Economic Stimulus Check Initiative

From Margie Tann iSekurity

Source: Wachovia




iSekurity wants you to be aware of the Economic Stimulus Check initiative. Emails and phone calls are being made by fraudsters in attempt to collect your personal and financial information. This fraud is taking multiple forms and you need to be aware. They all centered around alleged functions of the United States Department of the Treasury ... but, are driven by a singular criminal goal - to steal your money and your identity.




Please be aware of the following scams that have been circulating related to the Economic Stimulus Check initiative:


- Rebate Phone Call: In this scam, consumers receive a phone call from someone identifying themselves as an IRS employee. The caller tells the targeted victim that they are eligible for a sizable rebate for filing their taxes early. The caller then states that they need the customer's bank account information in order to directly deposit the rebate. If the customer refuses, they are told that they cannot receive the rebate.


- Refund Email Scam: Customer receives an email, which falsely claims to come from the IRS, informing the recipient that he or she is eligible for a tax refund for a specific amount, and instructs the recipient to click on a link in the e-mail to access a refund claim form.


- Audit Email Scam: Customer receives an email notifying the recipient that his or her tax return will be audited. The customer either clicks on a link or contacts a phone number included in the email. This is the first scam the IRS is aware of that uses this tactic to get the victim to respond.


- Tax Law Change Email Scam: The email is addressed to businesses, accountants and "Treasury" managers. It instructs them to download information on tax law changes by clicking on a series of links to publications on businesses, estate taxes, excise taxes, exempt organizations and IRAs and other retirement plans.


- Paper Check Phone Call Scam: In a recently documented telephone scam, a caller claims to be an IRS employee who is calling because the IRS sent a check to the customer which has not yet been negotiated. The caller states that because the check has not been cashed, the IRS wants to verify the individual's bank account number.


- Better Business Bureau Rebate Scams: In addition to the above rebate scams, IRS officials are also warning businesses of emails that appear to be complaints forwarded to them by the Better Business Bureau. Businesses receiving such questionable e-mails should contact the local BBB directly and not respond to the email.

Yet another new twist on an old scam: 'VISHING'

From Margie Tann iSekurity

Source: BBB of Northwest Ohio

There's a new scam that's popped up recently that's being referred to as "vishing." Like the "phishing" scams that are now familiar to most Internet users, vishing is designed to trick consumers into giving out account numbers. But, instead of using e-mail, vishing uses telephone calls generated from automated random-dialers.

Here's how it works: someone calls and says that your credit card has been used illegally. The caller gives you an '800' number to call and "verify" the theft of your card information and to "confirm" your account number. If you are contacted, then provided any such number by the caller - DO NOT CALL IT! [Always use ONLY the official contact numbers printed on the back of your Credit, Debit, Health Plan Cards, etc.]. Of course, the '800' you would be given by these scammers will be answered by an accomplice, who will then use your account information fraudulently.

What you need to know:

- These phone calls are becoming more common

- The caller may be very persuasive or intimidating

- It is not rude to hang up if you think you are being scammed

- You can not rely on Caller ID. It's easy for the scammers to "spoof" their
Caller I.D. information

SCAMMERS PLAY ON HUMAN NATURE From Margie Tann iSekurity

Spotting an Impostor: Scammers Pose as Friends, Family and Government Agencies
Source: ftc.gov


It's easy to think "It couldn't happen to me." But scammers know how to get around our better judgment. They play on our emotions or promise big payoffs to get us to act. And many use the names of government agencies like the FTC, trusted companies, or friends and family to get us to buy into their schemes. We may not be able to spot the impostor until it's too late.

The Federal Trade Commission (FTC), the nation's consumer protection agency, wants you to know that scammers are posing as people, agencies and companies you know and trust. They may use phone calls, emails, letters, faxes or even text messages in their deceptions. To see past the disguise, you need to be alert to signs of an impostor scam:


- They want you to wire money
Wiring money is like sending cash; once it's gone, you can't get it back. Don't send a check or money order by overnight delivery or courier, either. And don't deposit a check and wire money back - the check will turn out to be a fake. Con artists tell you to use these services so they can get your money before you realize you've been cheated. For more on money wiring scams, visit ftc.gov/ScamWatch.

- They want you to pay to collect your winnings
Legitimate sweepstakes don't require you to pay insurance, taxes, or shipping to claim what you've won. Scammers pretend to be with banks and well-known companies like WalMart and Publishers Clearing House to make you think it's the real deal. No matter how convincing the reasons, never send money to claim a prize.


- They claim to be with a government agency
They may try to get you to send money by saying they're with the FBI, FTC, IRS, U.S. Customs and Border Protection or the U.S. Marshals Service. They might even use a real employee's name and call from a Washington, D.C., phone number. But it's a number they've faked. Contrary to scammers' lines, no federal government agency supervises or runs sweepstakes. Similarly, insurers like Lloyd's of London don't insure the delivery of sweepstakes winnings.

