How Safe is Your Bank Account From Being Looted?

03. August 2012 · 1 comment · Categories: Banking, Scams & Ripoffs · Tags: , , , ,

The Ripoff Alert is a new series appearing once each week on Fridays. It alerts you to the latest scams and ripoffs trying to get between you and your money, and gives you information you need to stay safe. This is #14 in the series. 

After lying low for a couple years, ATM skimming is back.

We all use our debit cards to withdraw cash from ATMs. We’ve been doing it since we had our first checking account as a teenager. You insert your card, punch in your pin and out comes some cash, right?

In this scam, criminals are using technology to their advantage. If you don’t know what to look for your bank account could be emptied in a matter of minutes.

ATM skimming involves three steps. First, criminals insert a small device into the card scanner, which they use to capture the information on your card including your name, card number and expiration date. Some of these devices are as thin as a razor blade and inconspicuous enough that it’s easy to miss if you’re not paying attention.

Next, they install a tiny digital camera nearby that captures your pin as you enter it on the keypad.

Immediately after the skimming device captures your data, the criminals can access it remotely without having to go back to the ATM. They then duplicate your card’s information onto another card and, armed with your pin, begin emptying your account.

Gas stations and grocery stores have also been hit particularly hard in this scam. At gas stations for example, thieves install the devices at off-peak times, such as late at night, when nobody’s around.

Protect your dough

There are two things you need to do every time you scan your debit card at an ATM or at a merchant. First, check for any signs the machine has been tampered with. You need to feel the card scanner to see if it’s secure and solid. If it’s wobbly, find a new ATM. Look at the machine and surrounding area for cameras. If any seem to be hidden nearby, it’s probably the work of a criminal. Banks tend to put their cameras in plain view.

The other thing you should do is always cover the keypad as you enter your pin. Doing these two steps every time you use a debit card will greatly reduce the risk of your account being looted.

While it’s a hassle to have your money stolen, under the law you’re not on the hook. But the process to get it back from your bank could take a week or more, and you could have checks bouncing in the meantime.

Ripoff Alert #12 – Microsoft Tech Support Edition

20. July 2012 · 4 comments · Categories: Scams & Ripoffs, Technology · Tags: , , , , , ,

The Ripoff Alert is a new series appearing once each week on Fridays. It alerts you to the latest scams and ripoffs trying to get between you and your money, and gives you information you need to stay safe.

Microsoft Tech Support Scam

How do you know if your computer really is vulnerable?

Fraudsters are looking up publicly available names and phone numbers and calling people, claiming to be from Microsoft Tech Support or Windows Helpdesk. They try to convince you that unless you give them access to your laptop or PC, your computer is at risk of crashing or getting a virus.

Their tactics vary. Some try to gain remote access to your machine, while others ask you to install malicious software that will capture your usernames and passwords. After they’ve “fixed” the issue, they send you a bill for hundreds of dollars. There have been a few unsuspecting victims who have lost over $1,000 in this scam.

Others will try to get your credit card information out of you over the phone and charge you for phony services. Still others send you to a fake website and ask you to enter your credit card information there.

You might think the caller is legitimate because he’s able to correctly guess which operating system you are using. In reality, this isn’t too hard because there are only a few mainstream operating systems out there.

All of this isn’t Microsoft’s fault. Microsoft says on their website they will never call you and ask for money to fix a computer problem. They say it in bold type: Do not trust unsolicited calls.

Here’s what you need to know to protect yourself. Never give a third party control of your computer unless you can confirm they’re from a legitimate tech support organization you have reached out to. Again, don’t trust an unsolicited caller who claims he will solve your computer problems.

Also, don’t buy any software or services from anyone who claims to be from a helpdesk, tech support or service center.

If you suspect your PC is infected by a virus or malware, download and run free software from Avast and MalwareBytes. Spybot Search & Destroy is also an excellent tool. For the best protection, make sure to keep these up to date.

Ripoff Alert #11 – Fake Government Websites Edition

13. July 2012 · 2 comments · Categories: Scams & Ripoffs · Tags: , , , ,

The Ripoff Alert is a new series appearing once each week on Fridays. It alerts you to the latest scams and ripoffs trying to get between you and your money, and gives you information you need to stay safe.

Websites Posing as Government

Your driver’s license expires in a few weeks and you know you need to renew it. So you get online and type “DMV” and your state into the search engine.

You click on the first link without thinking – because who impersonates the government, right? Isn’t the government protecting its citizens by looking out for stuff like this?

Scamsters are now creating legitimate-looking websites and using SEO (Search Engine Optimization) to make their sites appear before the actual government website you’re looking for. Both federal and state government agencies are being impersonated in this scam.

In some cases they ask for money in return for access to forms you’re supposedly required to fill out. In other cases they’re just after your personal info, which they will later use for identity theft.

In addition to the DMV example, another red-hot scam involves the US Diversity Visa (DV) program. This program was enacted by Congress in the early ’90s to encourage people from countries with low rates of immigration to the US to come and live here. It’s a particularly lucrative target for scamsters because the demand for them is so high, but the US government only grants 55,000 diversity visas each year. These websites offer help filling out the forms or try to extract payment from applicants. Some even claim to increase your chances of winning the lottery but the truth is, winners are selected randomly. There isn’t anybody you can pay to increase your chances.

