Tax ID Fraud - Don't Get Caught

News Now SAN FRANCISCO (3/30/09)--Tax documents are teeming with personal information for crooks to capture and use to compromise your identity. Whether you file taxes electronically or prefer traditional pen and paper, take steps to prevent personal data from reaching the wrong hands (MarketWatch March 24).

While millions of taxpayers safely file with the Internal Revenue Service (IRS) every year, the security of your personal information is never guaranteed. Thieves can capture data in a number of ways, including swiping tax papers from your mailbox, hacking in to your computer, or confiscating your information from a tax preparer who unknowingly--or intentionally--leaks your information. Also, the upsurge in online filing--up 20% from last year--can give crooks easier access to personal information unless you take the proper precautions.

However you file, you can help protect yourself by taking the proper precautions:

Filing electronically:

Don't file-share. File-sharing software that has access to your hard drive can share anything stored on it—including your tax return and other sensitive documents. Also, downloads from file-sharing sites may be infected with keylogging viruses or malware, detailing your every stroke to thieves.


Secure your computer. Install a firewall and update anti-virus and anti-spyware software often.


Create strong passwords. Use a combination of capital and lowercase letters, numbers and symbols when creating passwords to download your W2 forms, 1099s, and other personal tax documents from your employer. Don't save these passwords in your web browser (smallbiztechnology March 16). Better yet, think of a sentence you won't forget, and create a password from that sentence; for example, "My #1 dog is a Lab the color of night," becomes "M#1diaLtcon." You won't need to write down the password as long as you remember the sentence.

Using a tax preparer:

Check out the preparer's reputation. Check with the Better Business Bureau (bbb.org) to ensure you are working with a reputable tax preparation firm.


Ask about security policies. How many people have access to your information? Do they encrypt electronic transmissions? How do they keep data safe?

Pen-and-paper filer:

Cover your tracks. When making photocopies of any financial document, be sure the copier does not save images in memory. Shred any documents used in tax preparation you no longer need.

Secure your mail. Don't let tax documents sit in your unlocked mailbox. Instead, mail your tax return from a secure location such as the post office or an official U.S. Postal Service collection box.

For more information, read "How to Be 'Spywary': It's More Software Than You Bargained For" in Home & Family Finance Resource Center.

Here's another innovative scam method. Beware.

Credit unions across the country are reporting that their member’s are receiving unsolicited text messages. It’s an attempt at Smishing—the latest form of phishing. In Smishing, an e-mail tries to lure a recipient into giving personal information via SMS, the communications protocol used to send text messages to a wireless device. The recent scam is targeting credit union and other financial institution members.

In smishing, the members receive a text message via cell phone warning that their bank account has been closed due to suspicious activity. It then tells them they need to call a certain phone number to reactivate the account. Unsuspecting callers who dial the number provided in the text message will be taken to an automated voice mail box that prompts them to key in their credit card or debit card number, expiration date, and PIN to verify their information.

If you have a question concerning your account or credit/debit card, contact your financial institution using a telephone number obtained independently, such as the phone number from your statement, a telephone book, or other independent means.

I received a notice from another financial institution giving an excellent warning to their customers of "Phishing" intrusions. I have inserted Service One in their generic warning message. Please read the following for the safety of your accounts at Service One.

SERVICE ONE CREDIT UNION will NEVER send you an email asking for account numbers, passwords, personal identification numbers or any other customer confidential information that should be protected. Do not respond to any email communication which requests any type of personal or confidential information. Delete the email immediately. Like many other companies, Service One Credit Union continues to see increased unauthorized attempts that invade the privacy of all consumers by attempting to trick you into responding to emails that are constructed to appear as though they are originated by Service One. These communications are not originated by us. If we need to correspond with you, it will always be done in a way that protects your personal and confidential information and your privacy.

Holiday Greetings to you. This is often the message sent from scammers. You can probably trust this message from me posted on Service One's blog, but even it could be altered. Everyday Service One employees are presented with another scam - now they are aimed at students who might be filled with holiday spirit and charity. I am printing four scam notices that have been sent to me recently. Caring employees suggested that I post these scams on my blog in hopes that you won't succumb to the temptation to be "helpful."

From Nancy Ware:
I know scams are rampant at this time but we have not mentioned the target of college students. Austin showed me an email he received today through his WKU webmail asking him to help with a scam from a woman who claimed to live in England. This woman was looking for someone to help cash checks for her artwork. The woman claimed if someone would help her, they could keep a portion of the check.
You never know when a student needing a quick buck (like most do) might try it just to see if it works. This might be worth a mention.

P.S.
I advised Austin forward a copy of the to the WKU Police to let them know what is going around. Maybe they will send out a warning to all students.

From Mary Miller:
The total checks for the year that SOCU employees have verified that are counterfeit is $1,790,970.00. This is the total of 239 checks presented for deposit.