- They claim to be someone you care about
You think it's your grandson calling, panicked because he needs you to wire money to help him fix a car, get out of jail or a hospital emergency room, or leave a foreign country without the rest of the family finding out. Or a stranded friend emails and asks you to wire money overseas. In reality, it's a scammer who sleuthed out your grandchild's name, or hacked your friend's email account. To make sure it's not really a loved one in trouble, call a number you know to be genuine, and check the story out with other people in your circle. You also can ask the caller some questions that a stranger couldn't possibly answer.

- They want you to act now
The key to successful impostor scams is getting you to send money before you find out who's really on the other end. The more time you have, the more likely you'll figure it out.

Resist the pressure to act immediately before you've checked it out.

Margie Tann - iSekurity Malware and Cell Phones

From Margie Tann iSekurity

Source: Verizon

And as they do with PCs, scammers use malware that you might inadvertently download onto your cell (sometimes by visiting infected websites, other times via downloads of ringtones) to harvest and transmit your personal information, thereby paving the way for forms of Identity Theft.


7 Tips for Protecting Yourself From Cell Phone Scams and Identity Theft:


1. Install anti-virus software. Most of the big Internet security players have mobile versions of their software and most of them offer free trials.

2. Scrutinize your bill every month. In particular, look out for small payments, which the cell phone scam artist tries to sneak past you.

3. Keep your cell phone number confidential when it is linked to your name, sharing it only with friends and relatives. Even think twice before putting it on a business card.

4. Don't use it for competition entries or other apparently "free" services. But, if you must do this, make sure you read every line of the fine print.

5. Consider using "disposable" or prepaid cell phones, which limit your exposure to running up bills.

6. Don't take a cell phone number as proof of someone's identity or, indeed, their honesty. If you can't separately confirm the identity of someone who gives their cell number, don't buy from or sell to them.

7. Be vigilant when you see others using cell phones to take photos. If their behavior seems odd or unacceptable, try to memorize a description of them and contact the police.


Of course, take all possible steps to prevent your phone from being stolen from your purse, your pocket, your desk, or wherever -- because that's the quickest route to hefty phone bills (for which you may be responsible) or cell phone Identity Theft.

And if you're an iPhone user, consider signing up for Apple's MobileMe service, which includes the ability to immediately and remotely erase all the data from your iPhone in the event that it does get stolen.

If you order a new cell phone to be delivered by snail mail or delivery, insist on - and be prepared to pay for - a signature with the carrier on delivery. That way, it won't be left at your front doorstep while you're out.

Avoid Identity Theft During Tax Season From Margie Tann - iSekurity

Source: IRS.gov


Frequent or Recent Scams

There are a number of scams that impersonate the IRS. Some of them appear with great frequency, particularly during and right after filing season, and recur annually. Others are new.
Refund Scam:
This is the most frequent IRS-impersonation scam. In this phishing scam, a bogus e-mail claiming to come from the IRS tells the consumer that he or she is eligible to receive a tax refund for a specified amount. It may use the phrase "last annual calculations of your fiscal activity." To claim the tax refund, the consumer must open an attachment or click on a link contained in the e-mail to access and complete a claim form. The form requires the entry of personal and financial information. Several variations on the refund scam have claimed to come from the Exempt Organizations area of the IRS or the name and signature of a genuine or made-up IRS executive. In reality, taxpayers do not need to complete a special form to obtain their federal tax refund. Refunds are triggered by the tax return they submitted to the IRS.
Lottery winnings or cash consignment:
These advance fee scam e-mails claim to come from the Treasury Department to notify recipients that they'll receive millions of dollars in recovered funds, lottery winnings or cash consignment if they provide certain personal information, including phone numbers, via return e-mail. The e-mail may be just the first step in a multi-step scheme in which the victim is later contacted by telephone or further e-mail and instructed to deposit taxes on the funds or winnings before they can receive any of it. Alternatively, they may be sent a phony check of the funds or winnings and told to deposit it but pay 10% in taxes or fees. Thinking that the check must have cleared the bank and is genuine, some people comply. However, the scammers, not the Treasury Department, will get the taxes or fees. In reality, the Treasury Department does not become involved in notification of inheritances or lottery or other winnings.
Beneficial Owner Form:
This fax-based phishing scam, which generally targets foreign nationals, recurs periodically. It's based on a genuine IRS form, the W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding. The scammer, though, invents his or her own number and name for the form. The scammer modifies the form to request passport numbers, information that is often used for account security purposes (such as mother's maiden name), and similar detailed personal and financial information, and states that the recipient may have to pay additional tax if he or she fails to immediately fax back the completed form. In reality, the real W-8BEN is completed by banks, not individuals.
What to Do:

Taxpayers who receive a suspicious e-mail claiming to come from the IRS should take the following steps:

- Avoid opening any attachments to the e-mail, in case they contain malicious code that will infect your computer.
- Avoid clicking on any links, for the same reason.
- Visit the IRS website, www.irs.gov, to use the "Where's My Refund?" interactive tool to determine if you are really getting a refund, rather than responding to the e-mail message.
- Forward the suspicious e-mail or url address to the IRS mailbox phishing@irs.gov, and then delete the e-mail from your inbox.
- Consumers who believe they are or may be victims of identity theft or other scams may visit the U.S. Federal Trade Commission's website for identity theft, www.onguardonline.gov, for guidance on what to do. The IRS is one of the sponsors of this site.

