Loss Prevention

NCACU ID Theft Info

Telephone Phishing

Credit union members are receiving VoIP scam calls that are automated and insistent that the cardholder call a toll free number to update important financial information. Once the toll free number is dialed an automated phone system asks for the card number, PIN and expiration date. 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 to attack consumers on an entirely new level.

Loss Prevention Recommendations:

Do not to respond to any email or phone call 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.
Clarify with the credit union if the contact is in fact from them and legitimate.
Please report VoIP attacks to your local federal law enforcement agency. Most agencies now have cyber threat units that are well-versed in investigating these claims.
Educate your yourself on "Phishing."
Pay attention to posted "phishing warnings" on the web site and in your credit union lobby.
Your credit union will never solicit personal/private information via e-mail.
Use the FTC (Federal Trade Commission) web site, www.onguardonline.gov.
- Interactive quizzes designed to enlighten about identity theft, phishing, spam and online-shopping scams.
- Find detailed guidance on how to monitor their credit histories, use effective passwords and recover from identity theft.
If you are a victim of a phishing attempt, take appropriate steps to help protect yourself.
- Block and reissue the compromised credit/debit cards
- Report to credit bureau
- Order credit report

Fake Check Scams
What you should know. What you should do.

Beware of these email and fax scams that can leave you owing money!
Fake Check Scams Can Leave YOU Holding the Bag!

If someone you don’t know wants to pay you by check–but wants you to wire some of the money back, beware! It is most likely a scam that could cost you thousands of dollars. There are many variations of this fake check scam. It usually starts with someone offering to:

Give you the first installment on the millions you’ll receive for agreeing to transfer money from a foreign country to your account for safekeeping;
Buy something you advertised;
Give you an "advance" on a sweepstakes you’ve won.

The scammers often claim to be outside the US, saying they cannot pay you directly, and that they will have someone who owes them money send you a check or money order. The amount of the check or money order may be more than you are owed, so you are instructed to deposit it and wire the balance to the scammer or to someone else. Or you are told to wire some of the money back to pay a fee to claim your "winnings." In either event, the crooks send a phony check or money order with instructions to deposit it in your account. When you check your balance, it looks like the funds have arrived. After you have wired the money back to the scammer, you learn that the check or money order has bounced–you are left holding the bag!

Bounced Checks Can Cost You

These fake checks look so real that even credit union tellers may be fooled. Under federal law, financial institutions must make the funds you deposit available quickly– usually within one to five days. Just because you can withdraw the money doesn’t mean the check is good. Forgeries can take weeks to be discovered. CAUTION: It is important to keep in mind that under the law, you are responsible for the checks and money orders you deposit because you are in the best position to determine how risky the transaction is. When a check or money order bounces, you owe your financial institution the full amount of the checks.

How Scammers Find Their Victims

Fake check scammers use a variety of sources to identify their victims. They

scan newspaper and online advertisements for people listing items for sale
check postings on online job sites from people seeking employment
place their own ads with phone numbers or email addresses for people to contact them
call or send emails or faxes to people randomly, knowing that some will take the bait.

What You Should Do

There is no legitimate reason for someone who is giving you money to ask you to wire money back – that is a clear sign of a scam. If someone you do not know wants to pay you for something, insist on a cashiers check for the exact amount, preferably from a local financial institution or one with a branch in your area.

If you think someone is trying to pull a fake check scam, don’t deposit it – report it! Contact the National Consumers League’s National Fraud Information Center, www.fraud.org or (800) 876–7060. There are also more detailed tips about fake check scams in the telemarketing and Internet fraud sections of the Web site.

Identity Theft

The U.S. Federal Trade Commission estimates that 27.3 million Americans have been victims of identity theft in the last five years, including 9.9 million last year – and the number of new cases appears to be growing.

Identity theft last year cost businesses and banks about $47.6 billion and consumers an estimated $5 billion. The Fair Credit Billing Act limits the liability due to fraud to $50 per card if the creditor is notified within 60 days of the first bill containing fraud.

"Check your credit reports religiously," says Liz Pulliam Weston, author of Your Credit Score: How to Fix, Improve, and Protect the 3–Digit Number that Shapes Your Financial Future. "Many people discover that they’ve been the victim of identity theft only after they’ve been turned down for a loan or the interest rates on the credit cards go up. Experts used to advise consumers to check their credit report once per year, but now it’s wise to check all three credit reporting agencies twice per year."

