Thanks for taking time to read about the latest information we have describing identity theft, business scams, and fraud. This page will be updated regularly to help you keep abreast of national and local warnings.

Credit Union Advisory

If someone suspicious calls you at home saying they’re from Travis Credit Union and that they need personal information, ask for their name and phone number so that you can call them back. Then, hang up. Call the credit union at (707) 449-4000 or (800) 877-8328 to report the incident and verify whether or not the person who called is an employee. We want to know if someone intrudes on your privacy using our name because it would constitute fraudulent activity that we should report.

If you become aware of any risk of financial fraud, please e-mail CUNA Mutual at riskalert@cunamutual.com, or fax the information to (608) 231-8987.

Car Warranty Scam
December 17, 2007

The Con: Scammers are posing as a car warranty company and contacting consumers via phone. Scammers state that the insurance has lapsed and if not provided with a credit card or debit card number for payment, the vehicle would be impounded.

Problem: If you release your card number, fraudulent charges are inevitable.

Prevention: If you receive a call from an entity claiming to be from your car warranty company, first ask yourself if you even have a warranty. If not, hang up. If you do, do not immediately release your information over the phone. Tell the caller that you will call them back. Instead of using the phone number with which they may provide you, contact your warranty company at the phone number that is listed on your contract. Verify whether or not a call was made. If they had not called you, and you did not release your information then you just successfully deterred being scammed.

If you did not realize the con and had inadvertently released your account and/or credit card information, steps must be immediately taken to reassign your account and/or card to a different number. Please contact us or the financial institution involved as soon as possible to avoid fraudulent debits.
 

Utility/Credit Payment Scam

The Con: Scammers are posing as legitimate businesses, whether it is a utility company or a credit card company, and contacting consumers under the guise that the last payment was not received. To avoid an interruption in service, the scammer requests that the consumer provide him/her with the routing number and account number information located on the bottom of the consumer’s personal check so that the required payment can be debited from the account. The scammer may inform the consumer that there may be a $9 processing charge. This is simply to fool the consumer into believing that the transaction is legitimate since a “fee” is involved. The problem with this picture is that the entity calling is not from the legitimate business and has now successfully obtained the account information so that debits can be fraudulently made.

Prevention: If you receive a call from an entity claiming to be from your financial institution, another credit card company or a utility company, such as PG&E, do not immediately release your information over the phone. Tell the caller that you will call them back. Instead of using the phone number with which they may provide you, contact your bank and/or utility company at the phone number that is listed on your statements. Verify whether or not a call was made. If they had not called you, then you just successfully deterred being scammed.

If you did not realize the con and had inadvertently released your account information, steps must be immediately taken to reassign your account to a different number. Please contact us or the financial institution involved as soon as possible to avoid fraudulent debits.
 

Contractors State License Board Issues Statewide Consumer Alert about Electrical Repair Company
Company uses various names and extensive phone book ads to lure unsuspecting consumers
Wednesday, May 09, 2007

Sacramento –The Contractors State License Board (CSLB) is warning California consumers about an electrical repair company operating around the state, especially in the major metropolitan areas, under a number of different names. It’s believed that the company solicits business by taking out a large number of advertisements, many full-page, in telephone directories under different names that include:

The ads claim low fees and service charges. But, once at the house, the service technician pressures the customer into unneeded repairs. In the more than 65 complaints filed with the CSLB, the average cost for a service call and repairs is more than $1,000.
CSLB’s four-month undercover investigation found that calls to the various phone numbers resulted in a service response from an individual from a company with a completely different business name, including those of licensed and reputable companies. During the undercover operations, the unlicensed technicians followed the same pattern as found in the complaints. On April 19th, CSLB investigators conducted simultaneous sting operations around the state. At those stings, seven

Contractors State License Board Issues Statewide Consumer Alert about Electrical
Repair Company 2-2-2-2-2-2-2-2-2
individuals responding to service calls were arrested and now face misdemeanor charges for violating contractor laws, including contracting without a license and/or being an unregistered salesperson.
USA Services had its license suspended in 2006 and is the subject of an accusation intended to discipline that license. CSLB investigators are also looking into the possibility that there may be a connection to other companies whose licenses have been revoked by the CSLB.
“We believe these individuals are trying to skirt the law by claiming to be a referral service,” said CSLB Registrar Steve Sands. ”What they advertise in the phone book and what they actually do may not be the same thing.”
The companies look like reputable electrical repair companies, but usually attract vulnerable individuals, like the elderly, who are more likely to use a phone book rather than other sources to find repair services. This is also a method used by the majority of consumers who need to find a technician in a hurry if their power has gone out.
The CSLB urges all consumers to pre-qualify and establish a relationship with an electrical repair company now, before they have an emergency.
• Ask family, friends and neighbors for recommendations of companies they’ve used and had a good experience with.
• Make sure the company is licensed, and make sure the technician who comes to your house is from the same company you called.
• Check out company’s license status at www.cslb.ca.gov or call 1-800-321-CSLB (2752).
• If the electrician is an employee of the licensed electrical contractor, make sure they are certified by the California Department of Industrial Relations’ Division of Apprenticeship Standards.
• Hire the company to perform a simple job or a diagnostic test of your electrical system. Get a feel for their professionalism and thoroughness. This small investment could save you a lot of money in an emergency.
• Don’t pay the technician in cash – use only personal checks from an established account or a credit card.
• Avoid companies that advertise without a physical business address.
• Watch out for high pressure or scare tactics, like claiming a fire danger.
• Consider getting a second opinion if the technician claims that additional major repairs are needed.

Contractors State License Board Issues Statewide Consumer Alert about Electrical
Repair Company 3-3-3-3-3-3-3-3-3
Consumers who think they have been taken advantage of by a company matching the description described above should download and file a complaint form from the CSLB Website or by calling CSLB’s at 1-800-321-CSLB (2752). Consumers can get more information and tips on the Website or by telephone.
The CSLB believes the company is also operating in the state of Nevada and other states, and is working with officials from the Nevada State Contractors Board on that part of the investigation.
The Contractors State License Board operates under the umbrella of the California Department of Consumer Affairs. The CSLB licenses and regulates California's 307,000 contractors, and investigates more than 20,000 complaints against contractors annually. In fiscal year 2005-06, the CSLB helped consumers get more than $36 million in restitution.
Additional Information
• The Nevada State Contractors Board revoked the license of USA Plumbing & Electrical and issued a homeowner alert in March 30, 2007, for a company operating under the names of 59 Minute Services, 1 Hour Response and USA Home Services.

Card Services for Credit Unions (CSCU) EMAIL FRAUD
Wednesday September 20, 2006

This e-mail asks members to take a brief
survey. When you click on the link in the e-mail, it takes the member to a site that looks like the CSCU Web site and asks for personal account information as well as plastic card information.

CSCU DID NOT SEND ANY E-MAILS DIRECTLY TO CARDHOLDERS AND
DOES NOT HAVE CARDHOLDER DATA.

CSCU does not communicate with cardholders directly. Rather, all of our communication is through our member credit unions. We encourage you to advise staff and members as appropriate, including front-line staff notification, call center notification, and Web page postings. A screen shot of the phishing e-mail cardholders received is included with this Update for your reference. Again, CSCU communicates directly with YOU, our member credit unions, and will never communicate directly with your cardholders. If you have any questions, please e-mail CSCU at webmaster@cscu.net.