The Modern Pickpocket Thief!

From Margie Tann Independent Distributor iSekurity

The Modern Pickpocket Thief!
Source: Privacy News / Kent Larson
January 24th, 2011



There's a much more modern, efficient way to do it. Anyone who is so inclined can take their laptop down to the local Starbucks - or any other WiFi hotspot - download some readily available software - and hack into everyone's Internet communications.


How? That's easy. Remember that WiFi signals are just radio waves. All you have to do is tune into the right "channel" and you can "listen" into everything that is being transmitted in that hotspot. Every laptop has the ability to do that; it just needs the right software.


So, if one is at the coffee shop, settled in at a table and sipping a Venti latte, it's a simple matter to begin looking through the Internet traffic for Social Security numbers and other data being sent back and forth. Identity thieves who do these things look for something specific and may even enlist the aid of a computer geek to write a simple program that conducts automated searches. I would tell him to look for something that had the form of 3 digits, then a dash, then 2 digits, another dash - and then ending in 4 digits, which would almost surely be a Social Security number. Starting to see how easily your identity can be stolen in this setting?

Identity Theft and Wi-Fi From Margie Tann

From Margie Tann - Independent Distributor with iSekurity

Identity Theft and Wi-Fi
Source: Privacy News / Kent Larson
January 24th, 2011

Let's assume that you wanted to take up a new career as an identity thief. Why? Well, it's lucrative.


Identity thieves simply pretend to be someone else, then open up credit cards and take out loans using the other person's identity. And - it is easy. All one needs need is to find someone's name, address, and Social Security number.


Third, it is safe. Only around 2% of identity thieves are ever caught. No wonder it is the fastest-growing crime in America!


Now, all the perpetrator needs to do is to decide how to go about getting the information on their victims. One popular method is the classic pick-pocketing. But that requires a fair amount of skill; besides, these kinds of thieves are much more likely to get caught with their actual fingers in someone else's pocket.


Somewhat better is "Dumpster-Diving," which involves going through someone else's garbage, looking for a scrap of paper with the right information. But, identity thieves tend to shy away from that method, as this seems messy and time-consuming.

Visa Card Scam

From Margie Tann iSekurity... You can receive these alerts by speaking with Margie... http://whatsupswfl.net/IdentityTheftProtection.aspx

SPECIAL e-ALERT FROM iSEKURITY

VISA CARD Fraud


NOTE:

This is an important notification for everyone regarding the latest in Visa Card fraud. Royal Bank received this communication about the newest scam. This is happening in southern Alberta right now and moving. It's also very sophisticated, since the scam-callers provide YOU with all the information - EXCEPT FOR the one piece they've called to get from you to complete their fraud.

FURTHER NOTE: the callers do not ask for your card number. They already have it. By understanding how the VISA & MasterCard telephone Credit Card Scam works, you'll be better prepared to protect yourself.


The scam works like this:

The person calling says, "This is (name) and I'm calling from the Security and Fraud Department at VISA. My badge number is 12460. Your card has been flagged for an unusual purchase pattern, and I'm calling to verify. This would be on your VISA card which was issued by (name of bank). Did you purchase an Anti-Telemarketing Device for $497.99 from a marketing company based in Arizona ?" When you say 'no', the caller continues with, "Then we will be issuing a credit to your account. This is a company we have been watching and the charges range from $297 to $497, just under the $500 purchase pattern that flags most cards. Before your next statement, the credit will be sent to (gives you your address), is that correct?'

You say 'Yes'.

The caller continues: "I will be starting a Fraud Investigation. If you have any questions, you should call the 1- 800 number listed on the back of your card (1-800-VISA) and ask for Security. You will need to refer to this Control Number:" (the caller then gives you a 6 digit number). "Do you need me to read it again?"

Here's the IMPORTANT part of how the scam works:

The caller then says, "I need to verify you are in possession of your card." They'll ask you to turn your card over and look for some numbers. There are 7 numbers; the first 4 are part of your card number. The last 3 are the Security Numbers that verify you are the possessor of the card. These are the numbers you sometimes use to make Internet purchases to prove you have the card. The caller will ask you to read the last 3 numbers to him. After you tell the caller the 3 numbers, they'll say, "That is correct; I just needed to verify that the card has not been lost or stolen and that you still have your card. Do you have any other questions?"

After you say 'No,' the caller then thanks you and states, "Don't hesitate to call back if you do" then, hangs up.

