Recent List of Frauds & scams
Free Credit Report Scams Examining your free credit report every year is important when trying to prevent identity theft and fraud. However, trying to obtain your credit report may be a scam in itself. You have the right to receive a free credit report every 12 months from each of the three major credit bureaus. Unfortunately, fraud, scams, and identity theft can all occur if you use the wrong sources. The most common free credit report scams are through phishing emails where you are asked to click on a membership link and enter your personal information along with your credit card number. If the membership isn’t cancelled within 30 days, your credit card is charged and you’ve given the scammers all the information they need to steal your identity. To protect yourself, don’t select an email link offering free credit reports, don’t use a search engine to find a free credit report company, and don’t purchase something online just to receive a free credit report. |
Account Verification Over the Phone
Occasionally, a legitimate call may result in a business needing to verify your information. This means they have the information on file and are going to read it back to you to confirm the accuracy. Do not volunteer anything. Make the caller read off what he or she has and you can either confirm or deny the accuracy, but don’t correct the erroneous information. If you are not comfortable with the call, don’t confirm or deny anything. Simply terminate the call.
Identity thieves can sometimes get their hands on or figure out some information (your Social Security number for instance is based in part on the state and date it was issued, addresses and dates of birth are often public record) and might be able to provide just enough information that you feel comfortable supplying the rest without even realizing it.
One way to make sure the call is legitimate is to ask the caller for their name and extension and tell them you will call them back. Call the business back using the phone number you already have on hand for that business – not one supplied by the caller. Ask for the person by name and extension. If the same person answers, you should feel comfortable sharing the information. Email and Internet Scams
Phishing/Phony Web Sites: A phony web site is created to resemble the web site of a legitimate business. Very often you will get an email expressing concern about the safety or integrity of your personal information with a link to the phony web site. The web site name and logo matches so closely that they do appear to be the valid institution’s web site. It is very easy to copy and paste a logo or artwork on the web. The phony site may ask for personal and confidential information to obtain information illegally in order to access consumers’ accounts and personal identities. Financial institutions and large e-commerce businesses are often the target.
Credit Card Fraud: You receive an email that someone is using your credit card at a particular store. The link to respond does not go back to the store, but to a different address.
Account Verification: An email asks you to verify your account information including personal information. Companies will never ask you to verify your password or ask for credit card information through email.
Online Purchases: Make sure you download the most recent version of your browser to take advantage of the most advanced encryption capabilities to protect your personal information. Always make sure you are using a secure web site before entering credit card information. To verify a secure connection, look for a locked padlock on the bottom of your status bar and “https:” beginning the url address (for example, https://www.example.com is secure but http://www.example.com is not secure). Never use credit cards for ID or age verification.
Double Check the Return Email Address: The displayed return address can be different than the email address you are actually replying to. To confirm the address, select reply, highlight the name shown under “To:,” right click, select properties and you can view the actual email address.
Wireless Hacking: Many businesses are moving to wireless computing. Wireless may not be as secure as a hard wired network and hackers are exploiting the vulnerabilities. Make sure your provider offers the latest technology and security features.
Common Scams
Work-at-Home Schemes: These require money to buy supplies and usually never bring a return. Or, you are offered the chance to make a lot of money working at home or buying a franchise. Many of these are illegal pyramid schemes.
Get Rich Quick Schemes: Effortless income schemes do not work.
Free Goods: You’re promised a free prize in exchange for purchasing or testing a product. The catch is you have to join or buy something. These are also pyramid schemes.
Investment Opportunities: You are offered an opportunity to invest at a discount or earn a very high rate of return. These opportunities benefit the promoters not the investors.
Cable Descrambler Kits: Most cable TV systems in the United States use technology that these devices can’t crack. These kits are also illegal.
Guaranteed Loans/Guaranteed Credit: You will purchase a useless list of lender names. These lenders will still turn you down if you do not meet credit qualifications.
Credit Repair: If you follow their plan, you will be misrepresenting your Social Security number, or getting an Employer Identification Number, to the IRS under false pretences. You will be committing fraud.
Vacation Prizes: Millions of people are receiving this email or phone call every day. Even if there is a vacation, they will offer you an upgrade for a price.
Charitable Contributions: You are asked to contribute to a charity that doesn’t exist or most of the money goes to the fund raiser instead of the charity.
Mail Fraud: Avoid “too good to be true” offers or sweepstakes you receive in the mail. They may require you to call an 800 or 900 number so you can be subjected to a high-pressure sales pitch.
Telemarketing Schemes: Be wary of offers you receive over the phone from companies trying to sell goods/services or offers urging you to call to make purchases in response to mailings or other forms of advertising.