Fraud, Scams, and Rip-offs

1. Fraud, Scams, and Rip-offs Keith Asel VP – Private Banking Group The Commerce Trust Company

2. What is Identity Theft? Identity theft occurs when someone uses your personal information such as your name, Social Security number, credit card number or other identifying information, without your permission to commit fraud or other crimes. -Source FTC

3. How are you identified? (1) Social Security numbers; (2) Drivers license numbers; (3) Checking account numbers; (4) Savings account numbers; (5) Credit card numbers; (6) Debit card numbers; (7) Personal identification (PIN) code; (8) Electronic identification numbers; (9) Digital signatures; (10) Any other numbers or information that can be used to access a person's financial resources; (11) Fingerprints; (12) Passwords; (13) Parent's legal surname prior to marriage; (14) Passports; or (15) Birth certificates.

4. How do they get the information? Dumpster Diving – going through your trash Skimming – stealing credit/debit card information using a device Phishing – pretending to be your bank, FDIC.. via PC or text to get you to reveal your account number(s). Changing your address – divert your billing statements to another location. Theft – purse, wallet, bank and credit card statements, pre-approved credit card offers, checks, tax information, personnel records, child's information, etc. Government websites containing public documents (Jackson County, MO) Pharming – mass emails and/or text messages attempting to get you to reveal critical information. Computer Encryption/ATM Security Pretext Calling is a fraudulent means of obtaining an individual's personal information. Pretext callers may contact places you do business with, posing as their customers, in order to access your personal account information.

5. What do they do with your information? Instant line-of-credit Open bank accounts Order Credit Cards Purchase vehicles Get a job / avoid paying taxes Give your information during an arrest Buy or sell real estate

6. Can it really happen to me? Nationwide in 2007 Nearly 10 MILLION victims last year Total loss of $61.6 billion Average loss to victim is $6,100.00 Average time to clear up credit report is 4.5 years

7. Can it really happen to me? Over 4,000 reports in greater KC area 998 reports in KCMO 337 reports in Overland Park

8. Red Flags Bills do not arrive as expected Unexpected credit cards or account statements. Denials of credit for no apparent reason. Calls or letters about purchases you didn’t make.

9. Other Fraud Schemes Telemarketing Fraud Donations/Not for profit entities Check Fraud Washing Alterations False billing fraud – renewal notices for services International Lottery Scam “Congratulations! You may receive a certified check for up to $400,000,000 U.S. CASH! One Lump sum! Tax free! Your odds to WIN are 1-6.” “Hundreds of U.S. citizens win every week using our secret system! You can win as much as you want!”

10. 4-1-9 Advance Fee Fraud AKA Nigerian Scam Unsolicited letter from company you do not know Claims wants business arrangement; someone died and left inheritance; someone died and family is trying to smuggle money out of the country; You just won the lottery!, etc. Common themes: they want something in advance, aka taxes, “good faith” gesture, bribery, etc. and they promise a lot of money for little work Generally a lot of misspellings, grammar errors, or word choices sound foreign May arrive as an email…DO NOT OPEN

11. 4-1-9 Advance Fee Fraud / AKA Nigerian Scam Sample “25TH JANUARY, 1995ATTENTION:   THE PRESIDENT/C.E.ODEAR SIR,CONFIDENTIAL BUSINESS PROPOSALHAVING CONSULTED WITH MY COLLEAGUES, AND BASED ON THE INFORMATION GATHERED FROM THE NIGERIA CHAMBER OF COMMERCE AND INDUSTRY, I HAVE THE PRIVILEGE TO REQUEST FOR YOUR ASSISTANCE TO TRANSFER THE SUM OF FORTY MILLION, FIVE HUNDRED THOUSAND UNITED STATES DOLLARS ($40.5M U.S. DOLLARS) INTO YOUR ACCOUNT.THE ABOVE SUM RESULTED FROM AN OVER-INVOICED CONTRACT, EXECUTED COMMISSIONED AND PAID FOR ABOUT FIVE YEARS (5 YRS) AGO BY A FOREIGN CONTRACTOR.  THIS ACTION WAS HOWEVER INTENTIONAL, AND SINCE THEN THE FUND HAS BEEN IN A SUSPENSE ACCOUNT AT THE CENTRAL BANK OF NIGERIA - OUR APEX BANK.  WE ARE NOW READY TO TRANSFER THE FUND OVERSEAS, AND THAT IS WHY WE REQUIRE YOUR ASSISTANCE.  THE TOTAL SUM WILL BE SHARED AS FOLLOWS:- 80% FOR US, 15% FOR YOU AND 5% FOR LOCAL AND INTERNATIONAL EXPENSES INCIDENTAL TO THE TRANSFER.THE TRANSACTION IS RISK FREE ON BOTH SIDES.  I AM AN ACCOUNTANT WITH THE NIGERIAN NATIONAL PETROLEUM CORPORATION (N.N.P.C).  IF YOU FIND THIS PROPOSAL ACCEPTABLE, WE SHALL REQUIRE THE FOLLOWING DOCUMENTS:(A) YOUR BANKER'S NAME, TELEPHONE, ACCOUNT, AND FAX NUMBERS.(B) YOUR PRIVATE TELEPHONE AND FAX NUMBERS - FOR CONFIDENTIALITY AND EASY COMMUNICATION.(C) YOUR LETTER HEADED PAPER AND PRO-FORMA INVOICE STAMPED AND SIGNED.ALTERNATIVELY, WE WILL FURNISH YOU WITH THE TEXT OF WHAT TO TYPE INTO YOUR LETTER HEADED PAPER AND PROFORMA - INVOICE, ALONG WITH A BREAK DOWN.  EXPLAINING COMPREHENSIVELY WHAT WE REQUIRE OF YOU.  THE BUSINESS WILL TAKE US 30 WORKING DAYS TO ACCOMPLISH.  FOR SECURITY REASON, DO NOT HOOK UP TO AT&T (AMERICAN TELEPHONE & TELEGRAPH) NUMBER UNTIL YOU GET THROUGH.PLEASE REPLY URGENTLY.

