Crypto Crime Caution
After 2021 saw crypto crime soar to almost $8 billion, the Federal Trade Commission is warning of a new wave of scams.
In an official notification last week, the FTC warned that scammers are impersonating government representatives, law enforcement, and utility companies to steal money using cryptocurrencies.
How The Scam Works
The bad guys get your money by posing as a member of one of the agencies mentioned above or as an online romantic interest. They may even tell you that you won the lottery.
Once the criminals hook you, they direct you to withdraw money from your bank or retirement account. Then they give you directions to deposit the money in a crypto ATM.
They will also give you a QR code. This is code can be scanned top to bottom and right to left.
“Here’s where the QR code comes in: they send you a QR code with their address embedded in it.” says the FTC. “Once you buy the cryptocurrency, they have you scan the code so the money gets transferred to them. But then your money is gone.”
Don’t Slip Up On Rug Pulls
These scam calls are growing, according to the FTC. However, the sting that raked in the most money last year was the “rug pull”.
This scam involves a new crypto developer luring investors into a project, such as a new currency. Once enough money has been raised, the developer closes shop and scrams with investor money.
“Scams were once again the largest form of cryptocurrency-based crime by transaction volume, with over $7.7 billion worth of cryptocurrency taken from victims worldwide,” according to Chainalysis.
That represents an 81 percent increase over 2020 notes Chainalysis. The blockchain data platform plans a special review in February entitled 2022 Crypto Crime Report.
This Will Never Happen
“Here’s the main thing to know: nobody from the government, law enforcement, utility company, or prize promoter will ever tell you to pay them with cryptocurrency,” says the FTC. “If someone does, it’s a scam, every time.”
Conclusion
Do not be a victim. If you get a call, email, or social media contact like the ones detailed above — report it.
You can reach the FTC at ReportFraud.ftc.gov.
Child Tax Credit Money
For 36 million families this is the first month since last summer without a Child Tax Credit check. Instead, they will receive a Letter 6419 IRS Alert in the mail.
The letter may read like accountancy junk mail. However, it could mean money for you and your family.
Advance Payments Only Half of What You Are Owed
Qualifying families receive a tax credit for children 17 and younger. Under the American Rescue Plan, they received an advance each month. The first checks were dated July 15.
President Biden proposed extending those payments. However, his efforts were rebuffed by the Senate. As a result, the last checks were issued in mid-December.
The average payment was $444. However, that was about half the tax credit earned. In addition, there were no payments for half the year. As a result, most families still have money owed to them in the form of a tax credit that could result in a refund.
How to Use Letter 6419
The IRS Alert Letter 6419 can be used to file taxes and collect on the Child Tax Credit.
The letter will show the dollar amount of advance payments a family received in 2021, according to the IRS. In addition, it will report the number of children used to calculate those advance payments.
IRS figures could be in error in some extremely rare cases. However, to be safe, you can check your bank records against the government’s records. To make that easier, the IRS has created the Child Tax Credit Update Portal.
File Even If Income Low
You Must file a tax return to get a refund on any Child Tax Credit money owed you, according to the IRS.
Some families may feel they do not have to file a tax return this year because of low income. However, if they do not file, they can not get a refund for the money owed to them via the Child Tax Credit.
File Your Taxes with H&R Block
Big Lender Cancels Student Loan Debt
Your student loan may have been canceled.
Navient, one of the largest student loan companies, reached an agreement with attorneys general from 39 states to compensate borrowers. The company is canceling loans to almost 66,000 borrowers under terms of the settlement. In addition, Navient is paying $95 million in restitution.
The total price tag on the deal is $1.85 billion.
The Break Down
The student loan cancellations amount to about $1.7 billion. The remaining $95 million will be paid out in $260 payments to 350,000 federal borrowers Navient placed in long-term forbearance programs.
The Forbearance Trap
One of the primary charges against Navient is that it steered borrowers into forbearance loans. These loans are intended to be a short-term measure.
Forbearance allows the borrower to stop making payments for up to 12 months. However, interest continues to build during that time.
As a result, many borrowers in forbearance end up paying more than conventional borrowers. Student loans can also be paid based on income.
A Deal Delayed
Originally, the Obama administration sought action against Navient. In fact, negotiations were well on the way to a settlement. However, talks broke down after the 2016 election.
The Trump administration eased off Navient. As a result, attorneys general for Illinois and Washington filed suit against the lender. Soon, more states joined the legal action.
“There is growing concern among myself and state attorneys general that the federal government is not only losing interest in holding student loan servicers like Navient accountable, but that the federal government is actively looking for ways to shut down state enforcement actions against Navient and other student loan servicers,” Mississippi Attorney General, Jim Hood told the New York Times. His remarks came when Mississippi joined the suit in July.
Let The Borrower Beware
Navient originally responded to the lawsuit by contending it was not responsible for borrower’s bad decisions.
“There is no expectation that the servicer will ‘act in the interest of the consumer,’” Navient wrote in a court filing, according to the New York Times.
The loans in question, ”were originated largely between 2002 and 2010 and later defaulted and charged off,” Navient said in a news release last week. “Navient will notify the affected borrowers and co-borrowers shortly after the agreements receive final court approvals.”
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Max K. Erkiletian began writing for newspapers while still in high school. He went on to become an award-winning journalist and co-founder of the print magazine Free Bird. He has written for a wide range of regional and national publications as well as many on-line publications. That has afforded him the opportunity to interview a variety of prominent figures from former Chairman of the Federal Reserve Bank Paul Volker to Blues musicians Muddy Waters and B. B. King. Max lives in Springfield, MO with his wife Karen and their cat – Pudge. He spends as much time as possible with his kids, grandchildren, and great-grandchildren.
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