(Omaha, NE) – Today’s scammers want gift cards as payment, leaving those unaware of this tactic vulnerable to schemes designed to commit fraud. Better Business Bureau (BBB) research shows fraud reports to BBB Scam Tracker involving gift cards as a form of payment spiked in the first three quarters of 2023, up 50% from the same period the year prior. Scammers have doubled down on gift cards as a method to steal money from consumers – especially online shoppers – leading retailers to implement new fraud prevention solutions in response.

A new BBB study update, “Growth of gift card scams causes retailers to innovate solutions,” examines patterns of reports, dives deep into court documents, reviews financial losses, and highlights interviews with affected consumers. The goal is to educate everyone on the tactics scammers use with gift cards.

Key findings:

• Technology, like algorithms meant to detect fraudulent behavior, helps retailers stop scammers in their tracks and sometimes return money to customers.
• Fraudsters leverage international networks to convince consumers to hand over gift cards.
• Advance fee loans, government impersonation, phishing and lottery/sweepstakes top the list of scam types used most often to obtain gift cards.
• Scammers frequently seek gift cards from big-box, technology and online stores.

Key statistics reported to BBB and Federal Trade Commission (FTC) since 2020 about gift card payment scams:

• 3,918 BBB Scam Tracker reports
• 177,074 reports to the Federal Trade Commission’s Consumer Sentinel Network with $690 million in losses
• In 2021, BBB’s International Investigations Initiative examined gift card payment scams in an in-depth study, “Gift card payment scams: BBB reveals why scammers love gift cards.” Since then, retailers have identified several methods to protect consumers, but warn that it is impossible to stop all scams as fraudsters continue to find ways around safeguards.

Richard in Tempe, Arizona, reported to Scam Tracker he received a call from someone claiming to be from Amazon. There was a suspicious charge on his account, they said, and it looked like possible identity theft. The person claiming to be from Amazon offered to connect him with someone from the government. He was asked to withdraw $10,000 and convert it to gift cards. He sent several hundred dollars before realizing everyone involved were scammers.

A Nebraska couple, eager to secure a rental car for their Florida vacation, mistakenly dialed what they believed to be Enterprise after a Google search. Falling for an apparent deal with American Express that allowed them to use pre-paid cards for rental savings, the couple sent $400 to scammers posing as Enterprise agents. When the scammers claimed the cards were invalid and demanded an extra $400, the couple grew suspicious. Realizing the deception, Sue and Darwin promptly contacted the legitimate Enterprise hotline, where a representative confirmed they had been scammed.

A Nebraska woman’s quest for a furry companion turned into a heartbreaking ordeal as she encountered not one, but two scams while searching for a puppy. In both instances, the scammers requested payments in gift cards, a red flag that the woman unfortunately failed to recognize. On the second occasion, Jill visited the specified, local address. To her dismay, upon arriving at the location, a woman informed her that she had fallen victim to a scam.

BBB tips to spot a gift card scam 

• Be wary of anyone asking for payment with a gift card, including “government” agencies. No legitimate government organization will ask you to pay with a gift card.
• If you suspect a scam, contact the gift card seller, the actual business or government organization supposedly asking for money, and BBB to ask if you are dealing with a scammer. To find contact information, go directly to the organization’s website rather than search for their customer service number, which can be spoofed by scammers.
• Keep all information related to your purchase if you are scammed, because some retailers may require that information for refunds.
• If you suspect fraud, act immediately, contact the gift card seller or the number on the back of the card to report it.

Follow advice and report suspected scams to BBB Scam Tracker and the Federal Trade Commission.

(Glenwood, Iowa) – The Mills County Sheriff’s Office reports a man from Bellevue, Nebraska, was arrested Thursday morning at the Pottawattamie County Sheriff’s Office. 52-year-old Brent Edward Johnson was taken into custody on a Mills County warrant for Failure to Appear (FTA) on a Criminal Mischief in the 3rd Degree, charge. Johnson’s bond was set at $2,000.

Des Moines, IA – State Auditor Rob Sand today (Friday) urged organizations and individuals to take steps to increase measures to safeguard their systems against cyber-attacks. In a news release, Sand said “Individuals, businesses, schools, and government entities are all susceptible to cybercrimes. It’s important for everyone to increase cybersecurity measures because a deficiency in one system can give criminals access to mounds of data that can result in cybercrimes like identity theft.”

The most common cybercrimes include Business Email Compromise (BEC), identity theft, ransomware, and spoofing and phishing scams. On average, the FBI received 2,300 cybercrime complaints per day in 2021, resulting in $6.9 billion in losses to victims. Iowa ranks 21st in the country in the number of cybercrime victims per state, losing a total of $33.8 million dollars to cybercrimes. According to Sand, “BEC attacks were reported to the Auditor’s Office by state and local governments, as well as schools.”  He said he was the target of a BEC scheme last year, but, “Thanks to some vigilant state workers, the scam was squashed.”

