Consumer Protection-The Mail Courier Credit Card Scam

Wanted to re-share a scam I have shared before, given the holiday season and all the packages being delivered.

“The Mail Courier Credit Card Scam”

A courier company called up and asks if we would will be home since they have a package that they need a signature for. They indicated that they would be there in “about an hour”.

Sure enough, an hour later they showed with a flower basket and a bottle of wine. I was surprised as it wasn’t a holiday or special occasion, but was delighted with the surprise.

When asked “why” or “who it was from” they answered “I don’t know, I’m just the delivery person” and that “a card was on it’s way” (a card that never arrived). 

The courier went on to say that since there was an alcohol delivery, there was a $3.50 ‘delivery confirmation charge’ to ensure that the alcohol was delivered to an adult and not just left on a door step where anyone could take it, especially and underage child. 

Sounding logical, I offered cash, to which the courier refused and said that the delivery companies required payment to be a credit or debit card so that everything is properly accounted for and that they keep a legal record of the transaction, adding that couriers don’t carry cash to avoid loss or robbery. 

At that point, my husband had come over and handed “John”, the delivery man, his credit card. My husband swiped his card on the small mobile machine, entered his pin, a receipt was printed, and we were given a copy of the transaction.

To our horrible surprise, between Thursday and Monday of the following week, over $4,000 had been charged/withdrawn from our credit/debit accounts at various ATMs.

Apparently, the mobile machine the courier had copied all of our information and had all the information, including our PIN, to create a “dummy card” and allow him access to our accounts through a ATM.

Upon finding out, we immediately contacted our bank who closed our accounts, opened new accounts, and reissued us cards.

We also went to the police who confirmed this was a scam and that other households had been hit by the same exact scam. 

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I always tell my clients that it’s important to keep credit card and debit/account information confidential. You should never give out this information unless you initiate a purchase with a reputable company that you trust. 

While this scam involves a package and delivery, there are SO MANY SCAMS that involve bank account/credit card information falling into the wrong hands. Whenever you’re providing this information, especially via email, or online, check and then double check who the receiver is.

Wills & Trusts- New Child

Legal IQ Tips: Estate Planning

Have a new child?

If you have a Will, it’s time to update it. If you don’t, it’s time to get one.

I always advise new parents that it’s important to get a proper estate plan documented.

In Rhode Island, if both parents are to pass away, or become incapacitated rendering them no longer able to care for their child, the child would be left “guardian-less”. Laws here do not automatically govern who the child’s guardians would be.

What that means is that whomever would want to become the child’s guardian would need to go to court and petition for legal guardianship. For example, if the maternal grandparents wanted to become the legal guardians, they’d have to file with the court. That is a long, expensive and emotionally draining process.

Even scarier there is no guarantee that the maternal grandparents would be awarded legal custody. Think of the situation where the family and child lives in RI and attends RI schools, with the maternal grandparents living in Maine. The judge may rule that it is in the best interest of the child to stay in RI with the schools and friends they are accustomed to, and therefore the child needs to stay with another family member.

Now, mix in a possible custody battle between two siblings, step grandparents, or maternal and paternal grandparents. You can see how this can all get very messy and expensive.

The simple solution, is for the parents to make a plan beforehand and document this in their estate plan.

If you are a new parent in RI and are interested in making your estate plan, please feel free to reach out to me. Wills & Estates is an area of law I focus my Providence based practice in.

Have a Happy and Healthy Thanksgiving.

Wills & Trusts- Leaving Money to a Charity (Part 3)

Legal IQ Tips: Estate Planning

Do you intend to leave your favorite non-profit money in your Will or Trust?  Does your Estate Plan leave money to an organization?

Leaving money to an organization that you have worked with or feel connected to is a noble thing to do.  Many clients enjoy doing this, as they are nervous to give money they may need for their own care, during their lifetime, but are happy to donate some of their Estate, once they have passed on. It’s always wonderful if you can help support an organization monetarily, so that organization can continue to do their good work.

If you haven’t already, take a look at my last two posts for some other helpful tips on additional “things to think about” when leaving money to an organization.

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HOW do you want your money to be used?

It’s important you really spend some time thinking about this. 

While this topic compliments the other 3 topics I talked about, it also stands on its own. 

Doing your due diligence in those other areas, will help ensure your money is utilized the way you intend, but in addition, depending on how specific your wishes are, you may need additional language or additional documents to help your intentions. 

For example, I have had a client who wanted to donate their money to a Convent.  They knew the local Convent and what good work the parish did.  BUT, my client ONLY wanted their money to go towards the care, comfort, and living expenses of the nuns.  They had a special connection with this Ministry’s nuns and believed these women should be better taken care of.  They did not want their money to help with the up-keep of the facilities, children’s programs, bible studies or anything else.  They admired all the Convent did, but they simply wanted to help take care of the nuns.  

