So you've seen the commercials, you've heard all the buzz.....but what really is Identity Theft?

"Identity Theft is a crime in which an imposter obtains key pieces of personal information, such as Social Security or driver's license numbers, in order to impersonate someone else. The information can be used to obtain credit, merchandise, and/or services in the name of the victim, or to provide the thief with false credentials. In addition to running up debt, an imposter might provide false identification to police, creating a criminal record or leaving outstanding arrest warrants for the person whose identity has been stolen." -http://www.whatis.com

Click on the different links below to educate yourself on different types of Identity Theft and tips on what to do if you fall victim.

What is Phishing? |What is Pharming? | Internet Sellers Beware | New Twist - Telephone Scam | Tips & Tools for Avoiding Check Scams | Identity Theft Victims | Federal Trade Commission  | ID Theft Affidavit (print a copy)

 

What is Phishing?

From the Webopedia Computer Dictionary: Phishing (v.) Pronounced “fishing,” the act of sending an e-mail to a user falsely claiming to be an established legitimate enterprise in an attempt to scam the user into surrendering private information that will be used for identity theft. The e-mail directs the user to visit a website where they are asked to update personal information, such as passwords and credit card, social security, and bank account numbers, that the legitimate organization already has.

The website, however, is bogus and set up only to steal the user’s information. For example, 2003 saw the proliferation of a phishing scam in which users received e-mails supposedly from eBay claiming that the user’s account was about to be suspended unless he clicked on the provided link and updated the credit card information that the genuine eBay already had. Because it is relatively simple to make a website look like a "legitimate" organizations site by mimicking the HTML code, the scam counted on people being tricked into thinking they were actually being contacted by eBay and were subsequently going to eBay’s site to update their account information. By spamming large groups of people, the “phisher” counted on the e-mail being read by a percentage of people who actually had listed credit card numbers with eBay legitimately.

Phishing, also referred to as brand spoofing or carding, is a variation on “fishing,” the idea being that bait is thrown out with the hopes that while most will ignore the bait, some will be tempted into biting.

Back to top

What is Pharming?

Similar in nature to e-mail phishing, pharming seeks to obtain personal or private (usually financial related) information through domain spoofing. Rather than being spammed with malicious and mischievous e-mail requests for you to visit spoof Web sites which appear legitimate, pharming  'poisons' a DNS server by infusing false information into the DNS server, resulting in a user's request being redirected elsewhere. Your browser, however will show you are at the correct Web site, which makes pharming a bit more serious and more difficult to detect. Phishing attempts to scam people one at a time with an e-mail while pharming allows the scammers to target large groups of people at one time through domain spoofing.

Back to top

Internet Sellers Beware

If you place something for sale on the Internet, be alert to a recent rash of scams to which some members have fallen victim.

A successful bidder, for example using eBay, attempts to pay a member with a bank or cashiers check but sends significantly more than needed to pay for the item. Shortly after mailing the check, the purchaser sends an email requesting that the member use what is needed to complete the sale and cover cost of shipping, then return them the remaining amount by issuing them a check. The member deposits the check and has a wire transfer issued for the overage. Fortunately our staff and members are alert to this scam!

Some unfortunate consumers will then go ahead and wire the overage funds and mail the product to the buyer. A few days later the bank contacts the consumer to tell them that the buyer's original check was fraudulent. In some cases, the consumer is left responsible, owing the bank the full amount of the check. If the sale gets to this point, the consumer is out not only the proceeds from the sale of their merchandise, but also the amount of the wire transfer that they sent refunding the "overage" to the buyer. This has been a substantial loss to the consumer in many cases!

Preventative Methods

• Be AWARE of this and other Internet scams if you deal with online trade, selling or retailing.
• Never accept payment for more than the amount owed to you.
• Never send funds back until a check has had time to clear the banking system - generally allowing five to seven business days is sufficient.
• If you suspect you are a victim of a scam, immediately ALERT your credit union and other financial institutions with which you do business.
• Do not give out account information and other personal information to a buyer.
• If you discover any accounts have been fraudulently accessed or opened, also contact the security department of each affected creditor or financial institution. Consider closing these accounts.
• File a report with the local police department or the police where the theft took place.
• Finally, the IRS wants help in keeping track of tax-related scams. Even if you did not fall for the scam, the agency asks that you report the event to its criminal investigation unit via its toll-free hotline at (800) 829-0433.

Back to top

New Twist - Telephone Scams

A new twist on a Phishing scheme has recently occurred in the Chicago area. This is an attempt to deceive the victim and obtain personal identifying information via telephone. It is a prelude to identity theft. The scheme works as follows:

The offender has called the victim by phone saying they’re from the local court, notifying the victim there is a warrant out for their arrest for failure to report for jury duty. The victim tells the caller they never received any notice of jury duty. The caller then asks the victim for their full name, date of birth, Social Security Number and any other information the victim is willing to provide in order to clear the matter up.

