FraudJournal Blog

April 9, 2014

“My website was hacked & on sale…”

Filed under: Author's Post,Fraud,Fraud Alerts,Fraud Schemes,Fraud Trends — fraudjournal @ 2:43 PM
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There are multiple stories of identity theft, embezzlement and other sad stories of lives undone and upturned by fraudsters. What you don’t usually find is a well written article from the victim stating the shock and surprise of finding out via ‘luck’, from someone who was paying attention and informed them. You also don’t usually find a well written article that helps you understand the seriousness of the situation and the long and required attention to details to doggedly follow the trails and fight the good fight of stopping and retrieving back their life and this case, their livelyhood.

Please take time to read through this person’s website article by Jordan Reid of Glamshackle Glam. She is articulate and shows the fiery spirit of an entrepreneur fighting for the right to make a living online.

Keep up the fight against fraud. Trust but verify.

 

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July 30, 2013

The Cost of Over-Trusting


I recently worked a fraud case that involved a bookkeeper and a small but over trusting business owner. Often, these individuals who are entrusted with the keys to kingdom, are truly key to the success of small businesses. They are the watchdogs of the kingdom. They are there when you need them, they keep the facts managed and ‘ticked and tied’ for future reference. So what goes wrong?

In this case it was an emotional trigger. But often it can be, as one of my colleagues put it, the result of ‘the can that got kicked down the road.’ In other words, they were kicked to the curb for cause and picked up by another. This is catch-22 for fraud fighters and law enforcement. Does a company be made whole and move on, do they prosecute and hope the fight will provide the return of both funds and recovery or do they forgive and forget. I have seen the latter, but in about two to three years, the problem recurs and the battle restarts. It is expensive to dig into the archives of financial data and find the smoking-gun for court or mediation. It easy to outspend the loss easily; especially if the fraudster wants to put up a fight. I have seen this process kill a business as much as the fraudster’s theft.

Most of you who become the triage workers of fraud, are called in at the most dire times. The funds are missing, the staff are up in arms or in total shock, and the frenetic pace begins to solve for ‘x’. The saddest part of this is that the cost goes to the heart; deeply.  After all, how could this have happened on their watch? It can get ugly and fast. But it can be the rally cry that unites and brings amazing change and recovery to a business too. This is where the dynamics of the culture of a business really show.

An interesting statistic that was bounced around during a recent conversation with colleagues is the magic number for long-term entrusted employees and contractors that embezzled seems to be around the ten to thirteen year mark. That isn’t to say that a long-term employee or bookkeeper will always go to the dark side, but the cases keep showing up at around that mark of entrusted access to the financial details of the company.

So what is the moral of this post you ask? The moral is that it is the level of trust, not that you trust. Trust is an imperative part of running a successful business. But the rules of fraud are ‘trust but verify’. Whether your family, friends or business; you need to trust at some level. There are no hard-fast rules to avoid fraud. At some point, in some way, you will become exposed to fraud either personally or through others. But you can make all effort to reduce your risk by creating the ‘tone at the top’; by leading by example. Those around you will notice that you take a ‘vested’ interest in your affairs, both at home and at work. They also know that to hide the fraudulent activities requires greater stealth and complex methods to avoid detection. Unless they are in need of a mission with impossible thrills, they will think twice about theft. And the business owner, participating regularly in the financial activity, will notice those subtle changes that trigger their inner red-flags and respond accordingly. In this case it would have been the timely review of the bank statements that would have triggered questions early on.

But remember too, many who come into a serious need, whether perceived or real, will steal to survive. It is human nature to survive at all costs – however most of us have a loadstone of truth that prevails. But these triggers often include gambling or other addictive issues, a burden of medical needs, family financial crashes or a perceived shame. The perception of shame could be feeling below the financial level of others, not having stories to share around the water cooler. Many embezzlers have large egos that require a certain level of attention to life style, and will generously share their loot to impress others.