Given the specificity of their request, we created specific language.  Depending on how specific a client is, or how concerned they are about their gift being used as intended, there are different legal tools that can be put in place to ensure money is used HOW individuals want.  This ranges from simple language in a Will to the creation of an entire Trust or Charitable Foundation. 

With all this said, I do caution my clients to think about the scope of their gift from “the other perspective”. If you are too specific in your gift, your gift may not be accepted or be used for what the organization is really in need of at the time.

For example, with the situation I noted above, if for some reason that Convent did not have nuns, my clients gift may not be accepted.  That might be exactly what my clients intended, or, sometimes, you may unintentionally make the scope too narrow. 

Going back to my example of the animal shelter, if that individual had said that the money was only to be used for the creation of a new facility, but a new facility was just built, that money might not be able to be used for another 20-30 years.  While in the meantime, animals were needing food and medical procedures.

Really understanding your intentions, the organization you intend to donate to, and then talking with a lawyer who focuses in this field, will help guide your decisions.  I always counsel my clients on this exact point.  Too broad, your money may not get used as you intended, too narrow of a scope, your money may not be accepted.  I always tell my clients that if they want to keep a narrow scope, we need to have some “back-up” plans in place.

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Again, there are no right or wrong answers on the above topic. 

I hope this 3 part series has been education on some topics you should think about when contemplating leaving money to a non-profit via your Estate Plan: (1) How stable is the organization, (2)What does the organization spend its money on, (3) What is the structure/setup of the organization, and (4) How do you want your money to be used.

Working with an Estate Attorney will allow you to address all of these questions and better ensure your money is used for what you intended.

If  you have any questions or need any help, don’t hesitate to contact me.  I focus my Rhode Island based practice in everything from simple Wills to complicated Trusts.

Wills & Trusts- Leaving Money to a Charity (Part 2)

Legal IQ Tips: Estate Planning

Do you intend to leave your favorite non-profit money in your Will or Trust?  Does your Estate Plan leave money to an organization?

Leaving money to an organization that you have worked with or feel connected to is a noble thing to do.  Many of my clients enjoy doing this, as they are nervous to give money they may need for their own care, during their lifetime, but are happy to donate some of their Estate, once they have passed on. It’s always wonderful if you can help support an organization monetarily, so that organization can continue to do their good work.

If you haven’t already, take a look at my last post for some other helpful tips on additional “things to think about” when leaving money to an organization.

3.  WHO/WHAT organization are you ACTUALLY trying to leave your money to?  

This seems like a pretty straight forward question, but it is really important to understand. 

There are many organizations that are; subsets of larger organizations, local chapters, or that don’t operate their own budget or spending.  Similar to my earlier point on “how does the organization spend its money” you really need to understand how the organization you intend to leave your money to OPERATES and if it works with an “umbrella” or national organization.  If you don’t understand the relationship, your money may end up somewhere you didn’t intend.

For example, I learned of a situation where an individual left money to a local animal shelter.  The individual was generous in their donation and intended for the money to be put aside so the shelter could build a much-needed new facility. 

The issue here was that the animal shelter was a municipal shelter, not a private shelter.  What does that mean? It means the town; owns it, operates it, and sets the budget for the shelter.  

By leaving the money to the shelter, in the manner it was left, the individual unknowingly left the money to the town.  While the money would be used to help the shelter/animals, the town was the entity who was to determine how the money would be spent at/for the shelter.  In hearing about the situation, I learned that there was much concern that the money was going to be used for the day to day operations, rather than as the individual intended.  That rather than this money being set aside, with other money raised, to build a new facility, this money would be used for food for the animals and salaries for workers.

While these are all well and good expenses, and necessities for keeping the shelter running, it’s not what the individual intended their money to be used for.  This situation is really unfortunate.  If the donor better understood WHO they were leaving the money too, and/or, in what manner they were leaving the money, their money would have been used as they intended. 

In this situation, the individual could have possibly left the money to a “Friends of the Town’s Animal Shelter”.  This organization would have been a more appropriate choice, in this situation, as that organization would have been able to manage the money and utilize it for the exact purposes the donor intended. 

There are lots of examples I am made aware of regarding money left for one intended purpose but due to the organization it was left to, and that organization’s relationship or structure, the money not being used, as intended. It’s concerning and upsetting, especially because I know that with a little bit of research and a good Estate Planning Lawyer, this could have been avoided. 

With all that said, there are no right or wrong answers on the above topics.  Understanding an organization’s makeup is just another area you should consider when you think about leaving money in your Estate Plan.  Working with an Estate Attorney will allow you to address these questions and better ensure your money is used for what you intended.

More to come on this topic.  In the meantime, if you have any questions or need any help, don’t hesitate to contact me.  I focus my Rhode Island based practice in everything from simple Wills to complicated Trusts.