Avoid getting scammed – Huntley Chat

A 59-year-old man from Irvine, California, named Allen Giltman has been sentenced to over 7 years in prison (87 months) for his role in a massive investment scam that stole $50 million from innocent people between 2012 and 2020.

How the Scam Worked

Giltman and his team created over 150 fake websites that looked like real banks and investment firms. These websites promised high returns on a type of investment called a certificate of deposit (CD). CDs are usually safe investments, so many people trusted these fake offers.

To find victims, the scammers paid for ads on Google and Microsoft Bing, using search terms like “best CD rates” or “highest CD rates” to attract people looking for good investment opportunities.

How They Tricked Investors

The scammers pretended to be real financial professionals from legitimate investment firms.
They talked to victims over the phone and email, using fake names and real financial industry ID numbers to seem trustworthy.
They convinced at least 70 people to wire them money, promising that they would receive their CDs soon.
Instead, the money was secretly transferred to bank accounts in other countries, including Russia, Georgia, Hong Kong, and Turkey.

Unfortunately, none of the victims ever received their CDs, and their money was gone.

How the Scammers Hid Their Identities

To avoid getting caught, Giltman and his group used:

VPNs (virtual private networks) to hide their internet location
Prepaid phones and encrypted apps to communicate secretly
Prepaid gift cards to register their fake websites
Fake invoices to cover up the stolen money

What Happened to Giltman?

He was caught in 2020 and pleaded guilty in January 2022.
He was sentenced to 7 years in prison, followed by 3 years of supervised release (where authorities will monitor him).
The court also took away assets he had when he was arrested.

Warnings from the FBI and Financial Authorities

The FBI and the Securities and Exchange Commission (SEC) have warned that investment scams like this are increasing. In July 2021, they issued alerts about fraudsters pretending to be real investment professionals and using fake websites and documents to deceive people.

How to Protect Yourself from Investment Scams

Always verify investment offers – Contact the financial company directly through their official website or phone number.
Be cautious of deals that seem too good to be true – If a CD or investment promises unusually high returns, it’s likely a scam.
Check financial professionals – You can look up registered brokers and investment advisers on official sites like FINRA’s BrokerCheck or the SEC’s Investment Adviser Public Disclosure (IAPD) database.
Be wary of unsolicited emails or calls – Scammers often reach out unexpectedly with “exclusive” deals.
If in doubt, ask a trusted financial advisor or a family member before investing.

Investment scams can happen to anyone, so staying informed and cautious is the best way to protect your money.

Americans Lost Over $10 Billion to Scammers in 2023 – How to Protect Yourself

Scammers are stealing more money than ever. According to the U.S. Federal Trade Commission (FTC), Americans lost over $10 billion to fraud in 2023. That’s a 14% increase from the year before.

To put this in perspective, cybercriminals who use ransomware (a type of virus that locks your files until you pay a ransom) made over $1.1 billion last year alone.

Most Common Scams in 2023

In 2023, 2.6 million people reported being scammed. The most common types of fraud included:

Imposter Scams – Scammers pretended to be businesses, government agencies, or even family members to trick people into sending money.
Online Shopping Scams – Fake websites or sellers took money but never sent the products.
Prize, Sweepstakes, and Lottery Scams – Victims were told they won a prize but had to pay fees or taxes first—a common scam trick.
Investment Scams – The biggest money loss came from investment fraud, where people were tricked into investing in fake opportunities. Victims lost over $4.6 billion—a 21% increase from 2022.
Business and Job Scams – Scammers promised work-from-home jobs or business opportunities that didn’t exist.

How Scammers Take Your Money

Scammers prefer methods that make it difficult to trace or recover money. In 2023, victims lost the most money through:

Bank transfers – Victims were tricked into wiring money directly to scammers.
Cryptocurrency – Many scams involved fake investments in Bitcoin or other digital currencies.

Identity Theft Is Also Rising

In addition to financial fraud, identity theft was a major problem in 2023. The FTC received 1.1 million reports of identity theft through its IdentityTheft.gov website. However, experts believe the actual number is much higher because most fraud cases go unreported.

