Common Scams … and How to Avoid Them
Identity
Theft
By trickery,
stealing information from mailboxes or trash, or using publicly available information, a crook obtains personal information
about you, for example, your social security number, date of birth and mother’s maiden name. Doing
so, the fraud artist may be able to obtain credit cards, take out loans, make counterfeit checks or cards and go on a spending
spree in your name.
Check Fraud
A criminal steals or finds a checkbook or collects enough information about a bank
account to make a counterfeit check.
Advance-Fee Scams
You receive an unsolicited and attractive offer for a product, service, business opportunity
or similar deal, but you are told you must send money or divulge bank account numbers before you receive anything in return.
Lo and behold, the promised goods or services never arrive or they come with significant flaws.
Credit/Debit/ATM
Card Fraud
With credit
cards, a thief might use or counterfeit your card or obtain a new card in your name, perhaps by stealing a pre-approved card
application from your mail and having the card sent to a different address. As for ATM cards and debit
cards (which deduct for cash or payments transacted at teller machines or retail establishments), the perpetrator might steal
an existing card, make a new one, or obtain your personal identification number (PIN to authorize transactions.
Fraudulent Cashier’s Checks
Crooks know that consumers trust cashier’s
checks, money orders and other official checks so they are increasingly counterfeiting them for use in both long-distance
(over the internet) and face to face transactions. Some scams may involve a cashier’s check for more
that the amount due. You are instructed to wire the excess amount to the buyer’s account.
You comply … and later find out that the cashier’s check is a phony.
Automated
Payment Fraud
A crook posing
as a legitimate business or charity gets the name of your bank ad your checking account numbers, perhaps by tricking you into
divulging the details over the phone or by sifting through your trash for old bank statements or checks. The
thief then instructs your bank to debit (withdraw) a certain amount from your checking account.
Internet Fraud
One approach involves a fraudulent web site
touting extremely attractive deals in hopes that consumers will provide a credit card number, bank account number, password
or a check. A variation involves a copycat web site that deliberately uses a name or internet address similar
to, but not the same as, that of a large, well-known company. Yet another scheme uses an e-mail appearing
to be from a company that you already do business with and that asks you to ‘re-enter’ your social security number,
credit card or debit card number, or PIN.
What can you do to fight these and
other frauds?
v Never provide your social security number, bank card numbers, PIN’s,
passwords and other personal information in response to an unsolicited phone call, fax, letter or e-mail which could be fraudulent.
v Do your research and get key details in writing before giving money or personal information to unfamiliar
entity or in response to an unsolicited offer. Also beware of ‘deals’ requiring money up-front.
v Safeguard your incoming and outgoing mail, which could include checks, credit
card applications, bank statements, ‘loan checks’ (mailed by financial institutions with offers to ‘write
yourself a loan’) and other items of value to a thief. Keep bank and credit card statements, tax
returns, checks and other sensitive documents in a safe place at home. Thieves pick through garbage looking
for documents they can use to commit fraud, so before tossing out these items, destroy them, preferably using a ‘crosscut’
shredder that turns paper into confetti. Also limit the confidential information in your wallet in case
it gets lost or stolen.
v Review your credit card bills and bank statements as soon as they arrive and quickly report anything
suspicious. Also, most experts say you should check your credit reports at least once a year to look for
such things as credit cards, loans or leases that have been wrongfully taken out in your name. A new law
intended to fight identity theft gives consumers access to free credit reports and includes other provisions that will make
it easier to monitor your credit files for fraud.
Phishing: Don’t
Get Hooked!
The Federal Trade Commission (FTC) issued a consumer alert in June 2004 to call attention to a
new illegal trick to get you to give away personal information. According to the alert: “Internet
scammers casting about for people’s financial information have a new way to lure unsuspecting victims; they go phishing.
Phishing is a high-tech scam that uses spam or pop-up messages to deceive you into disclosing your credit card numbers,
bank information, social security number, passwords, or other sensitive information.”
Here’s how it Works
You get an e-mail seemingly
from a financial institution or a credit card site, complete with authentic looking graphics and logos. The
e-mail says that there is a problem, or that they are updating your data, and need you to verify information.
You click on a link and load a ‘spoof’ or look alike
web page that asks for personal information including credit card numbers, social security numbers, date of birth, passwords,
and other personal information. You input this information and now the thieves have all they need to access
your accounts.
Avoiding the Hook
Look alike e-mails can be hard to detect, but if you are careful,
you can avoid a phiser’s hook:
If the e-mail is anonymous (Dear Member, Cardholder, etc.) when past communications have used your name or part of
your account number, it is probably a ‘phishing’ expedition.
If you have never been asked for site verification before or if you have never had ‘special offers’ in
the past be suspicious. Check the site’s address window to be sure that the address is exactly the
same as the usual site address you go to and that there are no extra characters before the real address.
Remember that when a real site asks you to verify something like your address, phone, social
security number, etc., they give you the information first. Do not input any ‘verification’
information if the space provided is blank.
Never open a link on a suspicious e-mail. If you have the slightest
doubt, call the company involved, using a known phone number. Verify the phone number with a telephone
directory and not necessarily the one that is listed on the e-mail screen.
Follow the Advice Line
Review credit card and bank account statements as soon as you get them to determine if there are
any unauthorized charges.
Use anti virus software and
keep it up to date.
Be cautious about opening any
attachment or downloading any files from e-mails you receive.
Report suspicious behavior to the FTC.
The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices
in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint
or to get free information on consumer issues visit www.ftc.gov or call toll free at 877-382-4357
