subscribe to new services with fake information.

Indeed, according to the latest reports, account takeovers surged 13% in the previous year, and synthetic identity fraud (with AI-generated fake identities) accounted for over $35 billion worth of losses. This is no longer a specialty issue—it’s a mass crisis.

Why It Matters
For financial services firms that are digital, this isn’t just about missing dollars. It’s about trust. When hackers break into user accounts or trigger counterfeit payments, the damage is far more than the dollars. Firms must contend with chargebacks, regulatory penalties, time-consuming investigations, and—most importantly—irate, anxious customers who may never return.

How Companies Can Protect Themselves
The old ways of preventing fraud no longer work. The scamming threats of today need more modern safeguards—solutions as smart as the bots they use to breach them.

The solution? Security tools that employ AI, monitoring user activity, raising alarm to suspicious activity in real-time, and preventing bot activity from spreading damage. DataDome and others lead in multi-layer security that takes a both- sides-of-the-hill approach by preventing false alarms and sustaining uninterrupted customer journeys.

The Clock Is Ticking
This risk isn’t coming—it’s here. Online financial companies must move quickly to tighten their fraud protection or risk being left vulnerable to ever more complex and automated attacks. AI-facilitated fraud is evolving quickly, but with the right security, online financial services can stay one step ahead.

Tax season is upon us, and while many are busy, cybercriminals are equally active, crafting deceptive schemes to exploit unsuspecting taxpayers. Two prevalent methods they employ are phishing and smishing attacks, designed to steal personal and financial information. Understanding these threats and the tactics used can help you stay vigilant and safeguard your sensitive data.

Understanding Phishing and Smishing

• Phishing involves cybercriminals sending fraudulent emails that appear to come from legitimate organizations, such as the IRS or tax preparation services. These emails often contain links to fake websites or attachments laden with malware, aiming to trick recipients into revealing confidential information like Social Security numbers or bank account details.
• Smishing is similar but utilizes text messages (SMS) instead of emails. Scammers send messages that may prompt you to click on malicious links or call a fraudulent phone number, leading to potential identity theft or financial loss.

How Cybercriminals Use File Hosting and Link Shortening Services

To make their deceptive messages more convincing and evade detection, scammers often employ file hosting and link shortening tools:

• File Hosting Services: Attackers may upload malicious documents or forms to reputable file-sharing platforms. They then include links to these files in their phishing emails or smishing texts. Since the links point to well-known services, recipients might be less suspicious and more likely to click.
• Link Shortening Tools: By shortening URLs, scammers can disguise the true destination of a link. A shortened link can obscure a malicious website’s address, making it challenging for recipients to identify fraudulent links at a glance.

For instance, a phishing email might claim to be from the IRS, alerting you to an issue with your tax return and urging you to review a document via a shortened link. Clicking on this link could lead to a counterfeit IRS website designed to harvest your login credentials or install malware on your device.

The IRS doesn’t initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. This includes requests for PIN numbers, passwords or similar access information for credit cards, banks or other financial accounts.

Recent Trends and Warnings

The IRS has reported a significant increase in texting scams, warning taxpayers to remain vigilant. In 2022, thousands of fraudulent domains tied to smishing scams were identified, with messages often luring victims with fake COVID relief or tax credits.

Similarly, Microsoft has observed phishing campaigns using tax-related themes to steal credentials and deploy malware. These campaigns notably use redirection methods such as URL shorteners and QR codes contained in malicious attachments, abusing legitimate services like file-hosting platforms to avoid detection.

Protecting Yourself from Tax Scams

To reduce the risk of falling victim to these scams, the best advice is to simply think before you act. If you are tempted to act, consider the following precautions:

1. Be Skeptical of Unsolicited Communications: The IRS typically initiates contact through regular mail. Be cautious of unexpected emails or text messages claiming to be from the IRS or other tax-related entities.
2. Verify Links Before Clicking: Hover over links to preview the URL before clicking. Be especially wary of shortened URLs or links directing to file-sharing services, as they may conceal malicious destinations.
3. Avoid Sharing Personal Information: Never provide sensitive information like Social Security numbers or bank details in response to unsolicited messages. Legitimate organizations will not request such information through email or text.
4. Use Strong, Unique Passwords: Ensure your online accounts have robust passwords. Consider using a password manager to generate and store complex passwords securely.
5. Enable Multi-Factor Authentication (MFA): MFA adds an extra layer of security by requiring additional verification beyond just a password. This can significantly reduce the risk of unauthorized account access.
6. Keep Software Updated: Regularly update your devices and applications to patch security vulnerabilities that scammers might exploit.
7. Report Suspicious Activity: If you receive a suspicious email or text claiming to be from the IRS, report it to phishing@irs.gov. This helps authorities track and combat emerging scams.

Conclusion

As tax season progresses, staying informed about the tactics used by cybercriminals is crucial. By understanding how phishing and smishing scams operate, particularly their use of file hosting and link shortening tools to obscure malicious intentions, you can take proactive steps to protect your personal and financial information. Remain vigilant, verify communications, and prioritize your cybersecurity to navigate this tax season safely.