Here is a sample image of the email

VoIP (Internet Phones) AND PHISHING ATTACKS
Friday April 12, 2006

The CardAlert Fraud Manager Team has discovered that the latest fraud trend surrounding Phishing involves Voice over Internet Protocol (VoIP) phone systems that aid criminals in the capture of cardholder data. VoIP lines are telephone systems that utilize the internet instead of traditional telephone land lines to deliver communication services. The low cost of VoIP lines and relative ease with which they are obtained have led Phishers to quickly adopt this evolving technology.

How does this scam work?

Once a VoIP line has been established it allows communication to flow freely from any land or internet-based telephone line. The Phishers set up an automated phone center environment which can easily be obtained as an "off the shelf" voicemail system that integrates with any computer. The next step is to simply send out phishing emails directing the consumer to dial the VoIP telephone number instead of going to a website to update their personal information. Once the consumer dials into the fraudulent phone number they are directed to enter their personal information including card number, PIN, CVV2 code, etc. This latest social engineering technique penetrates an already established comfort zone with most consumers. Automated phone systems have been commonplace for the last ten years and consumers are accustomed to dealing with them. This is the Phishers latest attempt to circumvent the warnings about clicking on emails and entering personal information into a website.

1. • Only use card PINs for ATM and POS transactions. By using them for online banking or phone banking, you are socially engineering your customers to be susceptible to phishing scams which will no doubt continue to morph over time.
2. • Do not respond to any email that directs you to update your personal information by dialing a telephone number. – Only use the customer service number on the back of your card.
3. • If you receive a phishing email that references a telephone number that you suspect to be related to a VoIP scam please report the number to your local federal law enforcement agency. Most agencies now have cyber threat units that are well-versed in investigating these claims.

Secret Shoppers

The Con: Scammers are now using the popularity of “mystery shopping” to con consumers into negotiating worthless checks and subsequently wiring the money - new twist to old scam. “Secret Shoppers” will send the consumer a package by FedEx asking him/her to do a secret shopping assignment. The assignment is to cash a cashier’s check and send the money via a Money Gram (wire) from the local Wal-Mart. The consumer thinks he/she is monitoring Money Gram’s performance; but, the check that was sent is of course counterfeit and the consumer is left holding the loss.

Prevention Methods:

• If something sounds too good to be true, it is. Don’t fall prey.

• You are ultimately liable for whatever you negotiate. Keep this in mind when receiving unsolicited checks in the mail.

• Bring the item to the closest branch of the credit union and explain how you received the check, we will then be able to ascertain the legitimacy of the item.

• Contact the fraud hot-line at (707) 469-1803 and explain the situation to the representative answering the phone. He/she will be able to determine if a scam is at play.

• Don’t let the terms “cashier’s check” or “official check” ease your concerns regarding counterfeit checks. Any check can be counterfeited.

IRS Phishing Emails - Tax Refunds

SCENARIO/METHOD:

The Internal Revenue Service and the Internet Crime Complaint Center have issued consumer alerts about an Internet scam in which consumers receive an e-mail informing them of a tax refund. One e-mail, which claims to be from the IRS, tells the recipient that they are eligible to receive a tax refund for a given amount.  It then directs the consumer to a link that requests personal information, such as Social Security number and credit card information.

Another e-mail titled "Refund Notice" claims to provide information to recipients regarding the status of their IRS Tax Refunds. The e-mail contains a link, which mirrors the true IRS web site. This site purportedly allows recipients to check the status of their IRS tax refund after providing the following information:

• First and last name
• Social Security Number or IRS Individual Taxpayer Identification Number
• Credit card information

The IRS has seen numerous attempts over the years to defraud the public and the federal government through a variety of schemes, including abusive tax avoidance transactions, identity theft, claims for slavery reparations, frivolous arguments and more. More information on these schemes may be found on the criminal enforcement page at www.IRS.gov.

The IRS does not ask for personal identifying or financial information via unsolicited e-mail.

LOSS PREVENTION RECOMMENDATIONS: 

If you receive an unsolicited e-mail alleging to be from the IRS, take the following steps:

• Do not open any attachments to the e-mail, in case they contain malicious code that will infect your computer.
• Contact the IRS at 1-800-829-1040 to determine whether the IRS is trying to contact you about a tax refund.
• Taxpayers do not have to complete a special form to obtain a refund.
• If you have received this, or a similar hoax, please file a complaint at www.ic3.gov.
• Be alert to “Phishing” schemes.  A good resource for this topic is Anti-Phishing Working Group at http://www.antiphishing.org
• If you have been victimized by a spoofed e-mail or web site, you should contact your local law enforcement, US Postal Inspector, or FBI.

Scam to Reveal 3 Digit Security PIN

January 03, Buffalo News (NY) — New York state warns about scam to get codes for credit cards. The state Banking Department has issued a warning to consumers to watch out for scams designed to get them to reveal the three-digit security number on the back of credit cards. The scam occurs when someone who claims to be from the security or fraud department of a major credit card company calls a consumer and provides a phony badge number. The person already has the consumer's credit card number, having obtained it illegally from another source, and claims the consumer's card was noted for an "unusual purchase pattern" for a recent purchase under $500. The caller reassures the consumer that a credit will appear on the next billing statement, and provides a phony control or confirmation number to "document" the fraud. The caller then asks the consumer for the three-digit security number, allegedly to prove the consumer has the card in hand. Once the thieves have the three-digit security number, along with the credit card number, there's nothing to prevent fraud. Within 15 minutes, the thieves will usually make a purchase in the amount he or she told the consumer was flagged. Having been warned, the consumer won't find it unusual, and won't suspect anything until it's too late.

Source:  Travis Credit Union - You are leaving our site!

Buyer Beware: Hurricane-damaged Vehicles

• Check the vehicle's title history. It may disclose sustained flood damage.
   
• Examine the interior and the engine compartment for evidence of water and grit from suspected submersion.
   
• Check for recently shampooed carpet. Inspect the carpets to see if they are wet, damp or muddy. If possible, lift the carpet to check for signs of accumulated silt or dirt.
   
• Check under the dashboard for dried mud and residue and note any evidence of mold or musty odor in the upholstery, carpet or trunk.
   
• Check for mud or grit in alternator crevices, behind wiring harnesses, around the small recesses of starter motors, power steering pumps and relays, and in panel gaps in the trunk.
   
• Look for mud or debris on the bottom edges of brackets or panels where it couldn’t naturally settle from the air.
   
• Check the seat-mounting screws for evidence that they have been removed. Seats may have been removed to thoroughly clean and dry the carpets.
   
• Look for rust on the inside of the car and under interior carpeting and visually inspect all interior upholstery and door panels for any evidence of fading.
   
• Check for rust on screws in the console or other areas where the water would not normally reach unless submerged.
   
• Complete a detailed inspection of the electrical wiring system, looking for rusted components, water residue or suspicious corrosion.
   
• Inspect the undercarriage of other components for evidence of rust and flaking metal that would not normally be associated with late model vehicles.
   
