Iowa tour teaches people how to stop the scam

Virginia Dunbar picked up the phone and heard the amazing news: She had won $2 million.

The 83-year-old Iowa City woman listened as the person on the other end of the line congratulated her and told her how wonderful it all was. The caller said all that was needed to get Dunbar her big money prize was for her to send a $150 gift card.

Dunbar immediately became suspicious. She started pushing back, asking questions. And when the caller continued to coax her, tried to get her to buy and send that gift card, Dunbar hung up.

“Yep, I was sure that they were trying to get money, and I probably didn’t even have a prize,” Dunbar said.

Dunbar said she gets similar calls roughly once a month.

The total amount of money Americans reported they lost to fraud in 2022 increased by 30 percent over the previous year, according to the Federal Trade Commission.

In Iowa, there were nearly 13,000 fraud reports in 2023 that resulted in financial losses of $42.6 million, according to the FTC. The median amount of money lost was $401.

Gift card scams, like the one Dunbar experienced — but did well to avoid — are increasingly common. More than 30 percent of U.S. consumers have been targeted by scams asking for payment by gift card, resulting in $228 million in stolen funds, according to a 2022 AARP survey.

The AARP in Iowa is imploring state lawmakers to pass legislation that would require stores that sell gift cards to post a warning about gift card scams and what people should do if they think they are being targeted. That proposed bill, Senate File 2147, is being considered by lawmakers during the 2024 legislative session at the Iowa Capitol.

“Con artists are increasingly using gift cards as the payment method for their schemes since this money is often impossible to trace and recover,” Brad Anderson, AARP’s Iowa state director, said in a statement. “Iowans are losing millions of dollars to this nefarious practice, so consumer education and prevention are critical.”

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The Iowa Attorney General’s Office and Iowa Department of Insurance and Financial Services has joined AARP’s effort to inform Iowans about scams. The goal is to educate Iowans about the types of scams being attempted across the state, and informing Iowans how they can protect themselves, the agencies say. The education campaign has a particular focus on online scams.

The groups plan a tour of the state with informational sessions, with 18 stops planned. The tour kicked off last week in Des Moines and will continue through early May.

An event is scheduled to be held at 9:30 a.m. March 5 at the Coralville Public Library and also at 8:30 a.m. May 9 at the downtown Cedar Rapids Public Library.

A full schedule and a sign-up form for the events is at iowafraudfighters.gov.

“As scammers grow more clever in their tactics, we’re working around the clock to protect Iowans and slam the scam,” Attorney General Brenna Bird said in a statement. “Scammers are manipulative and they take advantage of ‘Iowa nice.’ That’s why we’re laser-focused in the Iowa Attorney General’s Office to help fraud victims, teach Iowans the red flags of a scam, and hold scammers accountable.”

Other law enforcement and advocacy organizations also are working to educate and warn people about scams.

As the federal tax filing deadline in April approaches, the IRS is warning taxpayers about the ways scammers try to access personal information. The IRS’ Criminal Investigation Unit dedicates 70 percent of its time to investigating tax crimes that include various types of scams and fraud, the agency said. In the 2023 federal budget year, the unit identified $5.5 billion in tax fraud.

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According to the IRS, one local example included a father and daughter who ran “an elaborate tax preparation scheme” from their Iowa home, and victimized hundreds of immigrants and refugees who worked at meatpacking facilities in Iowa by redirecting those workers’ tax refunds to their own accounts.

The IRS’ investigative unit encourages taxpayers to avoid tax return preparers who claim they can obtain a larger return than others or whose fee is a percentage of the tax refund; to use reputable tax professionals who enter a preparer tax identification number on the return and provides a copy; to never sign a blank return form’ and to avoid clicking links in emails that claim to be from the IRS and ask about a tax return.

“Every year tax criminals get more creative in devising schemes to access taxpayer information and steal tax refunds,” St. Louis Field Office Special Agent in Charge Thomas F. Murdock said in a statement. The office’s jurisdiction includes Iowa.

Among other examples of government officials and advocates fighting fraud:

As part of its advocacy at the Iowa Statehouse, the AARP has compiled a series of testimonials from Iowans who were victims of scams are targeted by attempted scams.

Dunbar was among those who submitted her story to AARP. She laughs about the experience now, recalling that as she became suspicious she told the caller that at her age she did not need the $2 million anyway.

But Dunbar also hopes her story helps prevent someone else from becoming a victim.

“If they can help someone else down the line, I’d be very glad, because you know we don’t have money to throw to the four winds,” Dunbar said, adding her advice to anyone who may field a similar phone call. “One, if you don’t recognize the number, don’t answer. And if you do answer, and situations are too good to be true, and they insist on you doing something for getting money to them, hang up.”

Comments: (515) 355-1300, erin.murphy@thegazette.com