Recently in Scams/Hoaxes Category

The best way to avoid being scammed this year is to avoid giving out your personal information to anyone who may be soliciting it. Whether it is through email, phone, voice or text -don't assume people are who they say they are!

January is Financial Awareness Month and a great time to act on your new year's financial resolutions. One step you should consider is figuring out your plan of action should you learn your information has been stolen or compromised.

Remember, the best way to prevent an identity theft -is to plan for one! Would you know who to call if your wallet went suddenly missing? Do you have a plan of action?

Also it's important to stay on top of your credit reports. One in four have errors that could cause you to pay higher interest rates and higher insurance premiums.

Order your free annual credit reports from the official place.

You can either call the automated toll-free line at 877-322-8228 or order them at annualcreditreport.com (but be watchful of your spelling, or you may be taken to a fake site)

Also take the time to review your credit card statements and bank accounts. Stay informed of the latest scams, as knowledge is power. You can search here and find info on various scams!

Some of the same old scams are circulating -with new twists;

Twitter Scam

Users of the popular social networking site Twitter have been warned to look out for a scam that is intended to steal the user's login and password details.

The scam starts with a direct message appearing in a user's Twitter account, urging them to check out another site - a scam message such as "hey! check out this funny blog about you..." is pretty common.

Click on the link provided and you'll be taken to a screen that looks a lot like a Twitter login screen but is actually a trap.

Twitter has now posted a number of blogs on the scam and had one crucial piece of advice for users who are worried about the integrity of their information in this post: "If this has you feeling a bit weirded out, feel free to change your Twitter password."

Here's a screen shot of the bogus screen.

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Credit Union Scam

The Cape Regional Credit Union is warning members of an e-mail identity theft scam. But please beware that scammers have been using various credit union names -and sending throughout the web. They hope that their email lands in someone's in box who has an account with that particular credit union -and then falls for their scam.

The scam email reports that the email recipients bank card has been deactivated. The fraudulent e-mail states that "for your security, the card and PIN have been disabled." They provide a phone number  -urging you to call in order to reactivate your card. Don' t fall for it.

Here's more on this scam.

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LifeLock warns of Copy-Cat Scam

LifeLock prides itself on educating consumers about the dangers of identity theft and what scams are often used to obtain money or personal information.

Now LifeLock is issuing a warning to consumers about criminals scamming consumers by posing to be real companies, including LifeLock.

A telemarketing scam has recently come to LifeLock's attention, and now the company wants the general public to understand that the most common scenario is:

* A senior citizen receiving a phone call from an unknown individual, pretending to be a LifeLock related company;

* The unidentified individual falsely tells the senior citizen that his/her personal information can easily be found on the Internet;

* The unidentified individual scares the senior citizen into providing bank account/debit card information and authorizing the transaction to allegedly provide a solution;

LifeLock representatives will never call consumers at home or sell anything that is not available on the company website.

 Anyone who may have had an experience similar to that listed above should contact the company at 1-800-LIFELOCK.

Not too long ago I blogged about a particular phishing scam floating around that is using the names of various credit unions. The fake email either warns recipients that their bank account was compromised or their debit card account has had suspicious activity.

Since many consumers have been reporting receiving these types of phishing emails, it bears noting again. These types of email scams often use actual financial institution logos and bogus letterhead specifically to make them appear to be from official entities. The emails instruct you to click on a link, dial a provided phone number or ask you to reply to a particular email address.  

It's important to note that though this particular email below claims to be from Sun East Federal Credit Union -the names of several legitimate credit unions have been being used in this scam. The crooks hope that the odds are in their favor, the scam letter will land in an email box of someone who actually has an account with the named institution -and they will fall into their set trap.

Here's the latest email; 

Subject: This is not a promotional e-mail

This is not a promotional e-mail. Please call us immediately at 1-877-214-xxxx regarding recent activity on your SunEast Debit Card.

We're available 24/7 to take your call.

Please disregard this e-mail if you've already called us since the date this e-mail was sent.

We appreciate your prompt attention to this matter.

Thank you
Sun East Federal Credit Union

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Never trust or dial a phone number provided in an unsolicited email, text or voice mail. Take the time to look up the legitimate phone number of any company you do business with.

Letters from an organization called "Grant Prospect, Inc." and/or Old World Industries, Inc.,  have been sent to college students telling them they have been approved for a $50,000 grant to pay college related expenses.

The letter contains a check for over $4,000. The student is advised to cash the check to send money back to the organization to pay state and federal processing fees. The checks are counterfeit. Do Not Deposit them or fall for this scam aimed at college students!

Fraud prevention tips:

• Do not respond to suspicious e-mails or mailings. Most often it is best to just delete or throw them away

• Fake payment scams by their nature sound very believable. Scammers actively search for victims online

• Counterfeit checks, money orders, and currency look very real, and can even fool bank staff

• Under federal law, banks must make deposited funds available quickly. Just because you withdraw the money, doesn't mean the check is good. It can often take weeks to discovery forgeries

• Financial institutions that lose money as a result of cashing a fraudulent check expect to recoup their loss, often at the expense of the victim. You are responsible for the transactions you make

• There is no legitimate reason for someone who is giving you payment to ask you to send money back. Insist on getting paid the exact amount

• Trust your instincts. If a business proposition seems suspicious, then don't engage in the transaction

Here's a copy of the actual letter and check circulating at universities as scammers try to hook college students! Pass this information on to parents and students to help them avoid falling victim to this scam.

