Hawaii residents and businesses reported $2.7 million in theft last year due to scams.
That’s up from $2.6 million the previous year from so-called “phishing” — fraudulent emails purporting to be from reputable companies seeking personal information — identity theft, credit card fraud and theft by people posing as government or private company workers, according to data from the Federal Bureau of Investigation Internet Crime Complaint Center.
The trend has become so pervasive that Hawaii utility companies are warning consumers and small businesses of “increasingly aggressive” thieves and scam artists posing as workers of the businesses they depend on for essential services like water, electricity and gas.
Representatives of Hawaiian Electric Cos., Hawaiian Telcom, Hawaii Gas, the Board of Water Supply and Kauai Island Utility Cooperative spoke at a news conference Wednesday to alert the public that scammers, mostly targeting the elderly and small businesses, are stealing “thousands of dollars” in Hawaii.
“We definitely see an increase. They’re getting much more sophisticated in their tactics,” said Shannon Tangonan, a spokeswomen for Hawaiian Electric Cos. “Be mindful that there are scammers, especially before the holidays. Activity’s going to pick up.”
There were 783 reports of compromised business emails, one of the “greatest threats facing businesses,” 401 phishing scams and 341 cases of identity theft reported locally in 2017 to the FBI’s Internet Complaint Center.
Most scams are over the phone, but thieves are also coming to homes and businesses pretending to be utility workers and bill collectors and threatening to disconnect service unless they receive payment, said Honolulu Police Deputy Chief John McCarthy.
“All of these scams they’re high-pressure tactics mostly foreign in origin. The burden is really on the consumers, on the people and … to some degree on the businesses that provide services to make people aware of this,” he said. “You should trust these companies but verify. Whenever you receive a phone call or email or letter that sounds suspicious or out of the ordinary, always check with the organization or business before making any payment or giving out personal financial information.”
The state has jurisdiction to prosecute scammers even out of the country, he said.
Local authorities worked with federal agents on a case in 2012 that resulted in the prosecution of Nigerians in England, who were convicted last August for fraud in Hawaii, according to McCarthy.
“It takes a lot of coordination between businesses and our agencies. It’s time consuming and overwhelming for law enforcement agencies,” he said, adding that authorities are trying to increase resources to crack down on these types of theft.
“This is really the tip of the iceberg,” added Stephen Levins, executive director of the state Office of Consumer Protection. “Historically in Hawaii people don’t complain. From my experience I’m sure the vast majority of people being scammed are not filing complaints with the authorities.”
Utility scams include callers demanding payment over the phone, via money transfer; prepaid debit cards; or by Bitcoin, a type of digital currency, as well as people asking to meet in person to pick up payment. Consumers should avoid clicking on links in emails to pay bills from a purported utility company and also remember that utility workers who show up at homes or businesses should be wearing official company logo attire, driving labeled vehicles and carrying company identification.
TO PROTECT AGAINST SCAMS
>> Do not answer the phone if you don’t know the number or hang up if someone tries to solicit money.
>> Don’t reuse passwords for multiple online accounts.
>> Use multi-factor authentication, a security system that requires more than one method to verify a user’s identity.
>> Always ask for identification if someone comes to your home or business to check utilities.
>> Never give out financial information over the phone.
