Prevention Works

Proficiency Serves as Valuable Tool for Helping Mortgage Fraud Victims

It’s unfortunate that mortgage fraud exists, whereby someone poses as a credible real estate professional and then scams upwards of thousands of dollars from an unknowing and unsuspecting individual. These criminal acts tarnish your industry but you can find comfort in the fact that the National Crime Prevention Council (NCPC) has tools available to assist you with helping victims persevere through these tough times.

NCPC wants to ensure that all victim service providers are proficient about the subject of Mortgage Fraud. By being knowledgeable, victim service providers can more easily identify the type of fraud and guide victims to viable solutions. Here are just a couple of types of mortgage fraud that you should become familiar with:

• Home Equity Conversion Scheme- This type of fraud is inflicted upon those over 62 years of age who are eligible for a Home Equity Conversion Mortgage (HECM). Fraudsters target the victim through local churches or investment seminars, convincing the homeowner to apply for a HECM to pay for home renovations. The con artist is so cunning that he/she will convince the victim to sign contracts without reading the fine print about the repairs and repayment. This scheme usually ends with the fraudster making off with the cash, leaving the homeowner with unfinished repairs and a large debt.
  
  Key Identifiers:

• Senior is persuaded to assign power of attorney to another party
• Communication with underwriter is requested only to be done through the person with power of attorney
  
  
• Loan Modification and Advanced Fee Scheme- The targets for this scheme are those who are delinquent on their mortgage payments. The fraudster will offer to save the homeowner from foreclosure by renegotiating the mortgage loan with the lender. The crook may actually go as far as to offer the elimination of the entire debt. The kicker is that the fraudster will demand a large upfront fee to make all of the homeowner’s problems disappear. But the only thing that will disappear is the con artist with the paid fee in hand, leaving the homeowner with even more problems.

            Key Identifiers:

• The company/person will attempt to charge the homeowner a large upfront fee
• Homeowner is directed to avoid contact with their mortgage lender

 These are many other types of mortgage fraud that scammers are using to prey on victims. For a complete listing of mortgage fraud schemes and other training materials, visit the NCPC’s Mortgage Fraud Toolkit. (Source NCPC.org)

Don’t Let Smishing Get to You!

When you get a text message that looks like it’s legitimately from your bank, credit card company or another entity you do business with, it’s a normal reaction to want to reply. But if the message asks for ANY personal information, DO NOT REPLY.

The message could simply request a text reply or include a number to call, misinforming you, for example, that your account information was compromised and your debit card canceled. Please don’t be fooled by these card scammers, who have taken to a new medium — text messaging — to steal your information and sell it on the black market. It’s called smishing, and many banks nationwide have experienced these new scams affecting thousands of individuals. These scams have already caused tens of millions of dollars in losses.  

You, however, are not powerless against these criminals. You can help stop them.
But we all have to work together. Protecting the public at large, as well as its customers, is the primary reason MidSouth Bank teamed up last year with the National Crime Prevention Council and McGruff the Crime Dog to launch the Shine A Light On Fraud (#ShineALightOnFraud) initiative.

Both entities are working hard throughout the year to protect the public, starting with the following tips, which also apply to email and phone scams:

1. Keep in mind that a reputable business will NEVER call, text or email you for personal information. A red flag should immediately go up if any business requests personal or bank information (debit or credit card number, expiration date, security code or PIN) via an unsolicited phone call or automated message such as a text.
   
   
2. Do not respond to these types of requests. That means you should never reply to the text message, call the number provided within the text message or go to a web address sent by text message.
   
   
3. Delete the message and call your bank (or whoever the smishing is impersonating) to report it. If you think the text might be legitimate, or if you inadvertently responded to text messages or called the fraudulent phone number, call your bank or the business immediately to report the text message using the telephone number on your statement or invoice. DO NOT use the number provided in the text message.
   
   
4. Monitor your accounts online regularly to confirm all charges and transactions are correct.
   
   
5. Educate your family and friends.

For more information and timely advice on how to protect yourself from fraud, read our weekly #ShineALightOnFraud tips by following MidSouth Bank on Facebook and Twitter.

McGruff Turns 35! Join Him on Instagram and Celebrate

McGruff the Crime Dog®, the National Crime Prevention Council’s iconic symbol of safety and crime prevention, is turning 35 this year and he is marking the occasion with a month-long social media celebration.