• Inspect the lights. Lights are expensive to replace and a waterline may still show on the lens or the reflector.
   
• Look at the heads of any unpainted, exposed screws under the dashboard. Any unpainted metal in flooded cars may show signs of rust.
   
• Check the rubber drain plugs under the car and on the bottoms of doors. If they have been removed, it might have been done to drain floodwater.
   
• If you need to dig deeper, remove a door panel to see whether there is a watermark on the inside of it.

Performing these quick-checks can help safeguard potential used car buyers from purchasing a flood-damaged vehicle. While checking into the history of a vehicle, please be aware that some states identify flood-damaged vehicles as “salvaged” instead of “water-damaged” after a hurricane.
Experian offers free storm damage vehicle information to consumers through a new AutoCheck Storm Scan feature at http://www.autocheck.com/storm/. Using this Web site, consumers can enter a vehicle identification number to determine if a vehicle was titled or registered within the last 12 months in Louisiana, Mississippi, Alabama or Texas, reported as storm-damaged by a dealer or manufacturer or branded as salvaged or flood-damaged in a state affected by the hurricanes.

New VISA and MasterCard Scam
September 7 2005

Note, We were notified by Heritage CCU, the callers do not ask for your card number; they already have it. This information is worth reading. By understanding how the VISA & MasterCard Telephone Credit Card Scam works, you'll be better prepared to protect yourself. One of our employees was called on Wednesday from "VISA", and I was called on Thursday from "MasterCard".

The scam works like this: Person calling says, "This is (name), and I'm calling from the Security and Fraud Department at VISA. My Badge number is 12460. Your card has been flagged for an unusual purchase pattern, and I'm calling to verify. This would be on your VISA card which was issued by (name of bank). Did you purchase an Anti-Telemarketing Device for $497.99 from a Marketing company based in Arizona?" When you say "No", the caller continues with, "Then we will be issuing a credit to your
account. This is a company we have been watching and the charges range from $297 to $497, just under the $500 purchase pattern that flags most cards. Before your next statement, the credit will be sent to (gives you your address), is that correct?" You say "yes". The caller continues - "I will be starting a Fraud investigation. If you have any questions, you should call the 1-800 number listed on the back of your card (1-800-VISA) and ask for Security. You will need to refer to this Control Number. The caller then gives you a 6 digit number. "Do you need me to read it again?"

Here's the IMPORTANT part on how the scam works. The caller then says, "I need to verify you are in possession of your card". He'll ask you to "turn your card over and look for some numbers". There are 7 numbers; the first 4 are part of your card number, the next 3 are the security Numbers' that verify you are the possessor of the card. These are the numbers you sometimes use to make Internet purchases to prove you have the card. The caller will ask you to read the 3 numbers to him. After you tell the caller the 3 numbers, he'll say, "That is correct, I just needed to verify that the card has not been lost or stolen, and that you still have your card. Do you have any other questions?" After you say No, the caller then thanks you and states, "Don't hesitate to call back if you do", and hangs up.

You actually say very little, and they never ask for or tell you the Card number. But after we were called on Wednesday, we called back within 20 minutes to ask a question. Are we glad we did! The REAL VISA Security Department told us it was a scam and in the last 15 minutes a new purchase of $497.99 was charged to our card.

Long story made short - we made a real fraud report and closed the VISA account. VISA is reissuing us a new number. What the scammers want is the 3-digit PIN number on the back of the card. Don't give it to them. Instead, tell them you'll call VISA or Master card directly for verification of their conversation. The real VISA told us that they will never ask for anything on the card as they already know the information since they issued the card! If you give the scammers your 3 Digit PIN Number, you think you're receiving a credit. However, by the time you get your statement you'll see charges for purchases you didn't make, and by then it's almost to late and/or more difficult to actually file a fraud report.

What makes this more remarkable is that on Thursday, I got a call from a "Jason Richardson of MasterCard" with a word-for-word repeat of the VISA scam. This time I didn't let him finish. I hung up! We filed a police report, as instructed by VISA. The police said they are taking several of these reports daily! They also urged us to tell everybody we know that this scam is happening.

Please pass this on to all your family and friends. By informing each other, we protect each other.

Wachovia Phishing Scam
June 3, 2005

Websense® Security Labs™ has received reports of a new phishing attack that takes advantage of the recent Wachovia - SouthTrust merger and targets customers who are in the process of transferring their online accounts. Users receive a spoofed e-mail message that provides instructions for migrating their SouthTrust account access to the new Wachovia system. If the users follow the instructions, they are directed to a phishing site that requests their SouthTrust account information, name, e-mail and credit card numbers.
This phishing site is hosted in India and was up at the time of this alert.

Phishing e-mail body sample:

SouthTrust and Wachovia are in the process of combining our banking networks so we can begin to serve you as one bank under the
Wachovia name. Starting Monday, June 13, you will begin to access your accounts at wachovia.com.
Till June 13, all costumers must follow the requests below :

- visit : <URL Removed>
- login with your courent SouthTrust user and password
- follow a simple database update sequence

To ensure that your account will not experience any database problems ,make sure that you enter all requested data.
Thank you, in advance, for your time and attention to upcoming communications about your online services.

*Please do not reply to this message. Mail sent to this address cannot be answered.
Copyright 2005, SouthTrust. All Rights Reserved
Wachovia Bank, N.A. d/b/a SouthTrust Bank, Member FDIC

Listed below are some screen shots of this website. Note the complexity of this site and the lengths at which criminals will now go to scam you out of your information. If you detect fraud or identity theft on your Wachovia accounts:

Loss Management
(888) 647-3648
8:00am - 6:00pm ET
Monday - Thursday
8:00am - 7:00pm ET
Friday
8:30am - 1:00pm ET
Saturday

To make an after-hours report:

800-WACHOVIA (922-4684)
24 hours a day
7 days a week

As always, in all cases of fraud call your financial institution even if you suspect it and aren't sure it will never hurt to ask. Asking could save your identity and money.

Actual Fraud Website Images:

Authorities Note Surge in Online Fraud Involving Money Orders
By TOM ZELLER Jr.

Published: April 26, 2005
New York Times Article
Click for a larger example of a fake Postal Money Order

Fake checks have been the stock in trade of online fraud artists for years. Now authorities are noting a surge in schemes involving sophisticated counterfeiting of a different form of payment: United States postal money orders. And the fleecing of victims often begins in an e-mail in-box.

In the last six months, the F.B.I. and postal inspectors say, international forgers - mostly in Nigeria, but also in Ghana and Eastern Europe - appear to have turned new attention to the United States postal money order. More than 3,700 counterfeit postal money orders were intercepted from October to December, exceeding the total for the previous 12 months, according to postal inspectors.

Moreover, 160 arrests have been made in the United States since October in cases where people have been suspected of knowingly receiving fraudulent postal money orders or trying to cash them, Paul Krenn, a spokesman for the United States Postal Inspection Service, said.

"The quality of what they are producing is very good," he said, adding that ordinary consumers can easily be fooled. "They are not going to know what they are looking at," he said.

