Friday, August 29, 2008

Common Frauds

Every day in Australia, scammers and fraudsters are attempting to trick and scam people out of their hard-earned money.

The Police Credit Union is committed to keeping you informed of the latest frauds and scams. When a scam comes calling - Delete it, Destroy it or Hang up.

Customer education is our number one priority. Why? Because knowlegde is one of the most effective forms of fraud prevention.

Phishing
Phone Frauds
Mail Frauds

Phishing

Phishing is a scam where criminals "fish" for your personal details by using hoax emails claiming to be from financial institutions or legitimate businesses. These emails are designed to lure recipients into divulging personal data such as bank account numbers and passwords by your attempt to log-on. Links within these fraudulent emails may also take you to fake or ghost websites which are designed to fool customers. It may look like an authentic website, with logos and a homepage, but it is, in fact another way criminals try to steal your personal information. Other times the phisher entices victims to reveal personal information by telling them they have won a special prize or earned an exciting reward.

Here are some red-flags to look out for in hoax emails:

Asks you to provide personal information such as your bank account number, and account password, credit card number, PIN number or mother's maiden name.
Does not address you by your name because they are sent out in masse to thousands of recipients.
No confirmation of the company that does business with you, such as referencing a partial account number.
Warns that your account will be shut down unless you reconfirm your financial information
Warns that you've been a victim of fraud.
Typing errors and grammatical mistakes, even if they include the bank's registered logo.

Here are some tips to follow:

Never provide personal details including customer ID or passwords, in response to any email. And never share your password with anyone.
Never click on a link or attachment in an email which supposedly sends you to a bank's website. Only access your bank's Internet banking log-on page by typing the address into your browser.
Be wary of any email from someone you do not know or trust. Delete without opening any emails that you think are suspicious.
Install software that will filter spam email or use an Internet Service Provider (ISP) that will filter spam prior to delivery at your Inbox. Spam filters are often included in anti-virus software.

If you have received a hoax email requesting financial information or any other personal details:

1. Treat the email with suspicion

If you receive a hoax email, delete the email immediately. Do not click on any links and do not open any attachments.

2. Report the incident

Contact PCU on 131 728 as soon as possible to report the suspicious email.

3. Scan your computer for viruses

Many hoax emails contain viruses or Trojan Horses (key logger), which are downloaded to your computer when you open any attachments or select any included links. If you have clicked on any items within the email, run a complete virus check on your computer.

4. Reset your Internet Banking password

After scanning your computer and ensuring it is free of viruses or Trojans, reset your Internet Banking password by calling PCU on 131 728.

Phone Frauds

Call from your Credit Union

You might get a call from someone posing as a representative from your financial institution, asking you to provide your account or personal information. If you do receive a call such as this, treat it as suspicious and if need be verify the representative actually exists by calling them back on a legitimate number.

Telemarketing fraud

Don't be fooled by telemarketers informing you of get rich quick opportunities. The only thing you'll do quickly is lose money. Most will tell you to act now and to send money for more information. Sadly that information never comes. The best defence is to turn them down right away.

Holiday scams

Be wary of calls from individuals awarding you prizes such as holidays. More often than not, these calls are scams. At first it seems like a great deal, but it usually involves being asked to provide a credit card deposit. When unsuspecting victims give in, the holiday is over before it even began.

Prize offers

Try to avoid tempting prize offers that come in the mail informing you that you've won a prize. Unsuspecting victims are told to call a 900 number and when on the line all of a sudden they are asked to pay an additional fee for larger prizes.

Telefunding

Scam artists will call to request contributions to charitable causes. More often than not, these contributions end up benefiting no one but the scam artist.

One example is the Asian tsunami scam

Unfortunately, these tragic events create a way for thieves to take money from well-meaning people. Always ask them for the name of the organization they are representing and a contact number. Call the organization directly before giving money to anyone.

Protect yourself against phone fraud by staying informed and alert.

Here are some tips to follow:

DO NOT believe that everyone calling with an exciting promotion or investment opportunity is trustworthy, especially if you do not know the caller or the company.
DO NOT invest or purchase a product or service without carefully checking out the product, service or company.
DO NOT be afraid to request further documentation from the caller so that you can validate the company.
DO NOT be fooled by the promise of a valuable prize in return for a low cost purchase.
DO NOT be pressured to send money to take advantage of a special offer or deal.
DO NOT disclose any information about your finances or bank details
DO NOT be afraid to hang up the phone.

Mail Frauds

Basic mail advice

Always treat unsolicited mail with suspicion. Mail fraud can take on several forms, from official and legitimate-looking letters to offers that seem too good to be true. Never send your personal information through the mail, without first verifying that the source requesting it is legitimate.

Examples of Mail Fraud:

Please be aware of scams such as the examples provided below. As a rule of thumb if the offer seems too good to be true this it probably is – be aware.

Nigerian Scam – Fraudsters have been sending out letters inviting individuals to participate in a scheme that ultimately turns out to be non-existent. Usually, the letters allege to be from a government official who needs help in distributing millions of dollars out of the country in return for a cut of the money. Recipients of the letters are required to divulge Credit Union account details and forward money to the fraudsters. Find out more at Scamwatch.
Spanish Lottery Scam – Victims of this scam receive a letter advising them they have won a large prize from the “Spanish Lottery'. In order to collect the prize, they must send money before a certain date to a bank account in Spain to cover the cost of traces, bank fees, delivery and insurance costs. Find out more at Scamwatch.
Email Employment Scam – Victims of this scam are asked to provide their bank account details to prospective employers with the view to facilitate transfer of funds to overseas parties. In return the victims are compensated by a commission payment. However the funds transferred have been obtained fraudulently. Do not provide your Credit Union account details to any prospective employee until you are satisfied with the bona fides of that employer and/or you have signed contracts of employment. Find out more at Scamwatch.