avoiding fraud

We’re all about YOU!We’re all about YOU!We’re all about YOU!

We’re all about YOU!

Avoiding Fraud


Session ObjectivesFraud & ScamsHow to protect yourselfWhat to do if you are a victimAdditional Information


Identity TheftIt occurs when someone uses your:

– Name– Social Security number– Other identifying information

… without your permission,to establish new accounts in your name.


How many victims?• 2003 – 10.1 Million

• 2004 – close to 9.8 Million

• 2005 - 9.3 Million

• 2006 - 8.9 Million

• 2007 - 8.4 Million – Privacy Rights Clearing House

10.1 9.8 9.3 8.9 8.4

0

5

10

15

in M

illion

s

2004 2005 2005 2006 2007

Years

Victims of Identity Theft

Victims


How can this impact YOU?o Damaged credit recordo Loss of job opportunitieso Refused loans:

o education, housing, or cars

o Spend months or years cleaning up the messo Mean fraud amount per victim:

2007:$5,720 2006: $6,383 2005: $5,993

o No. of hours spent resolving problems: 2007:25 hours 2006: 40 hours 2005: 28 hours

o Worst-case scenario: Victim is arrested


Who is most vulnerable?oAges 18-24oSuburban residenceoIncome ≥ $75,000oOngoing problems: 1/5 of the

victimsoJustice department


How do crooks get your information?

• Misuse by family/friends• Lost/stolen wallets• Theft from mailboxes; dumpster diving• Others (less common):

– Steal records from employer– Shoulder surfing at ATMs or phone booths– Pose as landlord to obtain credit report– Fill out change of address to divert mail– Phishing/ Pharming / Vishing


A crook has your info. Now what?Use your name to: Open new accounts

change billing address ring up charges before your mail catches up to you

Take out loans, buy a car, or establish phone service

Authorize electronic transfers drain your account

File for bankruptcy to avoid paying debts

Pretend to be you during an arrest


SkimmingoSwitchedoCollect oClone


Skimming Devices


PretextingUse of

– False– Forged– Counterfeit– Lost – stolen

Information to get a customer’s information from a financial institutionCommon tactic: pose as a survey firm


When can you give out your SSN?Give out SSN to: Give out SSN

to:oCredit unions/banksoEmployersoIncome tax recordsoLoan applicationsoCredit bureau reportsoCollege records

oOver the phoneoOn personal checksoOn driver’s license oOn club membershipoAs ID for store purchasesoAs general identification


How to order your free credit reporto Get one free report per year from each agency:

o annualcreditreport.com o Call 877-322-8228o Send request form to: (read envelope)

o It’s also free if you’re:o Denied credit within the past 60 dayso Victim of identity thefto Welfare recipiento Unemployed and job-huntingo Resident of CO, GA, ME, MD, MA, NJ, and VT

Annual Credit Report Request ServiceP.O. Box 105281, Atlanta, GA

30348-5281


What is spamming?

Sending unsolicited e-mail indiscriminately to multiple mailing lists, individuals, or

newsgroups


What is spoofing?

Creating a replica of a legitimate Web page to fool you into

submitting personal, financial, or password data


What is phishing?

Luring victims to a fake web site through spam. See current scams

at antiphishing.org


It’s probably a phishing attack!

Beware e-mail messages that:o Use a generic greetingo (“Dear Visa customers” or “Dear

friend”)o Refer to an urgent problemo State that your account will be shut down

unless you reconfirm your billing informationo Urge you to click on a link within a message

you weren’t expectingPhishing in the World

http://www.antiphishing.org/crimeware.html


PharmingoPractice of redirecting Internet

domain name requests to illegitimate Web sites.

oTo capture your personal information and commit ID theft.

oDiffers from phishing in how you’re redirected.(through technical means)