As you may expect, many people fall for this. Please be aware of the potential threat. In this type of solicitation, it is important not to disclose personal information over the phone. For peace of mind, you can verify any existing jury duty request by contacting your City Clerk's Office. GSCU encourages you to report any suspicious activity to the FTC. If you believe you have been a victim of a fraudulent scheme, file a complaint at www.ftc.gov, and visit the FTC’s Identity Theft web site at www.ftc.gov/idtheft to learn how to minimize your risk of damage from identity theft.

Back to top

Tips & Tools for Recognizing and Avoiding Check Scams

If someone you don’t know wants to pay you by check and wants you to wire a portion of the money back, beware! It’s a scam that could cost you thousands of dollars.

Check out these tips and tools for recognizing and avoiding check scams.

• There are many variations of the counterfeit check scam. It could start with someone offering to buy something you advertised, pay you to do work at home, give you an “advance” on a sweepstakes you’ve supposedly won, or pay the first installment on the millions that you’ll receive for agreeing to have money in a foreign country transferred to your account for safekeeping. Whatever the pitch, the person may sound quite believable.
• Counterfeit check scammers hunt for victims. They scan newspaper and online advertisements for people listing items for sale, and check postings on online job sites from people seeking employment. They place their own ads with phone numbers or email addresses for people to contact them. And they call or send emails or faxes to people randomly, knowing that someone will take the bait.
• They often claim to be in another country. The scammers say it’s too difficult and complicated to send you the money directly from their country, so they’ll arrange for someone in the U.S. to send you a check.
• They tell you to wire money to them after you’ve deposited the check. If you’re selling something, they say they’ll pay you by having someone in the U.S. who owes them money send you a check. It will be for more than the sale price; you deposit the check, keep what you’re owed, and wire the rest to them. If it’s part of a work-at-home scheme, they may claim that you’ll be processing checks from their “clients.” You deposit the checks and then wire them the money minus your “pay.” Or they may send you a check for more than your pay “by mistake” and ask you to wire them the excess. In the sweepstakes and foreign money offer, they tell you to wire them money for taxes, customs, bonding, processing, legal fees, or other expenses that must be paid before you can get the rest of the money.
• The checks are counterfeit but they look real. In fact, they look so real that even tellers may be fooled. Some are phony cashiers checks, others look like they’re from legitimate business accounts. The companies whose names appear may be real, but someone has dummied up the checks without their knowledge.
• You don’t have to wait long to use the money, but that doesn’t mean the check is good. Under federal law (Regulation CC), financial institutions have to make the funds you deposit available – usually within one to five business days (sometimes longer), depending on the type of check. But just because you can withdraw the money does not mean the check is good, even if it’s a cashiers check. It can take weeks for the counterfeit or forgery to be discovered and the check to bounce.
• You are responsible for the checks you deposit. That’s because you’re in the best position to determine the risk – you’re the one dealing directly with the person who is arranging for the check to be sent to you. When a check bounces, the financial institution deducts the amount that was originally credited to your account. If there isn’t enough to cover it, the financial institution may be able to take money from other accounts you have at that institution, or sue you to recover the funds.
• There is no legitimate reason for someone who is giving you money to ask you to wire money back. If a stranger wants to pay you for something, insist on a cashiers check for the exact amount, preferably from a local credit union or bank, or a credit union or bank that has a branch in your area.
• Don’t deposit it – report it! Report counterfeit check scams to the National Fraud Information Center/Internet Fraud Watch, a service of the nonprofit National Consumers League, at www.fraud.org or (800) 876-7060. The information will be transmitted to the appropriate law enforcement agencies.

Back to top

Identity Theft Victims

If you are a victim of Identity Theft the FTC suggests you:

1) Immediately place a fraud alert on your credit report by contacting one of the three consumer reporting companies.

Equifax # 800-525-6285
TransUnion # 800-680-7289
Experian # 888-397-3742

The nation's three credit reporting companies, Equifax, Trans Union, and Experian, have set up a system that will enable identity fraud victims to protect their credit information by making one toll-free call to any of them. Now, when a victim calls one of the credit reporting companies, the company will alert the other two.

Then each company will post a security alert on the victims credit file; opt the victim out of pre approved credit or insurance offers; and mail the victim a copy of his or her credit file.

2) Contact the financial provider with which the fraudulent accounts are held. Freeze or close all accounts that have been tampered with or opened fraudulently.

3) File a report with your local authorities and submit a copy of the police report to creditors if required as proof of the crime.

4) File a complaint with the FTC by calling the FTC Hotline at 1.877.ID.THEFT. Counselors are on hand to assist victims.


Fighting Back Against Identity Theft
Click here for a free copy of the Federal Trade Commission's identity theft book, "Fighting Back Against Identity Theft ". In this one concise report, you'll learn how to minimize your risk, things you can do today, steps to take if you've become a victim, and much more. There is also an ID Theft Affidavit included for your convenience.

Back to top

Related Links
History | Become a Member | Hours/Locations | Management | Board/Committee Members | ATM Locations | Calendar of Events | Career | Learn the Value of Membership | Mission Statement | Home