Click Here for a free estimate!

25 East Spring Valley Avenue
Maywood, NJ 07607
1 (877) CPA-GOLD

Police Warn of New ‘Line-Trapping Technology’ Being Used to Scam People Over the Phone

Hacker

A new piece of sophisticated technology is being used by fraudsters to scam unsuspecting people over the phone. Police said a woman in the New York Region received a call earlier this month and was told by the scammers she had been a victim of identity theft.

Police said the woman was directed to call police and confirm the information. The victim called authorities and believed she had spoken to an officer. Through the investigation it was revealed that the suspects used new line-trapping technology to remain connected to her phone line when she tried to call police.

The technology used by the scammers reconnected her phone line to them instead of the authorities. Police said the woman lost a quantity of cash and the suspects obtained her personal information.

What Can Be Done About It

Police are reminding citizens to be cautious with any calls or e-mails seeking personal information.“If a situation feels suspicious, trust your instincts,” police said in a news release on Thursday.

“If you wish to confirm a call you receive do so on a delayed timeline. Evidence suggests that the line-trapping technology being utilized has a time limit of several minutes.” Police said to call on another line if you are suspicious of being hacked.

We will continue to investigate this “line-trapping technology” and find out more about criminals’ use of social engineering to scam people with this.

Go here for additional information about spotting Tech scams (FTC website).

You may recall that certain malpractice policies exclude this.  An example exclusion is:

This policy does not apply to claim(s):

b.      Based upon, arising out of or in any way related to, directly or indirectly, any transfer, payment or delivery of funds, money or property, by anyone, which was caused or induced by, trick, artifice or the fraudulent misrepresentation of a material fact including, but not limited to, social engineering, pretexting, phishing, spear phishing or any other confidence trick(emphasis added)

 Go here for the blog posting.

Check your policy to see if this exclusion has been applied to your coverage.  If it has, ask for it to be removed or buy malpractice coverage from an insurer that offers a policy that does NOT make coverage subject to the foregoing exclusions.

———————————————————————————————————————

Jorgensen & Company are not attorneys and do not offer any form of legal advice. Consult with appropriately qualified local counsel for more assistance. Rickard Jorgensen is President and Chief Underwriting Officer for the CPAGold™ program and may be contacted at (201) 345 2440 or rjorgensen@jorgensenandcompany.com.