Despite the arrests, however, the schemes often do not involve attempts by the fraud artists to cash the postal money orders. In many cases, unwitting victims, often contacted by an e-mail message or in an online chat room, are deceived into accepting the bogus money orders as payment for items they are selling, or into cashing the orders in return for a fee. It is the latest twist in a long series of Internet schemes that use bogus financial instruments to bilk unsuspecting victims out of merchandise and cash.

The United States Postal Service would not estimate the dollar value of the counterfeit postal money orders it has intercepted. But law enforcement officials estimate that the amount runs into the millions of dollars.

The trend is significant, because unlike private business checks or even other money orders, the postal money order is generally regarded as one of the more difficult financial documents to counterfeit because of its watermarks, security threads and a rainbow of inked patterns and tones.

The fake money orders have been received by small Internet retailers, classified advertisers or others lured into an Internet confidence scheme, from sellers of Siberian Husky puppies in Iowa to art dealers in Indiana. Some consumers, authorities say, are simply not using common sense.

One victim, Kevin McCrary, a 56-year-old Manhattan business consultant, would not dispute that. After falling prey to a fake postal money order scheme, he said, "I couldn't reach around far enough to kick myself."

Single and lonely, Mr. McCrary joined an international online dating site, Elitemate.com. In late January, he was contacted by someone claiming to be a young woman from Nigeria. She - or perhaps he, or even they, Mr. McCrary now concedes - went by the name of Ogisi Douglas.

Their e-mail exchanges were barely a week old before the supposed Ms. Douglas asked Mr. McCrary for his help buying a laptop computer. Mr. McCrary purchased a $1,500 laptop, and after he received two United States postal money orders for $950 each, he sent the laptop to an address in Nigeria.

Neither Mr. McCrary nor the teller at the J. P. Morgan Chase branch where he deposited the postal money orders knew they were bogus. It was only after he was asked to buy more computers and received several more postal money orders that he discovered, after trying to cash them at a post office, that he had been duped.

He had not yet sent out any more computers. But the cost of the first laptop was a total loss: the money from the first two postal money orders was ultimately debited from his Chase account.

"I felt, obviously, a bit foolish for not listening to those little voices that say: 'Something's not quite right here. You don't have all the information on this person,' " said Mr. McCrary, whose parents, Tex McCrary and Jinx Falkenburg, helped define the talk radio format in the 1940's. "But it all moved very fast."

Mr. Krenn said that postal inspectors had been working with other delivery agencies to intercept packages containing bogus money orders as they entered the United States, as well as warning financial institutions to be vigilant. He said tips for identifying counterfeit postal money orders were available online, at www.usps.com/postalinspectors.

The best way to identify a genuine postal money order, postal service officials say, is to look for the telltale watermark, which, when held up to the light, should reveal an image of Benjamin Franklin. Genuine postal money orders also have a security strip running alongside the watermark, just to the right. If held to the light, a microfiber strip will show the letters "USPS" along its length.

Auto Loan Take Over Scam
April 18,2005
Recently, some companies have been offering to "take over" auto loan payments for vehicle owners who may be having financial difficulties. No matter how legitimate this type of arrangement sounds, the scheme is illegal for both the company and the original borrower. These companies may make the payments for a while, but they inevitably stop. That leaves the original borrower liable for the loan amount, even though he or she no longer has possession of the vehicle. If you ever have any questions or need help making payments call Travis Credit Union first. We have many financial solutions that may be able to help.

Indian Accent Phone Scam
March 16 2005
Today one of our members experienced this scam first hand. Fortunately our member knew not to proceed the information to the caller:

Someone with an Indian accent calls to say the he has a $5,000 federal grant for you. All he needs from you is your financial institutions routing number and your account number and he will wire the money to your account.

DO NOT GIVE any information to the caller. Instead of depositing money in your account, he will electronically withdrawal money from your account and immediately have it sent overseas. Once overseas, no U.S. agency has jurisdiction and the money is not traceable.

Top Five Online Scams
Thu Mar 10, 3:00 AM ET


After years of trying to recover from the dot-com hangover, the Internet is booming again. Online retail sales increased by 26 percent in 2004, according to comScore Networks. In September 2004, the number of domain name registrations hit 64.5 million--an all-time high. You know what else is on the rise? Internet crime.


Complaints about online fraud nearly doubled from 2003 to 2004, according to a December 2004 report by the FBI  and the National White Collar Crime Center. Research firm Gartner estimates that nearly 10 million Americans were hit by online fraudsters last year--largely due to a wave of phishing e-mails seeking to steal users' identities.


In fact, phishing attacks seem to be the new, hot scam. Scammers send you an e-mail that tries to lure you to a legitimate-looking Web site where you'll be asked to enter personal information. The thing is, it's all fake; and if you fall for it, someone is ready to take your Social Security  Number and start opening credit card accounts.

The FBI recently began warning people of scammers posing as tsunami-relief organizations. And late last month, the FBI warned that someone out there was even posing as the FBI itself--sending a fraudulent e-mail with the subject line "FBI Investigation" and trying to lure people into buying products from a separate, fictional scam artist whom the Feds were supposedly on to.


Confusing? Sure. But just ask yourself this: When was the last time the FBI sent a polite e-mail when they wanted someone's cooperation in an investigation?


Thousands of con artists, grifters, fraudsters, and other denizens of the dark are trolling for victims online. Can you recognize online fraud when you see it? Here's a quick guide to the Top 5 scams and schemes you're most likely to find on the 'Net.



1. Auction Fraud

The setup: Online auction fraud accounts for three-quarters of all complaints registered with the FBI's Internet Crime Complaint Center (formerly the Internet Fraud Complaint Center). There are many types of eBay chicanery, but the most common one is where you send in your money and get nothing but grief in return.


What actually happens: You never get the product promised, or the promises don't match the product. The descriptions may be vague, incomplete, or completely fake. One scammer accepted bids for Louis Vuitton bags that she didn't own, and then scoured the Internet looking for cheap knockoffs that cost less than the winning bid. She managed to collect at least $18,000 from bidders before she got nailed. A buyer thought he'd purchased a portable DVD player for $100, but what he got instead was a Web address for a site where he could buy a player for a $200 discount. The stories are virtually endless.


The risk: You get ripped off, losing time and money. If you spill the beans about the scam, the seller may retaliate by posting negative eBay reports about you using phony names.


The question you've got to ask yourself: Who in their right mind would sell a $200 bag for $20?



2. Phishing Scams

The setup: You receive an e-mail that looks like it came from your bank, warning you about identity theft and asking that you log in and verify your account information. The message says that if you don't take action immediately, your account will be terminated.


What actually happens: Even though the e-mail looks like the real deal, complete with authentic logos and working Web links, it's a clever fake. The Web site where you're told to enter your account information is also bogus. In some instances, really smart phishers direct you to the genuine Web site, then pop up a window over the site that captures your personal information.


The risk: Your account information will be sold to criminals, who'll use it to ruin your credit and drain your account. According to Gartner, phishing scammers took consumers (and their banks, who had to cover the charges) for $1.2 billion in 2003.


The question you've got to ask yourself: If this matter is so urgent, why isn't my bank calling me instead of sending e-mail?



