Presentation Transcript

1. PrevalentFraud Schemes

   Karen Nelson Operational Risk Consultant Wells Fargo Bank
2. Organized CrimeScams
3. Organized Crime Scams Contact is made with established customer
4. Organized Crime Scams Contact is made with established customer Fax Email Phone
5. Organized Crime Scams Contact is made with established customer Fax Email Phone A relationship is established over several weeks/months
6. Organized Crime Scams Contact is made with established customer Fax Email Phone A relationship is established over several weeks/months A loan/payment is made to the customer
7. Organized Crime Scams Contact is made with established customer Fax Email Phone A relationship is established over several weeks/months A loan/payment is made to the customer A check is received & deposited by the customer
8. Organized Crime Scams Contact is made with established customer Fax Email Phone A relationship is established over several weeks/months A loan/payment is made to the customer A check is received & deposited by the customer Funds are returned by wire/Western Union/Money Gram to Nigeria, UK, or NY, etc.
9. Organized Crime Scams Contact is made with established customer Fax Email Phone A relationship is established over several weeks/months A loan/payment is made to the customer A check is received & deposited by the customer Funds are returned to Nigeria, UK, or NY Check charges back to depositor, causing overdraft
10. Organized Crime Scams (twist)
11. Organized Crime Scams (twist) Internet sales (EBay) Depositor sells an item on the internet
12. Organized Crimes Scams (twist) Internet sales (EBay) Depositor sells an item on the internet A bid is accepted that is higher than usual
13. Organized Crimes Scams (twist) Internet sales (EBay) Depositor sells an item on the internet A bid is accepted that is higher than usual The check received as payment is for a larger dollar amount than the bid
14. Organized Crimes Scams (twist) Internet sales (EBay) Depositor sells an item on the internet A bid is accepted that is higher than usual The check received as payment is for a larger dollar amount than the bid Customer deposits the check and plans to ship the item
15. Organized Crimes Scams (twist) Internet sales (EBay) Depositor sells an item on the internet A bid is accepted that is higher than usual The check received as payment is for a larger dollar amount than the bid Customer deposits the check and plans to ship the item The purchaser then requests the overage to be wired back
16. Organized Crimes Scams (twist) Internet sales (EBay) Depositor sells an item on the internet A bid is accepted that is higher than usual The check received as payment is for a larger dollar amount than the bid Customer deposits the check and plans to ship the item The purchaser then requests the overage to be wired back The check charges back as “fraud” causing a loss
17. Inheritance Scams
18. Inheritance Scams Contact is made Fax Mail Email
19. Inheritance Scams Contact is made Fax Mail Email A large sum is offered
20. Inheritance Scams Contact is made Fax Mail Email A large sum is offered A fee is requested Usually a percentage of the inheritance
21. Inheritance Scams Contact is made Fax Mail Email A large sum is offered A fee is requested Usually a percentage of the inheritance When the heir can’t pay the fee, a sum is advanced
22. Inheritance Scams Contact is made Fax Mail Email A large sum is offered A fee is requested Usually a percentage of the inheritance When the heir can’t pay the fee, a sum is advanced A check is received and deposited, the amount is wired and the check charges back creating a loss
23. Lottery Scams
24. Lottery Scams Elderly are targeted
25. Lottery Scams Elderly are targeted Customer removes large $$ in cash
26. Lottery Scams Elderly are targeted Customer removes large $$ in cash Wire the funds
27. Lottery Scams Elderly are targeted Customer removes large $$ in cash Wire the funds Lottery Scams are also perpetrated the same as inheritance scams (Advanced fee) *twist*
28. Compromised Email Accounts

29. Compromised Email Accounts

    Customer’s email account is hacked.

30. Compromised Email Accounts

    Customer’s email account is hacked An email is sent to the customer’s bank requesting that a wire be sent from their account.

31. Compromised Email Accounts

    Customer’s email account is hacked An email is sent to the customer’s bank requesting that a wire be sent from their account. The banker prepares and sends the wire per instructions

32. Compromised Email Accounts

    Customer’s email account is hacked An email is sent to the customer’s bank requesting that a wire be sent from their account. The banker prepares and sends the wire per instructions The customer notices an unauthorized transaction and notifies the bank