Source: Iowa Dept. of Justice, University of St. Thomas

For more information on recently reported holiday scams , and information for on online holiday shopping tips,

see a few earlier blogs:

Did you get an E- Valentine Card from friend? Don't open it until you check with that friend first!

Holiday Season Cyber Scammers Target Victims...

Koobface, a malicious virus that attacks users with spyware and then hacks their system for passwords and credit card numbers, has now been found on Facebook.

Many people enjoy networking and keeping track of friends and family through sites such as Facebook and MySpace which makes Koobface a challenge to those that frequent social networking sites.

How does Koobface work?

According to reports, the virus spreads via messages sent between friends on the site.

When one user is infected, his or her account will send messages to friends like, "you just look awesome in this new movie!" or "they said some bad things about you. Click here to see them." Of course, most Facebook users can't help but want to find out exactly what these messages mean. Even those distant, grade nine friend-of-friends will make many users of the site click on to find out more about all the juicy gossip. (Source: telegraph.co.uk)

If users do click on the link, they'll be led to a site asking them to update to a newer version of Adobe's Flash player. Downloading that bogus software will instead infect the victim's computer with a nasty worm that searches out personal information that can help hackers steal identities. Of course, social security and credit card numbers, along with banking passwords, are gold mines.

Spokesman for Facebook Barry Schnitt denies rumors that the site may have already been hit hard by Koobface;

"Only a very small percentage of Facebook users have been affected, and we're working quickly to update our security systems to minimize any further impact," he assured millions of worried users.

Craig Schmugar of McAfee Avert Labs said Koobface messages are likely to come from infected friends. The best advice is to be wary of Facebook messages, which could actually be from the Koobface worm. Facebook has posted a message on its security page advising users to install the latest antivirus software. Users who have been affected, the company added, should change their password. McAfee also warns against following unexpected hyperlinks, and adds that it's best to install software and updates from the source, whether Adobe or some other provider, instead of trusting content from a third-party site.

Facebook has not disclosed how many of its more than 120 million members have been infected with the virus.

"You must run an up-to-date antivirus, security patches, and firewalls," Graham Cluley, a senior technology consultant at Sophos advised. "That will not only help you defend your computer if you click on a dangerous link, but it will also help reduce the chance of a hacker stealing your Facebook identity and using it to spread messages to your network of friends."

Is this a serious threat? It's serious in the sense that Facebook users are receiving spam messages on their wall or Facebook inbox pointing to malicious content, said Cluely.

"A key factor which helps social-networking spam and malware succeed is that people are more prepared to click on a link or message if they believe it is from someone they know," Cluley said. "The average person is used to receiving unsolicited e-mails in their regular inbox, but believe messages have more credence when they arrive via Facebook. The message is clear -- people need to beware.".

Sources: it.toolbox.com,sfgate.com, infopackets.com 

The Internal Revenue Service is warning taxpayers not to respond to a mass email phishing scam, which appears to target immigrants.

The e-mails purporting to come from "noreply@irs.gov" include attached fake forms that ask unwitting taxpayers to fax in personal bank account numbers.

The e-mail may have a cover letter from a person identifying herself as IRS public relations employee Laura Stevens, who instructs recipients to fill out the attached W-4100B2 form.

The attached form W-4100B2 does not exist but is similar to the IRS' W8-BEN form. The form requests such information as the person's birth date, Social Security number, mailing address, bank account number and signature.

The genuine form is sent to financial institutions, not the IRS, by nonresident aliens with income subject to U.S. income tax. The financial institutions act as a nonresident alien's withholding agen

Remember, the IRS does not send unsolicited e-mails about taxes.

• Any unsolicited e-mails claiming to be from the IRS are scams. Don't access any links or attachments.

• If you filed a 2007 federal tax return with the IRS, you don't need to do anything else to get a stimulus payment. The IRS will take care of the rest.

• Filing a tax return is the only way to get a refund. There is no separate application form

How to report phishing, e-mail scams and bogus IRS Web sites;

If you receive an e-mail or find a Web site you think is pretending to be the IRS,

    * Forward the e-mail or Web site URL to the IRS at phishing@irs.gov

    * You can forward the email as received or if possible, provide the header info in email that has additional info.

    * After you forward the e-mail or header information delete the message


For more information about tax scams, visit the IRS Web site

I've talked quite a bit about the dangers of skimming devices and the ease at which they are available to criminals.. Whether skimmers are attached to ATM's or hand held your credit card information can be skimmed quickly and easily without your knowledge. If your Debit Card information is skimmed, you may have your account cleaned out before you can even close your account!

Remember, credit card skimming can happen at nearly any business establishment, if you are not particularly watchful of your credit card. A current employee can pilfer information to sell to an identity thief in a blink of an eye. Watch the below video to see just how easily it occurs. 

