The number of frauds targeting Alaskans and local governments has increased significantly. These dishonest practices include both sophisticated phishing scams and dishonest in-person scammers.
To safeguard oneself and the society, awareness and alertness are essential. Alaskans are now being impacted by the following five common scams:
Fraud and Skimming in Electronic Benefits Transfers (EBT)
EBT fraud has significantly increased throughout Alaska in recent months. To steal card information from unwary consumers, scammers utilise skimming devices on gas pumps, ATMs, and point-of-sale terminals.
Two skimming devices were found during an outreach operation conducted in August 2024 by the U.S. Secret Service in cooperation with state and local law enforcement, which examined over 1,750 devices in many Alaskan communities.
The growing menace of skimming, which costs consumers and financial institutions more than $1 billion a year, was brought to light by this operation.
Preventive Actions:
- Prior to usage, check point-of-sale terminals, petrol pumps, and ATMs for any indications of tampering.
- To avoid typing PINs on possibly hacked devices, use debit cards as credit.
- Keep an eye out for any unauthorised transactions on your account statements.
Phishing Scams in Municipalities
In Alaska, local governments have suffered large financial losses as a result of falling for phishing schemes.
In one case, fraudsters used a counterfeit email account that looked like it belonged to a real infrastructure company to send a phoney invoice, costing the city of Ketchikan close to $20,000.
City officials processed the payment because the bogus email included an invoice with correct information. Only after the genuine company pursued the unpaid invoice did the deception become apparent.
Preventive Measures:
- Contact the seller directly through established means to confirm the legitimacy of invoices, particularly those that were sent by email.
- For financial transactions, use multi-factor authentication.
- Employees should receive specialised training to identify phishing attempts and fake communications.
Post-Disaster Contractor Impersonation Scams
Scammers have preyed on homeowners by posing as local contractors after natural catastrophes.
At least one Juneau resident lost more than $50,000 to such a fraud following the August 2023 glacial outburst flood near the Mendenhall River.
The scammers tricked homeowners into paying large sums of money by sending phoney invoices that bore the real contractor’s name and contact information.
Safety Advice:
- Before paying contractors, always confirm their identification by getting in touch with them via the proper methods.
- Requests for payment via wire transfer or other unusual means should be avoided.
- Talk about the conditions and means of payment in person or via reputable channels.
Scam of the Good Samaritan Jewellery
Scammers in Eagle River and Anchorage have taken advantage of the kindness of locals by pretending to be foreigners in need of money for travel and saying they must sell jewellery to get it.
Victims have lost thousands of dollars due to the sale of counterfeit jewellery.
The well-dressed suspects approach people in parking lots or by the side of the road in cars that seem to be broken down.
Ways to Prevent:
- Be wary of unsolicited offers to buy valuables, particularly in unusual places.
- Steer clear of rash financial decisions driven by feelings.
- Inform the local police department right away of any suspicious activity.
Theft of SNAP Benefits
Thieves have targeted people who receive Supplemental Nutrition Assistance Program (SNAP) payments and taken money out of their accounts.
In one instance, such theft cost an Anchorage crippled woman her last $400.
In order to improve security, the Alaska Division of Public Assistance has recognised the problem and is attempting to switch to chip-enabled EBT cards.
Reimbursement for benefits that were stolen has proven difficult, nevertheless, particularly since government reimbursement programs ended.
Suggestions:
- Change the PINs linked to EBT cards on a regular basis.
- Account balances should be regularly checked in order to identify fraudulent transactions early.
- Notify the proper authorities right away if your cards are lost or stolen.
To Conclude
In conclusion, the increase in scams throughout Alaska emphasises the value of being alert and taking preventative action.
To prevent financial losses, both local governments and residents need to be aware of common scams and follow suggested procedures.
Alaskans can better protect themselves and their neighbours from being victims of fraudulent schemes by raising community awareness of these hazards.
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