Tag Archives: scams

IRS announces withdrawal process for Employee Retention Credit claims; special initiative aimed at helping businesses concerned about an ineligible claim amid aggressive marketing, scams | Internal Revenue Service – IRS

  1. IRS announces withdrawal process for Employee Retention Credit claims; special initiative aimed at helping businesses concerned about an ineligible claim amid aggressive marketing, scams | Internal Revenue Service IRS
  2. IRS unveils ‘special withdrawal process’ for small businesses that claimed pandemic-era tax credit CNBC
  3. Regret Claiming That Pandemic Employer Tax Credit? IRS Now Lets You Take It Back The Wall Street Journal
  4. Eye on Scams: Scammers attempting to use your business to get COVID relief funds KLFY
  5. IRS Announces Special Process For Withdrawing Inappropriate ERC Claims Forbes
  6. View Full Coverage on Google News

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Home Improvement Star Zachery Ty Bryan Owes A Bunch of People Money in Crypto Scams: Report – Consequence

  1. Home Improvement Star Zachery Ty Bryan Owes A Bunch of People Money in Crypto Scams: Report Consequence
  2. Tim Allen addresses Home Improvement son’s legal troubles: ‘He deviated from the guy I know’ Yahoo Entertainment
  3. ‘Home Improvement’ Star Zachery Ty Bryan Amassed a Bitcoin Fortune, Then Spiraled Amid Domestic Violence Arrest, Allegations of Fraud Hollywood Reporter
  4. Home Improvement’s Zachery Ty Bryan Breaks Silence on Domestic Violence Arrest, Claims It ‘Got Blown Out of Proportion’ Us Weekly
  5. Home Improvement’s Zachery Ty Bryan Felt Like ‘a Cow Going to the Slaughterhouse’ on Comedown from Teen Fame Yahoo Entertainment
  6. View Full Coverage on Google News

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Florida’s ‘Mother Teresa’ Johanna Garcia accused of Ponzi scheme

A South Florida woman known as “Mother Theresa” in her community has been accused of running her business as a lucrative Ponzi scheme that scammed close to $200 million.

Johanna M. Garcia, of North Lauderdale, allegedly defrauded over 15,400 investors of up to $196 million through her company, MJ Capital Funding LLC, NPR reported Tuesday.

Founded in 2020, MJ Capital pledged to connect investors with small businesses through “merchant cash advance,” or MCA. 

Described as a “hardworking woman that has her priorities in line” in her company bio, Garcia boasted of being a down-to-earth businesswoman who helped regular people generate wealth — she was even “referred to as ‘Mother Theresa’ [sic] in her community.”

The ruse started to fall apart in April 2021, when a website emerged accusing MJ Capital of running a Ponzi scheme.

Garcia sued the anonymous whistleblower for defamation and continued to collect money from investors through August 2021, when the Securities and Exchange Commission filed a formal complaint against the company.

Johanna M. Garcia allegedly defrauded investors of nearly $200 million.
Internet Archive

In the document dated Aug. 9, the SEC alleges that MJ Capital used investors’ cash to fund “outside annualized ‘returns’ of 120%-180%,” while company higher-ups squirreled away investments for personal excursions and luxury goods.

In addition to using new injections of money to satisfy existing investors, the SEC claims that MJ Capital used unlicensed brokers and sales agents to sell unregistered securities.

A federal judge responded to the filing by freezing Garcia’s corporate assets and ordering them into receivership.  

While Garcia awaits further investigation, the case against MJ Capital got new fodder last Tuesday, when the SEC filed a second complaint against Pavel Ruiz, a company board member. 

The SEC argues that Ruiz, 29, played a “significant role in perpetuating the Ponzi scheme.”

Armed with a team of around 70 sales agents, Ruiz allegedly defrauded over 5,100 investors of at least $46 million, $7.7 million of which he diverted into his personal accounts.

According to the SEC, Ruiz used some of the pocketed money to purchase a luxury car and crypto assets.  

The same day as the SEC complaint was released, the US Attorney’s Office for the Southern District of Florida charged Ruiz with conspiring to commit wire fraud.

It is unclear if Garcia, who was not named in the federal case, will face similar charges as well.

If convicted, Ruiz faces up to 20 years in prison. 