Here's a recent story from Texas  where 400 people had their Debit Cards skimmed while at a local restaurant (much like the earlier blog noted about a similar Colorado case).

Bank links multiple identity theft cases to Gainesville restaurant

Texas/Record breaking identity theft numbers have hit Texoma, and the city of Gainesville has seen a drastic increase, where bank officials say one restaurant has over 400 people left without debit cards. Rashi Vats explains.

Gainesville police say there have been over 30 cases of identity theft in just the past month, and one restaurant in Gainesville has put about 400 customers in danger of being victims of identity theft.

It's the rumor going around town.

"I heard that some guy used his debit card at Golden Chick and supposedly about $400 was taken out of his account," Maegan Puetz told us.

So instead of going to Golden Chick, Maegan and her friend, Ellanie, went somewhere else to eat, because, as we learned Tuesday, bank officials say Golden Chick has been a place where 400 of its customers were in danger of identity theft between October and mid-November.

First State Bank in Gainesville received a number of phone calls from their customers about transactions they never made. It turned out they were victims of fraud.

"What we understand would have happened is someone who would frequent the restaurant on a particular day, their card information was also captured, and basically the magnetic strip, and they reproduced the plastic with that magnetic strip information on it, and then used it and other locations, creating fraudulent transactions," says Tim Turbeville, Senior VP at First State Bank of Gainesville.

First State Bank then investigated all of their customers' accounts and found there were more people in danger than they expected.

"We had a list of accounts that reported the fraud, so we pulled transactions back from an earlier point in time, and we noticed that a common denominator that all these customers went to Golden Chick," Turbeville says.

Now First State Bank is taking a proactive approach by currently notifying those 400 customers and issuing new debit cards.

Golden Chick goes owner Dee Lee says she gave the Gainesville Police Department surveillance video, and they found nothing connected to the restaurant. Click here to read MORE


 Watch how hand held skimmers are used to skim customer credit cards

 

The FBI is reminding people this holiday season that cyber criminals continue to aggressively seek ways to steal money and personal information. Scammers are using several techniques to fool potential victims including sending unsolicited e-mails that contain attachments such as electronic greeting cards containing malware (malicious software), setting up spoofing websites that looklike legitimate commercial sites, and unleashing phishing and vishing attacks where individuals receive e-mails asking for personal data.
 
""These cyber scammers will do whatever they can to steal your money and personal information this holiday season and are trying many different ways to commit these crimes. The best way to protect yourself is to report these scams to law enforcement or the Internet Crime Complaint Center, IC3," said Shawn Henry, Assistant Director, FBI Cyber Division,Washington, D.C.

In the greeting card scam, the cards, which are also referred to as e-cards or postcards, are being sent via spam. Like many other Internet fraud schemes, the criminals use social engineering tactics to entice the victim, claiming the card is from a family member or friend. Although there have been variations in the spam message and attached malware, generally the spam directs the recipient to click the link provided in the e-mail to view the e-card. Upon clicking the link, the recipient is unknowingly taken to a malicious webpage.
 
Spoofing scams are when criminals create a false or shadow copy of a real website or e-mail in a way that misleads the recipient. All network traffic between the victim's browser and the shadow page are sent through the spoofer's machine. This allows the spoofer to acquire personal information, such as passwords, credit card numbers, and account numbers.
 
Even though the e-mail looks like the real thing, complete with authentic logos and working web links, it's a fake. The website where you're told to enter your account information is also fake. In some instances, really slick spoofers direct you to the genuine website, then pop up a window over the site that captures your personal information. The information entered does not go to the legitimate site,but rather to the spoofer's account. The information you entered will most likely be sold to criminals, who'll use it to ruin your credit and drain your account.

In phishing and vishing attacks, individuals report receiving e-mails or text messages indicating a problem with their account. They are directed to follow the link provided in the message to update their account or correct the problem. The link actually directs the individuals to a fraudulent website that looks legitimate where their personal information, such as account number and PIN, is compromised.
 
Other reported scams have included victims receiving an e-mail message asking them to complete an online survey. At the end of the survey, they are asked for their personal account information to allow funds to be credited to the account in appreciation for completing the survey. Providing this information will allow criminals to compromise the account.
 
Here are some tips you can use to avoid becoming a victim of cyber fraud:

    *  Do not respond to unsolicited (spam) e-mail.

    *  Do not click on links contained within an unsolicited e-mail.

    *  Be cautious of e-mail claiming to contain pictures in attached files, files may contain viruses.

    *  Only open attachments from known senders.

    *  Avoid filling out forms in e-mail messages that ask for personal information.

    *  Always compare the link in the e-mail to the link that you are actually directed to.

    *  Log on to the official website, instead of "linking" to it from an unsolicited e-mail.

    *  Contact the actual business that supposedly sent the e-mail to verify if the e-mail is genuine.

If you have received a scam e-mail, file a complaint at www.ic3.gov.

For more tips to avoid falling victim of fraud this holiday season see earlier blog:
10 Simple Tips to Avoid the Identity Theft Grinch!