FraudModules 9.1

FRAUD

When someone knowingly deceives you for their own personal gain.

They convince you that something is true when it isn’t.

They make promises they have no intention of keeping.

Mail, phone, and internet

Tips to avoid being a victim:

The greater the return, the greater the risk.

Investments always involve risk. Get all info in writing before giving

away $. Keep emotions out of business. Never invest what you can’t afford to

lose. Legitimate offers never go away. Research. DO NOT send cash by mail or bank

transfers.

Remember:

You do NOT have to give information to anyone. You don’t have to do what people tell you to. You ALWAYS have the right to say “no” and the

right to keep personal information to yourself Use common sense Delete e-mails asking for personal information Passwords should have letters, numbers, and

symbols Use anti-virus and anti-spyware software on

your computers

Types of Fraud

Bait and switch. advertising a low price item but offering a higher price item in the store Car dealership offers a nice car at an

extremely low price You get to the dealership and the car has

been “sold” Bankruptcy fraud. making false

claims when filing bankruptcy

Types Continued

Confidence trick. “con artist” when someone appeals to your greed, good nature, generosity, or willingness to take a risk

Marriage fraud. marrying someone for $ so they can become a US citizen

Embezzlement. taking money that isn’t yours A cashier pockets cash from his/her register Claiming hours you didn’t work

False Advertising

making false claims or statements in ads to persuade you to buy certain products $40 million payoff Shoes don’t really

help you slim down

Frauds continued

False billing. Requesting payment from someone for a product or services without fulfilling the deal

Forgery. creating fake docs and signatures Example: signing someone else’s name

on a check Identity theft. stealing $ or getting

benefits by pretending to be someone else

Insurance Fraud

Fake insurance claims to get money from insurance co. Man sets fire to his own home to get

$730,000 in insurance money because highly in debt

Long Firm Fraud

Setting up a fake company. It appears to be a real business and

takes money from investors or customers.

Ponzi Scheme

Promises investors abnormally high profits from the money they “invest” in the plan.

Also known as a Pyramid scheme.

Steps

Tell parents Tell local law enforcement Law enforcement review consumer

complaints to spot trends and build cases against different con artists.

In Oklahoma, call Office of the Attorney General

9.2Identity Theft

Identity Theft

Young adults most targeted because of limited experience with financial matters.

Someone uses your personal information (name, SS#, CC#) without your permission.

They can rent an apartment, get a cell phone, get another credit card.

They use what they purchased, YOU pay.

You can get a free copy of your credit report ONCE a year

Facts

9 million people in US have identity stole EACH YEAR

Can take hundreds of dollars and many hours to correct

Your credit history and reputation suffer

You can be denied jobs, loans, scholarships, etc.

Some people end up arrested

How they get your information:

DUMPSTER DIVING: they find bills and other important papers in your trash

How they get your information:

SKIMMING: they use a special device to steal your credit or debit card numbers

How they get your information:

PHISHING: they send a phony e-mail (or make a fake phone call) pretending to be a bank or the IRS asking for person information

How they get your information:

CHANGING YOUR ADDRESS: the fill out a “change of address” card so they receive your billing statements

How they get your information:

STEALING: they steal wallets, purses, or mail

PRETEXTING: they use false information to get your personal information from banks and other companies and use that against you or sell it to someone else

HACKING: getting into computers to get info

How to protect yourself:

Always use uncommon passwords that contain letters and numbers. (8 minimum)

Put your personal information in a safe place. (ex: small safe or lock box)

Only enter personal data on secure Web sites.

USE A PAPER SHREDDER!

Continued…

NEVER give out personal information on the phone, through mail, on the internet, through e-mail, or in person unless you’re sure of who you’re dealing with

Avoid clicking web links from e-mails Take mail to the actual post office Leave SS Card in a safe place

Continued…

Be careful when giving out SS#, don’t use as an ID# or driver’s license #

Only carry what you need when you go out

Don’t respond to promotion (identity thieves may create phony promotional offers to get your personal information)

Keep purse/wallet in a safe place Monitor your credit history

Again, use common sense.

What to do if victimized:

1. Contact the fraud division of the three credit bureaus. (equifax, experian, and transunion)

2. Contact credit card companies.3. File a complaint with the federal

trade commission.4. Contact your local police.