You actually say very little and they never ask for or tell you the card number. In this particular case, a call for the purposes of investigating the matter further was placed within 20 minutes of the initial call to ask a question; this call turned out to be quite revealing. The true & actual VISA Security Department informed our caller it was a scam and in the last 15 minutes a new purchase of $497.99 was charged to their card. Immediately, a fraud report was made and the affected VISA account was closed. VISA is now reissuing a new number.


What the scammers want is the 3-digit PIN number on the back of the card.
Do NOT give it to them!

Instead, tell them you'll call VISA or Master Card directly for verification of their conversation.


The real VISA CARD company will never ask for anything on the card, as they already know the information - since, of course, they themselves issued the card! If you give the scammers your 3-digit PIN Number, you think you're receiving a credit; however, by the time you get your statement, you'll see charges for purchases you didn't make. By then, it's almost too late and/or more difficult to actually file a fraud report.

What makes this scam even more remarkable is that on a subsequent day, the targeted scam-victim got a call from someone calling themselves 'Jason Richardson of MasterCard' who proceeded to begin reciting a word-for-word repeat of this VISA Scam. This time, however, the scammer wasn't allowed to finish; instead, what they heard was the intended victim hanging up on them! A police report was then filed, as had been instructed by VISA. The police said they are taking several of these reports daily! They also are urging those being contacted in this manner to tell everyone they know that this scam is happening.

In a similar recent situation over the phone, the bogus caller informed the would-be victim that $3,097 had been charged to their account for plane tickets to Spain - and so on, following the above-mentioned routine.

It appears that this IS a very active scam - and evidently, quite successful.


iSEKURITY's exclusive e-RAPID ALERT SYSTEM URGES YOU TO STAY INFORMED AND BE AWARE!

Your Privacy is At-Risk!

From Margi Tann - iSekurity

Your Privacy is At-Risk!


Possible Online Privacy Invasion ...


There's a website called spokeo.com that's a new online USA phone book with personal information: everything from pics you've posted on FaceBook - to satellite images of your home, your address, credit score, home value, income, age, etc.

You can REMOVE yourself by searching your name, copy the URL of your page,
go to the bottom of the page and click on the Privacy button to remove yourself.

To visit spokeo.com: click here

New Identity Theft Scheme Targets Kids

From Margie Tann iSekurity

Source: 19ActionNews/Cleveland, OH [excerpted]

The latest form of identity theft doesn't depend on stealing your Social Security number. Now, thieves are targeting your kid's number long before the little one even has a bank account.

Hundreds of online businesses are using computers to find dormant Social Security numbers - usually those assigned to children who don't use them - then selling those numbers under another name to help people establish phony credit and run up huge debts they will never pay off.

Authorities say the scheme could pose a new threat to the nation's credit system. Because the numbers exist in a legal gray area, federal investigators have not figured out a way to prosecute the people involved.

The scheme works like this:

Online companies use computers and publicly available information to find random Social Security numbers. The numbers are run through public databases to determine whether anyone is using them to obtain credit. If not, they are offered for sale for a few hundred to several thousand dollars.

Because the numbers often come from young children who have no money of their own, they carry no spending history and offer a chance to open a new, unblemished line of credit. People who buy the numbers can then quickly build their credit rating in a process called "piggybacking," which involves linking to someone else's credit file.

Many of the business selling the numbers promise to raise customers' credit scores to 700 or 800 within six months.

If they default on their payments, and the credit is withdrawn, the same people can simply buy another number and start the process again, causing a steep spiral of debt that could conceivably go on for years before creditors discover the fraud.

What can a dutiful parent do to guard against ID theft?
Some tips for protecting your offspring:

1. Never Reveal Your Child's Social Security Number

Many schools ask for a social security number, especially when you enroll your child in kindergarten. This information, however, is rarely required. But if you do have to provide it, make sure the principal keeps all student files in a safe place.

2. Hide Your Child's Name

Anyone with a kid knows you need to label everything you send to school. But, that doesn't mean you have to write your child's name in a spot that can be easily seen by strangers.
Be particularly careful with backpacks. They often come with identification tags that children love to fill out. Explain to your little one that she's better off excluding the family's address and keeping her name on the inside of the bag.

3. Teach Computer Safety

Kids often make it easy for criminals. Twenty seven percent of 9 to 17-year-olds maintain a public and personal blog, web page or other online space, according to Intersections; one in five children report doing things on the Internet of which their parents wouldn't approve. Since we can't monitor our sons and daughters at all times, you need to explain that revealing any information can put them at risk for identity theft.

4. Monitor all Junk Mail

If you notice your child getting credit card solicitations and other junk mail, there's a good chance someone got a hold of his personal information; you need to check if his identity has been compromised.

