Fraud

Identity Theft Hits 15 Million U.S. Residents

February 29, 2016 By Twila Van Leer

Identity theft is a more rampant than ever. — 15 million United States residents have their identities used fraudulently each year.

Identity theft hits 15 million residents. It seems that no matter what steps people take today to protect their identity against fraud, those who do the fraud have a quick way to get around them.

Jean Chatsky, an American financial journalist, author and motivational speaker, has made a list of the most recent methods identity thieves use to deprive you of your identity. Read them and then act accordingly to be sure you aren’t the next victim.

Approximately 15 million United States residents have their identities used fraudulently each year with financial losses totaling upwards of $50 billion.

Identity Theft Through E-Mail

The conman sends you a message saying it is from a retailer, the U.S. Postal Service or other common deliverer regarding a package that can’t be delivered. The message includes a fake email address that you are supposed to use to resolve the problem. It asks for details about your identity. Or it may ask you to fill out a form and take it to your post office. That download may install malware onto your computer that feeds more information to the bad guys.

Email Attachments

Never click on a link or attachment you receive in an email unless you know the sender. If, in fact, you have a delivery that couldn’t be made, you will receive written notice on your door or in the mailbox from the sender. Contact the shipper.

Smishing

Smishing is a new coined word that is first cousin to phishing. But instead of trying to get you to take their bait via email, the fraudsters use text messages. Usually it involves a message about a great deal, a deep discount. To take advantage of the “bargain,” you divulge your personal information, and set your self up to become a victim. Don’t pay attention to any text from someone you are not familiar with. Legitimate deals come directly from the company. Sometimes they come as a text, but you have to sign up to receive them.

Social Media Messages

The crooks pay attention to your social media messages to figure out how to steal your identity. If you post on Facebook or Twitter that you just had a great experience at a restaurant or retailer, they may call, text or email you pretending to be from the business with whom you were pleased. They may tell you your credit card didn’t go through and ask for the information. Then they have the means to set up a false account in your name. Bye-bye security.

Bogus Charities

Using fake addresses and websites to appeal to you to support a “good cause,” they weasel pertinent information from you. These scams often follow a highly-publicized disaster to take advantage or your empathy for those who have been negatively affected. Hurricane Katrina spawned thousands of fake “charities.” If you want to support good works, give via well-known and reputable websites. Or write a check. If you are solicited by email or text, never click on a link. Consider making your donation to a large, well-recognized entity such as Red Cross, Doctors Without Borders or others that you know to be bona fide organizations.

The people who would use electronics means to cheat you make it a full-time job. Stay informed so you’re always a step ahead of them.

Identity Fraud Victim List Going Up and Up

May 9, 2014 By Twila Van Leer

Identity fraud can be devastating. Don't let this happen to you. — Identity fraud can be devastating. Don’t let this happen to you.

In case you want to be scared before Halloween, just take a look at the latest statistics on identity fraud. That’s the unauthorized use of your personal information by someone who wants financial gain at your expense. According to the Javelin Strategy and Research organization, there’s a new victim every two seconds. The 2013 data included in the update issued in February 2014 include these disquieting items:

The number of identity fraud victims rose to 13.1 million, an increase of more than 500,000 over the previous year.

A dramatic increase in account takeover was reported.

Data breaches became even more damaging. Information has been stolen from eBay, PayPal, Amazon and other Internet accounts. One in three people who received a data breach notification during the year was added to the growing list of victims.

About the only good news in the 2013 report is that the amount of money taken in identity fraud incidents was down to $18 billion, a $3 billion decrease over the previous year-end well below the high of $48 billion that occurred before counter-measures were begun. That’s small consolation to the millions who have suffered losses.

Fraud can range from simple unauthorized use of another person’s information to make purchases to elaborate schemes of taking control of existing accounts or opening new accounts. Javelin Strategy and Research contacted 5,634 U.S. consumers to compile its data.

The decrease in the total money impact of fraud in 2013 was attributed to education and other steps that are fighting the problem, said Al Pascual, senior analysts of Security, Risk and Fraud for the researchers. In response, criminals appear to be adapting their approach to focus on account takeover, which becomes easier when there are major breaches in huge accounts. There is no room for letting down defenses, he said. “Any complacency will provide fraudsters renewed opportunities.”

Data breaches have become by far the greatest risk factor for identity fraud, allowing criminals more latitude for their ever-more-sophisticated schemes.

Javelin offers these safety tips for consumers, who are advised to work with established institutions to fight the problem:

Keep your personal data private. Use and frequently change passwords and keep personal information locked in a storage device at home, at work and on your mobile device. Don’t mail checks to pay bills unless they are printed on high security paper. Shred documents that contain information. Monitor accounts and use updated security software. Use a trusted and secure Internet connection rather than a public Wi-Fi site when transmitting personal or financial information. Have regular income checks direct-deposited.

