Fraud is on the rise. The best way to protect yourself and your information is to take preventative action by educating yourself on the different types of fraud, be aware on common scams, and to secure and protect your information.

TYPES OF FRAUD

• Phishing– According to Webster’s, phishing is “the practice of luring unsuspecting Internet users to a fake Web site by using authentic-looking email with the real organization’s logo, in an attempt to steal passwords, financial or personal information, or introduce a virus attack”.
• Vishing– In this scenario an attempt to persuade consumers either by email, text message, or a telephone call, purportedly from their credit card/debit card company or bank, to divulge their Personally Identifiable Information, claiming their account was suspended, deactivated, or terminated.
• Smishing– a form of criminal activity using social engineering techniques similar to phishing. The name is derived from “SMs phISHING”. SMS (Short Message Service) is the technology used for text messages on cell phones.

COMMON TYPES OF SCAMS

• Card Cracking Scam – a fraudster reaches out to a bank customer promising quick cash. The customer provides account credentials to the scammer, who then deposits a fake check in the customer’s account. The fraudster then makes and immediate ATM withdrawal, sharing some of the funds with the customer. Meanwhile, the customer is instructed to report the card or credentials lost or stolen so that the bank will reimburse the stolen money–making the customer a criminal accomplice. Avoid online solicitations for easy money, never share an account number or PIN, never file a false fraud claim with a bank and report suspicious social media posts connected to scams.
• Family Emergency Imposter Scams – the scammer poses as a family member or friend in need of urgent financial assistance. You will typically be contacted by phone, email, or social media and told that your relative or friend is in trouble and needs money immediately. The scammer may say that they are stranded somewhere, have been in an accident, or have been arrested. They may also claim to be in the hospital or facing eviction. The scammer will often use emotional manipulation to convince you to send money, often through gift cards, wire transfer, or prepaid debit cards. They may also ask you to provide personal information such as your Social Security number or bank account information.
• Lottery & Sweepstakes Scams– The potential victim is sent an e-mail notification that they have won money. However, to obtain the supposed winnings the winner is told that he/she must pay taxes up front or some other fictitious fee. Sometimes the scammer doesn’t require money up front, but asks for the winner’s account number, supposedly to deposit the winnings, but really to steal.
• Nigerian Scams– This e-mail is supposedly from a citizen of another country (often Nigeria). He writes that he needs your help to gain access to his funds that he cannot touch because of the country’s regulations. He offers to greatly reward you for your help. All he needs is your account number, supposedly to transfer the funds, but really so that he can drain your savings. There are many versions of this scam.
• Online Auction Scams– In this scenario, the victim is the seller. The buyer sends a cashier’s check to the seller for an amount larger than the purchase price. They buyer asks that the difference is sent back to him/her and usually tells the seller that he/she can keep a little extra for the trouble. Even though it is a cashier’s check, that doesn’t mean that it’s safe. This check is later found to be counterfeit and the seller is out the money that they sent back to the buyer.
• Jury Duty Scam–The caller claims to be a jury duty coordinator. If you protest that you never received a summons for jury duty, the scammer asks you for your Social Security number and date of birth so he or she can verify the information and cancel the arrest warrant. If you give out any of this information your identity was just stolen.
• The Federal Deposit Insurance Corporation (FDIC) Scam – The Federal Deposit Insurance Corporation (FDIC) has received numerous reports from consumers who received an e-mail that has the appearance of being sent from the FDIC. The e-mail informs the recipient that “in cooperation with the Department of Homeland Security, federal, state and local governments…” the FDIC has withdrawn deposit insurance from the recipient’s account “due to account activity that violates the Patriot Act.” It further states deposit insurance will remain suspended until identity and account information can be verified using a system called “IDVerify.” If consumers go to the link provided in the e-mail, it is suspected they will be asked for personal or confidential information, or malicious software may be loaded onto the recipient’s computer. This e-mail is fraudulent. It was not sent by the FDIC. It is an attempt to obtain personal information from consumers. Financial institutions and consumers should NOT access the link provided within the body of the e-mail and should NOT under any circumstances provide any personal information through this media. The FDIC is attempting to identify the source of the e-mails 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.