Brand-new Jury Duty Scam

From Margie Tann  iSekurity

Source: ScamBusters.org

Here's a new twist scammers are using to commit identity theft: the jury duty scam. Here's how it works:
The scammer calls claiming to work for the local court and claims you've failed to report for jury duty. He tells you that a warrant has been issued for your arrest.
The victim will often rightly claim they never received the jury duty notification. The scammer then asks the victim for confidential information for "verification" purposes.
Specifically, the scammer asks for the victim's Social Security number, birth date, and sometimes even for credit card numbers and other private information -- exactly what the scammer needs to commit identity theft.
So far, this jury duty scam has been reported in Michigan, Ohio, Texas, Arizona, Illinois, Pennsylvania, Minnesota, Oregon and Washington state.
It's easy to see why this works. The victim is clearly caught off guard, and is understandably upset at the prospect of a warrant being issued for his or her arrest. So, the victim is much less likely to be vigilant about protecting their confidential information.
In reality, court workers will never call you to ask for social security numbers and other private information.
. In fact, most courts follow up via snail mail and rarely, if ever, call prospective jurors.
Action: Never give out your Social Security number, credit card numbers or other personal confidential information when you receive a telephone call.
This jury duty scam is the latest in a series of identity theft scams where scammers use the phone to try to get people to reveal their Social Security number, credit card numbers or other personal confidential information.
It doesn't matter *why* they are calling -- all the reasons are just different variants of the same scam.
Protecting yourself is simple: NEVER give this info out when you receive a phone call.

How to HUMBUG-proof your Holidays

From Margie Tann iSekurity

Source: Better Business Bureau

Don't let the Identity Thief Scrooge steal your holiday cheer. By taking a few simple steps, your holiday season can be filled with joy and peace of mind!

Here's a handy checklist to keep in mind during the holiday season and throughout the year:

Your Holiday Identity Theft Prevention Checklist

Travel Light
When out shopping or enjoying festivities, carry only what you need: your ID, one credit or debit card, medical insurance card, limited number of checks. Consider a neck pouch and carry wallets in front pockets. And NEVER leave your purse or wallet unattended.

Party Wisely
When out celebrating, keep your purse or wallet with you. Do not leave it in the car, in a coat check area or at your table while you dance or visit the restroom. If hosting a party, lock all of your financial and personal identifying information in a safe place-this includes laptop computers. Log off and turn off desktop computers. Always lock your car.

Take Care at the ATM
Go in the bank whenever possible. Only use an ATM in a well-lit area, and do not use an ATM if you see anyone threatening or suspicious hanging around. Keep your receipt in a safe place. NEVER give your ATM card or PIN to anyone else to use.

Protect Your Home
Consider adding lights and radios on timers so that your home always looks occupied. Install motion activated lights outdoors if possible. Turn on outdoor lights after dark. Do not display holiday decorations that block your windows or give burglars a place to hide while breaking in. Always lock your home and garage. Notify your local police department if you are going on vacation. Don't forget to let them know who will be house or pet sitting for you. When leaving home, secure your financial and personal identifying information in a safe place (including laptop computers).

Give Wisely
Make a charitable giving plan and stick to it. Do not donate to anyone calling on the phone or going door to door. If the charity is legitimate, they will mail you information. NEVER give your social security number to a charity. Check out a charity before donating by going to www.give.org or www.charitynavigator.org.

Protect Personal Information
NEVER give out your social security number, bank account or credit card account information or your passwords and PINS to callers or people who send you text messages or e-mails. Consider giving gift cards instead of writing a check. Take out-going mail to the Post Office to mail. Shred all documents and mail containing any financial or personal information.

Be Computer Savvy
Shop on secure websites that display the locked padlock image or include "https://" in the browser window. Use strong passwords. Shop only with sites you know and trust. Do not open e-mails from addresses you do not recognize or e-mailed receipts for merchandise you did not order. If receiving an e-mail asking for money to be wired to help a family member, friend or soldier; it is a scam. Do not wire the money without first checking out the request. Update your anti-virus and anti-spyware programs.

Protect Yourself at Faith Community Events
Do not leave purse or wallets unattended; this includes when going up to the altar, going for Communion or visiting in the Fellowship Hall. Use an envelope when making a donation by check.

After the Holidays
As soon as possible, check your credit card statements and bank account transactions to ensure that everything is accurate.

5 Reasons Using a Debit Card is Dangerous

From Margie Tann  iSekurity

By Kathy Kristof


More people are using debit cards than credit cards this holiday season, which has spurred the Federal Reserve to push ahead on restricting the amount banks can charge merchants for each debit swipe. While banks gripe and merchants rejoice about the Fed rules that are due out this week, budget-savvy experts consider the rise in debit card usage good news because it means that shoppers are attempting to spend no more than they have, avoiding those nasty credit hangovers in January.
The bad news is that using a debit card is just not as safe as using a credit card -- even after new rules went into effect last summer to restrict overdraft charges caused by debit purchases. What makes using a debit card so dicey?


