Fraud Alerts

Release Date: October 28, 2008

The Federal Deposit Insurance Corporation (FDIC) is warning consumers, businesses and financial institutions to be aware of fraudulent e-mails allegedly from, or related to, financial institutions that have been the subject of recent news stories. Phishing e-mails often incorporate aspects of high-profile news stories -- such as bank mergers, acquisitions and failures -- to create a sense of urgency and legitimacy for requesting information or action. These types of fraudulent e-mails may request recipients to verify computer logon credentials, update personal information, or activate new online security features. The fraudulent e-mails may include a link that directs the recipient to a fraudulent or "spoofed" Web site that looks similar to the subject institution's legitimate Web site. Once there, users may be prompted to provide information about online banking credentials or other personal and confidential information that could be used to gain unauthorized access to online banking services or perpetrate identity theft. These spoofed Web sites may also direct the user to download software updates or digital certificates, which may actually be malicious code or software attempting to collect online banking credentials or other personal and confidential information. Consumers, businesses and financial institutions should be wary of unsolicited e-mails purportedly from financial institutions recently in the news and take the following precautions:

• Do not follow Web links in unsolicited e-mails from apparent financial institutions. Instead, use Web browser bookmarks or type your institution's Web address into the browser address bar when accessing your bank's Web site or online banking services.
• Always use anti-virus software and ensure the virus signatures are automatically updated. Ensure the computer operating system and common software applications are up-to-date with security patches installed.
• Do not open unsolicited or unexpected e-mail attachments claiming to be from a financial institution because of the risk of malicious code or software. As a precaution, call the financial institution using an appropriate telephone number, such as one from an account statement, to validate the e-mail and attached file before opening any attachment.
• Be aware that phishing e-mails frequently use new and innovative ways to trick recipients into providing logon credentials and confidential information or into unleashing malicious code.
• Regularly review financial account statements and immediately report any discrepancies to your institution.
• Be mindful that financial institutions generally deliver notices to consumers in writing about changes in account terms and conditions unless the consumer previously agreed to receive the notice electronically.

For additional information about safe online banking and avoiding online scams, visit http://www.fdic.gov/consumers/consumer/guard/.

Read on for important information to protect you and your family from becoming victims of identity theft.

Granny Scam - Release Date: December 5, 2008

A grandparent is contacted by a caller who identifies themselves as a grandchild. The imposter, posing as the grandchild, says that they have been in an accident in Canada and they need money sent to them immediately. They ask the grandparent to keep everything a secret because they don't want to worry the family or they don't want the family to know they were in an accident. The call is then transferred to a person who says that they are a police officer, attorney, or bail bondsman. The grandparent is told that their grandchild won't be allowed back in the United States until money is wired through Money Gram. They may say that the money is needed for restitution, hospital bills, or bail. The grandparent is told the money has to be sent immediately or the grandchild can't leave Canada. If the grandparent sends the money, the caller asks for more money for additional emergencies. Hundreds of US grandparents have sent money to Canada and their grandchildren were safe in the United States. Always verify with other family members that the grandchild has really called. Money sent outside of the United States by money transfer services can not be returned once the imposter has picked it up.

Identity Theft Phone Scam

Identity theft scammers, pretending to work for local courts are calling potential victims with the news that they have failed to report for jury duty and that a warrant has been issued for their arrest. They then ask victims for personal confidential information, including Social Security numbers, birth dates, and credit card numbers for verification purposes. This is exactly the information that they need to commit identity theft. The jury duty scam has been reported in nine states: Arizona, Illinois, Michigan, Minnesota, Ohio, Oregon, Pennsylvania, Texas, and Washington. In reality, court workers do not call potential jurors and ask for their Social Security numbers, credit card numbers or other personal information. Most courts use snail mail exclusively for jury matters.

Phishing

Phishing is a high-tech scam that uses e-mail or pop-up messages to deceive you into disclosing your credit card numbers, bank account information, Social Security numbers, passwords, or other sensitive information. The e-mail claims to be from a business or organization that you deal with: for example, your Internet Service Provider (ISP), bank, online payment service, or even a government agency. The message usually says that you need to 'update' or 'validate' your account information. It might threaten some dire consequence if you don't respond. The purposed of the bogus site is to trick you into divulging your personal information so the operators can steal your identity and run up bills or commit crimes in your name. If you receive one of these e-mails, do not click on links associated with these phishing attempts as they can download malicious software.