33. Compromised Email Accounts

    Customer’s email account is hacked An email is sent to the customer’s bank requesting that a wire be sent from their account. The banker prepares and sends the wire per instructions The customer notices an unauthorized transaction and notifies the bank A wire recall is attempted by the bank
34. Auditor Scams
35. Auditor Scams Customer is contacted by an individual purporting to be a bank auditor
36. Auditor Scams Customer is contacted by an individual purporting to be a bank auditor Customer is asked to withdraw cash in order to “test” the honesty of a teller
37. Auditor Scams Customer is contacted by an individual purporting to be a bank auditor Customer is asked to withdraw cash in order to “test” the honesty of a teller Customer meets the “bank auditor” in a parking lot to hand over the cash
38. Auditor Scams Customer is contacted by an individual purporting to be a bank auditor Customer is asked to withdraw cash in order to “test” the honesty of a teller Customer meets the “bank auditor” in a parking lot to hand over the cash A meeting time is scheduled for the “auditor” to return the cash to the customer
39. Auditor Scams Customer is contacted by an individual purporting to be a bank auditor Customer is asked to withdraw cash in order to “test” the honesty of a teller Customer meets the “bank auditor” in a parking lot to hand over the cash A meeting time is scheduled for the “auditor” to return the cash to the customer The “auditor” doesn’t show up
40. Employment Scams

41. Employment Scams

    Customer of the Bank is out of work or looking to supplement their income.

42. Employment Scams

    Customer of the Bank is out of work or looking to supplement their income Post their resume online

43. Employment Scams

    Customer of the Bank is out of work or looking to supplement their income Post their resume online Obtain an offer for employment w/o ever meeting their “boss” face to face

44. Employment Scams

    Customer of the Bank is out of work or looking to supplement their income Post their resume online Obtain an offer for employment w/o ever meeting their “boss” face to face Provide their account number to their employer

45. Employment Scams

    Customer of the Bank is out of work or looking to supplement their income Post their resume online Obtain an offer for employment w/o ever meeting their “boss” face to face Provide their account number to their employer Deposits are made to the account and the new employee only has to w/d and wire the funds

46. Employment Scams

    Customer of the Bank is out of work or looking to supplement their income Post their resume online Obtain an offer for employment w/o ever meeting their “boss” face to face Provide their account number to their employer Deposits are made to the account and the new employee only has to w/d and wire the funds There is always a victim on the other end of the transaction

47. Grandma Scam

48. Grandma Scam

    It starts with a phone call -- someone posing as your child or grandchild dials you up to beg for money to deal with an emergency, often cast as a dire threat to the loved one you think you’re talking to.
49. Grandma Scam It starts with a phone call -- someone posing as your child or grandchild dials you up to beg for money to deal with an emergency, often cast as a dire threat to the loved one you think you’re talking to. It’s known in law enforcement circles as the “Grandma Scam” and it’s so familiar that no one should be falling for it any more. But state authorities tell us it’s costing seniors their retirement money, good health and peace of mind.
50. Identity Theft
51. Identity Theft What type of information do crooks want?? Name Address Telephone number Driver’s License number Social Security number Employment ID card or number Mother’s maiden name PIN numbers
52. Identity Theft How do perpetrators get your information? First hand knowledge (relative or acquaintance) Insiders (applications, employee records, etc.) Theft of purse or wallet Mail theft Burglary or break-in Computer hacking Theft of trash
53. Identity Theft How do perpetrators get your information? First hand knowledge (relative or acquaintance) Insiders (applications, employee records, etc.) Theft of purse or wallet Mail theft Burglary or break-in Computer hacking Theft of trash Which of the above can you control?
54. Identity theft ***Mail Theft*** Don’t put your outgoing mail out with the flag up Collect your incoming mail ASAP Use a PO Box when possible For sensitive mail including bank statements Don’t give the PO Box # out to just anyone
55. Identity Theft How Is Your Stolen Information Most commonly Used? Create counterfeit checks If your account number is used The bank is liable if you report the matter within 30 days of receiving your bank statement If your name is used You must file an affidavit for each check with each merchant
56. Identity Theft Online purchases (internet) If your credit or debit card number is used, you must file a dispute within 60 days of the transaction The bank can return the loss to the merchant if your physical card was not present at the time of purchase
57. Identity Theft Perpetrator may use various means to steal your identity Usual means of credit cards, bank accounts, etc. Much worse is when they really become you!!!**
58. Identity Theft How Can We Protect Ourselves? Don’t give out your SSN unless necessary Does your doctor need your SSN??? Don’t carry your SSN card, birth certificate or passport in your wallet or purse Shred unwanted documents including credit offers Put only your name and address on your checks Welcome the merchants to request your ID
59. Identity Theft How Can We Protect Ourselves? Don’t write down your passwords or PIN’s Photo copy everything in your wallet or purse to make canceling easier (lock it up) Review your credit report every year * Reconcile all bank statements immediately
60. Alerts/Brochures
61. Comments or Questions???