Phantom Charges
Traveling to see relatives this holiday season? Be careful about pulling out that debit card. We all know that when you use your credit card at a gas station or hotel, they charge the card when you leave for the amount of the purchase. It doesn't work that way with a debit card.
When you check into a hotel with a debit card, many hotels put a "hold" on money in your account. That "hold" that starts the moment you check in, can be for more than the amount of the room multiplied by all the nights you're planning to stay, too. How can it be for more than you'll be spending? They argue that you may decide to use the mini-bar or charge things to your room, so they're just protecting themselves from your potentially free-spending ways. Meanwhile their hold, while temporary (and often arbitrary), can cause devastating results for you. One consumer complained that a phantom charge -- a hotel hold for a room that was eventually paid for with cash -- cost him $140 in overdraft fees because he was unaware that his stated bank balance was made partly "unavailable" by the undisclosed hold. It caused his regular bills, which were scheduled to be paid while he was away, to bounce.
Gas stations also commonly place holds of $50 to $75 on your bank account when you use a debit card to purchase gas. These holds can last for days after your visit to the gas station. And it doesn't matter that you only put $10 of fuel in the tank to top off the rental car.
If you use your debit card at a gas station or hotel, find out what their hold policy is and make sure you have plenty of money in your account to cover it.


Overdrafts
Last summer, the Federal Reserve Board enacted new rules that stopped banks from automatically enrolling consumers in overdraft plans that would subject them to high fees when they used debit card for purchases that exceeded their balance. Banks have gone to great lengths to actively enroll people in these costly overdraft plans since then. If you were gullible enough to sign up, you could be at risk of overdrafts if you use a debit card anywhere. If you weren't, any transaction that exceeds your balance should be declined.
The only catch: Some debit transactions -- any debit transaction that does not require a pin number, for instance -- aren't recorded immediately, opening the door to overdraft charges. The good news here is that you may be able to dispute these overdraft fees, saying that they should never have been levied. The bad news? Dickering with your bank may be as common as visiting Santa or cruising Christmas Tree Lane at this time of year, but it's not as much fun.


Merchant Disputes
Let's say you're doing some of your Christmas shopping online and the goods show up damaged -- or don't show up at all. When you've ordered using a credit card you have two things going for you: You're usually billed some weeks after the purchase, giving you a chance to receive and inspect your order before you pay. You also have the right to dispute a charge -- and not pay that portion of your bill -- when something shows up damaged or the merchant fails to deliver it.
When you use your debit card, the amount of the purchase is subtracted from your account immediately -- often long before you've seen the goods. You then have to fight with the merchant to get your money back. If this was a reputable merchant, you shouldn't have a problem. But good luck if you're dealing with a crook.


Account Safety
Like credit cards, federal law limits your liability for fraudulent use of your debit card to $50. But that's only if you report the card stolen within two days of discovering the theft. If you take an extended holiday and don't check your statements for a couple of months, the crook can drain your bank account and there's nothing you can do about it. If there's any chance that somebody could steal your debit card, you need to keep close and regular track of your bank balance and dispute any unfamiliar purchases promptly.


Pay Now/Reimburse Later
If someone has fraudulently used your credit card, you (or your credit card company) are likely to spot it before you get the statement. That means you're never out the money. You dispute the charge, subtract the disputed amount from your bill and let the credit card issuer worry about it. With a debit card, the stolen money may have already left your account. That means you have to dicker with your bank to get reimbursed. Some banks are quick and helpful in resolving these disputes. Others? Not so much.

Man, they are getting slick! New Credit Card Scam

From Margie Tann iSekurity

Source: Snopes.com
http://www.snopes.com/crime/warnings/creditcard.asp
(iSEKURITY Communications note: the following is an actual transcript provided by an actual victim)

This one is pretty slick since they provide YOU with all the information, except the one piece they want.

Note: the callers do not ask for your card number because they already have it. This information is worth reading. By understanding how the VISA & Master Card Telephone Credit Card Scam works, you'll be better prepared to protect yourself.

One of our employees was called on Wednesday from 'VISA', and I was called on Thursday from 'Master Card.' The scam works like this:

Caller: 'This is (name), and I'm calling from the Security and Fraud Department at VISA. My Badge number is 12460. Your card has been flagged for an unusual purchase pattern, and I'm calling to verify. This would be on your VISA card which was issued by (name of bank). Did you purchase an Anti-Telemarketing Device for $497.99 from a Marketing company based in (<LOCATION> has been removed for security purposes)?'

When you say 'No', the caller continues with, 'Then we will be issuing a credit to your account. This is a company we have been watching and the charges range from $297 to $497, just under the $500 purchase pattern that flags most cards. Before your next statement, the credit will be sent to (gives you your address), is that correct?'

You say 'yes.' The caller continues: 'I will be starting a Fraud investigation. If you have any questions, you should call the 1-800 number listed on the back of your card (1-800-VISA) and ask for Security. You will need to refer to this Control Number. ' The caller then gives you a 6 digit number. 'Do you need me to read it again?'