Nigerian Scam

Lately there have been many letters, e-mails, and faxes from Nigerians stating that they need assistance getting money out of Africa and are looking for people in the United States to help them. They say that a US bank account is needed to deposit funds that they are trying to get out of the country. These letters range in topic but always ask for account information. The account could be debited by way of an electronic debit transfer. Sometimes an amount of money is sent via a check or cashier's check to the party in the United States. Then an amount is asked to be returned to Nigeria. After the funds are sent to Nigeria, the original deposited check comes back fraudulent, and the victim has lost whatever funds they transferred to Nigeria. These counterfeit checks are often undetectable until the originating bank rejects them.

Lottery Scam

A similar scam to the Nigerian scam is called the "Lottery Scam" in which the victim is told that they have won some sort of Lottery. They may receive an e-mail, fax, or phone call to notify them that they have won. They are then sent a fraudulent cashier's check and are asked to wire taxes to the Canadian government. The customer deposits the cashier's check, wires a percentage of the money to an account in Canada to pay the fake taxes, then the original check is returned as fraudulent. The victim has then lost whatever money they had wired back to Canada.

Home Improvement Scam

A scam has resurfaces victimizing the elderly in our area. With this scam, an individual or group of people approach an elderly person's home and convince them that they done work for them in the past or that they need a new roof and that they will do the job for a fraction of what someone else would charge them. Once they gain the person's trust they may rob their homes or do an unacceptable job for an exorbitant fee.

Counterfeit US Postal Money Orders

Counterfeit US Postal Money Orders are being received by residents in our communities. Sometimes it is for an Internet purchase and the purchaser is sending a worthless money order. They are sometimes told that they have won a lottery of their assistance is needed in exchanging several $1,000 money orders into a cashiers check. In this scam, the sender will give the recipient a fee for combining small money orders into a bigger check. For instance, if the recipient will exchange ten $1,000 US Postal Money Orders into a cashier's check of $10,000, the sender will give the recipient $1,000.

Counterfeit Payroll Checks

Lately, many counterfeit payroll checks have shown up in our area causing many local businesses to lost money. These checks appear to have been written by legitimate local businesses. These con-artists will approach a cashier at a store that they know cashes payroll checks, product an authentic looking driver's license matching the name on the check, and leave with the money. Once a business cashes a counterfeit check there is usually no way to recover the money.

Quick Change Artists

People have visited many community banks asking for a teller to change large bills into several smaller bills then change their minds as to which denomination they wanted. When the teller places the smaller bills on the counter, the quick change artists will touch the money and take it without the teller noticing. When the teller recounts the money that was changed, their drawer is short: usually by a few hundred dollars. Since no ID is required for a cash-for-cash transaction, finding these individuals is often impossible. This crime ring targets banks more than retail stores and usually attempt to pick out the newest teller that is working the teller line.

Public Computer System Scam

Recently our customers have notified us that they have received calls from the Public Computer System saying that their information has been posted on the Internet. These individuals have a name, address, and phone number and ask that the person they are contacting to verify their information in order to clear it off the Internet.

Ten Ways Thieves Steal Your Information:

• Snatching a purse or wallets. Pickpockets and purse snatchers
• Stealing personal mail. Information in the form of a credit card.
• Dumpster Diving. Going through your trash.
• Household and Computer burglary . Breaking into your home. Cyber thieves invading your computer.
• Credit Bureau Fraud. By posing as someone else, such as a bank employee, thieves could obtain financial data.
• Eavesdropping and shoulder surfing. Listening to private conversations or watching over your shoulder while entering your PIN number.
• Skimming. By running an unsuspecting customer's card through a bogus reader designed to copy the card number.
• Pretexting, phishing, scamming, and spoofing . Thieves pretend to be from businesses with a seemingly good reason for needing your social security number and/or mother's maiden name.
• Family theft. Relatives who have access to your financial records, social security number, etc.
• Corporate date theft. Thieves backing their way into corporate and banking databases, and steal physical files. One method to gain access to account information, thieves will often fill out a change of address form in the victim's name.

Four Warning Signs That Your Identity Has Been Stolen

• Denied! Your application for credit or a job is turned down based on your credit report and, as far as your know, your credit history is good.
• Ripped Off! Your credit card, bank balance, or other financial statements show charges you never made. Or you receive a statement for a credit card you didn't know you had.
• Harassed! Collection agencies start calling you out of the blue to collect on never incurred debts.
• Missing Mail! If your bills stop coming, it's a bad sign. It might mean an identity thief has changed your address on your credit card statement so you won't notice the fraudulent charges on your account.

If you experience one of the above indicators, you should not assume that it is simply a clerical error. You should immediately notify the company or institution's fraud prevention department to initiate a detailed account investigation.