In retrospect, most victims of fraud and can and often do trace back to the beginning event that most likely was the root cause of theft. But hindsight is always the more painful way to learn a lesson. So those of you in the trenches, take time to educate your friends, family, peers and local business community on the cost of over trusting. Help them put into place those necessary internal controls that establish boundaries and steps of precaution. Wave that hypnotic watch and have them repeat, “Trust but verify, Trust but verify” until you know they get it deep into the psyche.

Stay safe friends and educate, educate, educate.

 

April 13, 2013

What Makes a Fraud Investigator a Professional – Experience or Education


Fraud Fighters Become Cool!

As the economy continues to sequester most of us, fraudsters seem to be engaged in an all out frenzy of activity. Today you can’t seem to get away from reports of economic losses caused by embezzlers, identity thieves and scams on the vulnerable. This has resulted in a public outcry of “not on my watch.” And the response is government agencies, such as the IRS and FBI, are hiring people proficient in IT and financial fraud. Companies now search for individuals trained in fraud-risk-compliance. So who are the next wave of fraud professionals? Where are they coming from? And, how does this effect those of us already in the trenches?

First, the next wave are a mixed set of young professionals and re-established professionals. Many are students who have been drawn in by television shows such as CSI, NCIS, Bones and the numerous real-life drama shows on forensics and assorted documentaries. Others are established professionals that are either looking forward to making a career change, enhancing their current position or putting out a shingle as self-employed. What was once a profession of unknown behind the scene investigators has become the “now” profession. I am often asked about fraud fighting and how to get into the field. Most of my answers tend to result in raised eyebrows or dropped heads of frustration once they learn that the road requires not just a degree, but years of work and life experience and a high level of intuition and common sense. It’s not glamorous and a win every time. There are no hero medals and it’s tedious and requires high attention to detail. Something which I find many young professional are frustrated with in the beginning.  If you Google what it takes to be an expert, you find it takes close to 10,000 hours of practice or work experience for anyone to become considered an expert in their field of choice.

Second, quite a few colleges challenge this by advertising they can get you there with a degree in forensic accounting, criminology or fraud expertise. Many students are now able to earn their business or accounting degree with an emphasis in fraud. Some earn a certificate or added credential/degree in fighting fraud. I endorse educating the masses on how to thwart the creativity of thieves but it does not replace experience.

Learning the theory of detecting, deterring and defending against fraud provides a good base from which to launch the beginning of a career through internships and mentored case work. Expertise allows one to think outside of the box because experience has repeatedly engrained their understanding to a level that is second nature while maintaining their ethics to work within the required rules and regulations. And with time and diversity of experience, either across the board or in a specific arena of understanding, there remains the levels of novice, advanced, master and expert.

I Have a Point – Honest…

Here is my point; fraud work is a field that requires not just classroom education but repeated experience, careful mentoring and the passion to roll up ones sleeves, get into the dirt of the devil’s activity and all the while remain clinical. It is about making a difference while serving the public.  As individuals seek out the next trend in careers, they look for what brings income while raising peer acceptance. Young professionals seek out the career goals that take them forward in both income and position. And those that are stymied by hiring freezes and worse sudden income loss seek out ways to reinvent or augment the current situation. This means that there are many more people focusing on the world of fraud fighting but lack the necessary level of skills. This concerns me.

This is not about being competitive. It is about the safety of the public including those impassioned to enter the field of fraud fighting. There is a high level of liability that fraud work brings. Technology growth is constantly challenging our knowledge base not to mention the ever-growing level of global connection. The subtleties of culture, ethics and business models come with job maturity and work diversity. Knowing when someone is being polite by not looking you in the eye verses being nervous and avoiding eye contact can change the way investigative interviews are conducted. One must also consider the sequestering  of public agencies and enforcement officers resulting in the near stuttering to a stop of processing growing crimes.

Grassroots Solution?

I would like to challenge state and local government agencies to consider establishing internships for professionals (with proper vetting of course), to handle the back load of financial crime work. I would like to see a community grassroots approach of the educational system with the work programs that allow work experience that offsets educational costs, which would provide serious young professionals the opportunity to gain real-life lessons-learned experience. By establishing a contractual agreement of a time period for and vetting, we could put many individuals into the field with both mature and novice experience together. Establishing a certification program that also requires work experience for credentials and a mentoring process that signs off on professional understanding will provide both work, education and strongly enforced ethical standards for work ethics and case work. It takes the overwhelming level of paperwork and case load to a more manageable level and helps ensure that new professionals are properly trained and given the diversity of case experience.