These scams are just the surface on ways fraudsters try to get your information. Here are some useful tips to help secure your information:

PROTECT SENSETIVE INFORMATION

• Consider every email, telephone call, or text message requesting your Personal Identification Information as a scam. This includes username, password, security question answers, out of band authentication codes, Social Security Number, account numbers, or driver’s license numbers.
• Use a Complex Password. Do not use your name, birth date, or other easily identifiable personal information in your password. Use longer, unique passwords including capital letters and/or symbols in the password to make it more complex.
• Change Your Password Frequently.

PROTECT DEBIT/CREDIT CARDS

• Use debit/credit card chip instead of swiping when possible.
• Store debit and credit cards in a place that isn’t susceptible to theft.

MONITOR ACCOUNTS CLOSELY

• Set up account alerts, specifically security alerts, to verify and monitor account activity.
• Access accounts and review all communications shared by your financial institution on a regular basis.
• Monitor your accounts regularly. Any suspicious activity should be reported to the Bank as soon as possible.

CYBERSECURITY

• It is strongly recommended that everyone with a home computer that connects to the Internet have the following on their computer:
  • Anti-Virus Software– Be sure to keep your anti-virus software active and update it frequently. New anti-virus database updates are usually out weekly.
  • Spam Blocking Software– Run this software at least weekly and update it frequently. New updates are usually released every few weeks.
  • Personal Firewall– This helps prevent others from controlling your computer remotely while connected to the Internet.
• Don’t follow links. Always navigate to a site directly via your own bookmarks or by entering the address yourself.
• Do not double click on any attachment including PDFs sent by an unknown or un-validated source no matter how harmless or familiar the title appears.
• Never click on embedded email or cell phone links
• Only enter personal information on a secure site. Do not enter personal information on a site unless there is an “s” after http which indicates that the site is secure.
• Do not allow any settings to auto-fill User ID’s or password information and always log-off completely
• Avoid banking while on public networks. Public connections aren’t secure. Most places that offer public WI-FI warn users not to share sensitive information over the network, including logging into your bank account or shopping online.
• Do not send personal information or log-in credentials via email or SMS (text messaging).
• Review any pop-up notices or alerts that appear on your device. These may be warnings that you are leaving a trusted site or of security issues.

TAKE ADVANTAGE OF ADDITIONAL RESOURCES

• The American Bankers Association has a great website (https://www.banksneveraskthat.com) that details red flags that consumers should watch for and what a bank will never ask of them. It also provides a quiz that helps customers learn to identify fraud and phishing attempts.
• For more tips to help you avoid scams, check out this How to Avoid a Scam Brochure from the Federal Trade Commission
• Learn how to protect yourself from Financial Exploitation – Elder Justice Initiative.  Check out the Brochure from the Department of Justice
• For more information on Identity Theft, Check out this ID Theft Bookmark from the Federal Trade Commission
• Credit Card Security – Big Protection in a Tiny Chip. Check out this Visa Brochure for more information

IF YOU THINK YOU’VE BEEN A VICTIM OF FRAUD

• Contact the fraud departments of any one of the three major credit bureaus to check your credit report and place a fraud alert on your credit file
  • Equifax | 1-800-525-6285 | www.equifax.com
  • Experian | 1-888-397-3742 | www.experian.com
  • Trans Union | 1-800-680-7289 | www.transunion.com
• Close the accounts and/or credit cards that you know or believe have been tampered with or opened fraudulently. File a police report and get a copy of the report. Your creditors and others may require a copy of the report to assist you.
• File a complaint with the FTC (www.ftc.gov/complaint). The FTC maintains a database of identity theft cases used by law enforcement agencies.
• Contact the Social Security Administration (www.ssa.gov) if you believe your Social Security Number has been compromised.
• Contact your financial institution IMMEDIATELY and change all passwords and security questions if you ever feel your digital credentials or financial information has been compromised.
• Review all billing and bank statements for errors and unknown transactions.
• Document all activity to include everyone you contact and who has contacted you. Make copies of all correspondence sent and received.
• If your mobile device is lost or stolen, immediately notify the Bank and your mobile service provider. The mobile phone number can be removed from your information at the Bank required for accessing mobile banking. The service provider can disable your device to reduce the risk of the information being accessed.