Protecting Yourself Against Fraud and Identity Theft

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1 Summit Branches are conveniently located in Rochester (8), Seneca Falls (1), Buffalo (2), Syracuse (5) and Cortland (2) Protecting Yourself Against Fraud and Identity Theft A presentation by The Summit Federal Credit Union

2 What We Will Cover Today Major types of Fraud & Tips to Avoid becoming a Victim Common forms and methods of ID Theft Prevention If you become a victim Credit reporting agencies Websites for additional information

3 Major Types of Fraud Debit/ATM and credit cards Telemarketing scams Health Care & Insurance fraud Counterfeit checks & money orders Nigerian fraud

4 Debit/ATM Card Fraud Employees at legitimate businesses are paid to take cards and swipe them through a bogus card reader Skimming devices installed illegally on ATM machines Compromised cards (Hacked, or stolen via card readers ) Small Skimming Device Larger Skimming Device

5 2. Counterfeit card reader installed over the top of existing card reader 1. Pinhole Camera to view legitimate key pad

6 Minimizing Your ATM Risk Be picky about the ATM s you use Use machines in well-lit, high traffic areas Trust your instincts if the area doesn t feel secure find another ATM Use familiar ATM machines at financial institutions Stand close to the ATM and cover the keyboard when inputting your PIN

7 Telemarketing Scams When you send money to people you do not know or give out personal or financial information to unknown callers, you increase your chances of becoming a victim of telemarketing fraud. Here are some warning signs of telemarketing fraud what a caller may tell you: You must act now or the offer won t be good. You ve won a free gift, vacation, or prize You must send money, give a credit card or bank account number, or have a check picked up by courier. You may hear this before you have had a chance to consider the offer carefully You can t afford to miss this high-profit, no-risk offer

8 Tips to Avoid Telemarketing Fraud Do not buy goods from companies you are not familiar with Always ask for and wait until you receive written material about any offer or charity Check out any unfamiliar companies with your local consumer protection agency, Better Business Bureau or state attorney general Don t pay for a free prize. If a caller tells you the payment is for taxes, he or she is violating federal law Always take your time making a decision. Legitimate companies won t pressure you to make a snap decision. Before you send money, ask yourself a simple question. What guarantee do I really have that this solicitor will use my money in the manner we agreed upon?

9 Healthcare and Health Insurance Fraud Medical Equipment Fraud: Equipment manufacturers offer free products to individuals. Insurers are then charged for products that were not needed and/or may not have been delivered Rolling Lab Schemes: Unnecessary and sometimes fake tests are given to individuals at health clubs, retirement homes, or shopping malls and billed to insurance companies or Medicare Services Not Performed: Customers or providers bill insurers for services never rendered by changing bills or submitting fake ones. Medicare Fraud: Medicare fraud can take the form of any of the health insurance frauds described above. Senior citizens are frequent targets of Medicare schemes

10 Tips to Avoid Healthcare Fraud Never sign blank insurance claim forms or give blanket authorization to a medical provider to bill for services rendered Ask your medical providers what they will charge and what you will be expected to pay out-of-pocket Carefully review your insurer s explanation of the benefits statement Do not do business with door-to-door or telephone salespeople who tell you that services of medical equipment are free Give your insurance/medicare identification only to those who have provided you with medical services. Keep accurate records of all health care appointments and review your statements

11 Fraud by Paper Means Counterfeit Checks Money Orders Nigerian Fraud

12 Nigerian Fraud The purpose is to obtain money from potential victims Lottery Scams Exchange Student Scams Investment Scams Love Scams Relative Died Scams Remember if they get your money, you will never get it back!

13 Identity Theft 12.6 Million adults were victims of Identity Theft in % increase over 2011 and the criminals made off with 3 Billion more 7% of people age 16 or older were victims of ID Theft in 2012

14 Five Common Types of Identity Theft Driver s License Thieves use this information to obtain loans, credit cards, open bank accounts and make large purchases all in your name Social Security ID Thieves use this information for everything listed above as well as trying to obtain your social security benefits Medical Use of your medical information to file false claims, have surgeries, false liability claims etc. Character & Criminal Thieves commit crimes posing as YOU! Financial Thieves posing as you to empty your bank accounts, obtain access to your assets, etc.

15 Common Methods of Identity Theft Theft of your mail (incoming and outgoing) from your mailbox Paid bills Unsolicited credit card applications Delivery of your ordered checks Monthly account statements Stolen wallet or purse Dumpster diving

16 New Methods of Identity Theft Phishing an attempting to acquire your personal information like user names and passwords Smishing uses cell phone text messages to lure consumers in with a phony URL or phone number Vishing a computer or real voice requesting you to verify your personal information

17 Avoiding ID Theft Protect your personal information! NEVER share your account number, social security number, DOB, PIN #, Debit/Credit Card # with anyone unless necessary The Summit will NEVER ask you for sensitive information via the phone or NEVER respond to a phone call or requesting you to verify your personal information SHRED all documents containing with your personal/financial information prior to discarding them Store documents in a safe place

18 Avoiding ID Theft (cont.) Mail your payments, letters, and cards in a postal receptacle - not in your mailbox Do not write your name in your return address - use only the address Try to keep your debit/credit card in sight when paying for your purchases whenever possible

19 Social Media/Wireless Safety Social Media Use of social media sites that employ malware transfer, impersonation, information theft and profile page hacking Wireless Fraud Radio Frequency Identifier (RFID) technology uses electromagnetic waves instead of a magnetic strip to send information from a credit card

20 If You Become A Victim.. Keep detailed records Report the crime to your local Law Enforcement agency. A report may be necessary to convince creditors that someone has used your information falsely Police agencies in NYS are required to take this type of report Recovering from identity theft or fraud can be a long and complicated process

21 If You Become A Victim Check your Credit Reports. Contact one of the three credit reporting agencies to apply a fraud alert The agency you contacted is required to contact the other agencies. This checks your reports for new accounts opened in your name that you did not authorize Remember - New accounts can take up to six months to appear

22 If You Become A Victim Contact the Federal Trade Commission s identity theft hotline at or find them online at to locate their complaint form. The FTC also has an Identity Theft Affidavit on their site to notify merchants that you have been victimized.

23 Credit Reporting Agencies FOR YOUR FREE ANNUAL CREDIT REPORT FROM ALL THREE AGENCIES: or call Equifax ( Experian ( Trans Union (

24 Additional Resources (877-ID-THEFT) Visit us online or toll-free at SFCU At the Summit, We re Here For You!

25 Questions? Thank you for attending!