Fraud Prevention

Identity theft is a serious crime. It occurs when your personal information is stolen and used without your knowledge to commit fraud or other crimes. Identity theft can cost you time and money. It can destroy your credit and ruin your good name.

10 WAYS TO AVOID FRAUD

1. Spot imposters.
Scammers often pretend to be someone you trust, like a government official, a family member, a charity, or a company you do business with. Don’t send money or give out personal information in response to an unexpected request – whether it comes as a text, a phone call or an email.

2. Do online searches.
Type a company or product name into your favorite search engine with words like "review," "complaint" or "scam." Or search for a phrase that describes your situation, like "IRS call." You can even search for phone numbers to see if other people have reported them as scams.

3. Don’t believe your caller ID.
Technology makes it easy for scammers to fake caller ID information, so the name and number you see aren’t always real. If someone calls asking for money or personal information, hang up. If you think the caller might be telling the truth, call back to a number you know is genuine.

4. Don’t pay upfront for a promise.
Someone might ask you to pay in advance for things like debt relief, credit and loan offers, mortgage assistance, or a job. They might even say you’ve won a prize, but first you have to pay taxes or fees. If you do, they will probably take the money and disappear. Learn where to get real help with these issues at consumer.ftc.gov.

5. Consider how you pay.
Credit cards have significant fraud protection built in, but some payment methods don’t. Wiring money through services like Western Union or MoneyGram is risky because it’s nearly impossible to get your money back. That’s also true for reloadable cards like MoneyPak, Reloadit or Vanilla. Government offices and honest companies won’t require you to use these payment methods.

6. Talk to someone.
Before you give up your money or personal information, talk to someone you trust. Con artists want you to make decisions in a hurry. They might even threaten you. Slow down, check out the story, do an online search, consult an expert — or just tell a friend.

7. Hang up on robocalls.
If you answer the phone and hear a recorded sales pitch, hang up and report it to the FTC. These calls are illegal, and often the products are bogus. Don’t press 1 to speak to a person or to be taken off the list. That could lead to more calls.

8. Be skeptical about free trial offers.
Some companies use free trials to sign you up for products and bill you every month until you cancel. Before you agree to a free trial, research the company and read the cancellation policy. And always review your monthly statements for charges you don’t recognize.

9. Don’t deposit a check and wire money back.
By law, banks must make funds from deposited checks available within days, but uncovering a fake check can take weeks. If a check you deposit turns out to be a fake, you’re responsible for repaying the bank.

10. Sign up for free scam alerts from the FTC at ftc.gov/scams.
Get the latest tips and advice about scams sent right to your inbox.

Source: Federal Trade Commission, 2016  


DETER

Deter identity thieves by safeguarding your information.

  • Shred financial documents and paperwork with personal information before you discard them.
  • Protect your Social Security number. Don’t carry your Social Security card in your wallet or write your Social Security number on a check. Give it out only if absolutely necessary or ask to use another identifier.
  • Don’t give out personal information on the phone, through the mail, or over the Internet unless you know who you are dealing with.
  • Never click on links sent in unsolicited emails; instead, type in a web address you know. Use firewalls, anti-spyware, and anti-virus software to protect your home computer; keep them up-to-date. Visit OnGuardOnline.gov for more information.
  • Don’t use an obvious password like your birth date, your mother’s maiden name, or the last four digits of your Social Security number.
  • Keep your personal information in a secure place at home, especially if you have roommates, employ outside help, or are having work done in your house.

DETECT

Detect suspicious activity by routinely monitoring your financial accounts and billing statements.

Be alert to signs that require immediate attention:

  • Bills that do not arrive as expected
  • Unexpected credit cards or account statements
  • Denials of credit for no apparent reason
  • Calls or letters about purchases you did not make

    Inspect:
  • Your credit report. Credit reports contain information about you, including what accounts you have and your bill paying history.
    -The law requires the major nationwide consumer reporting companies—Equifax, Experian, and TransUnion—to give you a free copy of your credit report each year if you ask for it.
    -Visit www.AnnualCreditReport.com or call 1-877-322-8228, a service created by these three companies, to order your free credit reports each year. You also can write: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.
  • Your financial statements. Review financial accounts and billing statements regularly, looking for charges you did not make.

DEFEND

Defend against ID theft as soon as you suspect it.

  • Place a “Fraud Alert” on your credit reports, and review the reports carefully. The alert tells creditors
    to follow certain procedures before they open new accounts in your name or make changes to your existing accounts. The three nationwide consumer reporting companies have toll-free numbers for placing an initial 90-day fraud alert; a call to one company is sufficient:
    -Equifax: 1-800-525-6285
    -Experian: 1-888-EXPERIAN (397-3742)
    -TransUnion: 1-800-680-7289
    Placing a fraud alert entitles you to free copies of your credit reports. Look for inquiries from companies you haven’t contacted, accounts you didn’t open, and debts on your accounts that you can’t explain.
  • Close accounts. Close any accounts that have been tampered with or established fraudulently.
    -Call the security or fraud departments of each company where an account was opened or changed without your okay. Follow up in writing, with copies
    of supporting documents.
    -Use the ID Theft Affidavit at ftc.gov/idtheft to support your written statement.
    -Ask for verification that the disputed account has been closed and the fraudulent debts discharged.
    -Keep copies of documents and records of your conversations about the theft.
  • File a police report. File a report with law enforcement officials to help you with creditors who may want proof of the crime.
  • Report the theft to the Federal Trade Commission. Your report helps law enforcement officials across
    the country in their investigations.
    -Online: ftc.gov/idtheft
    -By phone: 1-877-ID-THEFT (438-4338) or TTY, 1-866-653-4261
    -By mail: Identity Theft Clearinghouse, Federal Trade Commission, Washington, DC 20580

COMMON WAYS ID THEFT HAPPENS

Skilled identity thieves use a variety of methods to steal your personal information, including:

  • Dumpster Diving. They rummage through trash looking for bills or other paper with your personal information on it.
  • Skimming. They steal credit/debit card numbers by using a special storage device when processing your card.
  • Phishing. They pretend to be financial institutions or companies and send spam or pop-up messages to get you to reveal your personal information
  • Changing Your Address. They divert your billing statements to another location by completing a “change of address” form.
  • “Old-Fashioned” Stealing. They steal wallets and purses; mail, including bank and credit card statements; pre-approved credit offers; and new checks or tax information. They steal personnel records from their employers, or bribe employees who have access.