Pharming can occur 4 wayso Static domain name spoofing

(Misspellings: vvestcu.org vs. westcu.org)

o Malicious software—Malware(Viruses and Trojans redirect you to the false site)

o Domain hijacking(Hacker hijacks legitimate site and redirects all traffic)

o DNS poisoning (most dangerous)(You enter correct URL, but poisoned server redirects)


Receive unfamiliarbills

Denied credit

collection agencies try to collect

Oftentimes, there aren’t any!

credit card/financial statements stop

arriving or have fraudulent

charges

No mail

Signs you are

a victim


Even if there are no warning signs

You should: o Check your credit report anyway!o Beware of e-mails and web sites offering

“free” credit reportsoDon’t give your SSN just to get a free report

http://www.fcfcu.com/members/Pages/default.aspx


If you are a victimo Place fraud alert on your credit reports.

o Contact FTC’s ID Theft Hotline at 877-IDTHEFT.

o Close affected accounts. Use FTC’s “ID theft affidavit” at ftc.gov/idtheft.

o Follow each conversation with a certified letter, return receipt requested; keep copies.

o File a police report where ID theft took place.

o Get copies of police reports and send to creditors.


The “Big Three” Credit Reporting Agencies Experian Order report: 888-397-3742 Fraud Unit: 888-397-3742 experian.com

TransUnion Order report: 800-888-4213Fraud Unit: 800-680-7289transunion.com

EquifaxOrder report: 800-685-111Fraud Unit: 800-525-6285equifax.com


What else do you need to

know?


Internet Fraud – Shop Safely Onlineo Shop only with companies you know.

o Pay only with credit card, or with third-party intermediary o you have some protections if merchandise is defective, not as

described, or is not received at all

o URL must change from http:// to https://.

o Track online purchases easily: Use separate credit card

o Use secure browser (look for closed padlock or unbroken key at bottom of browser window—not payment page).


Protect Yourself Online – Social/Networking Websites

• Myspace, Facebook, Linkedin, and others– do not show your address, phone number, or

other personal information – Use the privacy settings so people only see

what you want them to see– Only accept people you know– Beware the applications when asking for

information could be made by crooks


Protect Yourselfo On the Phone

o Ask why they need ito Never give out personal info or authorize payment

(unless you initiated the call and trust the company)

o Hang up if necessaryo Online Transactions

o Make sure it is secure – https:// and a closed padlock

o Verified by VISA and/or MasterCard’s Secure Codeo Shred

o All documents with personal/financial information

http://www.fcfcu.com/members/Pages/default.aspx


Protect Yourselfo Review statements and credit report

o Annually – credit reporto Account statements: by mail – monthly; online

– more ofteno Mail

o Mail from locked mailbox or post officeo Stop mail while out of town

o Shoulder Surferso Be aware of your surroundings


Protect Yourselfo E-mail

o Only open attachments you are expectingo Do not click on links from unfamiliar senderso Use strong passwords (letter- both upper and lower,

numbers and symbols)o Avoid automatic log-in

o Computero Install and keep updated

o Virus softwareo Firewall softwareo Spyware detection/removalo Spam blocker – antiphishing.orgo Secure browser – for online transactions


Protect Yourselfo Passwords

o Don’t use recognizable information (age, phone number, SSN, birthday)

o Memorize them – do not keep them written down o Safeguard – all personal information (SSN card,

bank statements, checks, purse)o Do not carry it around with you

o Personal Informationo Give out on a need to know and trusted basis

o Do not leave receiptso They can contain your credit card information


Protect Yourselfo Keep name off prescreened lists

o 888-5opt-outo Optoutprescreen.com

o Electronic deposito Paychecks, dividends, pension, SS

payments, and tax refunds


Useful Purchases• Cross cut shredder

– Prices $40 and up– Shred paper, cds, credit cards– Top brands and prices:

• Anti-spy ware software– McAfee– Symantic– Webroot

Brands and

PricesInit Ativa

Royal Business Machines

High end price

105.00 340.00 60.00

Middle

price

90.00 150.00

Low end

price

70.00 79.00 36.00


Check Fraudo The manipulation of checks to deceive an

innocent victim expecting value in exchange for their money

o http://www.ckfraud.org/ckfraud.html#check


or could cost you plenty!