How You Can Protect Yourself from Scammers

Verify before you trust – If someone claims to be from the government, a business, or a financial institution, contact them directly using their official website or phone number.
Be cautious with investments – If an investment sounds too good to be true, it probably is. Always check if a financial adviser or investment firm is registered with the SEC or FINRA.
Never pay upfront for prizes or job offers – Legitimate sweepstakes, lotteries, and job opportunities do not ask for money in advance.
Watch out for online shopping scams – Before making a purchase, check for customer reviews, return policies, and secure payment options.
Use strong passwords and enable two-factor authentication (2FA) – This helps prevent identity theft and unauthorized access to your accounts.

How to Report Scams

If you or someone you know has been a victim of fraud, you can report it to the FTC:

ReportFraud.ftc.gov – Report scams and fraud.
IdentityTheft.gov – Report identity theft and get help recovering from it.

These reports are shared with over 2,800 law enforcement agencies, helping authorities track down scammers and educate the public about new fraud trends.

For a detailed breakdown of fraud statistics by state and metro area, visit the FTC’s data site at ftc.gov/exploredata.

Why This Matters

Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, says scammers are using digital tools to target more people than ever. Being informed and staying cautious can help you avoid becoming a victim.

Frequently Asked Questions (FAQ) About Scams and Fraud Prevention

1. What are the most common scams to watch out for?

The most common scams in 2023 included:

Imposter scams – Scammers pretend to be from the government, a bank, or a trusted company.
Online shopping scams – Fake websites take your money but don’t send the product.
Investment scams – Scammers promise high returns but steal your money.
Lottery & sweepstakes scams – You’re told you won a prize, but you have to pay first.
Job & business scams – Fake work-from-home or investment opportunities that require payment upfront.

2. How can I tell if an investment is a scam?

If it promises guaranteed returns with little or no risk, it’s likely a scam.
If you’re pressured to invest quickly, be cautious.
Check if the investment firm or adviser is registered with FINRA or the SEC (use BrokerCheck at brokercheck.finra.org).

3. What should I do if I think I’ve been scammed?

Report it immediately to the FTC at ReportFraud.ftc.gov.
If you lost money through a bank transfer or wire, contact your bank and ask if they can stop or reverse the payment.
If your personal information was stolen, report it at IdentityTheft.gov for help.

4. How do scammers usually take money from victims?

Scammers often request payments through:

Wire transfers (hard to reverse).
Cryptocurrency (Bitcoin, etc.) (impossible to recover).
Gift cards (if someone asks you to pay with a gift card, it’s a scam).
Prepaid debit cards or cash apps (Venmo, Zelle, CashApp, etc.).

5. What are red flags that an email, phone call, or website is a scam?

Urgent requests – Scammers say you must act fast or lose an opportunity.
Suspicious links or email addresses – Hover over links before clicking.
Asking for personal information – Banks, government agencies, and legitimate companies never ask for sensitive details via email or text.
Poor grammar or spelling mistakes – Many scam messages are poorly written.

6. How can I protect myself from fraud?

Don’t trust unsolicited calls or emails from unknown sources.
Verify all investment opportunities before sending money.
Enable two-factor authentication (2FA) for online banking and important accounts.
Use strong, unique passwords and don’t reuse passwords for multiple accounts.
Check if a website is secure – Look for “https://” in the web address.

7. Who can I contact for help if I’m a victim of fraud?

FTC (Federal Trade Commission) – ReportFraud.ftc.gov
Identity Theft Help – IdentityTheft.gov
FINRA Broker Check (to verify investment professionals) – brokercheck.finra.org
Your bank or credit card company – Report unauthorized transactions ASAP.
Local police – If you lost a large amount of money, file a police report.

8. What should I do if a scammer calls me?

Hang up immediately. Do not engage.
Do not press any buttons if the call is automated.
Block the number to prevent future calls.
Report the call to the FTC at ReportFraud.ftc.gov.

9. Are older adults more at risk of scams?

Yes, scammers often target seniors because they:

May be less familiar with online scams.
Might trust official-sounding calls from fake government agencies.
Often have retirement savings, making them attractive targets.
To help protect elderly family members, talk to them about common scams and remind them not to send money or share personal information with strangers.