As of last week, both Garcia and Ruiz had reached partial settlements with the SEC, delaying monetary penalties until the conclusion of any criminal proceedings.

Ruiz is currently free on $250,000 bond.

The MJ Capital scandal is merely the latest in a disturbing string of similar cases, some of which saw investors scammed out of hundreds of millions of dollars.

In March this year, The Post reported on the crackdown on a $300 million Ponzi scheme that ended with FBI gunfire in Las Vegas. Just last month, the SEC filed a complaint against 11 people for their roles in an elaborate crypto pyramid scheme that targeted retail investors.

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Doughnut debates and seafood scams: What happens when alleged “food fraud” reaches the courts

Allegations of fish fraud at Subway continue after a federal judge refused the fast-food chain’s request to dismiss a lawsuit claiming that its tuna sandwiches “partially or wholly” lack tuna. 

In January 2021, plaintiffs Karen Dhanowa and Nilima Amin filed several versions of a proposed class action lawsuit, accusing Subway of deceiving the public about the contents of its tuna, which is advertised as “100% tuna.” In a November 2021 version of the lawsuit, the plaintiffs alleged that lab testing showed a sample of the tuna contained animal proteins such as chicken and pork. 

At the time, Subway dismissed the lawsuit as “reckless and improper,” and it launched several advertising campaigns — including TV spots and a new webpage — in defense of its tuna. 

However, earlier this week, U.S. District Judge Jon Tigar ruled that Amin’s lawsuit should continue; the judge dismissed Dhanowa’s claims after she couldn’t confirm whether she had paid for a Subway tuna sandwich. 

While Subway has conceded that its tuna sandwich does include ingredients other than tuna, the chain claims they’re ingredients consumers would expect, such as eggs from the mayonnaise used to bind the tuna salad. But the central facts of the case have not been settled, according to Tigar, as the allegations “refer to ingredients that a reasonable consumer would not reasonably expect to find in a tuna product.”

Across American courtrooms, conflicts over discrepancies between products advertised by food companies and the actual ingredients in said products aren’t uncommon. 

For instance, in 2016, a California man named Jason Saidian sued Krispy Kreme because its maple bars didn’t contain actual maple syrup; its glazed blueberry cake doughnuts didn’t contain actual blueberries; and its chocolate iced, raspberry-filled doughnuts didn’t contain real raspberries. 

According to a 2017 court filing, Saidan alleged that he had purchased the products believing “they contained the ingredients referenced in the product name” and that “such belief was not unreasonable because [n]o ingredient list is provided or available to costumers [sic] in Krispy Kreme stores.” Saiadan further claimed that he would not have purchased the products, or would have paid significantly less for them, if he had known they didn’t contain the relevant “Premium Ingredient.” 

Saidan also claimed that other consumers may have purchased the doughnuts specifically for the blueberries, as berries “have the potential to limit the development and severity of certain cancers and vascular diseases . . . and neurodegenerative diseases of aging.” 

The court, however, didn’t seem to buy the idea that consumers were buying doughnuts en masse for their health benefits; the case was ultimately voluntarily dismissed with prejudice. 

That same year, a man named Alexander Forouzesh attempted to mount a class action suit alleging that customers ordering cold beverages from Starbucks had received less liquid than advertised, as ice may take up as much space as 10 fluid ounces. That case was quickly dismissed by U.S. District Judge Percy Anderson. 

“If children have figured out that including ice in a cold beverage decreases the amount of liquid they will receive, the court has no difficulty concluding that a reasonable consumer would not be deceived into thinking that when they order an iced tea,” Anderson wrote. “That the drink they receive will include both ice and tea and that for a given size cup, some portion of the drink will be ice rather than whatever liquid beverage the consumer ordered.” 

The decision in the Subway case won’t likely be so cut-and-dry. 

As Salon’s Matthew Rozsa reported in 2021, fish fraud is rampant — and Subway’s tuna scandal is just the tip of the iceberg. 

“In the United States, studies released since 2014 found the average fraud rate (weighted by sample size) to be 28%,” Rozsa wrote. “Worldwide, Asian catfish, hake and escolar were the fish most commonly substituted; more than half of the replacement fish (58%) were from species that could get certain consumers sick.” 

According to Kevin McCay, the chief operations officer of the sustainable seafood company Safe Catch, the waters get increasingly murky when looking at how fish is marketed.