Iowa Auditor of State Rob Sand

BEC and Email Account Compromise (EAC) are sophisticated scams that are carried out when legitimate email accounts are compromised. The compromised account is then used to send fraudulent emails soliciting funds that are directed to illicit accounts. Combined losses in 2021 totaled $2.4 billion.

Measures to protect organizations from cybercrime include:

• Updated multi-factor authentication
• Updated software
• Control measures that include detailed IT policies and procedures
• Anti-malware
• Enhanced Firewalls
• Think before you “click”

The Auditor’s Office is partnering with the Association of Certified Fraud Examiners for International Fraud Awareness Week in an effort to draw attention to the latest forms of fraud and measures to prevent fraud.  To report the misuse of public funds or resources, email info@aos.iowa.gov or call 515-281-5834. Additional information on fraud prevention can be found on the Auditor of State website, Facebook, and X, formerly known as Twitter.

GRIMES, Iowa – Nov. 17, 2023 – If you travel on Interstate 80 near Altoona, you need to be aware of an upcoming construction project next week that may slow down your trip.

Starting on Monday night, Nov. 20, from 7 p.m. to 5 a.m., weather permitting, construction crews will work on resurfacing the bridge decks on I-80 over Fourmile Creek near Altoona. This will require alternating lane closures on the westbound lanes of I-80. On Tuesday night, Nov. 21, from 7 p.m. to 5 a.m., crews will work on resurfacing the bridge decks on the eastbound lanes of I-80 which will require alternating lane closures. You will follow a marked detour route for ramp closures affected by this construction project.

The latest traveler information is available anytime through the 511 system. Visit 511ia.org; call 511 (within Iowa) or 800-288-1047 (nationwide).

(Radio Iowa) –  Dozens of Iowa pastors and worship leaders are endorsing Florida Governor Ron DeSantis for president today (Friday). Darran Whiting, pastor of Liberty Baptist Church in Cedar Rapids, is one of the people signing on to the DeSantis campaign’s Faith and Freedom Coalition. Whiting says it’s time to make his choice public. “I appreciate the stand that Governor DeSantis has taken, especially on life,” Whiting says. “Not that there aren’t other good candidates, but at this point I think Governor DeSantis is the right man at the right time.” Former President Donald Trump’s criticism of DeSantis for signing a Florida law to ban most abortions after the sixth week of a pregnancy was a defining moment for Whiting.

“I am pro-life. I don’t think it’s a terrible mistake to protect life at six weeks,” Whiting says, “and I think it’s a terrible mistake for former President Trump to say that.” And, if Trump winds up being the Republican Party’s 2024 presidential nominee, he will not get Whiting’s vote.  “I cannot vote for somebody who tried to overthrow the government,” Whiting says. “I appreciate the Supreme Court justices that he put into place.

Florida Governor Ron DeSantis on the Iowa campaign trail. (RI photo)

“I appreciate some of his policies, but I absolutely, positively cannot endorse his rhetoric, his divisiveness, his lack of constitutional knowledge…We can’t afford at this point having a president who could be a felon running this country.”

Whiting says he thought and prayed about this decision and will be proud to Caucus for DeSantis in January. “Just his unwavering stance on life and social issues and his ability to articulate that position is essentially what led me to him,” Whiting says. Nearly 80 percent of likely Iowa Caucus-goers in the recent Des Moines Register “Iowa Poll” said a candidate’s stand on abortion restrictions is either “important” or “extremely important.”

The head of the Iowa Coalition of Pro-Life Leaders endorsed DeSantis in September, as did two Iowa attorneys who’ve represented the State of Iowa against legal challenges of a six week abortion ban.

(Des Moines, Iowa) – Auditor of State Rob Sand, today (Friday), released an audit report on Guthrie County.

FINANCIAL HIGHLIGHTS:
The County’s revenues totaled $19,612,679 for the year ended June 30, 2022, a 2.8% increase over the prior year. Expenses for County operations for the year ended June 30, 2022, totaled $14,213,357, a 10.0% decrease from the prior year. The increase in the revenues is due primarily to an increase in property tax revenue and the significant decrease in the expenses is due primarily to a decrease in rock and sand inventory purchased in fiscal year 2022.

AUDIT FINDINGS:
Sand reported seven findings related to the receipt and expenditure of taxpayer funds. They are found on pages 92 through 98 of this report. The findings address issues such as lack of segregation of duties, material amounts of accounts payable, prepaid expenses and infrastructure and capital asset additions not properly recorded in the County’s financial statements. Sand provided the County with recommendations to address each of these findings.

Five of the seven findings discussed above are repeated from the prior year. The County Board of Supervisors and elected officials have a fiduciary responsibility to provide oversight of the County’s operations and financial transactions. Oversight is typically defined as the “watchful and responsible care” a governing body exercises in its fiduciary capacity.

A copy of the audit report is available for review on the Auditor of State’s website at Audit Reports – Auditor of State.