What are your thoughts? How would you provide a means to education coupled with mentoring and job opportunities while maintaining the high level of expected ethical standards? Sound off!

 

March 23, 2013

“What’s your fraud IQ” (Journal of Accountancy) Mar1.2013


The recent news articles and discussions regarding the over testing or improper testing of students to measure their progress in the basics brought to mind how much education each of us as fraud fighting professionals maintain to continue our professional certifications; those lovely alphabet letters that follow our name. As a fraud fighter, I tend to feel that these letters mean little without the experience and ability to apply said education to my professional work. I could have lots of alphabet soup after my name, but without the ability to apply this knowledge to each case and think outside of the testing box, I have just become adept at passing tests. Which brings me to my point, and I do have one, once we take the path to become credentialed, how do we know we are or have maintained our ‘fraud IQ’?

The ongoing issues regarding the students’ continual testing and preparation for the testing are important; “when does an education become a required process instead an education of how to apply knowledge?”  And so I ask myself, am I honestly building my skill sets or am I just meeting my requirements to maintain my CPE credentials. If tested, would the result be a true measurement of my abilities or instead my ability to accurately recall information. Can you accurately measure an individual’s ability to apply information by the methods of current testing?

I think the article of “Whats your fraud IQ” posted in the Journal of Accountancy dated March 1, 2013 is an interesting way to find out how you test. How would you approach these questions? How would you redesign this test? How much do you really remember? Should CFEs test like Auditor’s – in case work scenarios? What to do you think? Talk amongst yourselves.

 

March 12, 2013

Should Forensic Accountants Be Considered Private Investigators?


I must say it is nice to see Forensic Accountants become acknowledged by the general public as a potential solution to detecting, defending and even more importantly deferring, as much as possible, fraudulent behavior in the workplace and home. Even shows such as NCIS have given a nod, however slightly, to Forensic Accountants (often noted as FA). Most Certified Fraud Examiners (CFE) have some working knowledge of accounting and this has become more emphasized in our annual training. And many private investigators have to review financial information in order to follow through with their engagements with clients. Which brings me to my question for the general fraud community, should Forensic Accountants become Private Investigators and licensed within their state as is required by some states.

While most states have specific regulations that professionals who “investigate” as a profession must be registered and licensed as private investigators, FAs and CFEs for the most part have not been included in this group. Recently, private investigators have raised their voices to urge any and all individuals that claim to or state they investigate be required to follow state law and become licensed as a private investigator.

I agree that investigative work requires knowledge of state laws and regulations to keep both investigator and the general public safe from unqualified professionals looking to merely increase revenue and try out new trends of services. CFEs are required by the Association of Certified Fraud Examiners (ACFE) to maintain training and must pass a 4-part exam and submit recommendations prior to being allowed to take the exam. This includes: Investigation, Financial Transactions, Criminology, Law.

Having said this, many CPAs have become FAs in order to build a more diversified portfolio of services such as fraud prevention, fraud risk consultations and forensic accounting. I do have concerns with CPAs who provide forensic accounting services that are not CFEs. Not because they are educationally lacking in work financial knowledge or work experience, but there are legal ramifications to consider when performing investigative accounting. The rights of both sides of the case, claimant and defendant, have legal rights of process and must be acknowledged according to the rules and regulations of the law.

And so I ask, “Should Forensic Accountants and Certified Fraud Examiners be considered Private Investigators”, and if so, “Should Private Investigators be required to be certified in bookkeeping or accounting 101 before handling financial case work”? There is the opportunity to collaborate in wonderful ways, but do we think this will be the end result or is this a turf war? The question has some merit. What do you think?

 

October 10, 2011

Calling All Detectives…Elder Exploitation Really is a Crime


First, I want it on the record that this posting is about one or two individuals who felt elder exploitation was not a crime, but rather a family matter. Whether or not they thought about their response in detail it still makes one wonder just the same; what are you thinking?