“We hear confusion from consumers all the time about which fish are good to eat and which are not,” McCay said. “So, we are not very surprised that those same consumers would also be questioning the transparency of a large company like Subway.”

He continued, “Some companies may look for ways to reduce their costs, but it’s critical that this does not come at a cost to customers. Transparency in seafood is important for both customers and for the integrity of the industry. Food purity matters. Transparency matters.” 

For instance, it’s very common for consumers to buy or be served “light tuna,” which is actually a mixture of several smaller tuna species, such as skipjack, tongol and yellowtail. From the packaging, customers may believe they’re only eating one species of fish. Subway lists its tuna as being “flaked tuna in brine” and maintains that it’s FDA-regulated importers “use only 100% wild-caught tuna from whole round, twice cleaned, skipjack tuna loins.”

That doesn’t account for the other animal proteins — like pork and chicken — which the lawsuit alleges were found in the chain’s tuna salad. The U.S. District Court for the Northern District of California, however, dismissed the part of Amin’s suit claiming that “a tuna salad, sandwich or wrap contains 100% tuna and nothing else.” 

For now, what else such a tuna product may contain remains up to the court. Before the case moves to the next stage, Tigar gave Amin three weeks to respond to that portion of his ruling.

Salon reached out to Subway about the ongoing litigation but did not hear back by the time of publication. 

Read more

about fish and Subway

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Wife stunned to learn husband is female after months of sex

An Indonesian woman is reeling after learning her husband of 10 months is actually female — despite the fact they frequently “had sex.”

The 22-year-old wife — identified only as NA — has now pressed charges against her estranged spouse over the deceit.

“I’m still scared. I’m shaking when I go out,” the jilted bride is quoted as saying in a report published in the local outlet Tribun News.

According to the website, NA first met her spouse — who went by the name Ahnaf Arrafif — on the dating app Tantan last year.

Arrafif purportedly claimed to be a doctor who was educated in New York, and the two soon hit it off via message.

The pair met in person in May 2021 after Arrafif traveled to NA’s hometown of Jambi. Arrafif proposed a short time later and they tied the knot in July.

Erayani Arrafif (pictured) has reportedly been charged with fraud in Indonesia after posing as a man and tricking a woman, identified as NA, into getting married. The couple were married for 10 months before the truth of Arrafif’s sex was revealed.
Tribun-video.com

NA admitted to being intimate with her spouse during their marriage, saying she believed they had engaged in penetrative intercourse.

However, she admitted that she was asked “not to look directly at Arrafif’s genitals” and that her “eyes were covered with a cloth” whenever things turned steamy.

NA also alleged that Arrafif would only get naked with the lights off, so that sex was had “in a state of blackout,” Suara.com reports.

Arrafif claimed to be a man named Ahnaf Arrafif. They matched with NA on a dating app before they met up in May 2021. They wed two months later.
Tribun-video.com
Arrafif reportedly forced NA to have sex with the lights off. The bride was also ordered to be blindfolded whenever the couple became intimate.
Tribun-video.com

While NA’s mother was reportedly charmed by Arrafif prior to the marriage, she soon became suspicious when it appeared he did not actually have a job.

Arrafif moved in with NA and her mother, and promptly began asking for money. In the ensuing months, NA’s meddling mama became more and more convinced that her “son-in-law” was a fraudster. She also started to become skeptical that Arrafif was a man, and she tried to obtain identification documents.

This past April, she finally confronted Arrafif and ordered him to strip naked. At that point., Arrafif is said to have admitted to being a woman who was actually named Erayani Arrafif.

Arrafif is seen with NA in a photo published by media in Indonesia. The case has generated widespread attention in the region.
Tribun-video.com

NA and her mother contacted the police, and Arrafif has reportedly been charged with fraud.

The scam artist admitted to cops that they tricked NA into thinking she was having penetrative sex by using fingers.

It’s currently unclear whether Arrafif is likely to face jail time if convicted of the fraud. A court date has not yet been announced.

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GoFundMe removes phony Amber Heard-Johnny Depp fundraiser

You can’t fool GoFundMe — at least when it comes to Amber Heard and Johnny Depp.