3. Nigerian 419 Letter

The setup: You receive an e-mail, usually written in screaming capital letters, that starts out like this:

"DEAR SIR/MADAM: I REPRESENT THE RECENTLY DEPOSED MINISTER OF AGRICULTURE FOR NODAMBIZIA, WHO HAS EMBEZZLED 30 MILLION DOLLARS FROM HIS STARVING COUNTRYMEN AND NOW NEEDS TO GET IT OUT OF THE COUNTRY..."

The letter says the scammers are seeking an accomplice who will transfer the funds into their account for a cut of the total--usually around 30 percent. You'll be asked to travel overseas to meet with the scammers and complete the necessary paperwork. But before the transaction can be finalized, you must pay thousands of dollars in "taxes," "attorney costs," "bribes," or other advance fees.

What actually happens: There's no minister and no money--except for the money you put up in advance. Victims who travel overseas may find themselves physically threatened and not allowed to leave until they cough up the cash. (FYI, "419" is named for the section of Nigeria's penal code that the scam violates.)

The risk: Serious financial loss--or worse. Victims of Nigerian letter fraud lose $3000 on average, according to the FBI. Several victims have been killed or gone missing while chasing a 419 scheme.

The question you've got to ask yourself: Of all the people in the world, why would a corrupt African bureaucrat pick me to be his accomplice?


4. Postal Forwarding/Reshipping Scam

The setup: You answer an online ad looking for a "correspondence manager." An offshore corporation that lacks a U.S. address or bank account needs someone to take goods sent to their address and reship them overseas. You may also be asked to accept wire transfers into your bank account, then transfer the money to your new boss's account. In each case, you collect a percentage of the goods or amount transferred.

What actually happens: Products are purchased online using stolen credit cards--often with identities that have been purloined by phishers--and shipped to your address. You then reship them to the thieves, who will fence them overseas. Or you're transferring stolen funds from one account to another to obscure the money trail.

The risk: Sure, you can make big bucks for a while. But after a few months, you're going to look inside your bank account and find it cleaned out. Worse, when the feds come looking for the scammers, you're the one they're going to nail.

The question you've got to ask yourself: Why can't these people receive their own darn mail?


5. "Congratulations, You've Won an Xbox  (iPod, plasma TV, etc.)"

The setup: You get an e-mail telling you that you've won something cool--usually the hot gadget du jour, such as an Xbox or an IPod. All you need to do is visit a Web site and provide your debit card number and PIN to cover "shipping and handling" costs.

What actually happens: The item never arrives. A few months later, mystery charges start showing up on your bank account. The only thing that gets shipped and handled is your identity. (A more benign variation on this scam drives you to a site where you're asked to cough up your contact info and agree to receive spam from advertisers until unwanted e-mail is coming out of your ears.)

The risk: Identity theft, as well as lost money if you don't dispute the charges.

The question you've got to ask yourself: When did I enter a contest to win an Xbox (iPod, plasma TV, etc.)?

Scammers Grab Data Via "Evil Twin" Wireless Hotspots
January 24, 2005

Scammers using bogus wireless access points are hijacking wireless transmissions and intercepting data sent and received by unsuspecting computer users. The scammers typically scan the transmissions for usernames and passwords, credit card numbers, financial account data, personal identifiers, and other confidential information.

For full details, cut and paste this address to visit:
http://www.identitytheft911.com/education/alerts/alert20050120twin.htm

UC Berkeley Hack Hits 1.4 Million Seniors
October 20, 2004

A network intruder who broke into a computer system at the University of California at Berkeley accessed personal identity information for 1.4 million participants in California's In Home Support Services (IHSS) program, an alternative to nursing home care. The information included names, Social Security numbers, home addresses, telephone numbers, and dates of birth for the seniors in the program.

The California Health and Human Services Agency, in accordance with the terms of the IHSS program, had authorized the university to use the data in a research project. However, the affected individuals had not consented to participate in this specific project and were apparently unaware of their involvement.

The compromised database was accessed via the UC Berkeley network. Carlos Ramos, assistant secretary at Health and Human Services, stated that the hacker "exploited a known vulnerability in a commercially available database program" to gain access to the sensitive information. A representative of the San Francisco office of the Federal Bureau of Investigation, , declined to comment, citing an ongoing criminal investigation by the FBI and the California Highway Patrol.

The intrusion reportedly occurred on 1 August, but it was not detected by UC Berkeley until 30 August, according to Ramos. The university waited until 21 September to notify the state, said Ramos. The California Department of Social Services issued a media advisory regarding the compromise on 19 October. While California law requires that those potentially affected by such incidents be notified promptly, the law provides for delays if notification would impede an ongoing criminal investigation. It also allows for notification through the media rather than individually if the notification involves more than 300,000 people and/or a cost exceeding $250,000, according to Joanne McNabb, California's Chief Privacy Officer.

If you are a participant in California's In Home Support Services (IHSS) program, your identity may be in jeopardy.
 

Don’t Get Phished
October 8, 2004

Internet “phishing” scams are one of the fastest-growing frauds today. Typically, bogus email messages are sent out with legitimate materials, such as a credit union or other organization’s website graphics and logos – the look and feel of a trusted source– in an attempt to entice email recipients to provide personal financial details, such as account information, credit card and Social Security numbers.



As a precaution, never respond to an unsolicited email that asks for personal financial or identification information. If you believe you have provided sensitive information about yourself through a phishing scam, immediately contact the organization for which you provided the information. If you have received an unsolicited email mimicking Travis Credit Union, please call our Member Service Center immediately at (707) 449-4000 or (800) 877-8328.



Notify the three major credit bureaus and request that a fraud alert be placed on your credit report. They are: Equifax – (800) 525-6285, Experian – (888) 397-3742, TransUnion (800) 680-7289.

 

TREASURY, IRS WARN OF IDENTITY THEFT SCHEME INVOLVING BOGUS E-MAIL, WEB SITE
April 30, 2004

WASHINGTON - The U.S. Department of the Treasury and the Internal Revenue Service today warned taxpayers of an e-mail-based scheme that attempts to trick taxpayers into revealing personal information such as social security numbers, driver's license information and bank and credit card numbers.

In this ploy, unsuspecting consumers receive an e-mail, claiming they are under investigation for tax fraud and are subject to prosecution. The e-mail informs recipients they can "help" the investigation by providing "real" information and directs them to an official-looking Web site, http://www.deptreas.org/ (link doesn't work), where detailed personal information must be provided to dispute the charge.
All US Government websites end in ".gov"

Identity thieves can use an individual's personal data to take over their financial accounts, run up charges on their credit cards, apply for loans, credit cards or other services in the victim's name and file fraudulent tax returns.

At the request of the IRS and the Treasury Inspector General for Tax Administration (TIGTA), the Internet service provider that was hosting the Web site has shut the site down. The scheme is being investigated by TIGTA, which addresses threats to federal tax administration.

The bogus IRS web page and the e-mail in this instance contained several grammatical errors, rendering them immediately suspect. However, new versions of the scam could surface in the future, including more effectively-written text and a different destination Web site.

The IRS does not use e-mail to contact taxpayers about issues related to their accounts. Official taxpayer contact usually includes a letter on IRS stationery in an IRS envelope. IRS letters also contain a contact phone number.