From Samantha Lyles:
There is a great blog on MSNBC called "The Red Tape Chronicles" which "is MSNBC.com's effort to unmask government bureaucracy, corporate sneakiness and outright scam artists."
The Friday Post was about how outrageous bank fees are. Happily many of the comments stated simple things like "Want fewer fees? Join a credit union" and "2 words - credit union".

I got this info from Cuna News Now, but if you didn't read the article I thought you all should see this Blog. The link is:
http://redtape.msnbc.com/2007/01/the_quest_for_m.html#posts


TALLAHASSEE, Fla. (12/10/07)--Florida Attorney General Bill McCollum recently informed the public that many Florida consumers, including state employees, have received fake e-mails from scammers who are fraudulently posing as representatives of First Florida CU.

The scam is especially brazen because it appears to be an authentic warning about identity theft and phishing attempts, often including a signature from a credit union security manager.

The messages claim members of First Florida CU--a $310 million asset, Jacksonville-based credit union--have been the targets of phishing attempts, and to protect their financial information, members need to log into the website--provided through a link in the e-mail--and list their account numbers and personal identification numbers.

First Florida has confirmed that the e-mails are fake.

McCollum stated that recipients of these types of e-mails should immediately contact their credit union or financial institution, as well as the attorney general's office.

Mary Miller, Service One's Security Officer, found this timely article. So many scams out there these days!

Avoid the latest scholarship scam

For some families, the start of a new school year means having to scrape together funds to pay for tuition; some of these families unwittingly fall prey to student loan scams (OrangeCountyNews.com August 15).

Following a considerable increase in complaints in scholarship, loan, and grant services in 2006, the Better Business Bureau (BBB) warns students and parents to watch for financial aid scams and scholarship scams.

Fraudsters often charge a fee ranging from $700 to $900 in exchange for a "guaranteed" scholarship award. One company, College Money Matters, based in Utah, charged the fee for "insider tips" and promised to get grants and help with the entire financial aid process. The company then issued grants in the form of a check and instructed recipients to deposit the check and wire the "processing fee" back to the company. When it was discovered that the check was counterfeit, the victim was forced to pay the financial institution for the money withdrawn as well as for the processing fee. By this time, the company had disconnected its phone lines and website.

The BBB offers tips on how to determine the legitimacy of a scholarship, loan, or grant service:


No one can ever guarantee a scholarship or grant, so if you pay money you will not always get it back.


You easily can access scholarship information via the Internet, so don't believe promises that you won't find the information anywhere else.


Parents and students--not a company--are the only ones who can complete federal financial aid information.


It is never a requirement for a scholarship offer to ask for your credit card or checking account number to hold the scholarship.


Scholarships never cost any money to receive--they are always free.

Here's another scam that you should be aware of. We see a new one every week. The good news is that the number of people victimized by identify theft is decreasing; however, young people are still the easiest targets.
JQ Bank Grant Scam
According to the Better Business Bureau, law enforcement and other agencies, a new type of online scam for grant money has surfaced. This scam appears to be another version of the “overpayment scam”.
Victims are solicited online regarding grants that may be available to them. These grants may be for education, debt relief, low income subsidy, or any other type of “financial aid”. Responding victims apply for their grant and are sent printed information along with a check, typically for $4,975.00. They are then directed to a website for instructions. The site instructs the victim to purchase a specific variety of stored value credit card (*GREENDOT Reloadable/MoneyPak) and load it with the grant broker’s “commission”. They are promised a second, larger check after the stored value card number is e-mailed to the broker. Of course, the card is quickly liquidated and the original check is later returned as counterfeit, or account closed.
The websites reportedly used in the scam are: www.jqbank.com , www.grantchecks.com , www.beverlyhillsgrants.com , and www.grantoutlet.com . The scammers move their operation to a new website when they start attracting too much scrutiny.
* GREENDOT Reloadable/Money Pak stored value credit cards are legitimate cards but are being used as part of this scam.
Scam Details:
- A grant seems like a reasonable explanation for receiving a large sum of money and is very attractive to college students.
- The counterfeit checks are often drawn on an active and verifiable account, typically at Wells Fargo.
- Convincing printed information is provided to the victim with a plausible explanation for why funds need to be sent back to the broker. (Conflict of interest, regulations, etc…)
- Money is transferred back to the scammer via stored value credit card. Thus, avoiding the suspicion often generated by wire transfers. This method also facilitates further laundering of the stolen funds.
OR:
- Grant money is received for a mere commission of 10% of the check amount.
- The receiver of the grant money deposits the check, and then via Electronic Funds Transfer, sends 10% of the check amount back through a given website.
- The check is returned as counterfeit and the thief now has the depositor’s good money along with their bank account information

Let us know if you are being targeted!