Financial Education Resources for FRAUD INFORMATION

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Counterfeit Check Scams Come in Many Guises

If someone you don't know offers to send you money, watch out. It's probably one of the many counterfeit check scams happening today. There are lots of variations of these scams, but one thing is for sure--you'll be out money if you comply. Sure, it might be tempting to cash a check for free money. Counterfeit checks look so real that even financial institution employees can be fooled. If the check is a fraud and bounces after you've cashed it, you're the one who will be held responsible. Counterfeit check scammers hunt for victims by scanning newspaper and online ads for people trying to sell things and people seeking employment. Scammers even send random e-mails and faxes hoping that someone takes the bait. These scams take many guises, but the main thing to watch out for is someone you don't know who wants to send you a check or money order for a large sum of money--but requests that you wire a portion of the money back. If you fall for this, you can be sure of three things:

The check is a fraud.
The money you deposit in your account is not good. When the check bounces you'll be responsible for paying back the money. This will be even harder to do if you've already spent it.
You've just wired your money to a crook.

If you get a check that you're suspicious about, don't cash it. Report scams to the National Fraud Information Center/Internet Fraud Watch at fraud.org or call 800-876-7060. Someone at FSU Credit Union also can help.

Back From the Grave: Postmortem Identity Theft

Ghosting. Grave robbery. Impersonating the dead. Any way you say it, postmortem identity theft is scary, and unfortunately is becoming more prevalent. Postmortem identity theft happens when a scammer obtains information from an obituary or stolen death certificate, or buys personal information about a deceased person off the Internet for an alarmingly low fee. With the stolen information, thieves open fraudulent credit accounts and charge thousands of dollars to new accounts. Some scammers use the stolen identity not for monetary gain, but to avoid immigration or other legal problems. Scammers find this type of ID theft easy to commit and particularly lucrative, as grieving family members often don't think to look for fraudulent activity. It often takes months before someone notices something amiss, but by then, significant damage has been done. If the accounts are opened only in the deceased's name, surviving family members most likely will not be liable for the debt, but must spend a good deal of time--and sometimes money--untangling records. If the spouse of a deceased victim shared joint accounts, that could pose additional challenges. You can take several steps after a loved one dies to help reduce the risk of postmortem identity theft:

Don't put too much information in the obituary. Don't include addresses or a mother's maiden name, and only list the birth year (omit the day and month).
Order several--12 or more--official copies of the death certificate. You'll need to send them to many different agencies.
As soon as possible after the death, contact the "big 3" credit reporting agencies (Experian, Equifax, and TransUnion) in writing and ask that a "deceased" alert be placed on his or her credit report.
Other groups to notify in writing with a copy of the death certificate:

Social Security Administration
Credit unions, creditors, stockbrokers, and other financial institutions
State department of motor vehicles (to cancel the driver's license and prevent copies from being made, and to transfer any vehicle registration papers)
Insurance companies
Utility companies
Veteran's Administration (if the deceased was a member of the military)
Immigration services (if the deceased wasn't a U.S. citizen)
Agencies awarding professional licenses (such as medical licenses or the bar association)
Other memberships (such as libraries, fitness clubs, and video rental stores).

Take the deceased off commercial marketing lists. The cost is a $1 credit card verification fee to ensure the person actually is deceased. For more information, visit ims-dm.com/cgi/ddnc.php.
After about a month has passed, get a free credit report--which you're entitled to by law--to check for suspicious activity.

If you find that someone is using the identity of a deceased family member, contact local law enforcement and fill out a police report--which you'll need to challenge the accrued debts

Cybershopping: Should You be Quick to Click?

Cybershoppers, start your modems. eMarketer estimates that U.S. online sales (excluding travel) will reach $131 billion in 2007. But how safe is it to shop online? "You're covered by the same protections you'd have if shopping by mail or phone," says Amy Blankenship, director of the Direct Marketing Association's Shop-At-Home Center. And just as when you shop by my mail or phone, know whom you're dealing with. Protect your wallet

Use a secure browser. The software you use to navigate the Internet complies with industry security standards if it scrambles the purchase information you send in cyberspace. You're in a secure Web site if a message announces you're entering a secure area, if you see a padlock or key in the locked position on the bottom of the screen, or if the "http" in the URL (Web site address box) changes to "https." The "s" stands for secure. "If it's not a secure site, surf on by," Blankenship says.
Deal with someone you know, especially if you're new to cybershopping. "Eighty-four percent of catalogs now have a Web site," Blankenship says.
Check return policies and customer service information. Some companies place time limits on returns or have special policies for opened compact discs and software. Print out the company's address and phone number, a copy of your order, and the confirmation number in case there's a problem.
Always pay by credit card. This way your transaction will be protected under the Fair Credit Billing Act if you act timely, which gives you the right to dispute charges and temporarily withhold payment.