Taxpayers who believe they have received suspect communication are encouraged to call TIGTA's toll-free fraud referral hotline at 1-800-366-4484. Taxpayers can also contact the IRS at 1-800-829-1040. An IRS representative will be able to verify the taxpayer's account status and determine whether a communication is legitimate.

Additional information on identify theft and other fraud may be found on the following Web sites: http://www.consumer.gov/idtheft and www.tigta.gov.

FDIC Scam
Joint Release
FEDERAL DEPOSIT INSURANCE CORPORATION
FEDERAL BUREAU OF INVESTIGATION

FOR IMMEDIATE RELEASE
January 23, 2004
FDIC-PR-6-2004

At approximately 12:00 p.m. (EST) on January 23, 2004, FDIC Consumer Call Centers in Kansas City, Missouri, and Washington, D.C., began receiving a large number of complaints by consumers who received an email that has the appearance of being sent from the FDIC. The email informs the recipient that Department of Homeland Security Director Tom Ridge has advised the FDIC to suspend all deposit insurance on the recipient's bank account due to suspected violations of the USA PATRIOT Act. The email further indicates that deposit insurance will be suspended until personal identity, including bank account information, can be verified.

This email was not sent by the FDIC and is a fraudulent attempt to obtain personal information from consumers. Financial institutions and consumers should NOT access the link provided within the body of the email and should NOT under any circumstances provide any personal information through this media.

The FDIC and the FBI are attempting to identify the source of the emails and disrupt the transmission. Until this is achieved, consumers are asked to report any similar attempts to obtain this information to the FDIC by sending information to alert@fdic.gov .

Media Contacts:
FDIC: David Barr, 202-898-6992
FBI: Paul Bresson, 202-324-3691,

Nigerian Scam Revisited
09/23/03

The Purpose:
For years, Nigerian con artists have wanted your money, your identity and your account numbers. Thousands of Americans have already been victimized by these organized con artists. The criminals have recently added a new twist to the scam with counterfeit checks.

The Con:
1) Any person is subject to the Nigerian con artists. They can target you on line via e-mail, via the phone, via the fax or via regular mail.
a) Overpayment Method: If a person is trying to sell something, the con artist buyer will send an excess amount in the form of a check and ask that the change (normally $5,000) be wired back. The check turns out to be bogus. You are left with the loss.
b) 10% Method: The con artist will contact you via telephone, fax, mail or e-mail requesting that you assist a widow of a deposed ruler or a member of a royal family or some other dignitary in moving large sums of money (over $1 million) to the United States. The request is made with a promise that you will be allowed to keep approximately 10 percent of the proceeds.
i) You will then be asked to send an amount ($3000 on up) to pay for taxes and/or fees to initiate the process – possibly to set-up an account on the receiving end.
(1) If you state that you don’t have this money, the method of the scam will change gears and the con artist will offer an advance on the proceeds in the form of an official check. Once the check is deposited to your stateside account, you will be instructed to wire the majority of the funds back but will be permitted to keep the remainder. Unfortunately, the official check is counterfeit. Once the check is returned unpaid (which can take a few weeks), you will owe the financial institution for the loss.
ii) You might also be asked to disclose your identity (name, DOB, address, SSN, identification, account number/s, etc.). In some cases, you might even be asked to apply for a passport and Visa.

Prevention:
1) If something sounds too good to be true, it probably is. Do not be fooled by these con artists. They want your money and your identity. If you fall prey and send money, you could be inadvertently supporting drug trafficking or weapons purchases.
2) If you have to send money to receive money, something is wrong. Don’t do it.
3) If you suspect that you are a victim of this scam, please contact the local FBI or Secret Service for confirmation. They will instruct you to send them any checks, faxes, documents, contracts, agreements that the criminals may have sent to you. Please comply. The more information they have, the better in tracing the multitude of suspects.

Mortgage Loan Scam
09/18/03

The Purpose: To steal a consumer’s identity and assets by convincing the consumer to release information relating to his/her identity and/or account.

The Con: A person calls a consumer/homeowner claiming to be from the consumer’s financial institution. The consumer is led to believe that the caller is inquiring about the consumer’s mortgage loans and/or mortgage services. The caller asks for the consumer’s Social Security Number. Please note that the caller is an expert social engineer and attempts to make the consumer at ease by asking trivial questions about the weather, etc.

Target Victims: Consumers with mortgage loans. The information is possibly obtained from property deeds recorded at the County Recorder’s Office, stolen mail or from discarded papers that were not shredded.

Prevention: Do not release any personal and/or account information over the phone if you did not initiate the call. If the caller identified them self as an employee of your financial institution, call your financial institution to confirm the call.

Please share this alert with those who might not otherwise visit this web site. Protect your identity and financial information. Shred financial documents before discarding

Spoofing Schemes
09/18/03

The Purpose: To obtain credit card numbers and other personal data for the purposes of stealing identity and assets.

The Con: A “Spoof” is a “hoax.” The method for this particular con appears to be via email and the Internet. The consumer receives an email allegedly from sources identifying themselves as the consumer’s Internet service provider, a merchant verifying a transaction and most recently from VISA. The fraudulent VISA emails actually contain the latest VISA logos, which can easily give the consumer a false sense of security about the legitimacy of the request. The email normally instructs the consumer to update his/her personal information on a web site because of some purported loss of data or clerical error. In some instances, the perpetrator even threatens the consumer that he/she will be faced with a reactivation fee for non-compliance. If the consumer complies, the consumer is unknowingly taken, via hyperlink, to a fraudulent web site where his/her personal information will be gathered for future criminal use. If credit card information is provided, counterfeit cards will most certainly be manufactured.

Please note that many of the fraudulent web sites can be very convincing. The site created with VISA company information actually contained links to a VISA web site.

Please also note that many of the emails contain grammatical and typographical errors.

Prevention: Do not release any personal and/or credit card account information without verifying the authenticity of the request. Most Internet service providers will not send emails requesting this type of information. Furthermore, VISA will not directly contact cardholders for this type of information.

Please share this alert with those who might not otherwise visit this web site. Protect your identity and financial information. Shred financial documents before discarding

Lottery Ticket Scam Targeting Elderly Members
08/08/03

The Purpose: To steal your money.

The Con: A Hispanic couple has been targeting elderly people, most often Hispanic also, with an old scam. The woman approaches an elderly person claiming to have purchased a winning lottery ticket but is unable to cash it because of immigration problems. For many cases, the woman actually addresses the elderly victim in Spanish. The woman is normally in tears in an attempt to prey on the empathy of the elderly person. A man then enters the scene stating that he knows a lawyer who would be able to help her get her money. The only problem is that the lawyer needs a large amount of cash upfront. The man states that he has some cash to help, but not all of it. The man actually goes inside a financial institution and withdraws or pretends to withdraw the money. The elderly person agrees to help with the rest thinking that he/she will recover the money once the ticket is cashed. The man has a car and conveniently agrees to drive the victim to his bank/s. Once the elderly victim withdraws the necessary cash (normally large sums amounting to at least $30,000), the couple trick the victim into existing the car and leave with his/her money.

• Location: The most recent incident occurred in Vacaville, California.

