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Phishing - E-Mail Horror

Phishing is a nasty use of e-mail trickery. You receive an official looking e-mail from your credit card lender requesting “more” of your personal information. If you supply this information you will become a victim of phishing and find that money is missing from your account or unauthorized purchases have been made. That’s how phishing works. Cyber thieves will not only empty out your bank account, but they can and will set up new bank accounts and apply for loans using your identification. Imagine trying to convince bank officials that you didn't withdraw all your money and that you have been robbed. Protect your credit identity.

Credit Card Fraud Schemes

Trends In Credit Card Fraud by Keith Slotter, CPA

Mail Theft

One of the simplest ways to obtain account information or actual bank cards is through postal theft. Numerous fraud rings operate sophisticated theft operations throughout the eastern and southern regions of the United States. Having illegally obtained legitimate bank cards or account information, the group then creates portfolios of fictitious identification, including driver's licenses, social security cards, and other materials, to support the purchasing power behind those cards. At the direction of group leaders, "runners" purchase merchandise from a variety of sources until the legitimate owners report the cards as stolen or confiscated. Shred those credit cards you don't plan to continue and those pre-approved unwanted ones.

Advance Payment Schemes

Using a counterfeit or stolen credit card, the group either makes an advance payment on the card or overpays an existing balance using a bogus check. Because the account is credited upon receipt of payment, cash advances immediately can be drawn against the bank card before the payment check has cleared. Guard you credit cards and avoid being a victim of this scheme.

Avoiding Credit Card Fraud

• Don't give out your credit card number(s) online unless the site is a secure and reputable site. Sometimes a tiny icon of a padlock appears to symbolize a higher level of security to transmit data. This icon is not a guarantee of a secure site, but might provide you some assurance.
• Don't trust a site just because it claims to be secure.
• Before using the site, check out the security/encryption software it uses.
• Make sure you are purchasing merchandise from a reputable source.
• Do your homework on the individual or company to ensure that they are legitimate.
• Try to obtain a physical address rather than merely a post office box and a phone number, call the seller to see if the number is correct and working.
• Send them e-mail to see if they have an active e-mail address and be wary of sellers who use free e-mail services where a credit card wasn’t required to open the account.
• Consider not purchasing from sellers who won't provide you with this type of information.
• Check with the Better Business Bureau from the seller’s area.
• Check out other web sites regarding this person/company.
• Don’t judge a person/company by their web site.
• Be cautious when responding to special offers (especially through unsolicited e-mail).
• Be cautious when dealing with individuals/companies from outside your own country.
• The safest way to purchase items via the Internet is by credit card because you can often dispute the charges if something is wrong.
• Make sure the transaction is secure when you electronically send your credit card numbers.

You should also keep a list of all your credit cards and account information along with the card issuer’s contact information. If anything looks suspicious or you lose your credit card(s) you should contact the card issuer immediately.

WARNING!!!      From the Desks of the FBI (Federal Bureau of Investigation)

Telephone Fraud Involving Jury Duty

The FBI is warning the public about an ongoing scheme involving jury service. Please be aware that individuals identifying themselves as U.S. court employees have been contacting citizens by phone and advising them that they have been selected for jury duty. These individuals ask citizens to verify names and social security numbers and then ask for their credit card numbers. If the request is refused, citizens are then threatened with fines. U.S. court employees will never threaten you with fincredit card. Request their name and call back number and listen to them hang up on you. NEVER give out your personal information to anyone over the phone.

WARNING!!!        From the Desks of Keepin' Up

Investment Related Scams

Pyramid schemes, also referred to as franchise fraud, or chain referral schemes, are marketing and investment frauds in which an individual is offered a distributorship or franchise to market a particular product. The real profit is earned, not by the sale of the product, but by the sale of new distributorships. Emphasis on selling franchises rather than the product eventually leads to a point where the supply of potential investors is exhausted and the pyramid collapses. At the heart of each pyramid scheme there is typically a representation that new participants can recoup their original investments by inducing two or more prospects to make the same investment. Promoters fail to tell prospective participants that this is mathematically impossible for everyone to do, since some participants drop out, while others recoup their original investments and then drop out. Pyramids only work when you stack up stones.

You should also avoid pyramid schemes that require you to invest money on a monthly basis while recruiting two or more other people so that you can receive a percentage of their monthly payments. You never profit from the bottom.

Copyright 2006 Patricia Myatt
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