I have been assisting from time to time on a particular elder financial exploitation case, where the children are exploiting their mother. And here is the kicker. We are having trouble getting the detective to accept the case because this is a family matter and law enforcement are about catching and putting the bad guys in jail; not resolving family matters. This individual was sure elder exploitation was a crime to prosecute. The prosecuting attorney who is willing to take the case, can only wait until a detective processes the case and forwards the case for prosecution. And now once again, another elder exploitation case is pending. Pending a detective to accept the case and apply the necessary due diligence to present the case to the prosecuting attorney.

Now in defense of law enforcement, their fraud case backlog is huge. And I really do mean its a big problem. The people needed to process the cases, with the right skill sets, are few and far between. Funding is next to nothing, all cases are prioritized for the level of community threat, and frankly, elder exploitation is not sexy. Unless there appears to be a possible hastened death situation, their priority is child abuse, murder, rape and the war-on-drugs.

Having said this, let me explain some items that you might not know. First, before any case can get to court, it must first receive a case number from the police department that has jurisdiction in the case. This how it gets tracked, noted, filed and if necessary transferred to the proper jurisdictions. No case number, no detective to process, no litigation.  But I digress, the issue is that the detective felt there isn’t  new laws that make it a crime to exploit an elderly person. It was a family matter to be litigated privately. This individual was also surprised to find out that in WA, there recent changes to state law which gives law enforcement and attorneys the ability to better prosecute for elder exploitation and abuse. This means even if there is not, law enforcement are now able to check in on a vulnerable adult and if necessary, take steps to insure their safety from potential harm whether financial or physical.

The recent set of economic setbacks to all local, county and state agencies has greatly reduced the number of qualified staff able to work the high case load. I understand why the fraud case loads are continuing to back up and that they are as frustrated as the rest of us that there is not enough time in a day to process these cases. I and my fellow fraud fighters understand that public servants need to keep the rapists, murderers and drugs off the streets, but I am concerned that I continue to hear from my colleagues this type of response from veteran detectives/law enforcement officers. Really? This is really how you feel?

I am willing to consider that these few individuals were not thinking clearly; that maybe that cup of coffee was not fully loaded with enough caffeine to engage critical thinking. But this response tends to come from older and more experienced law enforcement personnel, and this concerns me. Why? Because they the men and women that the younger professionals are watching and learning from as they strive for excellence to become viable law enforcement professionals.

As the “Boomer” generation continues to age, their level of vulnerability is going to grow exponentially. This means that they are prey for healthcare fraud, ID theft and of course, abuse and exploitation from friends and family.And they are going to need all of our help.

So my challenge to all of you who continue in the fight against fraud and abuse… please help our law enforcement officers & detectives to believe that elder abuse and exploitation is really a crime worth punishing. That the next vulnerable adult they investigate may be the relative of a friend or neighbor; that they just  might save someone from loosing their home and quite possibly their life.

Thank you for listening.

August 22, 2011

Is Ethics Hard-wired or Learned


I was reading a posting in LinkedIn by Fernando A., in the ACFE group, titled “Pants on Fire! Children and Lying“. The link led to a site called delanceyplace.com 8/18/11 – children and lying. The article a study into the frequency of children telling lies and whether this was indicative of a future problem. It seems that children who lie well are cognitively more advanced and are able to hide their tracks better. They tend to grow up and be more capable of dealing with complex situations, such as employment that requires quick problem solving or outside of the box thinking. The article suggested they might become bankers; I wondered about other financial positions that have recently been in the headlines for manipulation of funds and factual information.Then I thought about the recent trends in education for forensic accounting and fraud investigation. And what about learning to understand the federal tax code and recent gloable accounting issues.

Today’s generation is faced with making choices for more than which college to attend or job for a career. They have become a self-monitored social network of information and ideas. They want their lives to have impact, their efforts to matter, and their path to move at the rate that technology limits them. And I ask myself, what were they like as children? How did they interpret whether to help each other to obtain the advancement they rationalized as necessary to reach either their own goals or their family’s goals. I mention family because so many children now have been pushed through the process of high grades for college and then a better future. Does all of this push to succeed on a fast track impact their view of ethical standards?

