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Common Types of Fraud
Phishing (FISH-ing)
This scam uses authentic looking emails and web sites to trick
recipients into giving personal financial information such as
account numbers, credit card numbers, social security numbers,
user names, and passwords. The messages sometimes ask the
recipients to follow a link and enter the information for
verification purposes.
Phishing emails are basically spam emails with intent to do harm
to your finances. Spammers use websites, newsgroups, guesswork
and list trading to get your email address. A phisher gather
emails the same way without the help of a financial institution.
They give their victims the impression that they are
representing the credit card company or bank.
Because most people have grown increasingly aware of this scam,
most phishing emails are deleted. However, the quantity of
attacks has increased. Also, the technology the criminals use
has become more sophisticated allowing them to reach more
victims.
Check Fraud
If someone you don’t know wants to pay you by check, but wants
you to wire some of the money back, beware! It’s a scam that
could cost you thousands of dollars.
How do fake check scams work? There are many variations of the
scams.
They usually start with someone offering to:
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Buy something you advertised for sale.
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Pay you to work at home.
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Give you an advance on a sweepstakes you’ve
won.
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Give you the first installment on the
millions you’ll receive for agreeing to transfer money in a
foreign country to your bank account for safekeeping.
Credit Card Scams
Credit card scams generally occur when:
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A thief goes through trash to find discarded
receipts or carbons, and then uses your account numbers
illegally.
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A dishonest clerk makes an extra imprint
from your credit or charge card and uses it to make personal
charges.
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You respond to a mailing asking you to call
a long distance number for a free trip or bargain-priced
travel package. You're told you must join a travel club
first and you're asked for your account number so you can be
billed. The charges you didn't make are added to your bill,
and you never get your trip.
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Account information has been breeched or
your lost credit card ends up in the wrong hands. For more
information, visit the Federal Trade Commission at
www.ftc.gov
Identity Theft
Identity theft occurs when a criminal uses your name, address,
Social Security number (SSN), bank account, or credit card
account number without your knowledge to open accounts or make
purchases.
You are most likely to become a victim of Identity theft if:
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Your purse or wallet has been stolen
containing identification, credit, and bank cards.
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You are scammed by someone who claims to be
a legitimate business person.
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Your credit report or personal information
was obtained by a dishonest employee abusing access to
company records.
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Your information was obtained by someone
hacking into business computers.
ATM/Debit Fraud
A thief would need both your PIN and the magnetic strip
information on the back of your card to commit ATM or Debit
Fraud. The PIN is not stored on the card’s magnetic strip. So,
if your card is stolen or duplicated, the thief has to find some
way to get your PIN.
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