Here's the IMPORTANT part on how the scam works: The caller then says, 'I need to verify you are in possession of your card.' He'll ask you to 'turn your card over and look for some numbers.' There are 7 numbers; the first 4 are part of your card number, the next 3 are the security Numbers that verify you are the possessor of the card. These are the numbers you sometimes use to make Internet purchases to prove you have the card. The caller will ask you to read the 3 numbers to him. After you tell the caller the 3 numbers, they'll say, 'That is correct, I just needed to verify that the card has not been lost or stolen and that you still have your card. Do you have any other questions?' After you say 'No,' the caller then thanks you and states, 'Don't hesitate to call back if you do, and hangs up.

You actually say very little and they never ask for or tell you the Card number. But after we were called on Wednesday, we called back within 20 minutes to ask a question. Are we glad we did! The REAL VISA Security Department told us it was a scam and in the last 15 minutes a new purchase of $497.99 was charged to our card.

Long story made short: we made a real fraud report and closed the VISA account. VISA is reissuing us a new number. What the scammers want is the 3-digit PIN number on the back of the card. Don't give it to them. Instead, tell them you'll call VISA or Master card directly for verification of their conversation. The real VISA told us that they will never ask for anything on the card as they already know the information since they issued the card! If you give the scammers your 3 Digit PIN Number, you think you're receiving a credit. However, by the time you get your statement you'll see charges for purchases you didn't make and by then it's almost too late and/or more difficult to actually file a fraud report.

What makes this more remarkable is that on Thursday, I got a call from a 'Jason Richardson of Master Card' with a word-for-word repeat of the VISA scam. This time I didn't let him finish. I hung up! We filed a police report, as instructed by VISA. The police said they are taking several of these reports daily! They also urged us to tell everybody we know that this scam is happening.
Please pass this on to all your family, friends and neighbors. By informing each other, we protect each other.

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Fraudulent Classified Ads and Auction Sales

From Margie Tann iSekurity

Source: Wall Street Journal

Internet criminals post classified ads and auctions for products they do not have,
and make the scam work by using stolen credit cards. Fraudsters receive an order
from a victim, charge the victim's credit card for the amount of the order, then
use a separate, stolen credit card for the actual purchase. They pocket the purchase
price obtained from the victim's credit card and have the merchant ship the item
directly to the victim. Consequently, an item purchased from an online auction but
received directly from the merchant is a strong indication of fraud. Victims of
such a scam not only lose the money paid to the fraudster, but may be liable for
receiving stolen goods.

Shoppers may help avoid these scams by using caution and not providing financial
information directly to the seller, as fraudulent sellers will use this information
to purchase items for their schemes. Always use a legitimate payment service to
ensure a safe, legitimate purchase.

As for product delivery, fraudsters posing as legitimate delivery services offer
reduced or free shipping to customers through auction sites. They perpetuate this
scam by providing fake shipping labels to the victim. The fraudsters do not pay
for delivery of the packages; therefore, delivery service providers intercept the
packages for nonpayment and the victim loses the money paid for the purchase of
the product.

Diligently check each seller's rating and feedback along with their number of sales
and the dates on which feedback was posted. Be wary of a seller with 100% positive
feedback, with a low total number of feedback postings, or with all feedback posted
around the same date and time.

BBB Reminds Consumer to Check out Charities this Holiday Season before Giving

From Margie Tann iSekurity

Source: tucsoncitizen.com - Powered by bbbconsumeralert - Dec. 03, 2010

Have you recently received one of those plastic envelopes from Cell Phones for Soldiers, with the tag line "Help Our Troops Call Home!"? I received one, too, and wondered how that organization would actually use the phones: Would they sell them and make money to pay for the overseas calls by soldiers, install service on the phones and give them to a platoon, or give the soldiers the phones when theirs break?

For that matter, can soldiers carry cell phones when they are active military?

When I looked up the charity using the BBB Wise Giving Alliance (WGA), I found a report that said Cell Phones for Soldiers did not provide the requested information, therefore the WGA couldn't evaluate the charity.

I'm always a little suspect when a charity or business doesn't give information to be evaluated. So, I dug a little deeper. I checked Guidestar, which has a lot of 990s (an IRS tax form for charities) on file. The address on the plastic envelope I received is Dexter, Michigan, but the address on Guidestar is in Massachusetts.

The mission statement says "Organization raises funds to provide funds to pursue its mission as stated in its bylaws of providing aid to service men and women this is achieved by donations from the public of money and cell phones which are sold in a recycling program." (sic)

In 2008 the organization brought in more than $2.7 million in contributions and grants, of which $1.7 million was from cell phones. They spent $1 million on pre-paid calling cards (which we would assume they gave to soldiers) and report administrative and fund-raising expenses of less than $200,000.

I also wanted to check to be sure that the IRS had this charity on their list of organizations eligible to receive tax-deductible charitable contributions. They are listed, which means if you choose to donate to them, you can deduct the amount the cell phone is worth (not what you paid).

With a cell phone, you will want to use a search engine and see if you can determine the fair market value for the phone you are donating. You will also need documentation from the organization that they received the donation, including their name, date of the contribution, and an indication of what was given. (In the case of gifts-in-kind, as opposed to cash, most charities won't list a dollar amount on the receipt.)