Last week I was talking with a college professor who teaches at North Seattle Community College. They have created a new Certificate of Fraud to help students prepare for a career in fraud fighting. One of the topics discussed was about how students’ views of ethical behavior is changing nationwide. Does this generation of students feel differently about sharing information and taking risks that a previous generation might see more black and white. And if so, will that impact how they investigate fraud?

I don’t have an answer, but it poses the question of whether the “perceived need” to commit a fraudulent act will need to be redefined into less black and white and into more levels of grey. I hope not, but as those of us currently in the trenches age, and others come into the roles of leadership, what do they interpret ethical behavior to mean.

So now I am back to whether or not ethics is hard-wired or learned at an early age and how does that affect the fight against fraud. Employers are already being challenged by young professionals on what they expect as employees. Perhaps this generation of young professionals will need to show the veteran fraud fighters what they see as the solutions to a potential fraud wave looming in the future. Elder abuse and exploitation, cyber crime, and white-collar crimes will continue to rise as there is a shift in which population is taking the lead.

My vote is on this upcoming generation of professionals to take everything to the next level with technology and all its trappings. And I still ask, what were they like as children? Were they good liars too?

April 11, 2011

Fighting Fraud By Connecting and Detecting Globally


As the world gets smaller from people traveling more, gaining greater access to information via the internet, movies, television and cellphones, we seem to be sharing at a rate that astounds and thrills the number crunchers. We now share everything from secrets to solutions, inventions to investigations, and things that shouldn’t be mentioned let alone take place. This includes new ways and means to commit fraud including establishing complex webs that challenge the best of us in fraud investigation, as well as ways to counterfeit almost every product manufactured. But as fraud fighters, we are learning how to use that to our advantage. As much as the internet causes us to throw our hands up in the air in frustration we also have shouted loudly with joy when a fraudster unwittingly leaves a trail for us to follow. And we thank them for that.

The best way each of us can reduce the risk of fraud is become educated, connect with each other and work together as transparently as possible. The more we leave the old ways of hoarding our tips and tricks, the stronger we become in unity. By now, most cities, counties and states as well as federal agencies are beginning to understand this and the old network of closed doors is opening up to free-share ideas and solutions. But even better than this is that a new level of young professionals have grabbed onto the possibilities and are both teaching and putting into place ways to be more efficient and effective in the fight against fraud. I applaud all of you who work to share your concerns and network to find solutions. In my effort to continue sharing, I have listed below some sites I have come across recently for you to review and share with each other. I by no means participate in them, or receive any benefit from them. Nor do I present them as the perfect find, but I do find the information to be interesting and provide some ideas to pursue for further consideration and self-education. Keep up the good fight and continue to stay true to your morals and ethics as we all continue to be challenged in life as times become more difficult and trying of faith and patience.

http://blogs.gartner.com/avivah-litan/2010/12/15/2011-threats-and-trends/

http://threatmetrix.com/threatmetrix-announces-fraud-prevention-trends-for-2011/

http://news.hostexploit.com/cybercrime-news/4794-changing-internet-fraud-trends-highlighted-in-ic3-2010-report.html

http://www.publishingtrends.com/2011/04/bloggers-weigh-in-on-the-kindle-swindle-and-new-fraud/

http://www.nlets.org/press/internet-crime-trends-the-latest-report

March 26, 2011

Potential for Elder Fraud on the Horizon


Hello Everyone. I know its been awhile. Today I would like to share concerns from various conversations with others in the elder care community. This group includes tax preparers, CPA’s, business litigators, caregivers, senior care facilities (both assisted living residential and commercial), and health care workers, and fraud investigators. Why?