McGruff will make his first appearance on Instagram for his birthday, today, July 1, 2015. (follow @McGruff_NCPC) 

Celebrate with NCPC and be involved in McGruff’s efforts to “Take A Bite Out Of Crime®”. You can post photos with McGruff, share memories, or simply send him a birthday shout out using the hashtag #McGruff35. You can also participate on Facebook, Twitter, and LinkedIn all month long.  

Instructions:

A photo of McGruff can be downloaded here. Print it, cut it out, and upload photos of you and McGruff to Instagram using the hashtag #McGruff35. Take him with you as you celebrate summer and remember to practice good safety habits.

About McGruff:

In 1980, a dog in a rumpled trench coat said, "You don't know me yet. But you will." Since then, McGruff the Crime Dog has taught millions of people that law enforcement can't fight crime alone. Crime prevention is everybody's business and everyone can help "Take A Bite Out Of Crime." Through television commercials, comic books, live appearances, and more, McGruff has encouraged Americans to take reasonable steps to prevent crime.

Current issues include preventing elder abuse, bullying/cyberbullying, intellectual property theft/counterfeits, mortgage fraud, financial fraud, and preventing 18-24 year olds from becoming first-time victims of crime. Other issues include safe firearms storage, preventing gang violence, and promoting crime prevention tactics for homes, neighborhoods, and individuals.

Friend us on Facebook, follow us on Twitter and Instagram, and connect with us on LinkedIn to stay connected as the National Crime Prevent Council shares easy-to-use crime prevention tips that protect what matters most— you, your family, and your community.

Join us in July, using the hashtag #McGruff35.

Get Real About Intellectual Property Theft by Protecting Yourself

Recently, the London Fire Brigade issued a warning about fake iPhone chargers after firefighters rushed out at midnight when a woman’s recent purchase at a local street vender exploded in her hand, sent her to the hospital and nearly set her home on fire.

Every week there is a new story, unfortunately, of counterfeit products causing harm to a “value shopper” who went a step too far without adhering to the age-old-adage, let the buyer beware.  A good deal is one thing; a knock-off power cord catching fire or fake medicine that could put you in the hospital is another altogether.  Especially when purchasing online from unknown sources, it is not shocking that other dangers lurk behind every supposed bargain.   Enterprising criminals can sneak malware onto an unsuspecting internet shopper’s home computer, or steal credit card information and other pieces of personal identity.

These are all examples of the problems behind intellectual property theft.

Legitimate businesses are doing everything they can to provide the newest technology, fun entertainment options, and life-saving new cures with the greatest shopping ease possible.   They also take great measures to develop trusted brands so that consumers know they will receive a quality product.  When something goes wrong, these credible companies will do what it takes to protect their customers and their reputation.  The same cannot be said for the individuals and groups who spend their energy stealing brand names, great ideas and innovative products in order to make a quick buck.

These efforts are also often run by sophisticated criminal organizations, masking behind fancy webpages and product packaging that is designed to fool shoppers into believing their products are genuine.  And, they use the proceeds from these sales to fuel other enterprises like human trafficking and illicit drugs.

While U.S. federal and local officials are working hard to address these problems, law enforcement continually struggles to identify and shut down these operations.  Traditional steps to seize counterfeit goods at the ports as they are shipped, or take down vendors at the street corner and in flea-markets have been made even more challenging with the expansion of illegal sales online.  Tracking illicit websites is tricky and can lead to sources that are hiding behind boarders in countries who do not adhere to international treaties and law enforcement standards. 

During October, National Crime Prevention Month, the National Crime Prevention Council (NCPC) and US Chamber’s Global Intellectual Property Center (GIPC) have partnered to raise awareness of these issues, and to “Get Real About Intellectual Property Theft”.  On the NCPC partner resource page, local organizations and individuals can find the Top 10 Tips to Protect Yourself Against Dangerous Fakes and other information to help provide educational tools for consumers. 

Ultimately, the best way to take a “bite out of crime” is for consumers to take steps to protect themselves.   By making good choices, an educated consumer can guard against these potential threats and prevent their money from unintentionally adding to bigger criminal problems. 

Taking Action To Assist Victims of Financial Fraud

 Mark your calendar for Thursday, November 21 at 3 p.m., Eastern Time—and join us for a webinar to unveil a unique, new resource guide, Taking Action: An Advocate’s Guide to Assisting Victims of Financial Fraud. The FINRA Investor Education Foundation and the National Center for Victims of Crime collaborated to create this important guide that gives victim advocates a roadmap for how to respond in the wake of a financial crime.

