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 Gary Teramae
President/CEO
December 2009
Holiday Fraud Prevention Tips
Holiday Tips from the FBI
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As we approach the peak of the holiday season, shoppers will be using a variety of payment methods for their shopping activities.  Consumer education and awareness is so important during the shopping season - as so many individuals face financial difficulties in these economic times. I want to share these tips with you, so you can avoid becoming fraud victims this holiday season.
HOLIDAY FRAUD PREVENTION TIPS
 

  1. Ensure that receipts reflect the correct transaction amount.
  2. When performing a PIN transaction, ensure others are not capturing your PIN number.  (Standing next to you in the check out line)
  3. When using a debit card, you may select "credit", which requires a signature and extends the $0 member liability under the Visa / MasterCard association rules.
  4. Review all accounts (checking, savings, credit card) activity daily. 
  5. When paper checks are converted at a merchant to an electronic transaction, store voided checks safely to prevent counterfeit checks or unauthorized electronic transactions.
  6. Be suspicious of emails from unknown parties; don't open the email or click any links within them.
  7. When accessing your account through home banking, type the website into the address bar of web browser to avoid "spoofed" websites attempting to steal your information.
  8. Shop online with trustworthy merchants who require security information such as address verification and the CVV2/CVC2 number on the back of your card.
  9. When shopping in person or using an ATM, be aware of your surroundings and report any unusual activities to your financial institution.
  10. Never leave your purse, wallet, or cards unattended.
  11. And finally, if an offer seems too good to be true, it probably is, so be cautious.

HOLIDAY TIPS FROM THE FBI

On Cyber Monday, the first Monday after Thanksgiving and the unofficial kick-off of the online holiday shopping season, the FBI's Internet Crime Complaint Center (IC3) issued an alert reminding shoppers to be prudent with their purse strings and personal information.


"Cyber criminals continue to aggressively create new ways to steal money and personal information," the alert states. Among the scams that prompt some 30,000 complaints each month to IC3, through its website www.ic3.gov, are:


  • Bogus online classified ads and auctions: Criminals post products they don't have, or, in some cases, use stolen credit card numbers to purchase merchandise they offer in auctions. In another scam, criminals may promise free delivery and provide customers with free "paid" shipping labels that are fake and won't be honored by shippers.
    Tips:      Don't provide financial information directly to sellers-use a legitimate payment service. Check each seller's feedback ratings and proven track record.
  • Phony gift cards: As with merchandise, be cautious about buying gift cards through classifieds or auctions.
    Tip: Buy directly from a merchant or authorized retailer. Counterfeit cards won't be honored.
  • Phishing: These time-tested scams arrive by e-mail or text message, directing recipients to follow a link or call a number to correct or update account information. Would-be victims are sent to fraudulent or spoofed websites that look legitimate and directed to provide their account information and personal details.
    Tips:      Don't respond to unsolicited e-mail. Don't click on e-mail links or download attachments from unknown senders.

The leading retail association predicted 96 million Americans would shop online on Cyber Monday alone, and millions more during the month of December. For criminals, the numbers spell opportunity. Shoppers, meanwhile, should exercise the same caution they would in a crowded mall-eyes wide open, protecting themselves and their money.


"If you're shopping online, make sure the website is secure and it's not a cloned website," says Supervisory Special Agent Leslie Hoppey, acting unit chief of the Internet Crime Complaint Center. "If you want to deal with a business, go directly to their official website."


IC3 last year received more than 275,000 complaints and reported losses of $265 million-an average of $931 per complaint. The most common complaints in 2008 were non-delivered merchandise or payment (32 percent) and auction fraud (25 percent).

Agent Hoppey offers some additional tips-have the latest version of security software installed on your computer and make sure online transactions are secure. And she offers a holiday classic as time-honored as re-gifting: "If it looks too good to be true, it probably is."
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