• Victims: Carefully targeted by suspects since all have had large sums of money on deposit.

Prevention: Be aware of this scam. Share it with those who might not otherwise visit this web site. Do not trust strangers with all of your money. Protect your identity and financial information. Shred financial documents before discarding.

Financial Institutions: Be alert whenever an elderly customer is withdrawing large sums of cash. It is possible he/she is being victimized by this type of scam. Question the customer. If another person is present with the customer who is not an authorized holder on the account in question, ask to speak with the customer in private to preserve his/her financial privacy. If you suspect the customer is being victimized, contact the local police for guidance.

Century Credit Union Credit Repair/Loan Scam
7/30/03:

The Purpose: To gain access to your identity, account and hard earned money for the purposes of committing fraud.

The Con: A company calling itself “Century Credit Union” has advertised in newspapers in California and several other states offering financial services such as credit repair and home, personal and auto loans. The ads list an 866 phone number. Please note that there are five legitimate credit unions with “Century” in their name and none is affiliated with this company. When contacted, the company may approve a loan but ask for three months’ payments in advance, wired to Canada. This is a scam intended to get your money and identity.

Please note that the company claims to be based in Lakeland, Florida. However, the address provided does not exist. Furthermore, the fraudulent entity did mimic the real Web site of the Missouri-based Century Credit Union, which did mislead many consumers.

Prevention: Be aware of this scam. For your protection, check out the legitimacy of any ads prior to responding. Furthermore, be aware that Web sites can be mimicked. Be sure that you are on an official credit union Web site prior to responding to any ads.

If you see an advertisement for “Century Credit Union” that looks suspicious, please contact Deputy Commissioner of Credit Unions Elizabeth Dooley at (213) 897-2225.

The five legitimate credit unions with “century” in their name are as follows:
• Century Credit Union, St. Louis, MO
• Century Federal Credit Union, Cleveland, OH
• Century Diversified Federal Credit Union, Minneapolis, MN
• Century Employees Saving Fund Credit Union, Hickory, NC
• Century Heritage Federal Credit Union, West Mifflin, PA

The FBI has been alerted to this scam.

The Con/Scam: There are a number of ways that your ATM card and PIN information can be compromised by criminals:
1. Card Trap Scam for ATMs that require card insertion: The perpetrator inserts a barrier that prevents the card from being fully inserted. The cardholder inserts a card, but is unable to perform any transaction. The perpetrator then poses as an alleged customer who offers assistance to the cardholder. This person claims to have had the same problem and offers a solution of entering the PIN over and over until the card is read. The card is never properly read or returned to the cardholder. After the cardholder leaves, the perpetrator removes the card with pliers and successfully uses it with the “surfed” PIN.
2. Card Skimming Devices: A fake touch screen and a fake card reader are positioned as an overlay to the normal front/face of the ATM. After swiping the cards and entering the PINS, cardholders are given an “unable to dispense cash” message. The criminals then create counterfeit cards using the skimmed information from the magnetic strip on the card and the PIN information.

The Purpose: To obtain your card information and PIN in order to perform fraudulent transactions (deposits and withdrawals) against your account at an ATM or Point-of-Sale terminal.

Prevention:
1. Notify your financial institution immediately if your card was retained in a machine or if you suspect that the information may have been compromised. The card number should be blocked and a different number assigned. Early notification is an important prevention tool.
2. If you are familiar with the ATM and notice an unusual front on it (could be an entire overlay or a simple device attached to the card reader), notify the financial institution and your bank. Travis Credit Union does examine its machines on a routine basis. However, your help in detecting a device that is possibly attached for a short period could be a great help in preventing fraud.
 

Best Buy/E-mail Fraud Page Scam

6/20/03:

The Purpose:
To gain a consumer’s accurate, personal information to commit identity theft and credit card fraud.

The Con:
A consumer/cardholder may receive an e-mail alleging to be from a well-recognized consumer store (i.e. Best Buy). The e-mail purports to be from the Fraud Department, alerting the cardholder of possible fraud on his/her account. The e-mail informs the cardholder that an order was made using the consumer’s personal credit card information at the official store’s Internet site on a specific day. It further informs the consumer that the Fraud Department has some suspicions regarding the order and instructs the cardholder to visit the Special Fraud Department page of the web store where the person can confirm or decline the transaction by providing the correct information. It further states that the e-mail address was taken from the “National Credit Bureau.”

The order address on the e-mail will not be the cardholder’s actual address. It is done in this way to convince the cardholder that fraud has occurred so that the consumer will provide accurate identifying information.

Prevention:
If actual fraud has occurred, the store would not contact the cardholder. Cardholders will be contacted by the financial institution. Please be aware of this scam and do not, under any circumstances, go to the specified “fraud page” and provide accurate, personal information.

 

11-06-02: Prepayment Scam Involving a Bogus Canadian Credit Union

The Con:
A female resident from Waterloo, Iowa, received an unsolicited call from "New Life Financial Credit Union of Canada." The credit union offered to refinance her home loan at very favorable rates. The woman became suspicious when the caller asked her to fax a copy of her driver's license, her Social Security card, and a statement of income in order to begin the loan process. The caller also said the resident would need to send $1,800 as a six-month prepayment of the loan. The fax number given was (416) 629-2869; no phone number was offered.

The Purpose:
"New Life Financial Credit Union of Canada" is not a credit union, and appears to be a scam that targets senior citizens for "prepayment" of loans and identity theft. Apparently, the group gets the money and information and then disappears.

Prevention:
The Credit Union Central of Canada (a trade organization for credit unions in Canada) has received other calls from U.S. citizens in Oregon, complaining about New Life Financial Credit Union of Canada.

 

10-24-02: Travis Credit Union Security Department Scam

The Con:
Someone calls claiming to be an official representative of the target’s financial institution, such as the “security department” of Travis Credit Union, or “with account information at your bank”. For “security reasons,” the caller asks for the victim’s checking account and routing numbers that are imprinted on the individual’s checks.

The Purpose:
The purpose is to blatantly gain access to the victim’s checking account information for purposes of fraud.

Prevention:
Two credit union members were recently called with this scam. One recognized the con; one did not. Do not provide your routing number or account number over the phone to anyone claiming to be from any financial institution. If you do, your account should be closed and reopened under a new number to protect your funds. Your basic account information is available for official, internal management of your accounts. No one from Travis Credit Union would call you for this type of information. Ask for the caller’s phone number and name. Then, call the credit union or other financial institution to report the incident.

08-10-02: Second Lottery Winner Phone Scam

The Con:
A notice is mailed to you in a plain white envelope that does not bear a return address. The letter on the inside indicates that the correspondence is from the International Personnel Department of the "Sweet Stake International Lotto Commission Company S.A." in Madrid, Spain. The letter itself is allegedly a notification that you are a winner in the lottery entitled "Sweet Stake de la Primitiva Program." An indication is made that there was a mix-up of ticket numbers and addresses. Verification must be made in order to confirm the prize. To begin the claim, the letter asks that you call an overseas telephone number. It further requests that a form, which is enclosed with the letter, be completed. This form asks for very specific and detailed personal information and bank account information.