The increasing incidence of financial fraud has underscored the importance of consistent and accurate advice to victims. More than 30 million Americans fall victim to financial fraud every year, losing an estimated $50 billion of measurable, direct costs. And these costs do not include the significant non-financial costs to victims, including lost time and psychological hardship, all of which compound the devastation caused by financial fraud.

How can we—a community of victim advocates, law enforcement, regulators and other community-serving organizations—provide tangible help to victims? By taking action and encouraging victims to do the same. Experts in the field are well aware that financial fraud goes largely underreported. One valuable contribution victim advocates can make to the cause of fighting financial fraud is to encourage victims to report the crime.

During next Thursday’s webinar, we will discuss strategies for addressing the major types of financial crime—including investment fraud, identity theft, mortgage and lending fraud, and mass-marketing scams. We will also highlight tools and resources you can use to assist victims of financial fraud in regaining their financial footing and addressing the emotional trauma they have suffered.

Taking Action: An Advocate’s Guide to Assisting Victims of Financial Fraud is available for download or ordering from within the Program and Outreach Toolkit section of the FINRA Foundation’s SaveandInvest.org Fraud Center.

Of course, the best scenario is one in which the fraud is altogether avoided. The FINRA Foundation’s Investor Protection Campaign seeks to safeguard investors from investment fraud, before the fraud occurs, by helping them:

• Recognize they are vulnerable to investment fraud
• Identify persuasion techniques
• Reduce risky behaviors by asking questions and checking information

Investors should ask whether the person selling the investment and the investment itself are registered—and then check by verifying the answers with FINRA and the SEC. FINRA’s online BrokerCheck tool lets investors research the background of brokers and their firms, and the SEC’s EDGAR system is a gold source for company information. Visit the Fraud Center at SaveAndInvest.org for these and even more tools and information to help consumers spot and avoid investment fraud.

Learn how you can become a fraud fighter in your community. Join us for the Taking Action webinar on Thursday, November 21 at 3 p.m., Eastern Time.  To register for the webinar click here and follow the prompts.

Swindled Seniors - One of America’s Biggest Secrets

Senior Fraud Remains Highest Underreported Crime

Older Americans Month is celebrated each May to honor and recognize the elderly for the contributions they make to our families, communities and society. Unfortunately, recent statistics show that the elderly still remain a particularly vulnerable population  faced with mounting health problems and dwindling financial resources.  The golden years aren’t serving as valuable time spent with loved ones and friends. According to a Harris Interactive survey of 62 senior citizens, 80 percent of seniors were concerned about falling victim to some type of financial fraud.  The last thing seniors need to worry about is their physical or financial security.  Yet, the reality remains—seniors are far more likely to become victims of financial fraud than they are of violent crime.

According to www.fbi.gov, senior citizens are most likely to have a “nest egg,” to own their home, and to have excellent credit. Unfortunately, that has made them targets for heartless swindlers who often prey on their needs and dreams, even depleting their hard-earned life savings.  These con artists are creative and deceptive, especially now more than ever with the use of today’s fast and innovative hi-tech gadgets.

 NCPC offers tips for seniors to help them stay safe

• Never give out a credit card number or social security number to anyone who has called you
• Beware of people with stock tips, “sure thing” investment opportunities and similar “secret” ways to make you rich
• Never let anyone rush you into signing documents
• Take time to review and get advice on insurance policies, sales agreements, and contracts of any kind

Senior fraud remains one of the most underreported crimes in the country and has become difficult to both track and examine.  Once defrauded, many seniors feel ashamed and embarrassed, thinking they should have known better and may even withdraw from loved ones. Unfortunately, the result in many cases is that they decide not to tell anyone, especially their adult children or their local law enforcement officer.
 
NCPC can help educate and empower our senior members of the community, and help contribute to their overall physical and financial safety.  The last worry for them should be the possibility of becoming a victim of senior fraud.

We invite you to share your success stories. What are you doing to help keep seniors safe and increase their quality of life in your community?  Visit www.ncpc.org for additional resources and useful tips on preventing crimes against seniors.

Monopoly Money

Let’s face it; in times of economic hardship, we could all use just a little bit more money.