These and other fake websites often have a “support” phone number you can call, which might route you to a call center overseas. You might think you’re dealing with a legitimate organization, but it could be anybody on the other end of the line.

The best way to protect yourself when looking for government websites is to make sure the URL ends in “.gov”. If you’re asked to pay a fee for access to government forms, you know you’re about to be ripped off. Never give your personal information unless you know exactly why it’s needed and whether the website is secure. Secure websites will start with “https” and have a lock icon.

The web provides easy access to a wealth of information for just about any topic. But this also makes it easy for criminals here and overseas to set up shop and take advantage of unsuspecting users. Be careful out there!

Ripoff Alert #10 – Elder Abuse Edition

06. July 2012 · 4 comments · Categories: Relationships & Money, Scams & Ripoffs · Tags: , , , , , ,

The Ripoff Alert is a new series appearing once each week on Fridays. It alerts you to the latest scams and ripoffs trying to get between you and your money, and gives you information you need to stay safe.

Elder Financial Abuse

In a sad twist for our nation’s elderly citizens, scamsters are increasingly turning their attention towards seniors.

According to insurance provider Metlife, Americans over age 60 lost $2.9 billion in 2010, up 12% from 2008. The most tragic part is that a third of the fraud is committed by family, friends and neighbors. The people who seniors trust most are often the ones ripping them off.

Seniors tend to be more trusting than the general population, which makes them an easy target for crooks. Some receive assistance from neighbors or family to pay bills, collect the mail and other household tasks. In addition, many seniors have a set routine they go through each day. Their predictable pattern of behavior makes it easy to steal money and other belongings from them.

Most seniors who realize they’ve been scammed keep quiet about it because they’re too embarrassed or ashamed to admit they’ve been victimized. Others may not realize they’ve been scammed until much later, but by then it’s too late to get their money back.

The Consumer Financial Protection Bureau, which in past months has gone after payday lenders and mortgage fraud, is launching an investigation into elder financial abuse. Richard Cordray, the bureau’s director, calls this the “signature crime of the 21st century.” The agency is focusing its efforts on fraud and deceit targeting those 62 and older and so-called financial advisers who claim to have expertise helping senior citizens.

In many cases, these scams can be prevented if adult children intervene in time. The solution might be to take away the checkbook and debit card. This could cause them to lose their sense of independence, but you’re the one who needs to protect them.

If you have elderly relatives, talk to them about the kinds of mail and phone calls they’re receiving. Find out if they’ve been asked for money or bank account numbers from anyone. Take a look at their checkbooks and bank statements for any evidence of fraud. This is one case where you need to be nosy.

Ripoff Alert #5 – Child Identity Theft Edition

01. June 2012 · 18 comments · Categories: Kids & Money, Scams & Ripoffs · Tags: , , , , ,

The Ripoff Alert is a new series appearing once each week on Fridays. It alerts you to the latest scams and ripoffs trying to get between you and your money, and gives you information you need to stay safe.

Child ID Theft

In last week’s Ripoff Alert I talked about adult identity theft and some of the ways you can prevent it from happening to you. This week I want to focus on a topic that some of you may not even know exists: child identity theft.

Here’s a short video that explains what child identity theft is and how it happens. According to AllClearID.com (the people who made this video), children are 35 times more likely to have their identities stolen than are adults. What’s more, about 1 in 10 children have had their identities stolen at least once. As if parents need more to worry about when raising their kids.

As you see in the video, a child’s Social Security number is a blank slate. Criminals can effortlessly open new loans, cell phone accounts, or credit cards using your child’s SSN. Because there’s no system to match names and dates of birth to SSNs to verify identity, companies often only require a cash deposit when opening accounts. What this means is that your child could have a mortgage in his or her name while still in diapers.

Child ID theft normally isn’t detected until the child attempts to apply for student loans or sign an apartment lease as a teenager. To make matters worse, the three credit bureaus aren’t interested in helping to prevent this crime. All they’re interested in is building information on you and selling it – accuracy isn’t their priority.

Until this year, there really wasn’t a way for parents to protect their children against ID theft. AllClearID now offers ChildScan, a free service that detects fraud from many sources and sends you monthly updates via email.

What’s in it for them? This is a “freemium” model, which means they offer a basic level of protection for free alongside a premium version that costs $15 a month. The premium version offers identity repair help and various levels of insurance. The basic free version is probably sufficient for most people.

This service seems to be comprehensive – they search not only credit reports but also employment and medical records and utility accounts for any use of your child’s SSN.

Children are prime targets for ID theft and are more likely than adults to have their identities stolen. Because the credit bureaus and various levels of government don’t care about our children, it’s important to be proactive in protecting them. This new service makes it much easier for parents to protect the identities of their children.

For a real-life child ID theft story, see Michelle’s post over at Making Sense of Cents. She explains how someone bought a house in her name when she was 13. 

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