It abruptly pulled the plug on a fake $1 million campaign created by someone named Kimberly Moore allegedly to raise money for Heard to pay Depp’s damages after their sensational six-week defamation trial, TMZ reported Saturday.

After the verdict, the fundraiser was set up to help Heard. Moore claimed to have made contact with Heard’s legal team and vowed Heard would have direct access to any money raised.

The page’s description read, “I believe Amber, and social media protected the abuser. The judgment exceeds her net worth. It’s so sad that he was able to get away with the abuse. The judgment furthers that abuse. If you can please help her.”

But a rep for GoFundMe says they were able to flag the profile quickly — before much money was donated after determining that Amber’s team hadn’t created the page. It was then shut down.

The fundraiser was quickly taken down by the site.

Heard can’t pay the $10.4 million she owes Depp, her lawyer said last week after the end of the trial. Sources told The Post the actress is “broke” due to hefty legal fees associated with the trial.

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Crypto scams cost people more than $1 billion since 2021: FTC

The crypto market can be volatile, but it’s still attractive to young people who have “higher risk appetites,” said Chris Adam of SharpRank.

Insta_photos | Istock | Getty Images

More than 46,000 people say they lost over $1 billion in crypto to scams since the start of 2021, according to a report released by the Federal Trade Commission on Friday.

Losses last year were nearly 60 times what they were in 2018, with a median individual loss of $2,600.

The FTC notes that the top cryptocurrencies people said they used to pay scammers were bitcoin (70%), tether (10%), and ether (9%).

One key feature of cryptocurrencies like bitcoin is that payment transfers are final and can’t be reversed. This isn’t always a good thing. Chargebacks — a type of tool designed to protect consumers — allow consumers to reverse a transaction if they claim they have been fraudulently charged for a good or service they did not receive.

Nearly half the people who reported losing crypto to a scam since 2021 said it started with some kind of message on a social media platform. The top platforms mentioned in these complaints were Instagram (32%), Facebook (26%), WhatsApp (9%), and Telegram (7%).

Fake investment opportunities were by far the most common type of scam. In 2021, $575 million of crypto fraud losses reported to the FTC related to investment opportunities. People reported that investment websites and apps would let them track the growth of their crypto, but the apps were fake, and when they tried to get their money out they could not.

“There’s no bank or other centralized authority to flag suspicious transactions and attempt to stop fraud before it happens,” the FTC warns in its report. “These considerations are not unique to crypto transactions, but they all play into the hands of scammers.”

Romance scams are the second-most common source of crypto fraud losses, followed by business and government impersonation scams, which the FTC said can often start with fake messages purporting to be from tech companies like Amazon or Microsoft.

Younger consumers were more likely to be taken in by crypto scams. The FTC reports that people aged 20 to 49 were more than three times as likely as older age groups to report losing crypto to a scammer.

To avoid being scammed, the FTC says, people should understand that cryptocurrency investments never have guaranteed returns, avoid business arrangements that require a crypto purchase, and watch out for romantic come-ons accompanied by a crypto solicitation.

The news comes after a tumultuous few weeks in the crypto markets. A failed U.S. dollar-pegged stablecoin helped drag down the entire crypto asset class, erasing half a trillion dollars from the sector’s market cap and denting investor confidence in the process. Many institutional and retail investors got wiped out, and for the most part, there are no backstops from the FDIC, nor any other consumer insurance protections.

Billionaire bitcoiners Cameron and Tyler Winklevoss recently announced layoffs at crypto exchange Gemini, citing the fact that the industry is in a “contraction phase” known as “crypto winter,” which has been “further compounded by the current macroeconomic and geopolitical turmoil.”

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‘Tinder Swindler’ Simon Leviev signs with Hollywood agent

They say crime doesn’t pay but Simon Leviev could soon be swiping right on a vast fortune.

The convicted fraudster — who is the subject of the Netflix documentary “The Tinder Swindler” — is allegedly eager to cash in on his newfound notoriety, setting his sights on Hollywood.

According to TMZ, Leviev, 31, has signed with LA-based manager Gina Rodriguez, who reps a range of reality stars, including Mama June.

The pair have purportedly discussed “a bunch of plans to parlay Leviev’s new Netflix fame into profit and an entertainment career.”

The Post has reached out to Rodriguez for comment.

