United Bank & Trust Blog

According to the National Retail Federation, 50.8% of shoppers will make at least one online purchase this holiday season. Unfortunately, as more consumers turn to the Internet for their shopping needs, so do the fraudsters with their scams. Here are some simple and important steps online shoppers should follow to protect themselves when making internet purchases this holiday season:

1. Don’t share, if you’re not sure. It is easy to set up a website, so be sure you’re familiar with the retailer before giving them any personal financial information. The Better Business Bureau has a list of about 70,000 safe websites. Be sure to check out the list before you shop online.
2. Is the site secure? Look for the ‘s’ in https:// and the small padlock symbol or icon at the bottom of the screen before entering any personal financial information.
3. Know the terms of your purchase. Are you able to return the purchased item? If yes, who pays the shipping fees? How long will it take to ship the product? What does shipping cost? Be sure to read the fine print. If it’s unclear or you don’t agree, purchase the product elsewhere.
4. Print & Save. Be sure to print and save the transaction receipt, the order number, a customer service phone number, and any other pertinent information in the event there’s a problem with your order.
5. Check the privacy policy. Find out what they’re doing with your information by reading the privacy policy. If it’s too complicated to read or they don’t have one, choose to do business with a more consumer friendly website.
6. Too Much Information. Don’t divulge too much information to anyone on the Internet. If a website is asking for your bank account number, social security number or driver’s license number, don’t share it.

Know your rights. If you suspect you are a victim of fraud, contact the Federal Trade Commission at: www.ftc.gov/complaint. You can also contact the Attorney General for the state in which you live. And, be sure to report it to the Better Business Bureau.

Kathy McCrate

The Internet is changing the way we save, borrow and invest. The vast amount of financial information on the Internet can be troublesome. Finding the right information, making sure it is accurate and from a trustworthy source are critical.

Reliability of Financial “Advice”
The “open” nature of the Internet makes it easy for con artists to promote their “get rich quick” ideas. Be especially wary of investment chat rooms and bulletin boards. A tip might be a promoter’s attempt to push up a stock price, just to unload their shares.

Rules to remember:

• When something sounds too good to be true, it may not be true.
• Be wary of unfamiliar companies offering investments.
• Be wary of hype. You may not know who is saying what and why.
• Check out sources of information that seem suspicious.

The Privacy of Personal Information
The technology used throughout the “Internet process” also gives rise to concerns over the privacy and use of personal information you may disclose when visiting different web sites.

Many web sites ask for personal information, such as age, name, e-mail address and more. In some cases, that information is sold to others so they can direct promotional efforts toward you over the Internet or through the mail. In some cases, those additional promotions may be of use. You may get special offers for products and services you are interested in. But in some cases, it may just result in further junk e-mail.

One way to understand how different web sites treat this type of information is to look for a posted privacy policy. Most companies with major a Internet presence have policies that describe how they may or may not use any personal information they may obtain.

The issue of personal privacy on the Internet will probably become more visible as more people use this communication tool. Congress is considering legislation that would regulate financial sites. Probably, the most important thing you can do is to be aware of the policies of the sites you visit most often.

The Security of Internet Transactions
Most of the publicized Internet hacking has caused problems for the web site companies. The hackers have tried to overload the system, not perform illegal transactions. Most sites that offer purchasing capabilities with a credit card use a password protected system with encryption and high-level security. Since Congress enacted a maximum loss of $50 in the event of unauthorized credit card use, using a credit card has become safer than writing a check.

Conclusion
The Internet is a new communication device that can present some additional risks. But, as with most things, common sense will provide a relatively high level of safety. Here are a few pointers:

• Don’t believe everything you see on the Internet, especially if it is coming from unknown sources.
• Never give out your passwords or any PIN numbers.
• Beware of things that sound too good.
• Most importantly, do business with those individuals and companies you can trust.

Kathy McCrate

With more of our financial activities occurring over the Internet, it is important to be aware of risks these activities entail and steps you can take to reduce the risk that someone will illegally gain access to your private information or financial accounts.

Common Internet Scams

• Auction fraud – This may take many forms including emails saying you have a second chance to buy an auction item, non-delivery of an item purchased in an auction, defective merchandise or receiving cheaper merchandise.
• Advance payment frauds – Emails asking for help in getting money out of a country or advising you that you won a lottery lead to requests for money to cover legal fees, taxes, bribes, processing costs and taxes.
• Phishing – Emails notifying you that an institution or store need confirmation of account information lead to a fake (or spoofed) website that looks legitimate but is just a place to disclose personal information to fraudsters.
• Hot stock promotions – Emails, online newsletters and bulletin boards may be nothing more than a scam artist’s attempt to have you drive up the price of a stock so they can sell their shares.  This is often used with cheap and thinly traded stocks.