If you aren't sure what donations can be deducted on your taxes, the Internal Revenue Service may be able to help you.

The BBB hopes that as you are deciding what charities to give your hard-earned money to this holiday season, you will use due diligence and check out every offer prior to donating. The BBB has charity standards, one of which is that the charity should spend at least 65% of its total expenses on program activities.

Happy Donating!

IRS Scams

CONSUMER ALERT FROM THE I.R.S.
Source: IRS.gov

From Margie Tann iSekurity


The IRS does not send taxpayers unsolicited e-mails about their tax accounts, tax situations or personal tax issues. If you receive such an e-mail, most likely it's a scam.

IRS impersonation schemes flourish during filing season. These schemes may take place via phone, fax, Internet sites, social networking sites and particularly e-mail.

Many impersonations are identity theft scams that try to trick victims into revealing personal and financial information that can be used to access their financial accounts. Some e-mail scams contain attachments or links that, when clicked, download malicous code (virus) that infects your computer or direct you to a bogus form or site posing as a genuine IRS form or Web site.

Some impersonations may be commercial Internet sites that consumers unknowingly visit, thinking they're accessing the genuine IRS Web site, IRS.gov. However, such sites have no connection to the IRS.

Employment/Business Opportunities Fraud

From Margie Tann - iSekurity

Source: ic3 - an FBI / NWC3 Partnership


Employment/business opportunity schemes have surfaced wherein bogus foreign-based companies are recruiting citizens in the United States on several employment-search websites for work-at-home employment opportunities. These positions often involve reselling or reshipping merchandise to destinations outside the United States.

Prospective employees are required to provide personal information, as well as copies
of their identification, such as a driver's license, birth certificate, or social
security card. Those employees that are "hired" by these companies are then told
that their salary will be paid by check from a United States company reported to
be a creditor of the employer. This is done under the pretense that the employer
does not have any banking set up in the United States.

The amount of the check is significantly more than the employee is owed for salary
and expenses, and the employee is instructed to deposit the check into their own
account, and then wire the overpayment back to the employer's bank, usually located
in Eastern Europe. The checks are later found to be fraudulent, often after the
wire transfer has taken place.

In a similar scam, some web-based international companies
are advertising for affiliate opportunities, offering individuals the chance
to sell high-end electronic items, such as plasma television sets and home theater
systems, at significantly reduced prices.

The affiliates are instructed to offer the merchandise on well-known Internet auction
sites. The affiliates will accept the payments, and pay the company, typically by
means of wire transfer. The company is then supposed to drop-ship the merchandise
directly to the buyer, thus eliminating the need for the affiliate to stock or warehouse
merchandise. The merchandise never ships, which often prompts the buyers to take
legal action against the affiliates, who in essence are victims themselves.

Credit & Debit Card Skimming

From Margie Tann - iSekurity

Source: Better Business Bureau

Beware of Debit and Credit Card Skimming

Card skimming is a crime that involves the, 'skimming' or stealing of information implanted in your card's magnetic strip. This is accomplished when a criminal attaches a device at the mouth of a card-acceptance slot that records the data on your card as you slide it in.

According to a recent article in Shop Smart Magazine, this scam is becoming even more sophisticated. The article quotes Brian Krebs, a computer security expert who says that criminals no longer have to return in person to collect the device and that the information can be sent to them wirelessly via text message. Here a small camera is installed in an adjacent pamphlet holder to record the information from the ATM's display screen and keyboard.

A small wireless transmitter hidden in the holder sends the pilfered information via a wireless transmitter to waiting thieves who can capture it on a laptop from up to 200 meters away.

Skimming techniques can be used not only at banks and other ATM sites, but also at many point-of-sale locations such as gas station pumps where customers commonly use debit cards to pay for purchases. As recently as January 2010, a Boston area man was arrested for using cameras and a skimming device to steal over $100,000 from the accounts of bank customers.

In another instance, U.S. Secret Service agents arrested a man who had installed 55 independent ATMs in California, Florida and New York to collect information on more than 1,400 different banks which he used to steal over $3.5 million dollars from customer account.

The BBB offers the following tips when using ATMs or paying for gas by card:

- Use your credit card at the gas pump instead of your debit card. This way, if you become victimized you haven't lost the money directly. You can contact your credit card company and they will get the fraudulent charges removed. If money is stolen directly from your bank account, this could have much worse consequences for you and getting the money replaced could take quite some time.

- Avoid using ATMs that are not located at a bank. These ATMs are often less secure so thieves have more opportunity to tamper with them.

- Look closely at the machine you are putting your card into. If it appears compromised in any way, (i.e. plastic sticking out, anything out of the ordinary attached) do not use it.

- If your card gets stuck in machine, do not leave the area. Call your bank right away and report the issue.

- Monitor your accounts daily for any fraudulent activity. The sooner you detect fraud, the better off you will be at resolving it quickly and keeping it from continuing.