Leviev — who is accused of conning women out of millions of dollars after matching with them on Tinder — reportedly wants to star in his own dating show where “women compete for his love.”

Another possible project is a podcast on which the love rat will share his dating “dos and dont’s.”

The 31-year-old love rat has reportedly signed with Hollywood agent Gina Rodriguez.
Instagram
Leviev deleted his Instagram following the release of the Netflix documentary, which has become a global sensation.
Instagram

In the wake of the release of “The Tinder Swindler” last week, Leviev was banned from dating apps. He also deleted his Instagram account after the documentary become an international sensation.

However, the publicity-crazed conman may have now surfaced on TikTok, according to the Independent.

Some users on the app believed Leviev is posting under the handle @simon_leviev_official.

The account has racked up more than 169,000 followers, but some have theorized it’s a fake account and its authenticity has not been verified.

While the producers of “The Tinder Swindler” believe Leviev could have scammed up to $10 million out of his victims, he’s far from the only fraud on dating apps.

Simon Leviev — who is the subject of the Netflix documentary “The Tinder Swindler” — is now reportedly seeking fame and fortune in Hollywood.
Instagram

Other dating app con artists swindled lovelorn Americans out of $547M in 2021, according to the Federal Trade Commission.



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Ponzi schemes, explained: Why investors keep falling for scams

Ironically, it is just the kind of juicy swindler story you might binge watch on those platforms: Horwitz, a 35-year-old actor who had bit roles in a handful of low-budget films over the past decade, pleaded guilty last fall to committing federal securities fraud and running an illegal operation known as a Ponzi scheme. For years, prosecutors say, Horwitz used his investors’ money to fund a lavish Hollywood lifestyle — until his scam unraveled.

In short, a Ponzi scheme is a type of financial fraud that uses money from new investors to pay off earlier ones.

The term comes from the 1920 swindler Charles Ponzi, but in recent years has become synonymous with the crimes of Bernie Madoff, the mastermind behind the largest financial fraud in history, who died in prison last year.

Although Ponzi schemes have a long history, they are far from a bygone threat, experts say. In fact, they remain a major risk to investors in an era of soaring stock markets and wild surges in newfangled assets like NFTs and cryptocurrency.

“Fraudsters really feed on times of uncertainty, financial distress, upheaval, times of change, and those are really the times that we’ve been living in the past few years,” says Kathy Bazoian Phelps, a lawyer who runs a blog about Ponzi schemes. “And of course there’s a lot of money out there people are looking to invest.

Horwitz’s case appears to check the major boxes for a Ponzi scheme: They’re typically perpetrated by (a) men who (b) promise steadily high returns with minimal risk and (c) often prey on friends and family to get the scam off the ground.

Early investors in a Ponzi scheme get rewarded with mindbogglingly large dividends — Horwitz allegedly promised returns between 25% and 45% — that propel them to tell others about the golden opportunity, which keeps new money flowing into the scam. Once the pool of new investment dries up, of course, the fraud falls apart.

A fraud is born

Prosecutors say Horwitz, who goes by the stage name Zach Avery, promised his investors — many of whom were friends — that their money would be used to buy film distribution rights that he would then license to streaming platforms for a profit.

“But, as his victims came to learn, [Horwitz] was not a successful businessman or Hollywood insider,” prosecutors said. “He just played one in real life.”

(Savage burn, prosecutors.)

Horwitz’s company “neither acquired film rights nor entered into any distribution agreements with HBO or Netflix” and he provided fake documents to his investors. HBO, like CNN, is part of WarnerMedia.

Horwitz instead routed the funds to his own accounts, shelling out $5.7 million on a house and splurging on trips to Vegas on private jets, according to a complaint filed by the Securities and Exchange Commission.

It’s not hard to imagine how an investor might be sucked into such a scam in the era of overnight meme stock rallies and cryptocurrency millionaires. The fear of missing out is a powerful tool for grifters.

Phelps, who wrote “The Ponzi Book: A Legal Resource for Unraveling Ponzi Schemes,” says people often rely too much on word of mouth without due diligence to determine whether an investment is legitimate. That can be especially true when it comes to schemes involving cryptocurrencies or artificial intelligence.