Use two-factor authentication when possible. Some institutions offer this added layer of security, beyond username and password. You will then be notified each time someone tries to access your account. You can deal with suspicious incidences in real time.

Resist any requests for your Social Security Number. The great majority of banks and credit card issuers will allow access to your account to someone using your SSN. The numbers can’t be changed so they’re valuable to fraudsters. Ask your financial institution to put a note on your account that you will never provide your SSN when identification is requested. Then if someone attempts to get access to your account with this information he or she will automatically be identified as a fraudster.

Be proactive and enlist others in the effort to stem fraud. Sharing alerts issued by banks can reduce the risks for more people. An array of services are offered to consumers who want extra protection, including payment transaction alerts, credit monitoring, credit report fraud alerts, credit freezes and database scanning.

Take any perceived data breach seriously. If your financial institution or retailer provides free monitoring after a breach, take advantage of the offer, closely monitor your accounts and ask that a fraud alert be attached to your credit report.

Report problems immediately, even if your only suspect fraud. Contact your financial institution to see what resolution services they offer, including loss protections and methods to secure your accounts. Quick action can reduce the likelihood of losses and help law enforcement agencies to pursue fraudsters.

Do everything you can to avoid becoming an addition to the fraud statistics for the next reporting period.

Arm Yourself Against Fake Check Scams

May 30, 2012 By Twila Van Leer

Fake check scammers never rest. They actively look for ways to victimize people. And too many unsuspecting people fall for it, losing money to their multi-billion-dollar schemes. The only way to avoid becoming one of the victims is to learn to recognize and avoid such scams.

Fake checks look real, often real enough to fool bank personnel. Phony cashier’s checks or those designed to look like they are from real businesses often are actually “dummied up” copies of legitimate checks, created without the knowledge of the companies.

The National Consumers League Internet Fraud Watch offers these suggestions to help you in your effort to stay scam-free:

Beware of any transaction in which you are asked to pay by check with the guarantee that some of the money will be wired back to you. Chances are you’re walking into a scam.

There are many variations on the ploy. Someone may offer to buy something you have advertised for sale. They may offer to pay you to do work at home. They may hold out the promise of an “advance” on a sweepstakes you have purportedly won. They may offer to pay the first installment on promised millions that you’ll receive for allowing a party to transfer money from a foreign country to your bank “for safekeeping.” The pitches are many and they all sound feasible.

Scammers have methods of finding potential victims. They check newspaper and online advertisements for personal listings of items for sale. They look at online job sites to find people seeking employment. They place ads with phone numbers and/or email addresses so people can contact them. They may even send emails or faxes at random, expecting that some recipients will be gullible enough to swallow their bait. Claiming to be in a different country, a scammer may tell you that making a transaction internationally is too complicated. They promise that someone in the United States will send you a check. Don’t believe it.

Or they may try to involve a third party, saying this third person owes them money and they will have that individual pay you for what they have purchased. They dangle the promise that the check from this third person will exceed the sale price of the merchandise. They ask that you deposit this third party check, keep what is owed for the merchandise and wire the balance to them.

If you have agreed to work at home, the scammer may claim you’ll be processing checks from “clients.” They want you to deposit these checks and wire them the money after subtracting your pay. Another twist is for the scammer to “overpay” you “by mistake” and ask that you return the excess. Either way, you have lost. The sweepstakes and foreign money variations often include a request of money for taxes, customs charges, bonding fees or legal costs, which would seem feasible if the transaction were legitimate.

Under federal law, banks must make funds available to you shortly after deposit — one to five days in most instances — so you may be able to draw on fake checks very soon. But if it’s a fake check, the responsibility rests with you, just as if it were bona fide. You most likely will be informed that there is no substance behind the check you deposited and the amount will be subtracted from your balance. The process could take several weeks, but the result is inevitable. The financial institution relies on depositors to determine the risk of what they deposit. If a check is no good and the account does not contain enough to cover it, the institution my take money from your other accounts to make it good, or expect you to make up the difference.

It is not unheard of for law enforcement to bring charges against the victim because there is every appearance that they have defrauded the bank. This is the ultimate double-whammy.

The bottom line, according to the Consumer League’s guidelines, is that there is NEVER a legitimate reason for anyone with whom you are dealing to ask you to wire money back to them. If you are selling something or providing a service for someone you do not know, insist on a cashier’s check for the exact amount involved, preferably from a local bank or one that has a branch in your area.
Do not deposit a check if you believe it is fake. Report it to NCL’s Fraud Center, www.fraud.org. The information will be forwarded to the appropriate law enforcement agency.