Something to set aside, something to pay the bills, or even, dare I say, something to splurge on a vacation. In a society where money makes the world go around, many of us have been standing still for quite some time. So, when you need more money, what do you do? Get another job? Work a few hours of overtime? Or how about removing the ink on a five dollar bill and reprinting it as a one-hundred dollar bill? One of these things is not quite like the others, but sadly, it’s still true.

Throughout the United States, and most recently in the Milwaukee Metro area, businesses have been victims of counterfeit currency transactions. Perpetrators are bleaching five dollar bills clean of ink, and then printing over the real money with larger denominations such as twenty, fifty, or even one-hundred dollar bills. Unfortunately, what’s fast money for some is hard earned money for others and not just the businesses, but every employee that works for them.  Thankfully, there are a few tips and precautions that business operators and clerks can take to prevent themselves from falling victim to counterfeiters.

• Now that you’re aware, be on the lookout for any suspicious bills.
• In addition to the standard security pen test, hold the bill up to the light and look for the watermark on the right hand side of the bill every time.
• Don’t be afraid to contact your local police department or manager if you’re unsure about a suspicious looking bill.

For more information about counterfeit money, visit www.wiccrimeprevention.com.

Holiday Decorations Are Up and So Are Charity Scams

The holidays are known as “the giving season.” It is a time when the amount of donations to charities and organizations increase. People are often more soft-hearted about giving during the holidays than any other time of year. Donations range from clothing, money, and sometimes even property. While donating is a great way to give back, donors should use caution when deciding to whom and what to donate. The holiday season is a time when criminals prey on the generosity of donors. Charity scams are the highest during this season. Criminals use this opportunity to set up money scams and even fake charities, leaving donors clueless and resulting in lost profit for a charity in need.

Here are five ways to avoid charity scams this holiday season:

• Research the charity- Be sure that it is a charity that you can trust or a charity that is familiar to you. Consider asking friends and family for suggestions, but still do your homework by calling or checking out the website. Look for past accomplishments and years in business. The larger the donation, the longer you should think about it before transferring funds to a charity.
• Don’t give in to pressure to give on the spot- Do not give on the spot, whether it is by phone, with a credit card, or a runner coming to get the donation. The charity that needs your gift today will welcome it tomorrow. Ask for a pledge card instead, this will give you time to do your research.
• Never give out credit card information over the phone- If a solicitor claims that the charity will support a local organization that you are familiar with, this is not a green light to give all of your information. Do not give your credit card or any other banking information over the phone. Call the charity in question directly to verify the claim. Phony charities will use familiar names of charities that are located in the area code that donors are calling from so that it appears that contributions are going to support local causes. People like to help their neighbors, especially during the holidays, and scam artists won't hesitate to exploit a donor’s kindness.
• Make your monetary contributions by check- When giving a monetary donation, use a check instead of cash. This is the most secure method of tracking your donations. Be sure to make your checks payable to the charity and not to an individual.
• Check the IRS and Better Business Bureau-. Most states require charities to register and file annual reports showing how they use donations. Ask your state or local consumer protection agency how to get this information. The Better Business Bureau Wise Giving Alliance also offers information about national charities. You can check www.give.org  for more information. 

When Charities Aren’t so Charitable

The tornados of 2011, Japan, Hurricane Katrina, 2004 Indian Ocean Tsunami, and Haiti: these are examples of moments when our world is halted by devastation. We can’t imagine how this happened, why it happened, and how it feels to be a victim of the disaster. Our hearts go out, and we want to help in any way that we can. Sure, we could take the time to go and physically help with the rescue and rebuild, but that requires taking time off work, finances for travel, and sometimes specialized training. One way that we can help from home is through making a donation. Often people give food, clothing, water, and money. Thankfully, many charities and organizations exist for the sole purpose of assisting those affected by natural disasters. But what happens when the charity doesn’t do what it says it will?