“All it takes is for somebody to represent that they have the proprietary algorithm that guarantees returns and that sounds pretty technical and fancy and like a sure thing,” she said. “That feels comfortable to people because somebody knows technically what they’re talking about, supposedly, and the outcome is a guaranteed return that’s much higher than something they’re going to find somewhere else.”

In fact, the SEC is particularly worried that the rise of cryptos “may entice fraudsters to lure investors into Ponzi and other schemes” in part by promising investors an opportunity to “get in on the ground floor of a growing internet phenomenon.”
The agency cited a 2013 case in which an alleged Ponzi scheme advertised a bitcoin “investment opportunity” in an online forum. Investors were promised up to 7% interest per week, and that their funds would be used for bitcoin arbitrage. Instead, the crypto funds were used to pay existing investors and exchanged into US dollars to pay the organizer’s personal expenses.

Even professional investors can fall victim to fraud, Phelps notes, but there are several ways to avoid getting taken for a ride. Step one is simply being mindful of the potential for fraud. “I’m not even sure if that crosses people’s minds at all,” she said. Beyond that, investors need to ask due diligence questions, beware of promises of guaranteed return with no risk and watch out for returns that are higher than what you’re likely to find in the marketplace.

“If you can’t really understand what the investment is after a five-minute explanation,” Phelps says, “you probably shouldn’t be investing in it.”

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Amazon scams are up 500% — how to spot the red flags

Amazon scam emails that could cost you thousands have skyrocketed by 500 percent since last year – so how can you look out for them?

The online retailing giant’s popularity has made it a prime target for fraudsters and internet con’s trying to take advantage of unsuspecting customers.

And as Amazon’s security improves, so does the sophistication of the scammers – but there are some red flags that can help you spot them.

The latest scheme involves an official-looking email from ‘Amazon’ being sent out to customers of fake receipts or shipping confirmations for an order that you never placed.

Users may then click on the dodgy link to find out more about their supposed order – making you believe you have to update your account details.

A similar trick notifies users there is a ‘problem’ with your Amazon account or payment method – again tricking victims into resubmitting their personal information to try and fix the issue.

But innocently calling the ‘helpline’ or clicking on the dodgy link is actually part of the plan to fool you into handing over your private personal details.

So, if your second guessing the suspicious-looking email you just received, these three simple checks can help you determine its authenticity.

Looking out for suspicious language or grammatical and spelling errors is an easy way to see if the message is legit, as a genuine Amazon inquiry would not have any.

If the email asks you to “click here” to verify your details or payment method, don’t.

Amazon will never ask users to do these actions via email and this will likely be a scam.

If the email asks you to “click here” to verify your details or payment method, don’t.
Tim Goode/PA/Sipa USA

And finally, checking the sender’s full email address to ensure it is from a verified Amazon account is a foolproof way to confirm or deny your doubts.

In the US, any email address that does not end with “@amazon.com” is fake.

It is always best to access your Amazon account yourself to make checks from there, rather than clicking on phony links.

According to a warning by the Federal Trade Commission (FTC), reports of Amazon scams have increased by a huge 500 per cent since June 2020,

And if you’re still not sure, why not get in touch with Amazon directly by email or phone to confirm whether they have tried to contact you.

Scam Signs

Alex Hamerstone, director with the security-consulting firm TrustedSec, told Reader’s Digest: “An Amazon email scam can look exactly like a real Amazon email, or can be poorly crafted, and everything in between.

“But the core scams are usually pretty similar, as are the risks, the ways to prevent them, and the recommended response.

“The goal of those is to get you to think you need to update your account information, and usually give the scammer your credit card or bank information.”

Being hoodwinked by the ploy could see you lose thousands in cash – or even more – as email scams can often target multiple accounts at once.

Cybercriminals want access to your account and the ability to purchase items or access to your credit card.
Alamy Stock Photo

Clicking on the vicious link could install a virus or other harmful software on your computer and therefore breach further security barriers on your device.

“These scams are all targeting your money,” says Chris Pierson, CEO of cybersecurity company BlackCloak added.

“The cybercriminals want either access to your account and the ability to purchase items or access to your credit card—both of which can cause you financial harm.”

But if you do fall victim to Amazon scammers, log into your account, change the password and turn on dual-factor authentication.

Selecting the option to sign out of your account on all devices will hopefully then leave the trickster unable to access your data.

This story originally appeared on The Sun and has been reproduced here with permission.

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