Protecting Your Online Activities

• Be careful using public computers. Using a computer at a cyber café or a free computer at a trade show can be dangerous. If you do use this type of computer make sure no one is looking over your shoulder to memorize your personal data and be sure to sign off when you are done.
• If you are using the Internet for financial transactions, be sure the sites you visit are secure. Most secure sites have URLs that start with “https://” instead of the normal “http://.”  Some websites may display a logo indicating it is secure, but make sure you know the site is one you trust.
• Wireless Internet networks have become common and convenient. Be careful using wireless networks that are free and not secure. Wireless home networks deserve attention as well. It may be time consuming or more expensive to have a secure network at home, but that is better than having a fraudster sitting in a car on your street monitoring your activities and gaining access to your files and information.
• It is important to install anti-virus software on your computer and keep it up to date.  The same holds true for firewalls and security patches for your operating system.

Passwords

Many websites you visit require a user name and password.  Having a strong password will make your online activities safer.  Unfortunately, many passwords are chosen to be easily remembered rather than to protect the user.  Some common passwords that hackers could easily guess are password, user name, your real name, your address, 123456, abcdef, or just a number. With just a four digit number, there are only 9,999 combinations and a sophisticated hacker could probably figure that out in seconds.

• Strong passwords are at least six characters long and preferably eight.  They should contain a mixture of upper and lower case letters, numbers and special characters (#, $, ^, &,!,?, {, >, etc).  They should not be based on personal information and not be based on words found in a dictionary.
• The difficulty of long and mixed passwords is that they can be hard to remember.  One suggestion is to create a password from a sentence that you are likely to remember.  For example, start with the sentence “My children John and Mary are 12 and 16 years old.”  Then use the first letters of the words, characters and the numbers to create the “McJ&Ma12&16yo” password.

Changing passwords often and using different at different websites also increases protection.  Keep any written record of your passwords in a safe location.

To learn more about protecting yourself against identity theft and account fraud, join us for a FREE webinar on April 21. Register today.

Kathy McCrate

Webopedia.com defines phishing as (fish´ing) (n.) The act of sending an e-mail to a user falsely claiming to be an established legitimate enterprise in an attempt to scam the user into surrendering private information that will be used for identity theft. The e-mail directs the user to visit a Web site where they are asked to update personal information, such as passwords and credit card, social security, and bank account numbers, that the legitimate organization already has. The Web site, however, is bogus and set up only to steal the user’s information.

Phishing, also referred to as brand spoofing or carding, is a variation on “fishing,” the idea being that bait is thrown out with the hopes that while most will ignore the bait, some will be tempted into biting.

Pretty scary stuff. So how can you protect yourself? There are some basic tips to always remember that can help protect your identity and your accounts.

1. Never send personal or financial information via email and never provide this information during an unsolicited telephone call – no matter how authentic the institution or person sounds.
2. Know the companies you deal with. If you receive an email or message from a company you have never heard of, do not provide any information without doing your research first.
3. Do not reply or click on any links in an e-mail message from an unknown sender.
4. If you have antivirus software, use it and keep it up to date. If you don’t have it, get it.
5. Regularly review your account statements for unauthorized transactions.

There are a lot of great resources out there to help you learn more about phishing or other identity theft scams, how to protect yourself against them, and how to respond if you fall victim to one. The Federal Trade Commission is a great first place to start. Their website Fighting Back Against Identity Theft is a great resource for consumers, businesses, and law enforcement alike.

Don’t Get Caught! If you are a victim of Identity Theft Report It immediately.

Kathy McCrate

Yes. Identity theft has become the most common financial crime faced by individuals. Con artists have become more brazen and more creative in their efforts to use someone else’s identity to steal.

How does credit identity theft happen?
Credit thieves usually have one of two goals in mind – either they want to use a credit card number to buy merchandise (or get cash advances) or they are more elaborate and try to build a complete new “borrowing identity” to run up bills in several ways.

How to protect yourself
You should guard the two pieces of information that credit thieves are most interested your credit card numbers and Social Security number. With your credit card number, a thief can charge items to your account and with your Social Security number, they can start to build a “new” you and run up large bills.

1. Carry as few credit cards as possible and keep them secure. You should also be cautious with credit card receipts and anything with your account number on it. After using your credit card, be sure to take your copy. At restaurants, you may want to stay at your table until the waitress takes your signed copy.
2. Sign new credit cards immediately when you receive them.
3. Review each month’s credit card statement immediately. If there are transactions that appear odd, or you don’t recall making, contact the issuing company immediately. Often, a call to the credit card company will clear up any unknown items.
4. If there has been unauthorized use of your card, notify the credit card company immediately over the phone and in writing. Your liability will be reduced or eliminated by making the call and writing the letter.
5. Keep your Personal Identification Number (PIN) secure. Never give your PIN over the phone or in unsolicited emails, for any reason and dispose of ATM receipts properly.
6. Guard your Social Security number. Never have it printed on your checks and avoid carrying your Social Security card.
7. Review your credit record annually. The three major credit agencies will each provide a copy of your report, once a year for  free at www.AnnualCreditReport.com. An annual review should help disclose any unauthorized accounts and you will be able to see what lenders see when you apply for credit. You may also call the agencies at these numbers:Experian           (888) 397-3742
   Equifax              (800) 997-2493
   TransUnion     (800) 888-4213

There are no guarantees that some criminal will not try to use your identity for their purposes. As is the case for many risks we must take, using common sense and taking cautions ahead of time can reduce the risk the criminal will be successful.