12. International Lottery Scam “we ask that you keep this award from public notice” References a large sum of money Second page requests info like: SSN, DOB, account number, routing number BFO (blinding flash of the obvious): If you weren’t there you didn’t win it.

13. Practices to Avoid being Ripped Off Reconcile your accounts monthly Use online banking (Quicken / MSMoney) Use billpay from your bank. Do NOT allow auto debits and consider electronic statement delivery. Utilize ID theft service Do NOT leave checks in an unlocked mailbox Pay cash at restaurants or use a credit card Check your credit report at www.annualcreditreport.com Use the internet to check people and companies you do business with. www.courts.mo.gov/casenet/base/welcome.do (Case net) www.bbb.org Better Business Bureau

14. Practices to Avoid being Ripped Off Know your surroundings (Who’s watching or recording) When traveling internationally use only well known bank ATM’s Keep only a minimum number of open lines of credit—CLOSE ALL OTHERS! Don’t leave cards/checks where others can see/steal them Do not give account information to callers, online, or mail responses (consider a “companion card” for online transactions) Encrypt your wireless network! Shred all account and offer related papers Shred old/expired credit and debit cards Keep a list of key numbers to call

15. Practices to Avoid being Ripped Off Never click on links sent in unsolicited emails. Use all current firewall, virus, spam, and spyware filters available. Use complex passwords and PIN’s Keep personal info in a secure place at home. Be proactive in removing sensitive information from the internet. Request removal of your SSN from government websites. STOP trusting your friends with your ATM card! Look for “Golden padlock” and check web address in lower left hand corner of your browser page. Do not carry Social Security card or place SSN on anything public

16. What do you do if this happens to you? Notify your bank or credit institutions File a report with the credit bureaus File a report with the FTC (www.ftc.gov) or call 1-877-IDTHEFT File a police report using the victim packet from the FTC website Contact the US Postal Inspection Service (if mail theft)

17. Credit Bureaus Get your free yearly credit report and review it carefully Equifax: 1-800-525-6285 www.equifax.com Experian: 1-888-397-3742 www.experian.com TransUnion: 1-800-680-7289 www.transunion.com

18. Request a Fraud Alert Internal (Initial) Alert Stays on your credit report for 90 days Good if your wallet was stolen, you responded to a phishing scam, or suspect fraud may occur Extended Alert Stays for up to 7 years Good if you know you have already been a victim Companies must remove you from their marketing list for pre-screened credit offers for 5 years

19. Other Key Numbers / Resources Social Security Administration Fraud 800-269-0271 Order earnings statement 800-772-1213 Check Rite 800-766-2748 Chexsystems 800-428-9623 Telecheck 800-710-9898

20. Other Key Numbers / Resources US Secret Service Field Offices www.usss.treas.gov/field_offices.shtml Electronic Crimes Task Force: Locate a task force at  www.ectaskforce.org/regional_locations.htm US Postal Inspection Service: www.usps.com/postalinspectors/ E-Information Network www.einformation.usss.gov IDSafety Resources http://www.idsafety.org/enforcement/resources/ The Identity Theft Assistance Center (ITAC) www.identitytheftassistance.org

21. Federal Laws Related to Identity Theft Identity Theft/Assumption Deterrence Act Identity Theft Penalty Enhancement Act Fair Credit Reporting Act Fair Credit Billing Act Fair Debt Collection Practices Electronic Fund Transfer Act State Laws: Missouri Residents Kansas Residents Ref. MO Statute 570.223 Ref. KS Statute 21-4018

22. Jackson County Recorder’s Office www.co.jackson.mo.us “Online Searches” “Recorded Documents” First “CLICK HERE” to acknowledge Second “CLICK HERE” to get redaction form and instructions “Search” – official public records Grantor = your last name, first name Document Type = Deed of Trust from drop down Pull images of each deed of trust and look for SSN at signature block on last page. Print all DT’s with SSN. If you find DT with SSN go back to Redaction form and procedures and get your SSN off the internet. You will complete a redaction form along with a printed copy of the DT that needs to be changed and send to the recorders office per the form’s instructions.

23. Questions?