The Purpose:
The purpose could be two-fold: First, it could be used as a telephone fraud scam. If you indeed call the overseas number, other long-distance calls could be bounced off of your number. Second, the form will be used to exploit your identity and bank account.

Prevention: Do not call the overseas telephone number. Do not complete and return the form. If for some reason you have already been victimized by this type of scam, contact your financial institution immediately. If your account information had been released, the account should be closed and a new number assigned for you to prevent against any monetary losses. Further steps should be taken to preserve against the theft of your identity. Please refer to the section directly relating to "Identity Thefts" for instructions in this regard.

08-08-02: Lottery Winner Phone Scam

The Con:
Elderly persons in Vacaville have been contacted by phone as lottery winners. There is requirement to wire $2,000 or more (for covering the taxes) off-shore via Western Union. Either a bogus check or nothing is received in return.

Purpose:
The scam is very much like “the Canadian credit scam,” except the benefit is a lottery cash prize, rather than loan approval. Because the funds are received off-shore, this could be fraud to fund drugs, weapons, or even terrorism.

 

08-05-02: Credit Help, Assistance, or Repair

The Con:
The criminal advertises credit help, assistance, or repair in a magazine, newspaper, or online. A person inquires and is approved for some amount of money to fix their credit problem. The customer applies for a loan and provides personal and account information, believing that the company is legitimate. The alleged creditor informs the customer that the loan will be issued after a fee of $1,200 (or more) is wired to Canada by Western Union or bank-to-bank.

Purpose:
The criminal is after money and personal and account information, which compromise the victim. The account must be closed to prevent fraud. To protect the victim’s identity, warnings must be placed on the victim’s credit files and the crime must be reported to the three major credit bureaus.



08-05-02: Merced-Area Credit Card Solicitation

The Con:
Members in Merced have been contacted by alleged representatives of Travis Credit Union on behalf of First Cards Services. The caller wants a fee of $299 in exchange for a low-rate/high-limit credit card. The caller also asks for a “blank check” from the member.

Purpose:
The criminal targets members who appear to need credit. Members who release personal and account information compromise their identity. The check/share draft account(s) used for the fee and the blank check must be closed to prevent unauthorized debits or check writing. The member should report the fraud to the local police.

Identity Theft

For in-depth information on identity theft, visit www.consumer.gov/idtheft

What is identity theft?
Identity can be “stolen” if someone appropriates your personal information to commit fraud or theft.
 

Can you completely prevent identity theft from affecting you?
If someone is determined to use your personal information to commit a crime, you probably can’t stop it before it happens. You can, however, minimize the risk.

How do identity thieves get personal information?

Stealing wallets or purses that carry identification cards.

Stealing incoming or outgoing mail, especially bank and credit card statements, pre-approved credit offers, telephone calling cards, and tax information.

Diverting mail by completing a change of address form.

Rummaging through trash for personal information.

 Fraudulently obtaining credit reports by posing as a landlord, employer, or someone else who
might have a legitimate and legal right to the information.

Obtaining business or personnel records at work.

Finding personal information in your home.

Using personal information you shared on the Internet.

Paying “insiders,” such as employees, who have access to applications and other paperwork that contain personal information.
 

What are the effects of identity theft?

·  Someone uses your name, date of birth, and Social Security Number (SSN) to open new accounts without paying the bills. The delinquency status goes on your credit report.

·  Someone calls your credit card company, pretending to be you, to change your mailing address. If you are unaware of your billing cycle, it might be more than a month before you notice that an identity thief has been charging purchases under your name.

·  Someone establishes cellular phone service in your name and runs up a bill for which you are responsible.

·  Someone opens a bank account in your name and overdraws the account, damaging your credit.

·  Someone files bankruptcy under your name to avoid paying debts they incurred under your name to avoid eviction from their residence or work location; your credit would be marred for up to seven years.

·  Someone counterfeits checks or debit cards in your name to drain your account.

·  Someone buys a vehicle by securing an auto loan in your name, which becomes part of your debt load.
 

Minimize Your Risk

·      Never give your SSN over the phone.

·      Shred the mailing label area of all your discarded mail, all outdated business cards, cancelled checks, credit card and debit card receipts, bank statements, copies of credit applications, insurance forms, physician statements, etc.

·      Request that only your name and address be printed on your checks; never include non-essential information, such as your phone number, SSN, driver’s license number, or birth date, etc.

·      Before you reveal any personal information, find out how it will be used, whether or not it will be shared, and if you have a choice to keep your information confidential.

·      Pay attention to your billing cycles. Delayed bills could mean that someone changed your account information or your mailing address.

·      Guard your mail from theft by putting outgoing mail in U.S. Postal Service collection boxes or taking it to the post office.

·      If possible, do not use unsecured, street side drop boxes for your home mail deliveries. Thieves cruise the streets looking in them for mail that informs them about your identity.  Install a locked drop box or rent a secure mail service box.

·      Put passwords on your credit card, bank, and phone accounts. Avoid easily remembered passwords that can be traced to your personal information. Use passwords that are a combination of numbers, symbols, and upper and lower case letters.

·      Be mindful of where you keep your personal information at home, with respect to roommates, hired service providers, and those who are authorized to be in your home when you are away.

·      Minimize the identification information and the number of cards you carry for your actual needs.

·      Do not provide personal information over the phone, Internet, or through the mail unless you initiate the contact or know the representative.

·      Ask who has access to your personal information at work and verify that the records are secure.

·      Give your SSN only when necessary; do not carry your SSN card with you when you don’t need it; and use other forms of identification when possible.

·      Order a copy of your credit report once a year from the three major credit reporting agencies. Make sure it is accurate, representing only those activities you authorized
 

What You Should Do If Someone Steals Your Identity

1.   Call the credit union at (707) 449-4700 or (800) 449-4110, as well as all your other financial institutions.

2.   Call the Federal Trade Commission’s (FTC) toll-free identity theft hotline at (877) 438-4338. The FTC will add your name to a consumer fraud data base that may be shared with law enforcement agencies and private entities, including the company you report in connection with the theft.

3.   Call the three main credit bureaus.

4.   File a report with your local police or the police in the community where the identity theft took place. Get a copy of the police report as evidence of the crime. It will help you work with your creditors.

5.   If the crime involved the U.S. Postal Service, report the crime to your local postal inspector.

6.   If the crime involved financial accounts, close the account(s) immediately. Open new accounts that require passwords.

7.   If the crime involved stolen checks, arrange to stop payment immediately. Stolen debit and ATM cards should be cancelled. New cards should have different personal identification numbers (PINs) from those that were stolen.

8.   If the crime involved a phone service, contact the service provider to cancel the account and/or calling card. Open new accounts and choose new PINs.

9.   If the crime involved your SSN, contact the Social Security Administration’s hotline at (800) 269-0271. To verify the accuracy of your earnings statement, order a copy of your earnings report by calling (800) 772-1213.

10.  If the crime involved false bankruptcy, call the U.S. Trustee in the region where it was filed. The number can be found in the Blue Pages of the phone book, or at http://www.usdoj.gov/ust.

11.  If the crime involved a false driver’s license, contact the Department of Motor Vehicles.

12.  If the crime resulted in an arrest record in your name, you may need to secure an attorney to clear your name.