First, some tips on how to avoid fraudulent charities:

• Don’t open unsolicited emails. If you do happen to open an email, don’t click on any links or pictures.
• Go directly to the organization’s website, instead of doing transactions via email.
• Never give out personal or financial information over the telephone. Always request physical information or emails with instructions on how to donate to the organization.
• If you are questioning the legitimacy of an organization, do a little research to make sure that they are who they say they are. GuideStar.org is a nonprofit organization dedicated to encouraging nonprofit transparency, meaning making nonprofits’ organizational budgets and staffing open to the public. “Non-profit and charitable organizations associated with disaster relief efforts should be encouraged to be transparent. The availability of information and public disclosure about charities’ operations can help stimulate oversight by donors, the media, academia, and private organizations” (Bryant, 2006).
• Though it may seem heartless, don’t always trust people that claim to be individual victims of the disaster. By donating through a trusted organization, you may not be helping that specific solicitor, but you will know that your money is going where you intended it. U.S. News & World Report wrote an article called “How to Donate Wisely,” where they mention that “online or in person, the high-pressure pitch is the scammer’s hallmark” (2010).

We know hearts are in the right place when trying to donate money to victims of disasters, but that doesn’t always mean those accepting the money have the same heart. If you feel like you have been a victim of a charity scam, report it to the National Center for Disaster Fraud. If you would like to report suspicious email or internet activity, go to the Internet Crime Complaint Center (IC3). IC3’s suggestion for finding out more information about charity schemes is to go to www.lookstogoodtobetrue.com. Lastly, visit NCPC for more information and resources on how to avoid charity and other types of fraud and identity theft. 

Digital Copier Identity Theft

In our office we have a copier that can make your copy into a PDF document that you can receive via email at your desk.  It’s a really great feature but recently I saw how that feature could turn potentially ugly with the push of a few wrong buttons.

A person accidentally sent a PDF copy of his license and social security card to a few people in the office because he mistakenly highlighted more names than his own.  This could have been an identity theft situation that would have cost this person a lot of time and money to reclaim the stolen identity.

But the problem doesn’t stop there.  If this person was using a digital copier, there is another risk that has nothing to do with human error.  Did you know that digital copiers store what you’ve copied on a hard drive that if not wiped clean, can be retrieved when that copier is re-sold or junked after it is no longer useful to the company?

It is scary to think about how much personal and company data could be on your organization’s copier hard drive.  Fortunately, there are some ways you can try to protect that information by working with your IT staff.  An article by Consumeraffairs.com has some easy to follow steps you can take in your office.

As scary as this is, the number one way people become victims of identity theft is still through their own lapses in judgment.  Don’t be careless with your personal information.  Learn how to be identity smart with the brochure,Identity Smart: A Guide for Consumers to Help Protect Against Identity Theft, by LifeLock and the National Crime Prevention Council. 
Ten simple tips to secure your identity:

• Do not give out personal information over the phone, through the mail, or over the Internet unless you have initiated the contact or know with whom you’re dealing.
 

• Shred all documents, including preapproved credit applications, insurance forms, bank checks and statements you are discarding, and other financial information.
 

• Protect your computer from Internet intruders—use firewalls. Also use anti-virus software and keep it up-to-date. Create hard-to-guess passwords that cannot be found in any dictionary. Select passwords with at least eight characters and that include a mix of numbers and both uppercase and lowercase letters.
 

• Minimize the identification information and the number of cards you carry. Take only what you’ll actually need. Make a list of all your credit card account numbers and bank account numbers with customer service phone numbers, and keep it in a safe place.
 

• Do not put your Social Security number on your checks or your credit receipts. If a business requests your Social Security number, give an alternate number.
 

• Be careful when using ATM machines and long-distance phone cards. Someone may look over your shoulder and get your PIN numbers.  You also have to be careful of ATM skimmer machines.  Do not use an ATM if it looks like it’s been tampered with.
 

• Never submit your credit card number to a website unless it is encrypted on a secured site. Look at the bottom of the screen for a padlock symbol. Do not select to save your information on the site for future transactions.
 

• Pay attention to your billing cycles. Follow up with creditors if bills don’t arrive on time. A missing credit card bill could mean an identity thief has taken over your credit account and changed your address.
 

• Cancel all credit cards you have not used in the last six months. Open credit is a prime target for an identity thief.  Also, you might consider signing up for a monitoring service so you can be alerted to any unusual activity.
 

• Order your credit report at least twice a year from the three major credit bureaus: Equifax (www.equifax.com), Experian (www.experian.com), and Trans Union (www.transunion.com). The Fair Credit Reporting Act allows you to get one free credit report from each of the three major credit bureaus once per year. Visit www.annualcreditreport.com. Correct all mistakes on your credit report in writing. Send a letter to the credit reporting agency identifying the problems item by item, include a copy of the credit report, and send the letter return receipt requested.