10. Where can I find more information on avoiding scams?

Federal Trade Commission (FTC): www.ftc.gov
Consumer Financial Protection Bureau: www.consumerfinance.gov
Better Business Bureau Scam Tracker: www.bbb.org/scamtracker

How Kids and Grandkids Can Help Their Parents and Grandparents Avoid Scams

Scammers often target older adults because they may be less familiar with online scams or more trusting of official-sounding calls and emails. If you have parents or grandparents who may be at risk, here’s how you can help protect them from fraud.

1. Educate Them About Common Scams

Many older adults don’t realize how sophisticated scams have become. Take time to talk to them about:

Phone scams – Scammers pretending to be government officials, banks, or even family members in trouble.
Email and text scams – Fake messages claiming they’ve won a prize, need to verify account information, or owe money.
Investment scams – Too-good-to-be-true returns that promise easy money.
Online shopping scams – Fake websites that take money but don’t send products.

Encourage them to always be skeptical of unexpected calls, emails, or pop-ups asking for money or personal details.

2. Help Them Set Up Security Features

Many scams can be prevented by improving online security. Help your parents or grandparents by:

Setting up strong passwords and a password manager so they don’t reuse passwords.
Enabling two-factor authentication (2FA) on email, banking, and social media accounts.
Installing ad blockers and anti-virus software to help prevent scam pop-ups.
Updating their phone and computer software to avoid security vulnerabilities.

3. Teach Them How to Spot a Scam

Walk them through common red flags that signal fraud, such as:
✅ Unsolicited messages or calls asking for money or personal details.
✅ High-pressure tactics (“Act now, or you’ll miss out!”).
✅ Poor grammar, typos, or generic greetings (e.g., “Dear Customer”).
✅ Requests to pay with gift cards, cryptocurrency, or wire transfers (which are nearly impossible to recover).
✅ Too-good-to-be-true deals (scammers often promise big rewards with little effort).

Remind them: “If something sounds too good to be true, it probably is.”

4. Help Them Verify Before They Trust

Encourage your parents or grandparents to always verify before making a financial decision:

If they get a call from the “bank” or “government,” tell them to hang up and call the real number on their bank statement or government website.
If they see an online ad for an investment opportunity, help them look up the company on FINRA’s BrokerCheck to see if it’s legitimate.
If they receive a suspicious email, show them how to check the email sender’s address and search online for scam reports.

Encourage them to call you or a trusted family member before sending money or sharing personal information.

5. Set Up Scam Alerts and Notifications

Help them sign up for fraud alerts from their bank so they get notified of any unusual activity.
Set up scam alerts from FTC.gov so they are aware of new scams.
Show them how to block spam calls on their phone. Most smartphones allow you to block numbers and send unknown callers to voicemail.

Older adults may not realize that scammers monitor social media to gather personal information.

Adjust their privacy settings so only trusted friends can see their posts.
Warn them about “friend requests” from people they don’t know—many are fake profiles used for scams.
Tell them not to share personal details (like their full birthdate or vacation plans) publicly.

7. Offer to Be Their “Tech Buddy”

Encourage your parents or grandparents to call or text you first if they’re unsure about an email, call, or online offer.

Let them know it’s okay to ask for help—many older adults don’t want to feel like they’re bothering family members.
Offer to review their emails or financial statements once in a while to catch any suspicious activity.

8. Help Them Report Scams

If they’ve been targeted or lost money to a scam, help them report it immediately:
📍 Report scams: ReportFraud.ftc.gov
📍 Report identity theft: IdentityTheft.gov
📍 Check investment fraud alerts: FINRA Scam Alerts
📍 Check Better Business Bureau reports: BBB Scam Tracker

Remind them that reporting a scam can help stop others from becoming victims.

Final Thought: Be Patient and Understanding

Many older adults don’t want to admit they were tricked, and some may be hesitant to learn new technology. Be patient, supportive, and non-judgmental. Scams can happen to anyone, and by working together, you can help keep your parents and grandparents safe from fraud.