Well, as most of you have heard that the number our seniors that have aging parents now needing to place them into assisted care and skilled nursing homes and facilities are increasing. Most locations have been able to accommodate the ebb and flow of family and friends seeking help for their aging parents, spouses, partners and family members. Recently I was visiting an assisted living facility and the executive director commented that he no longer has rooms for the growing number of requests he receives on a daily basis. In fact, he now has had to create a waiting list without any way of assuring the families of a time frame when their loved one can be cared for by skilled staff and in a safe environment.

Which brings me to the next point. Due to the huge and I mean that quite literally, huge upcoming increase in senior/elder care needs, locating affordable and qualified care will be in high demand. This creates a large pool of vulnerable adults open to be preyed upon by the fraudsters in the health care field. This includes medical billing, quality care and safe environments where abuse is not tolerated or able to take place, qualified and vetted personnel (as in proper background checks and monitored activity), not to mention reasonable costs for the care received.

One women in a caregiver support group was aghast when she found out that a facility wanted to charge her a very large administration fee, first and last months space/care fee, a cleaning deposit, and a slush fund for small care needs. This amounted to over $10,000 up front for the first month of care. Most families can barely cover the costs of taking time off to care for a loved one let alone the initial upfront costs to begin care. This was a residential home that was set up to care for six elderly residents, and was part of an LLC that included six other homes just like it. There are many of these homes that work very hard to take very good care of their residents. But this home was not well maintained and the individuals that ran the home allowed family members to come and go and hang around as if it was a normal family home, served only their ethnic foods and was not keeping up the care on the home. This was very disconcerting to the woman and she did remove her mother from the home and chosen to take care of her herself. Which is what many are choosing to do because the costs end up meeting the same as the income they were trying to earn in the first place.

Now, having said this, I know for a fact that a qualified care facility with little turn-over and properly maintained premises is not cheap. Paying the staff what they deserve for the hard work, and think about it, it is hard work otherwise we would not have the need for these types of residential and commercial care locations, are key to running a safe and clean environment. Familiarity or routine is key to helping the elderly feel safe and willing to participate in the care they need. One director told me it takes close to $2000 per new employee to get them properly trained at the level he felt was key to providing the care expected for the fees charged and to remain in compliance with state laws and regulations.

Which brings the next point. There are no standards for care and costs regarding taking care of our elderly citizens aside from the currently established medical and government codes and regulations on running a business or medical practice. That puts the burden on the family to research, vet out and locate places they can both afford and feel their loved ones are safe. This also means they are relying on the homes and facilities to do their ‘due-diligence’ regarding their personnel and policy and procedures.

So here is my final point – the biggest potential for fraud is that the needs will over run the availability of qualified personnel to care and monitor our vulnerable adults. Recent economic conditions create a situation ripe for fraudsters to prey on the elderly either directly or through their caregivers as everyone gets stretched beyond their limits. So here are some ideas that I would like the fraud community to spark conversations on to build a grassroots approach to keeping our loved ones safe and out of harms way.

First, educate as many of those around you on what elder abuse looks like and who and where to report it. Each local city/county has an organization to connect you to the resources available. Second, if you know of someone you think is being targeted or IS unsafe, please reach out to the local law enforcement and ask for them to check in and verify all is well. They have access to governmental agencies for support. Third, ask questions if you need answers regarding the cognitive skill level of our seniors. Early signs may be there and steps need to be taken so they do not become pray to neighbors, family, and other commercial entities looking for easy targets. This includes those of you working in banks and stores.

Now for financial exploitation – this is going to be a very serious situation in the next years ahead. The generation of seniors that are now reaching increased levels of dementia were raised during a time when they understood they needed prepare for retirement. This means most of them have squirreled away some sort of funding to cover their final years. These savings have become an easy target for family, neighbors, and I am sorry to say fellow members of religious organizations to zero in on for support. Befriending the elderly can be easy because they believe in giving people the benefit of the doubt, which means most of them if they are lonely, and they usually are, end up trapped before they know and then have no means to reach out in time to protect themselves from the leeches they have welcomed into their homes and life. Not to mention, if they are in a state of dementia they will not remember what they recently did or agreed to at the time they were parted from their financial future.