Every day, thousands of Americans receive sweepstakes offers, but not all of them are legitimate. How can you tell the difference between a real sweepstakes and a

scam? Legitimate sweepstakes are fun and free. They specify that no purchase is needed to win and buying a product will not increase your chances of winning--you

never have to pay to collect a prize.

Remember: You do not have to pay to enter a sweepstakes or collect a prize.

If you're asked to pay, the sweepstakes is a scam.


Credit Card Fraud

Fraudulent use of another person’s credit card and number

http://telephoneprivacy.inatg.us/


Telemarketing Fraudrefers to any scheme to defraud in which the persons carrying out the scheme use the telephone as their primary means of communicating

with prospective victims and trying to persuade them to send money to

the scheme.


More ResourcesFederal Trade Commission CRC-240 Washington, D.C. 20580877-IDTHEFT (toll-free)www.consumer.gov/idtheft

oBetter Business Bureau bbbonline.orgoAnti-Phishing Working Group antiphishing.orgoPrivacy Rights Clearinghouse privacyrights.org


1

SCAMMED!SCAMMED!

5-N5-N

The news of my father death, and my uncle,s involvement in an air crash in december 2002 while on a business trip to benin republic caused my mother heartfailure and other related complications of which she later died in the hospital After we have spent a lot of money on her.

Before our mother died, she told us that our father deposited some money which he made from diamond sales and contracts at this bank here in Ivory Coast and that we should pray and find a trust worthy foreign business partner who would help us to transfer and invest this money in profitable business venture overseas.She told us to do this quickly so that we can leave Ivory Coast and, then settle down abroad. She gave us the bank document to prove the deposit and then told us that my father used my name as the next of kin and beneficiary to the money in the bank in the event of his death.

If you are willing to assist us, please let us know immediately so that you will arrange the transfer of the money to your account with the bank.

What’s Going What’s Going on Here?on Here?

What’s Going What’s Going on Here?on Here?

2


Dealing With DeceptionDealing With DeceptionYou walk up to an ATM and a guy who You walk up to an ATM and a guy who

appears to be waiting his turn walks up appears to be waiting his turn walks up behind you. But he’s uncomfortably close—behind you. But he’s uncomfortably close—right over your shoulder—as you get ready right over your shoulder—as you get ready

to enter your PIN.to enter your PIN.

5-O-15-O-1

What should What should you do?you do?

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You’re at a cash register in a store and have given You’re at a cash register in a store and have given the clerk your credit card. She holds on to it, the clerk your credit card. She holds on to it,

probably to verify your signature. But then she probably to verify your signature. But then she says she needs to grab something from the back says she needs to grab something from the back and starts to walk away with your card in hand.and starts to walk away with your card in hand.

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Dealing With DeceptionDealing With Deception

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A caller says she’s from your credit card company and wants to offer you a higher

credit limit for being such a good customer. You reply, “Great, what do I have to do?” And she tells you to give her your Social Security

number for verification.

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You’ve found a pair of shoes at a great price on a Web site you just found. You start the

check-out process and notice that the padlock at the bottom of your computer screen is open and that the Web page

address starts with “http” instead of “https.”

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• You get an E-mail from an online bookstore you frequently buy from. It says that the credit card on your account has expired and gives you a link to update your information.

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Dealing with DeceptionDealing with Deception5 of 7


Your friend sends you an E-mail about cool new Your friend sends you an E-mail about cool new software that lets you share music with others for software that lets you share music with others for

free. He sends you the link to download the free. He sends you the link to download the software, which is from a site you’ve never heard of.software, which is from a site you’ve never heard of.

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You’re upset about losing in an online auction. But then you get an E-mail

stating the winner backed out and that you can have the item if you still want it,

and to just send your credit card information via E-mail.

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avoiding fraud

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