In many cases, thieves open an account under a stolen identity, run up thousands of dollars in fraudulent charges and have the bill sent to a phony address. It's never paid and that can wreck the victim’s credit rating.

In 1988, the U.S. Congress passed the Identity Theft and Assumption Deterrence Act making the unlawful use of another person’s identity punishable by up to 15 years in prison. However, some studies suggest that identity thieves have a one in 700 chance of being caught by federal authorities. That means it’s up to you to protect yourself by securing your computer, account numbers and hard copy receipts. Here's how.

As a child, your mother told you not to accept candy from strangers. As an adult, the variation on the theme is not to download files or click on links from strangers. Opening an unfamiliar file could hijack your records.

In recent weeks, some have been inundated with e-mails purporting to come from the customer service departments of Citi, SunTrust and eBay’s PayPal, asking us to update our account. Don't even hit "reply" to say you're not a customer. If you are a customer and get such an e-mail, call your bank on the service line listed on your monthly statement and report the attempted theft. Surprisingly, many fall for this "phishing" scam.

If you are shopping on the Internet – and who doesn’t these days – make sure you're on a so–called secure browser. Look for a small padlock on the bottom of your screen and the letters "https" at the beginning of the Web site’s address in the browser window. Many big online sites like Amazon.com let you store your credit card information. Just say no. Yes, it means retyping your card number and address with each purchase, but an unsecured Web site is a tantalizing opportunity for hackers.

Most victims of identity theft aren't sure how their account numbers were stolen, but investigators believe many are stolen right before their eyes by crooked employees at legitimate businesses. A "skimmer" is an electronic device that can steal and record all the vital information from a credit or debit card with a single swipe. Therefore, it's wise to avoid using debit cards, which are linked to your checking account, at convenience or other stores where there's a high employee turnover because you don't know how carefully the workers have been screened. In most cases, banks will replace money stolen this way in a few days, but being without cash is a major inconvenience.

If you mail a payment, drop the bill off at the post office or a secured mail box rather than tossing it in the outgoing office mail. At home – even in the suburbs – have a locked mail box. Buy a shredder and use it for all bills and receipts because "dumpster diving" is a gold mine of personal information for identity thieves.

Finally, retain paper receipts to reconcile your accounts and then store them securely or destroy them. Many banks and businesses now print only the last few numbers of the account number on a receipt. After December 2006, the law will prohibit companies from printing the expiration date or more than the last five digits of a credit or debit card on a hard copy receipt.

"Talk to people you do business with," says Pulliam Weston. "Ask them how they safeguard your personal information and how they dispose of old records." This article has been reprinted from Forbes.com. Visit the original article at here

Think you're not at risk? Unfortunately, you are.

Do you hand your credit card to servers at restaurants?
Do you sign your credit cards?
Do you supply personal information over the Internet?
Do you keep your Social Security number in your wallet or purse?
Do you leave mail at your home or business for the postal carrier to collect?
Do you shred unwanted mail with personal information?

What if you discovered that your identity had been stolen?

Call your bank and/or credit card company right away.
Contact the three major credit repositories.
Go through the helpful but extensive steps recommended by the Federal Trade Commission in its 30–page consumer support publication.
Fill out and submit the affidavit form supplied by the FTC to dispute new, unauthorized accounts.
Spend on average $1,500 in out-of-pocket expenses in your efforts to resolve the many problems caused by identity thieves

WHAT TO QUESTION

When anyone asks you to verify personal information over the phone, by e-mail, or by going door to door.
When someone responds to an ad or article and sends or offer you money with any intentions that you must send money back or forward it on to a third party.
When some one picks up your trash before the regular pick up hours.
When a cashier takes you card to another unseen location to pay your bill.
When your ATM or Debit card is suddenly compensated at a payment at an automated teller.

Free Credit Reports

In 2004, Congress passed the FACT–ACT, guaranteeing every citizen the right to obtain their credit report free each year. Let North Central Area Credit Union help you decipher and evaluate your credit score. We can help you improve your score, just contact your local branch today! Obtaining your credit report is an important step in acting against identity theft.

To Obtain Your Credit Report
Visit www.annualcreditreport.com or www.experian.com.
Or call: 1-888-397-3742
Or write:

Experian
P.O. Box 2002
Allen TX 75013

The following links feature excellent information on the latest form of cyber crime: identification theft. Protect yourself by becoming familiar with this new criminal activity.