Here are some sites to research and get your selves prepared to protect our seniors from harm:

http://helpguide.org/mental/elder_abuse_physical_emotional_sexual_neglect.htm

http://ctwatchdog.com/category/finance/elder-care

http://www.ncea.aoa.gov/ncearoot/Main_Site/index.aspx

http://www.apa.org/pi/aging/resources/guides/elder-abuse.aspx

http://www.calbankers.com/post/preventing-elder-financial-exploitation-how-banks-can-help

http://www.elderangels.com/

http://www.elderangels.com/

 

December 7, 2010

Tis The Season To Be Thieved


I know, it’s not a real word. But recently two of my friends found out their debit/visa cards had been compromised. Both of these people are careful with their information. So, how did this happen. There is no real way to determine exactly what happened, but we have pin-pointed when it started and worked our way back to the most likely place it happened. So I decided that because most of us will hear from someone we know who had their holiday interrupted by a fraudster. So let’s be prepared to stop them as best we can by staying sharp and prepared to act quickly should something happen.

Once you find out or suspect, contact the bank or lending institution’s fraud department. Go over the recent purchases for the few days. You will need to answer some questions and fill out a form you receive in the mail. If you card is compromised, you will need to cancel the card and wait till you get a new one. Some credit unions can now reissue a card on site, others require you to wait till they can mail the replacement.

Advise the 3 credit union reporting agencies that your card was compromised. Now this is key, you can put a ‘freeze’ for three months or just have it on file that no more purchases can be made on a previous card/account. If you freeze for the three-month period, you cannot open any new accounts or take loans out without going through a process. So think carefully on what you want to achieve. The credit agencies will walk you through your options. I would also suggest getting a three to six month credit watch to catch any other potential problems.

SOME SCENARIOS TO THINK ABOUT

First you need to remember that fraudsters plan for the holidays just like the rest of us. And they know that this is the time we get scattered and forgetful. Here are a couple of scenarios to think about as you shop and eat your way through the holidays. Take some time to find out what is going on out there and then stay aware.

PICTURE PERFECT FIENDS

These people can memorize numbers, names and pictures in a what seems nanoseconds. And, this is most likely what happened to one of my friends. This scheme happens when someone stands behind or within visual range of your activity at a check-out stand (cashier). When you pull out your card to swipe it, most of us hang on to it or set it down while waiting for the cashier to finish what he/she is doing. In that moment, the individual behind you memorizes the card name, number and necessary details. Yes, it’s that fast. They often don’t purchase anything, they excuse themselves from the line with some excuse and get into another line later. They only need to do this a couple of times to get enough card numbers to go and create a fake card and then test it out by purchasing small items. Usually at a grocery store or gas station. If all goes well, they try again with a higher amount and if that works, they go for broke.

TAKING A BITE OUT OF YOUR WALLET

Another way is when hand the card to the cashier and he/she is processing the card and the card gets skimmed either along the side of the register or underneath the register. This is a more rare scenario as most of us would see this action. However, if you are at a restaurant, the card goes back with the server and can get skimmed by them and then processed at the restaurant as well.

SURPRISE, ITS A FAKE

Also, it is a good idea to make sure the server returns your credit card and not a substitute. ALWAYS check the card returned to you. Accidents do occur, and that could make someone else who gets your card and leaves a happy scammer to, but you can avoid that easily by making sure you check the card you received as well as the receipt you sign.

In closing, it’s always best to Google current fraud schemes. You would be amazed at what fraudsters come up with each season. At the same time, it’s very sad that the same old con-methods continue to work every day. Stay safe and be aware during the holidays.

SOME LINKS FOR VIEWING

I have just started to check out this website Scambusters. They have some good information regarding fraud, but they also sell products. I will let you know if I get valuable information later on after some time to review their ongoing newsletters.

Another recent find, today to be exact, is this site InventHelp. They have quite a variety of scam and fraud information. I will report back later on how their information was helpful to me. But they did have some helpful information.

And don’t forget the FED‘s; the love a good take-down on the bad guys. Also, this site IC3 is good for information and to report fraud crimes. They work very closely with the FED’s and have good information for Internet safety protocol and scam information.

Stay Safe and Report Fraud!

 

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