Spear Phishing
So I was listening to APM”s Marketplace Money podcast for 20 Mar 2009 today, and I ran across a term that I haven”t heard before: spear phishing. A guest from Consumer Reports described it as follows:
“Regular phishing is kind of like throwing a bunch of bait in the water, or chumming for shark or something like that. Spear phishing is a much more targeted type of phishing where the phishers actually get a hold of some of your personal information and design the email or a mailing notice to look that much more legitimate. Whether it”s fake emails from the IRS, we”ve even seen some from Western Union, or reporting to be someone from Western Union, rather. Unfortunately, due to the prevalence of social networking sites like Facebook and others, identity thieves are finding it very easy to find all sorts of personal information that makes spear phishing that much easier.” (Edited for clarity)
Homeowners in default are in particular risk, because their mortgage information becomes public, and make prime targets for scammers purporting to represent the victim in adjusting their mortgage. The victim is instructed to pay a hefty fee for the service and to not contact the lender during the “adjustment process.” During this period, the homeowner may end up in foreclosure, at which point the scammer disappears.
An excerpt from December 2008 release of FTC”s “FTC Facts for Consumers:”
Be Alert to Scams
Scam artists follow the headlines, and know there are homeowners falling behind in their mortgage payments or at risk for foreclosure. Their pitches may sound like a way for you to get out from under, but their intentions are as far from honorable as they can be. They mean to take your money. Among the predatory scamsthat have been reported are:
- The foreclosure prevention specialist: The “specialist” really is a phony counselor who charges high fees in exchange for making a few phone calls or completing some paperwork that a homeowner could easily do for himself. None of the actions results in saving the home. This scam gives homeowners a false sense of hope, delays them from seeking qualified help, and exposes their personal financial information to a fraudster.
- Some of these companies even use names with the word HOPE or HOPE NOW in them to confuse borrowers who are looking for assistance from the free 888-995-HOPE hotline.
- The lease/buy back: Homeowners are deceived into signing over the deed to their home to a scam artist who tells them they will be able to remain in the house as a renter and eventually buy it back. Usually, the terms of this scheme are so demanding that the buy-back becomes impossible, the homeowner gets evicted, and the “rescuer” walks off with most or all of the equity.
- The bait-and-switch: Homeowners think they are signing documents to bring the mortgage current. Instead, they are signing over the deed to their home. Homeowners usually don’t know they’ve been scammed until they get an eviction notice.
As always, be skeptical of any unsolicited communication you may receive from anyone claiming to require your sensitive information. And if you are ever in doubt as to the the veracity of any phone number, it”s a good idea to check a public listing in the organizations official web site, or even better, a phone book. You do still get a phone book, don”t you?
