IRS Reports Economic Stimulus Scams

As the economic stimulus checks start going out, the IRS has issued an alert that scam artists are actively making the rounds using the proposed rebates as bait. Credit unions should alert employees and members to be on the lookout for scams. The most recent scams include:

Rebate Phone Call – Someone identifying himself as an IRS employee calls consumers and asks for bank account information for the direct deposit of the rebate. If the individual refuses, he is told that he cannot receive the rebate. 

Refund e-mail – The bogus e-mail falsely claims to come from the IRS, tells the recipient that he or she is eligible for a tax refund for a specific amount, and instructs the recipient to click on a link in the e-mail to access a refund claim form. The form asks the recipient to enter personal information that the scamsters can then access.

Audit e-mail – This technique will get almost anyone’s attention. This phony e-mail notifies the recipient that his or her tax return will be audited. The IRS does not send unsolicited, tax-account related e-mails to taxpayers.

Paper Check Phone Call – In a current telephone scam, a caller claims to be an IRS employee who is calling because the IRS sent a check to the individual, and since the check has not been cashed, the IRS wants to verify the individual’s bank account number. The caller may have a foreign accent.

Changes to Tax Law e-Mail – This bogus e-mail is addressed to businesses, accountants, and “Treasury” managers. It instructs them to download information on tax law changes by clicking on a series of links to publications on businesses, estate taxes, excise taxes, exempt organizations, and IRAs and other retirement plans.

Individuals who receive a questionable e-mail claiming to come from the IRS should forward it to phishing@irs.gov. Use instructions contained in an article, “How to Protect Yourself from Suspicious E-Mails or Phishing Schemes,” to help the IRS track the suspicious e-mail to its origins and shut down the scam.

Those who have received a questionable telephone call that claims to come from the IRS may also use the phishing@irs.gov mailbox to notify the IRS of the scam.

*From PCUA Newsletter May 9, 2008  

 

Card Fraud

Identity Fraud

Phishing Scams

Security Team

Simple precautions help prevent card fraud:

Although you may not be able to keep hackers or dishonest employees out of your credit card processor's office, you can take simple defensive measures to keep thieves from stealing your credit card information from the garbage (Yahoo! News June 22).

With the recent string of data thefts--most notably the disclosure that 40 million credit and debit card accounts were at risk for fraud--it's crucial that consumers take steps to safeguard their account information.

Here are some commonsense precautions:

• Make sure the credit card company has your current phone number so the company can contact you if it sees suspicious charges on your card.
• Don't use a debit card for online purchases.  Unlike credit cards, most debit cards don't have a limited fraud liability.
• Don't authorize payment or give out personal information over the phone unless you call a specific creditor and know its reputation.
• Review your credit card and checking account statements regularly.  Many thieves will "test out" a card by charging small amounts, such as at a gas station.
• Notify your card issuer if a monthly statement fails to arrive in the mail.
• Shred pre-approved credit card offers, statements, and bills that contain account numbers or other personal information before throwing them away.
• Keep a record of your account numbers, their expiration dates, and the card issuer's phone number in a safe place--but not in your wallet.
• When traveling, be careful about using your credit card at Internet cafes or anywhere with wireless connection.
• Check your credit report at least once a year.  If you are a victim of fraud, call the fraud unit of one of the three national credit card bureaus--Equifax, Experian, and TransUnion--to alert them and have a fraud alert placed on your file.

These are just a few suggestions on how to keep your personal information secure.  Should you have any questions regarding this information please do not hesitate to contact a credit union representative.

• Examine all financial statements.
  Reconcile monthly financial accounts as soon as you receive them. Report discrepancies to the appropriate company. Review your personal credit report at least one a year.
• Limit your paper trail.
  Keep receipts and check carbons in a safe place. An even better option is to destroy anything that will not be needed for future reference. Destroy blank checks from closed accounts and expired credit cards. Also, destroy any “junk” mail you receive offering loans or credit cards.
• Guard your purse or wallet.
  Keep them safe in your possession, automobile and even your home.
• Protect your personal identification numbers.
  Never keep your PIN in the same place as your ATM or credit cards. And certainly NEVER write them down on your cards (It’s been done).
• Beware of phone scams.
  NEVER give any personal information to anyone over the phone unless you initiated the call AND you feel comfortable with the situation (ex: ordering through a catalog). This includes Social Security numbers, bank/credit union account numbers, credit card numbers, PIN’s etc.
• Check your mail.
  Be aware of when financial information is due to come in to your mail – bank statements and credit cards especially. Also, if you haven’t received any mail in a few days, you may be a victim of mail diversion fraud. This scam involves a criminal forging your signature on a change-of-address form to divert your mail to an address where they can obtain all of your pertinent information. If you suspect this has happened to you, contact your post office immediately.
• Protect yourself online.
  As with telephone scams, NEVER use your financial information online unless you are sure you are on a secure site. If in doubt, find another means to transact your business other than on the computer.

Check out the Federal Trade Commision's Identity Theft site for more information.

Educate LVECU Members About Phishing Scamsters:

Hundreds of consumers have found themselves the victims of an e-mail scam known as “phishing".

It involves high-tech fraudsters who pretend to be a legitimate financial institution, credit card company,

or even regulator. Hiding behind the anonymity of the Internet, the fraudsters send out “official-looking”

e-mails designed to trick consumers into divulging financial and personal information such as

account numbers, passwords, user names, Social Security Numbers, and other sensitive data. In

most cases, the e-mail claims that there is an account problem or warns of a possible fraud threat.

Either way the whole idea is to convince the consumer there is an immediate need to update their

financial information.  It is important to educate our members not to respond to these types of e-mails.

If you receive an e-mail from Lehigh Valley Educators Credit requesting financial information or any other personal or sensitive data:

·        Treat the e-mail with suspicion.

·        Do not reply to the e-mail or respond by clicking on a link within the e-mail message. Lehigh Valley Educators Credit Union will never ask you to provide any kind of confidential or financial details via an e-mail request.

·        Contact Lehigh Valley Educators Credit Union as soon as possible to report the suspicious e-mail. You can reach Lehigh Valley Educators Credit Union by calling 610-820-0145 or visiting www.lvecu.org

Team Security:

    Click here for more information on  Avoiding Trojans and Spyware.